Cash advance: three products, three prices
A cash advance is any small, fast loan against money you expect soon. In practice it means one of three things: a payday loan, an advance from an app, or cash drawn on a credit card. Their prices differ enormously.
Key points
- Payday-style cash advances cost about $15 per $100 for two weeks.
- App advances are smaller and usually cheaper, but express fees add up.
- A credit card cash advance costs a fee of 3% to 5% plus interest from day one.
- Storefront lenders must be licensed in your state.
On this page
What people mean by a cash advance
The phrase covers three different products. Knowing which one you are being offered tells you what it will cost.
| Type | Typical amount | Typical cost | Repaid |
|---|---|---|---|
| Payday cash advance | $100 to $500 | $10 to $30 per $100 | In one payment, 2 to 4 weeks |
| Cash advance app | $20 to $500 | Optional tip, express fee or subscription | From your next paycheck |
| Credit card cash advance | Up to your cash limit | 3% to 5% fee plus about 25% to 30% APR | With your card bill |
Payday cash advances
Storefronts named “cash advance” are payday lenders. You write a postdated check or authorize a bank debit, pay a flat fee, and repay everything on your next payday. The rules are the same as for payday loans: state law sets the maximum loan and fee, and some states do not allow the product at all.
Cash advance apps
Apps advance part of your next paycheck, commonly $20 to $250 at first and up to $500 or more once you have a history. Most charge no interest. They earn money from optional tips, a fee for instant transfer, or a monthly subscription. A $5 express fee on a $100 advance repaid in ten days is 5% of the amount for a third of a month, so the small numbers deserve a second look. Our cash advance apps guide explains how to compare them.
Credit card cash advances
Withdrawing cash on a credit card triggers a fee, usually 3% to 5% with a $10 minimum, and a higher interest rate that starts the same day with no grace period. On $300 repaid in a month that is roughly $15 to $22 in total, far less than a payday loan. Details are in our credit card cash advance guide.
Cash advance near you
A storefront gives you money in person, usually within the hour, but only in states that license payday lenders. Before you walk in:
- Check the state’s rules on your state page.
- Confirm the store’s license with the state regulator.
- Ask for the finance charge and APR in writing.
When a cash advance makes sense
A cash advance fits a small, one-time gap that your next paycheck will cover with room to spare: a repair that keeps you driving to work, or a bill whose late fee would be larger than the advance fee. It is the wrong tool for rent you cannot afford, for repaying an earlier advance, or for a gap that comes back every month. In those cases the fee repeats and the gap stays, and alternatives that cost less are the place to start.
Which one costs least?
For most people the order is: credit union loan, credit card cash advance, cash advance app with no express fee, then a payday cash advance. Check your state’s page for the payday price where you live, and read how to borrow money fast before you decide.
For limits and fees app by app, see cash advance apps compared.
Common questions
Is a cash advance the same as a payday loan?
Often, yes. Storefront and online lenders use both names for a small loan repaid in one payment. Apps and credit cards also offer cash advances, on different terms.
Does a cash advance hurt my credit?
Payday lenders and apps rarely report on-time payments. An unpaid advance sent to collections can appear on your report. A credit card cash advance raises your card balance, which can lower your score.
Can I get a cash advance with bad credit?
Usually. Payday lenders and apps look at income and your bank account more than your score. Approval still depends on the lender’s own review.
How quickly can I get a cash advance?
A storefront can pay within the hour. Apps and online lenders take one to three business days unless you pay an express fee; exact timing depends on your bank.
Does Northlight lend money?
No. Northlight is an information site. We explain costs and state rules so you can decide; we do not make loans or credit decisions.
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Sources
Keep reading
- Emergency loansFacing a car repair, medical bill or rent deadline? See the assistance programs and loan options that work in an emergency, ordered by cost.
- Cash advance appsCash advance apps lend $20 to $500 against your next paycheck. See how tips, express fees and subscriptions add up, and how to compare apps.
- Installment loansInstallment loans spread repayment over months instead of one payday. Learn what they cost, how rates vary by state and how to compare offers.
- Borrow moneyNeed to borrow money now? Compare apps, credit unions, cards, installment and payday loans by speed and total cost before you choose one.
- Need money nowNine realistic ways to get cash quickly, ordered from free to most expensive, with what each costs and how fast the money usually arrives.
- Bad credit loansBad credit narrows your choices but does not remove them. Compare credit unions, secured loans, apps and high-cost lenders, with typical prices.