Short answer: a credit card cash advance is fast if you already have a card, but it is expensive: there is usually a fee, the interest rate is commonly higher than for purchases, and interest starts the day you take the cash, with no grace period (CFPB). Repaid over 12 months, $1,000 in cash can cost more than a personal loan at the same or even a higher APR, because of the fee.
How a cash advance is priced
- Fee: card companies charge a flat fee or a percentage of the advance, and an ATM may add its own fee (CFPB). In a CFPB review of card agreements, most charged the greater of $10 or 5% (CFPB, 2024).
- Rate: the most common cash advance APR in the agreements the CFPB reviewed was 30% (CFPB, 2024).
- No grace period: interest on a cash advance starts as soon as you withdraw the money (CFPB).
- Separate limit: many cards have a lower limit for cash advances than for purchases (CFPB).
Cost on $1,000, repaid over 12 months
Assumptions: you need $1,000 in cash and repay it in 12 equal monthly payments. Cash advance: 5% fee ($50) added to the card balance and a 30% APR, with interest worked out monthly (card issuers often compute it daily, which costs slightly more). Personal loans: no origination fee, fixed APR of 20% or 36%. No ATM fee.
| Option | Monthly payment | Total cost (all payments minus $1,000) | Cost as an APR on the cash |
|---|---|---|---|
| Card cash advance, 5% fee, 30% APR | $102.36 | $228.34 | about 40% |
| Personal loan, 20% APR | $92.63 | $111.61 | 20% |
| Personal loan, 36% APR | $100.46 | $205.55 | 36% |
The $50 fee is the reason the cash advance costs more than the 36% loan here: spread over one year, it adds about 10 points to the cost. If you can repay the advance within a month or two, the fee matters more and the interest less. If a personal loan has an origination fee, add it; our origination fee calculator shows the effect.
Other differences
| Card cash advance | Personal loan | |
|---|---|---|
| Application | None if you already have the card | Application and usually a credit check |
| Payment | Card minimum payment, can stretch out the balance | Fixed payment and end date |
| Credit report | Raises your card balance and utilization | New account and a hard inquiry |
| Cost disclosure | In your card agreement | Truth in Lending disclosure before you sign |
For how a loan application affects your credit, see does applying for a personal loan hurt your credit. If you are comparing a cash advance with a payday loan, read personal loan vs payday loan first; federal credit unions also offer small payday alternative loans to their members (NCUA).
Before you choose
- Look up the cash advance fee and APR in your card agreement, not the purchase APR.
- Work out how many months you really need to repay.
- Compare the total dollar cost, not only the monthly payment.
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Disclosure: Modern Lending Solutions is not a lender, loan broker or agent for any lender or loan broker, and does not make credit decisions. Any compensation we receive is paid by participating lenders, only for advertising services. This guide is general information, not financial or legal advice.