A credit card cash advance can seem like a quick and convenient way to access money—just swipe your card at an ATM or request funds from your bank. However, behind that instant access lies a series of hidden costs that can make this one of the most 신용카드 현금화 expensive forms of borrowing. Understanding these costs can help you make informed decisions and avoid unpleasant surprises.
- Higher Interest Rates Than Purchases
Many cardholders assume the interest rate for cash advances is the same as for regular purchases. In reality, most issuers charge a significantly higher annual percentage rate (APR)—sometimes 5 to 10 percentage points more. This means you could be paying 25% or more on the borrowed amount, compared to 15%–18% for purchases.
- No Grace Period
One of the most overlooked costs is the lack of a grace period. With standard credit card purchases, interest often doesn’t start accruing until your billing cycle ends, provided you pay in full. With cash advances, interest starts the very day you withdraw the money. Even if you repay within a week, you’ll still be charged interest for those days.
- Upfront Cash Advance Fees
Almost every cash advance comes with a fee—commonly 3% to 5% of the amount withdrawn, or a flat fee like $10, whichever is greater. This charge is applied immediately, reducing the value of the cash you actually receive. For example, taking out $500 with a 5% fee costs you $25 instantly, before interest is even calculated.
- ATM and Bank Usage Fees
If you withdraw from an ATM, you may be charged a fee by the machine’s owner, which is often in addition to your card issuer’s fees. Using a teller at a bank that isn’t your own can also result in service charges. These fees may seem small individually, but they add up quickly.
- Foreign Transaction Charges
If you take out a cash advance while traveling abroad, your card issuer may add a foreign transaction fee—usually 1% to 3%—on top of all other charges. Currency conversion rates may also work against you, further increasing costs.
- Impact on Your Credit Utilization
While not a direct fee, a cash advance increases your credit card balance, raising your credit utilization ratio. A high utilization rate can negatively affect your credit score if you don’t pay it down quickly, potentially increasing the cost of future borrowing.
How to Avoid Being Caught Off Guard
Always check your card’s terms before taking a cash advance.
Use your bank’s own ATMs to avoid extra charges.
Borrow only what you absolutely need.
Repay the amount as quickly as possible to reduce interest costs.
Conclusion
The true cost of a credit card cash advance is far more than just the amount you withdraw. Between higher interest rates, immediate interest accrual, fees, and potential credit score impacts, it can become a costly financial decision. By understanding these hidden costs, you can better evaluate whether a cash advance is truly worth it—or if alternative borrowing options would be a smarter choice.