When it comes to credit cards, there are a number of features that come with it and you have to pay attention. They include a number of fees for different transactions that come with the credit card. There are fees, such as cash advance fees that you need to pay attention to.

Cash advance fees are needed when you don’t want to buy something through your card but would rather withdraw cash from the card. And, most credit cards support the idea of cash advances. But, what kind of fees are charged when you withdraw money from your card?

To find out more about credit cards and what kind of fees it comes with, you need to read on. Info on cash advance and what fees most cards carry when it comes to that can be found here. 

A Brief Guide to the Cash Advance Fee
Photo credit: Nerdwallet.com

What Are Cash Advances?

In essence cash advances are an amount that you can withdraw from your credit card. See, credit cards aren’t just for purchases alone. So, they are more or less a small loan that you take.

A cash advance can also be a loan that you take from a bank or from any other lender out there. In most cases, these loans are associated with huge interest rates and fees.

Cash advance is quite attractive to most borrowers because they are fast to get approval for, and they also feature a quick finding process too.

Credit Card Cash Advance

The first type of cash advance that you are quite familiar with is the credit card cash advance. This is where instead of making a purchase using your card, you instead take out cash from the card.

And, you can make a withdrawal through an ATM or any other means depending on your credit card issuer. These sorts of transactions tend to carry quite high fees as opposed to when you make a purchase through the card. 

There is no grace period for cash advances, your interest piles up immediately. For most cards, the advance carries interest and a fee as well.

Payday Loans

At some point, you may have been forced by circumstances to use a payday loan. They too, fall under cash advances since you get an advance against your salary on payday.

The issuer in this case doesn’t take your credit into consideration and only looks at your pay. And, they come with extremely high fees and they have to be paid on the borrowers next payday. But, you can choose to extend the days for a higher interest rate.

Most of the lenders have you sign an agreement that allows them to electronically receive their money as soon as you are paid. You’ll need to read the agreement carefully before you sign up. You also have to give personal and income info for you to get the loan.

Merchant Cash Advances

Quick and small loans from any institution be it a bank or any merchant is more or less a cash advance. For example, if you have a business that doesn’t have a credit or has less-than-perfect credit, you can use cash advances for operations.

When it comes to lenders and cash advances, you get your cash advance if the lender determines your creditworthiness. This is done through looking at how much money your business receives.

Cash Advance Fees

A Brief Guide to the Cash Advance Fee
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There’s a difference when it comes to rates and fees. Rates, first of all, pile up as long as they aren’t paid for. For credit cards, your rate is calculated on the APR and will be due when your next credit card payment is.

As for fees, this is a one-time amount that you have to part with in order to get that cash advance. They are usually a percentage of what you had borrowed, for example, 3% – 5% of the amount. 

In some cases, it is set fee, for example, $5 and it usually is the greater on between the amount and the percentage.


Most credit cards have a number of fees that they are associated with. Cash advance fees allow you to withdraw cash from your account.