What Is a Cash Advance?

A cash advance can be an advance of funds in cash from an open-end credit line or a close-end short term personal loan. Cash advances can help offer quick access to cash in emergencies. Some cash advances can come with high interest rates and additional fees, but not all of them do.

We’ll break down how cash advances work, the types available, and how to get a no interest cash advance personal loan. 

What Is a Cash Advance?

A cash advance is generally an advance of money that can be offered by a credit card issuer, financial institution, or lender. There are a few different types of common cash advance offerings:

• Credit Card Cash Advance: When you take out a cash advance through your credit card, you’re borrowing money against your card’s available limit. Just beware there may be higher fees and immediate interest accrual if using a traditional credit card for access to cash.
• Bank Overdraft Lines or Personal Loans: Some banks and credit unions offer fast credit access to cash or small dollar short-term personal loans. Depending on your bank, these may require a good credit score or continuous deposit history.
• Payday Loan: Payday or installment lenders may offer cash advances via short-term loans against your paycheck. These are easier to qualify for than most standard loans and typically require no credit check, but are can be expensive due to high interest and can trap users in a cycle of debt.
• Fintech Alternatives: Some fintech companies have products offered through lending bank partners, like BoostCash ™, that offer small dollar, short-term advances, often with no interest, to help bridge the gap between paychecks.

Pros and Cons of a Cash Advance

It’s important to understand how a cash advance loan works so you can help make the right decision for you. Consider these general pros and cons of a cash advance:

Pros:

• Access to cash when you need it most
• Quick application process
• Typically no impact on credit score to see if you qualify

Cons:

• Can have high interest rates and fees
• Interest can start to accrue immediately with some lenders
• Risk of falling into a cycle of debt

Upgrade Money™ Cash Advances

If you’re looking for a cash advance without interest or debt traps, there’s a better way. Unlike many lenders and credit card companies, BoostCash™–cash advances through Upgrade Money™–come with no required fees, no interest, and no impact to your credit score. Just set up eligible direct deposits and you can qualify for $25 cash advances, and up to $500 cash advances over time with continuous repayments to help cover short-term expenses.*

FAQs About Cash Advances

Is a cash advance personal loan the same as a payday loan?
No. A payday loan is a separate type of short-term loan not linked to a credit card, debit card, or deposit account. Both types can have high fees depending on the lender or provider, but payday loans are often more predatory.

Does a cash advance affect my credit score?
Not directly, but high credit utilization and missed or late payments can negatively impact your credit score.

Can I pay off a cash advance early?
It’s possible, but it depends on the lender, provider or the method used to obtain the cash advance loan. With BoostCash™ through Upgrade Money™, repayment happens automatically on your due date which is aligned to your next paycheck or direct deposit. No impact to your credit score and no interest, just flexibility. There are no prepayment fees with cash advances through Upgrade Money™, so you can pay your cash advance early. 

Final Thoughts

A cash advance can be a helpful resource in an emergency, and with BoostCash™, you can access funds without the stress of required fees or growing interest. Understanding how cash advances work, what they can cost, and when a cash advance makes sense can help you avoid unnecessary debt. Learn more about BoostCash™ through Upgrade Money™.

*BoostCash™ personal loans (“BoostCash™ advances”) range from an initial $25 and up to $500 over time for eligible Upgrade Money™ Spend customers, subject to eligibility requirements at upgrade.com/boostcasheligibility, including eligible direct deposits, and approval. If eligible, your BoostCashTM advance amount can increase over time based on several factors, such as positive repayment history. If any eligibility requirement is waived, subsequent BoostCashTM advances are subject to all eligibility requirements and approval. BoostCash™ advances made through Upgrade feature Annual Percentage Rates (APRs) of 0.00% and a term of up to 34 days. For example, a $25 BoostCash advance with a 14 day term and a 0% APR has a required single installment payment of $25 on your due date. BoostCash™ advances are generally repaid in full on the date of your next expected payroll or employer direct deposit and are repaid automatically from your Upgrade Money™ Spend account or, if your funds are insufficient for repayment, any deposit account you have opened through Upgrade on your Due Date. Delivery may take 3-5 business days without Premium or within minutes with Premium Subscription express delivery ($9.99/mo). Funds availability depends on the receiving bank. You must repay a BoostCash™ advance before you may get a new one. BoostCash™ advances are not available in all states. See BoostCash™ Account Agreement for details.