May 18, 2025 · 10 mins read
Santosh Kumar
If you're running low on cash and in urgent need of cash, you might be thinking about using your credit card for a cash advance. However, not all credit cards are the same in terms of providing good cash advance terms.
That is why it's essential to get things right when searching for the best cash advance credit card that imposes the least amount of fees and interest charges while giving you a way to access cash and flexibility in a time of need.
A cash advance allows you to get cash using your credit card, either from an ATM or a convenience check issued by your card issuer.
Basically, it is a short-term loan from your available credit limit. You can receive cash quickly, but you will pay higher fees and interest than with a regular purchase.
Here is how it usually works:
1: Go to an ATM or your bank and use your credit card, much like a debit card.
2: You enter your PIN and request an amount of cash.
3: The cashier gives you the cash, but the amount goes against your available credit limit, not your bank account.
It is easy and convenient, but there are some costs, as you will incur cash advance fees, ATM fees, and very high interest rates from day one.
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Fast Liquidity: Cash advances provide fairly immediate access to cash. For instance, if you have a medical situation, are going away and need cash and have run out of time to go to the bank before you leave, or you need to pay a utility bill and the due date is today, a cash advance provides easy access to cash and can help you in an emergency.
No Extra Credit Check: When applying for a personal loan, even for a small amount, that credit inquiry may impact your credit score (unless it is a soft credit inquiry). In the case of a cash advance (emergency loan), there are no applications, or soft/hard credit inquiries, etc. If you already have a credit card, you may qualify for a cash advance up to the limit.
Numerous ATMS: With an ATM affiliated with your credit card van network (Visa, Mastercard, Discover), at times, you may have access to thousands of ATMS both domestically and internationally, even in small towns. This means the reliability of a cash advance.
Sometimes a Cash Advance is Necessary: Some service providers, such as small landlords and rural businesses, only expect cash payment. If you have a need for a cash advance, this provides a way if you don’t have pockets full of cash.
No Usage Restrictions: You can have total confidence in using a cash advance without limitations like some loans and/or gift cards. The way that you utilise the cash is your choice. Whether it is paying rent, buying groceries, or fixing a car, a cash advance is a cash advance, and it is yours to decide the best way to use it.
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High Interest Rates: Cash advance interest rates hover around 25% to 30%, which is much higher than a standard purchase rate. This will add up quickly if you do not pay it back soon.
No Grace Period: Unlike most regular purchases that have a grace period of at least 20 - 30 days, interest starts to accrue as soon as you draw the money out.
Fees: You will likely have to pay a flat fee and then also a percentage of your amount. In some cases, that percentage can be up to 5%, which is substantial when you need quick cash in a pinch.
Lower Cash Advance Limits: Many credit cards will give you a cash advance limit, which is significantly lower than your total credit limit. This could be anything from 20% - 30% of your total limit.
Debt Spiral: Given the high fees and interest rates, borrowing frequently on a cash advance can create long-term debt, especially if you are continuing to draw money on an advance on a regular basis.
Effects of Credit Utilisation: High usage limits of your credit line - regardless of cash advances - can affect your credit utilisation, which can lower your score.
Not every card is designed for cash advances. When looking for the best cash advance credit card, you should consider these important features:
The APR is the most critical aspect. While most cards carry high APRs for cash advances, some cards, particularly from credit unions, have lower costs. Ideally, you want a card with an APR under 25%, if you can find it.
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Most cards offer a fee of the greater of $10 or 3-5% of the amount you withdraw, and you should locate cards with low or no fees. For example, some credit unions offer cards with no cash advance fee at all.
Always check to see how much of your total line of credit is available for cash advances, especially in an emergency situation. If you need more than $500, you would like to have a higher cash advance limit.
Find a card that has a sizeable ATM network, preferably with a globally recognised ATM provider. If you have a card with a major bank, often you can take fee-free advances at in-network ATMs.
While cards can increase interested rates if you miss payments, having a card that does not impose a penalty APR can be a good choice if you are accessing cash advances.
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Key Features:
1: Cash Advance APR: 29.99% (variable)
2: Cash Advance Fee: $10 or 3% of the amount (whichever is greater)
3: Rewards: Unlimited 1.5% cash back on all purchases
4: ATM Access: Very good national and international ATM network
5: Why it's a good credit card for cash advance: Capital One's digital tools and relatively predictable fees make it a trustworthy option for emergencies.
Key Features:
1: Cash Advance APR: 29.99% (variable)
2: Cash Advance Fee: $10 or 5% of the transaction
3: Rewards: 5% on rotating categories (after activation), 1% on all other purchases
4: Cashback Match: New cardholders are matched on cash back the first year
5: Best cash advance credit card for those who want to implement tracking and manage their account with transparent tools and a complete customer service experience.
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Key Features:
1: Cash Advance APR: 29.99% (variable)
2: Fee: 5% of the amount or $10 minimum
3: Rewards: 2% cash back, 1% when you buy, 1% when you pay
4: Balance Transfers: 0% for 18 months (on BTs, not cash advances)
5: Why it's a good credit card for cash advance: You have the opportunity to leverage the rewards structure to recoup some of the cash advance costs
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Key Features:
1: Cash Advance APR: Starts at 17.99% (depending on credit profile)
2: Fees: $0 for PenFed members
3: Rewards: 5x on gas, 3x on groceries, 1x on everything else
4: Membership Required: Yes, (but is open to everyone who is eligible)
5: Best Cash Advance Credit Card for someone with good credit, who qualifies for PenFed membership, who doesn't want to pay hefty fees.
Key Features:
1: Cash Advance APR: 20.24% - 30.24% (based on credit profile)
2: Cash advance fee: 3% or $10 minimum
3: Customisable Rewards: 3% in a category of your choice, 2% for grocery stores/wholesale clubs
4: ATM accessible: Over 17,000 ATMs in the US
5: Why it is a good credit card for cash advance: It has good ATM accessibility and APR is dependent on your creditworthiness.
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1. Check your cash advance limit: Log into your account online or call customer service or the number listed on the back of your card.
2. Set up or retrieve your PIN: You will need this for transactions at an ATM.
3. Find an ATM that you can use: You can use your bank's locator to find one that won't charge the extra ATM fees and identify which bank branch is available on the logo of your card.
4. Input the amount: Be sure the amount is within your daily limit and cash advance limit.
5. Complete your transaction and keep your receipt
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Before using a credit card to withdraw cash, check to see if there are safer and cheaper alternatives. You may be able to find cheaper options that will not require exorbitant interest and fees and still allow you to meet your immediate cash flow needs.
1: Low interest
2: Fixed periods to pay back
3: Funds are issued in a lump sum and stashed directly in your bank account
Best for larger expenses, such as medical bills, car repair, or short-term debt transfers.
Pro Tip: Shop and check out a loan marketplace (like LendingClub or SoFi) to see what offers you get prior to borrowing.
Apps like Earnin, Dave, Brigit, and Chime allow you to withdraw a part of your paycheck early, before payday.
Pros:
1: There are no interest or traditional fees (app companies will typically ask for a voluntary tip for their service)
2: Speed (sometimes have access on the same day)
3: No credit check required
Best for small emergencies, under $250. For example, groceries, gas, or utility bills.
Tip: These apps can be great options if you are employed and receive direct deposits. Use them sparingly and only when you need to, don’t get into a paycheck to paycheck cycle.
Some credit cards offer a 0% introductory APR for balance transfers or new purchases for 12–21 months. Provides an option to transfer existing debt and have zero interest from a card during the introductory period.
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Yes, but it would have to make your credit utilisation ratio increase or you miss payments. Although, if you do a cash advance, it is not reported.
Most cases, yes. But, you need to be aware that some secured credit cards or limited use cards, may not allow cash advances. Check with your issuer to be sure.
Regular purchases typically have a grace period and a lower APR. Cash advances have no grace period, and interest begins to accrue from the purchase.
A payday loan can easily have a 300% or more interest rate, making a credit card for a cash advance more reasonable for emergencies.
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