How cash advance fees and interest work
Updated November 7, 2026
Cash advance fees work differently depending on what kind of advance you have. On a credit card, you usually pay an upfront fee and interest starts the day you withdraw. On a payday loan, you usually pay a flat fee per $100 borrowed, due with the loan. Either way, the number to compare is the total you would repay, not the fee on its own.
We are not a lender and we do not set any of these costs. Sending a request through FirstCashAdvances is free. A loan, if you take one, has costs set by the lender.
How does cash advance interest work on a credit card?
Interest on a credit card cash advance usually starts at once. The Consumer Financial Protection Bureau says that interest on a cash advance starts as soon as you withdraw your money, unlike purchases, which have a grace period. Its page on grace periods adds that grace periods typically apply only to purchase transactions.
The same CFPB page says you commonly pay a higher rate for a cash advance than for a typical purchase. Your latest statement lists the current cash advance rate, so you can check yours today.
Sources, read November 7, 2026: CFPB, Can I withdraw money from my credit card at an ATM? and CFPB, What is a grace period for a credit card?
What is the cash advance fee?
The fee is what you pay just for taking the cash. The CFPB says a card company may charge a flat fee or a percentage of the advance, and that fees can be substantial. If you use an ATM, its owner may add a separate charge. Check your card agreement for your exact figures.
What does a payday loan fee look like?
A payday loan normally charges a fee for every $100 borrowed. The CFPB reports that many state laws cap this fee at between $10 and $30 per $100. The Federal Trade Commission's example is a $15 per $100 fee, which on a two week loan equals an APR of 391 percent. On $500, that means repaying $575 two weeks later.
Sources, read November 7, 2026: CFPB, What is a payday loan? and FTC, What to know about payday and car title loans.
Why does a small fee become such a large APR?
APR states the cost as a yearly rate so that loans of different lengths can be compared. A $15 fee on $100 for two weeks looks small. Repeat that rate across a whole year and it comes to about 391 percent. You are not charged for a whole year, but the APR tells you how expensive the money is for the time you hold it. It also shows what happens if a short loan keeps getting renewed, because each renewal can add a new fee while the amount you borrowed stays the same.
How do the costs compare?
| Cost | Credit card cash advance | Payday loan |
|---|---|---|
| Upfront or flat fee | Flat fee or a percentage of the advance, plus any ATM charge | Fee per $100, due with the loan |
| Interest | Starts at once, commonly at a higher rate than purchases | Usually built into the fee |
| Grace period | Generally none | Not applicable |
| Where to read it | Your card statement and agreement | The loan agreement, before you sign |
What should you check on any offer?
Lenders are the ones who show you these numbers. Before you accept any offer, find these five things and write them down:
- The amount you receive. It can differ from the amount you asked for.
- The APR. This is the fairest single number for comparing two offers.
- Every fee. Look for origination, late payment and returned payment fees.
- The due dates. Check them against the days your pay actually arrives.
- The total you would repay. Subtract what you receive from this number. The difference is what the loan costs you.
If an offer does not show these clearly, treat that as a reason to stop. Saying no costs you nothing, and our guide on safe offers covers the warning signs.
Questions people ask
How does cash advance interest work on a credit card?
Interest usually starts on the day you take the money. Grace periods typically apply only to purchases, so there is generally no interest free window on a cash advance, and the rate is commonly higher than your purchase rate.
What is APR on a short term loan?
APR expresses the cost of borrowing as a yearly rate, including certain fees. It lets you compare loans of different lengths. A short loan with a modest looking fee can carry a very high APR, so compare the APR and the total you would repay.
Next steps
See cash advance vs payday loan to compare the products themselves, or how long a cash advance takes if timing is the worry. When you are ready, the request form is free, with no obligation.