What is a credit card cash advance fee?

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@WalletHub • 05/06/20 This answer was first published on 03/30/20 and it was last updated on 05/06/20.For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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A credit card cash advance fee is a fee charged for withdrawing cash from the credit line on a credit card, using an ATM withdrawal or a convenience check. Cash advance fees are a percentage of the amount withdrawn (usually 2%-5%), a flat fee (typically $10-$15), or whichever option is more expensive. The latter scenario is the most common. For example, if you take out a $250 cash advance with a credit card that has a cash advance fee of 5% or $10, whichever is greater, the fee will amount to $12.50 (5% of $250).

In addition to cash advance fees from your credit card issuer, you’ll likely pay $2-$5 in ATM fees if you use your credit card to make a withdrawal. On top of those fees, you’ll also have to pay the credit card’s cash advance APR. The interest rate for a cash advance is usually even higher than a credit card’s regular APR, and cash advances begin accruing interest immediately. Typically, cash advance APRs are 20%-36%.

Cash Advance Fees by Credit Card Company

Company	Typical Cash Advance Fee
American Express	5% ($10 minimum)
Bank of America	5% ($10 minimum)
Barclays	5% ($10 minimum)
Capital One	3% ($10 minimum)
Chase	5% ($10 minimum)
Citi	5% ($10 minimum)
Discover	5% ($10 minimum)
USAA	3% (waived when transferring funds to a USAA deposit account)
U.S. Bank	3% ($5 minimum) for convenience checks; 4% ($10 minimum) otherwise
Wells Fargo	5% ($10 minimum)

All in all, cash advances are essentially very expensive short-term cash loans. While they’re helpful in an emergency, you should avoid cash advances whenever possible.

Information in the table above is current as of May 2020 and does not apply to every card from each issuer, as some rates and fees may differ.

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People also ask

Do cash advances hurt your credit?

Taking out a cash advance has no direct impact on your credit or credit score unless this operation leads to a credit utilization of more than 30-40%.

Just remember that cash advances are very expensive, ultimately causing you to pay much more money ( through fees and interest rates) than you initially withdraw.… read full answer

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How do I get a Capital One cash advance?

You can get a Capital One cash advance by making an ATM withdrawal using a Capital One credit card along with a custom account PIN.

To get or reset your PIN, either log in to your online account or by call the number on the back of your card. You may be able to get your PIN instantly either by text or e-mail. In other cases, you will get it by mail in 7-10 business days.… read full answer

Other ways to do a Capital One cash advance include using a convenience check or visiting a Capital One branch.

A Capital One cash advance is convenient if you need emergency cash. But it is an expensive transaction. You’ll be charged a 3% (min $10) cash advance fee for each transaction, along with any ATM fees. You’ll also be charged a cash advance APR as high as 26.99% (V) that kicks in immediately.

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