Before you spring for a credit card cash advance, you should consider whether a credit card with a 0% APR or a personal loan could be a better option for you.
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Financial emergencies happen to everyone — and, usually, at the worst possible time. When your car breaks down and it’s still five days until payday, a cash advance may seem like a good idea because of its convenience. But you should avoid credit card cash advances, because of their fees and high interest rates. Instead, we recommend using a card with a long 0% intro APR, so you can pay off large purchases over time without paying interest. Or you can take out a personal loan as a lower-cost option with more flexible terms.
Before you decide what’s right for you, read on to learn about exactly how cash advances work, their true cost and alternative options for a cash advance.
A cash advance is a way to take the available credit on your credit card and use it to take a loan in the form of cash. Essentially, you’re using your credit card to borrow cash, rather than charging a purchase to your credit card. You’ll have to pay back what you’ve borrowed, and there’s usually no grace period for interest.
A cash advance is a type of loan, though it’s not the same as a personal loan. A personal loan is a type of installment loan that allows borrowers to take a one-time cash payment. This is paid back plus interest in monthly payments over a set period of time. Cash advances are shorter term loans from your credit card rather than a lender, and charge higher fees and interest rates than personal loans.
Common ways to get a cash advance include:
Making a cash advance comes with a fee decided by the credit card issuer. Most issuers will charge either a flat-fee or a percentage, depending on which is greater. The fee is usually around 5% or $10.
It’s typical for issuers to limit how much cash you can get from a cash advance. This cap might be set at a percentage of your card’s credit limit, like 30%.
Let’s take a look at how much a $1,000 cash advance would cost if you paid it back in 30 days using a credit card with a cash advance fee.
This card has a cash advance APR of 17.99% and 5% cash advance fee.
As you can see from our math below, you’d pay more than $60 in taxes and fees (more than 6% of the principal) for this short-term loan. This is a hefty amount compared to what you might pay with a personal loan, and it assumes you can pay off your balance in the first month. If you continue to carry a balance, the interest could build up rapidly.
| Step | Calculation |
|---|---|
| Divide the cash advance rate (write it as a decimal) by the number of days in a year to get the daily rate | 0.1799 ÷ 365 = 0.0004928 |
| Multiply 0.04928 by the cash advance amount | 0.0004928 x $1,000 = $0.49 |
| Multiply $0.49 by 25 (number of days in a billing cycle) | $0.49 x 25 = $12.25 |
| Multiply $1,000 by cash advance fee | $1,000 x 0.05 = $50 |
| Add $12.25 to the cash advance fee | $12.25 + $50 = $62.25 |
| Total cost | $62.25 |
You can find a few credit cards that wave the cash advance fee and offer a reasonable APR for cash advances. While a cash advance credit card generally isn’t the best option for paying off debt, you should consider the following cards if you want to opt for a cash advance:
| Card | Cash advance fee | Annual fee | Cash advance APR | Regular purchase APR |
|---|---|---|---|---|
| PenFed Gold Visa® Card | $0 | $0 | 17.99% variable | 17.99% Variable |
| PenFed Platinum Rewards VISA Signature® Card | $0 | $0 | 17.99% | 17.99% variable |
| PenFed Power Cash Rewards Visa® Card | $0 | $0 | 17.99% | 17.99% Variable |
| DCU Visa® Platinum Credit Card | $0 | $0 | 13.25% to 18.00% (variable) | 13.25% to 18.00% (variable) |
| DCU Visa® Signature Cash Rewards Card | $0 | $0 | 16.00% to 18.00% (variable) | 16.00% to 18.00% (variable) |
| DCU Visa® Platinum Secured Credit Card | $0 | $0 | 16.25% (variable) | 16.25% (variable) |
There are a number of ways to avoid having to take a cash advance that are far less expensive and will leave you in a better financial situation. We suggest leaving a cash advance as a last resort and trying one of these first.
Using a card with a long 0% intro APR is an excellent way to avoid fees and interest altogether. Emergencies happen and you may not be able to pay for them immediately — a 0% intro APR credit card offers up to 21 months to pay off that emergency purchase without paying interest. This is a much better option than a cash advance. These cards also come with lower APRs and sign-up bonuses that can help you pay off the purchase. Plus, many of these cards have no annual fee.
How LendingTree Rates Credit Cards?
Our experts rate credit cards based on several factors including card benefits, bonus offers and independent research. Credit card issuers do not influence or have a say in our card ratings. Read our credit card methodology here.The U.S. Bank Visa® Platinum Card has a long 0% intro APR for 21 billing cycles on Purchases, then a 18.24% - 29.24% (Variable) APR applies. It also offers cellphone protection, a $0 annual fee and the ability to choose your payment due date.
How LendingTree Rates Credit Cards?
Our experts rate credit cards based on several factors including card benefits, bonus offers and independent research. Credit card issuers do not influence or have a say in our card ratings. Read our credit card methodology here.The Capital One SavorOne Cash Rewards Credit Card comes with a longer-than-average APR of 0% intro on purchases for 15 months, followed by a 19.99% - 29.99% (Variable) APR. This card also offers excellent rewards on dining and entertainment purchases, solid cash back on dining, grocery and streaming service purchases and a huge 10% cash back on Uber and Uber Eats purchases. Plus, with a $0 annual fee, you’ll be able to pay off a large purchase while earning valuable rewards.
How LendingTree Rates Credit Cards?
Our experts rate credit cards based on several factors including card benefits, bonus offers and independent research. Credit card issuers do not influence or have a say in our card ratings. Read our credit card methodology here.The Citi Custom Cash® Card offers a long intro APR on purchases and balance transfers. You’ll get a 0% intro APR for 15 months on Purchases, then a 18.49% - 28.49% (Variable) APR. Just know that if you choose to do a balance transfer with this card, you’ll be subject to a balance transfer fee of Balance transfer fee applies with this offer; 5% of each balance transfer; $5 minimum. This card also comes with a unique cash back program that’s tailored to your spending habits and a $0 annual fee.
How LendingTree Rates Credit Cards?
Our experts rate credit cards based on several factors including card benefits, bonus offers and independent research. Credit card issuers do not influence or have a say in our card ratings. Read our credit card methodology here.The Discover it® Cash Back card offers a solid intro APR on purchases and balance transfers. You’ll enjoy 0% Intro APR for 15 months on purchases, followed by a 18.74% - 27.74% Variable APR. It also offers one of the highest rewards rates out there, though rewards are limited to categories that rotate each quarter. These categories may include grocery stores, restaurants and gas stations and require activation. Plus, you’ll also earn an unlimited cash back match after your first year — a great deal for new cardholders.
INTRO OFFER: Unlimited Cashback Match for all new cardmembers–only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300.
Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases.
Redeem your rewards for cash at any time.
Apply and you could get a decision in as little as 60 seconds. No annual fee.
Start shopping and earning rewards in minutes with our digital card, before your physical card arrives in the mail, if eligible.
Discover could help you reduce exposure of your personal information online by helping you remove it from select people-search sites that could sell your data. It’s free, activate with the mobile app.
Get a 0% intro APR for 15 months on purchases. Then 18.74% to 27.74% Standard Variable Purchase APR applies, based on credit worthiness.
Terms and conditions apply.Updated on 11_25_2024Updated on 11_25_2024Updated on 11_25_2024Updated on 11_25_2024Updated on 11_25_2024Updated on 11_26_2024Updated on 11_26_2024Updated on 11_26_2024Updated on 11_26_2024Updated on 11_26_2024Updated on 11_27_2024Updated on 11_27_2024Updated on 11_27_2024Updated on 11_27_2024Updated on 11_27_2024
How LendingTree Rates Credit Cards?
Our experts rate credit cards based on several factors including card benefits, bonus offers and independent research. Credit card issuers do not influence or have a say in our card ratings. Read our credit card methodology here.The Wells Fargo Reflect® Card offers one of the longest intro APRs available among popular credit card issuers: 0% intro APR for 21 months from account opening on purchases, then a 17.49%, 23.99%, or 29.24% Variable APR applies. It has a $0 annual fee, plus benefits like cellphone protection and zero liability protection, which protects you from unauthorized transactions. Even though it doesn’t offer rewards or a sign-up bonus, its long interest-free period can be well worth it for paying off large purchases.
Credit cards with 21-month-long intro APR
Credit cards with 18-month-long intro APR
Credit cards with 15-month-long intro APR
Credit cards with 12-month-long intro APR
If you aren’t facing a cash emergency, you may want to look into a personal loan. APRs for personal loans can range from 3% to 36%. If you have a good credit score (670 or higher), you’re likely to be offered an interest rate lower than what you’d pay on a credit card cash advance. Plus, personal loans offer set monthly payments and repayment dates, and interest generally doesn’t start accruing from day one.
You may be able to apply for a personal loan with a bank, a credit union or an online lender.
Note, however, that you may be charged an origination fee for your personal loan.
By doing a balance transfer from a credit card with a high interest rate to a card with a lower interest rate, you may be able to pay less in fees and interest than with a cash advance. A bank may send you a convenience check for a 0% APR balance transfer offer to move debt from your current card to a new one with them. This makes sense if the interest rate is lower than your current one. Sometimes issuers offer a 0% APR introductory promotion for a specified number of months. But, only do this if you’re certain you can pay off your card before the higher interest rate kicks in.
The Discover it® Balance Transfer card is an excellent example of a balance transfer credit card. It has a long intro APR on balance transfers and comes with a cash back program with rotating categories, making it a card you can keep around after paying off your balance transfer.
In situations where you have an unexpected expense, don’t underestimate the power of an honest conversation with the company’s billing department. See if they can delay the payment date or split the bill into monthly payments. Whatever you do, being proactive and acknowledging the debt will go a long way, especially in negotiating medical bills.
Borrowing from people you know isn’t the best strategy — but in a pinch, it could be an option. Generally, your loved ones may be more willing to help you out in troubled times. They’re likely to be flexible with repayment terms and expect little, if any, interest.
The downside is that if they need the money back before you’ve repaid it, or if you don’t hold up your end of the bargain, your relationship could become awkward. If you decide to borrow from your family, create a personal loan contract, so you’ll all be on the same page.
Rather than pay interest on a credit card cash advance or a personal loan, you may be able to use a mobile app to get money from your paycheck before payday. While you may end up paying a tip or a small fee to use one of these apps, you’ll likely pay less than what you’d accrue in interest if you were to get a credit card cash advance.
Earnin
To use Earnin, you’ll need to link a checking account and add your employment info. You’ll get $100 per pay period at the start, and your limit has the potential to increase to $750 per pay period as you demonstrate responsible use of the app. Earnin doesn’t charge fees or interest, and instead relies on users to tip what they feel is fair. Any cash you’ve received, plus tips, is deducted from your account on or after payday.
Chime
Access your paycheck up to two days early when you set up mobile banking through the Chime app. For times when you need cash before payday, use the SpotMe service. Qualifying members will receive a debit card with up to $200 that they can apply toward debit card purchases and cash withdrawals with no extra fees.
DailyPay
You can use DailyPay to get early access to your paycheck if your employer signs up and offers it as a benefit to employees. There’s a $1.99 fee for next day transactions and a $2.99 fee for instant transactions. Employers can choose to pay these fees or leave them for employees.
| Best issuer for a cash advance credit card | Card | Cash advance fee | Annual fee | Cash advance APR | Regular purchase APR |
|---|---|---|---|---|---|
| Best Chase cash advance credit card | Chase Freedom Flex℠ | Either $10 or 5% of the amount of each transaction, whichever is greater. | $0 | 29.49% Variable | 19.74% - 28.49% variable |
| Best Capital One cash advance credit card | Capital One SavorOne Cash Rewards Credit Card | 5% of the amount of the cash advance, but not less than $5 | $0 | 29.99% (Variable) | 19.99% - 29.99% (Variable) |
| Best Citi cash advance credit card | Citi Double Cash® Card | 5% of each cash advance; $10 minimum | $0 | 29.74% (Variable) | 18.49% - 28.49% (Variable) |
| Best Wells Fargo cash advance credit card | Wells Fargo Reflect® Card | Refer to Important Credit Terms | $0 | Refer to Important Credit Terms | 17.49%, 23.99%, or 29.24% Variable APR |
| Best Bank of America cash advance credit card | BankAmericard® credit card | 4% of the amount of each transaction | $0 | 18.74% - 28.74% Variable APR | 15.74% - 25.74% Variable APR |
| Best Discover cash advance credit card | Discover it® Cash Back | Either $10 or 5% of the amount of each cash advance, whichever is greater. | $0 | 29.74% Variable APR | 18.74% - 27.74% Variable APR |
Simply put, a cash advance is when you use your credit card to get cash. For example, if you use your credit card to withdraw cash from an ATM (which will require a PIN), this is a cash advance. You might also get convenience checks in the mail, offering you the ability to get cash from your credit card — using such a check constitutes a cash advance as well.
You can use a cash advance to borrow cash from your credit card in one of the following ways:
Get a cash advance at your bank:
1. Let your bank teller know you’re looking for a cash advance
2. Use your credit card to complete the transaction
Get a cash advance at an ATM:
1. Insert your card
2. Enter your Pin
3. Select the cash advance option
4. Complete the transaction and receive your cash
Get a cash advance using a check:
1. If you have a check (sometimes referred to as a convenience check) from your credit card issuer, fill one out and name yourself as the payee.
2. Cash or deposit the check at your bank.
It’s typical for issuers to limit how much cash you can get from a cash advance. This cap might be set at a percentage of your card’s credit limit, such as 30%. To find out your exact cash advance limit, check your online account or call the number on the back of your card.
Many credit cards charge a cash advance fee in the vicinity of 5%. So, for example, it would cost you $15 to get a $300 cash advance on a card with a 5% cash advance fee. It is possible to find credit cards with no cash advance fee, such as the six we’ve selected for this article.
Taking a cash advance doesn’t hurt your credit score because it’s not a specific item that’s listed on your credit report. However, as you repay the advance, making late payments on your credit card may cause a drop in your credit score.
Using a credit card to send money via PayPal, Venmo or MoneyGram are typically considered as cash advances. In addition, purchasing lottery tickets and casino chips or exchanging foreign currency with your credit card may be processed as a cash advance.
You can get a cash advance at an ATM, but you’ll need to know your PIN for your credit card.
If you have a credit card that allows cash advances, you can withdraw cash from an ATM or at a bank in a couple of minutes.
We don’t know of any credit cards that offer a 0% APR for a cash advance. Most cash advance credit cards charge interest as soon as you complete the cash advance. However, credit union credit cards often come with a lower-than-average APR for cash advances.
You can’t borrow cash from your credit card without doing a cash advance, but there are other ways to earn cash from your credit card. Cash back credit cards offer anywhere from 1% to 6% cash back on purchases. This can be redeemed as a direct deposit, a statement credit, a paper check by mail or an ATM withdrawal.
In selecting the best credit cards for a cash advance, we’ve selected cards that don’t charge a cash advance fee and cards with a lower cash advance APR and regular purchase APR. All of the cards on this list charge no annual fee.
For Capital One products listed on this page, some of the benefits may be provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply
The information related to the PenFed Gold Visa® Card, PenFed Platinum Rewards VISA Signature® Card, PenFed Power Cash Rewards Visa® Card, DCU Visa® Platinum Credit Card, DCU Visa® Signature Cash Rewards Card, DCU Visa® Platinum Secured Credit Card, U.S. Bank Visa® Platinum Card, Capital One SavorOne Cash Rewards Credit Card, Citi Custom Cash® Card, Discover it® Cash Back, Wells Fargo Reflect® Card, Citi Simplicity® Card, BankAmericard® credit card, Chase Freedom Unlimited®, Wells Fargo Active Cash® Card, Capital One VentureOne Rewards Credit Card, PNC Core® Visa® Credit Card, Wells Fargo Autograph℠ Card, Ink Business Cash® Credit Card, Discover it® Balance Transfer, Chase Freedom Flex℠ and Citi Double Cash® Card has been collected by LendingTree and has not been reviewed or provided by the issuer of this card prior to publication. Terms apply.
The content above is not provided by any issuer. Any opinions expressed are those of LendingTree alone and have not been reviewed, approved, or otherwise endorsed by any issuer. The offers and/or promotions mentioned above may have changed, expired, or are no longer available. Check the issuer's website for more details.
