What is a credit card cash advance fee? This question is about Credit Cards

What is a credit card cash advance fee?

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This question is about Credit Cards

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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 Cash advance fees are a percentage of the amount withdrawn (usually 2%-5%), a flat fee (typically $10-$15), or whichever option is more expensive.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 score?

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 can I get a Capital One cash advance?

To get a Capital One cash advance, use a Capital One credit card and a corresponding PIN at a participating ATM and withdraw the cash, up to the card’s available cash advance limit. If you do not have a PIN, contact Capital One customer service at the number on the back of your card to request one.… read full answer

How to Get a Capital One Cash Advance at an ATM

Call Capital One customer service at the number on the back of your card and request a PIN, if you don’t already have one.

Insert the credit card into an ATM and enter the PIN.

Select the cash advance option on the ATM screen.

Enter the amount you’d like to withdraw.

Withdraw the cash and remove the credit card from the ATM.

There may be other ways to get a cash advance from your Capital One credit card, too. For example, you can request a cash advance in person at a local Capital One branch. You could also write out a Capital One cash advance check and use it like a traditional bank check.

Before you take out a Capital One cash advance, it’s important to note that it is a very expensive transaction. For starters, a cash advance fee and a separate cash advance APR apply as soon as you withdraw the cash. There may also be ATM-owner fees, depending on where you make the cash advance.

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