What is a cash advance on a credit card?

Question

ClearValue Editorial Team · Accepted Answer

A cash advance lets you borrow cash against your card's available credit — at an ATM, bank, or via a convenience check — but it costs more than a purchase: a per-transaction fee applies and interest starts accruing the same day with no grace period. Issuers define cash advances broadly. Beyond ATM and teller withdrawals, most agreements also classify wire transfers, foreign currency, traveler's checks, money orders, lottery tickets, and gambling chips as cash advances. Three costs stack up: an upfront fee (a flat amount or a percentage, whichever is greater), a higher APR listed separately from purchases, and immediate interest with no grace period — plus any out-of-network ATM operator fee. Your cash advance limit is almost always lower than your total credit limit; a $5,000 card might allow only $500 in advances, so check before you need it. The combination of upfront fee, elevated APR, and same-day interest can make even a small advance expensive if it isn't repaid quickly.