How Cash Advances Work
"Cash advance" means three very different products. The cheapest is a paycheck-advance app; the most expensive is a storefront payday cash advance. Picking the wrong one can cost 10× more in fees.
1. Credit card cash advance
Withdraw cash from your credit card at an ATM or bank. Costs:
- Cash advance APR: usually 25%–30% (higher than your purchase APR)
- Cash advance fee: 3%–5% of the amount, $10 minimum
- No grace period — interest accrues immediately
- ATM fee from the bank ($3–$5)
A $500 cash advance held 30 days typically costs about $35 — pricey, but far cheaper than payday alternatives.
2. Paycheck advance apps (Earnin, Dave, Brigit, MoneyLion)
These advance you part of your already-earned pay before payday. Most are free or charge a small monthly subscription ($1–$10) plus optional tips. The CFPB has flagged some apps as functionally similar to payday loans because tips and fees can push effective APRs above 300%, but used carefully — small advance, no tip, repaid on payday — they're usually the cheapest option.
3. Payday cash advance (storefront or online)
A "cash advance loan" at a payday lender is just a payday loan. Effective APRs run 300%–600% in states that allow them. See payday loans and your state's loan laws.
Quick comparison
| Type | Typical cost on $300 for 14 days | Best when |
|---|---|---|
| Paycheck advance app | $0–$10 | You need it before payday only |
| Credit card cash advance | $12–$18 | You'll repay within a billing cycle |
| Payday cash advance | $45–$90 | Almost never — try the other two first |
Smarter alternatives
- Personal loans for $1,000+ needs
- Credit union PAL (capped at 28% APR)
- Negotiating directly with the creditor you owe
Reviewed by Megan Holcomb. See our fact-checking policy.