National cash advance
What is a credit card cash advance fee?
In a Nutshell
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This offer is no longer available on our site: The Amex EveryDay® Credit Card from American Express
Need cash, but only have your credit card?
Normally when you use your credit card to make a purchase, you charge the cost to your line of credit and then pay for your purchases in a statement later. But did you know you can also use your credit card to access cash?
“When you use your credit card to get cash instead of buying something, that’s a cash advance,” says Neal Frankle, Certified Financial Planner™ and the creator of CreditPilgrim.com. You can make the transaction at a bank or ATM, or by cashing checks provided by your credit card company at your local bank.
But this transaction comes at a cost.
“The cash advance fee is what the credit card company charges you to make this advance,” says Frankle.
A credit card cash advance could be costly. On top of repaying the cash you borrowed, you’ll likely pay a high APR on the balance. Before you use your card to get cash, know what the fees look like and understand the alternatives.
How much does a cash advance fee cost?
Credit cards often come with different fees, APRs and terms. It’s critical to read the fine print on the specific card you hold or want to open.
For cash advances, most companies charge a flat fee or percentage of the transaction – whichever is greater. Some banks will vary the amount based on how you access the cash.
But the fee isn’t the only cost associated with cash advances. You’ll pay interest on the transaction, too. This is different than the interest on normal balances because it starts accruing immediately without a grace period.
Here’s a list of popular credit cards and how they charge cash advance fees: