Cash advance: What it is and alternatives to consider

Sometimes bills, surprise expenses, and anything else on your list can leave you feeling stuck financially. If you’re trying to figure out how to get cash fast, one of the first options that comes to mind may be a cash advance.

As with many money matters, it’s important to know what you’re signing up for and any related implications.

We’re here to help explain what a cash advance is and understand related options, including the H&R Block Emerald Advance® Loan originated by Pathward®, N.A., so you can make the best financial decision for you.  Read on to learn more.

What is a cash advance?

A cash advance is a type of short-term loan that allows you to borrow money against your credit card’s available balance or through other financial services. It’s often used in emergencies when fast access to cash is needed.

Common types of cash advances 

There are several types of financial options that people think of as a cash advance—even if they are not technically a cash advance.  

• Credit card cash advances: Withdraw cash from an ATM or bank using your credit card. This is the most traditional definition of a cash advance.
• Payday loans: Small, high-interest loans typically due on your next payday.
• Same day loans: Loans that allow you to access money in the same day. They may be referred to as instant loans and offered by online lenders or financial institutions.

How does a cash advance work?

With a traditional cash advance, you receive cash up front, usually through an ATM or bank transaction. You later repay the advance with interest and fees. Unlike regular credit card purchases, cash advances often start accruing interest immediately and come with additional fees.

Cash advance vs. payday loan: What’s the difference?

While both offer fast access to funds, payday loans typically give you early access to a portion of an upcoming paycheck. Payday loans can have extremely high APRs, as high as 400% or more.

Cash advances, especially those from credit cards, may offer more flexibility in repayment but often come with higher interest rates and fees than normal credit card purchases.

Drawbacks of a cash advance

If you’re considering a cash advance, it’s a good idea to understand the nuts and bolts of how they work and the potential drawbacks.

• Cash advances often carry higher APRs than regular credit card purchases. You might also pay a cash advance fee, which can be a flat rate or a percentage of the amount borrowed.
• If you’re unable to repay the advance quickly, it could affect your credit utilization ratio and lead to missed payments—both of which can hurt your credit score.
• Unlike regular purchases, cash advances typically start accruing interest immediately. There’s no grace period, which means you’ll pay more over time.
• Relying on cash advances can lead to a cycle of borrowing and repayment that’s hard to break, especially if you’re using them to cover recurring expenses.

Cash advance alternatives to consider

A cash advance may not be the best option available for everyone or the best option for certain people. But what are other quick ways of getting a little breathing room, especially at the end of the year?  You could consider borrowing from friends or family.  This may be no big deal for some people, but it could get tricky when it comes to repayment if you’re not all on the same page.

Those who need a simplified way to stretch their budget at the end of the year may want to consider an Emerald Advance® Loan—a same day loan available at H&R Block.

Emerald Advance® Loan vs. a payday loan

The Emerald Advance® Loan is a fixed-rate, short-term loan available at H&R Block, which has been in business for 70 years. Unlike a payday loan, which typically must be paid back by your next payday, Emerald Advance® Loans do not require any payments until March 31, 2026. Additionally, compared to a payday loan APR, which can be as high as 400%, the APR for Emerald Advance is much lower at 35.9%.

You could get a same day loan with an Emerald Advance® Loan of up to $1,500

With an Emerald Advance® Loan, you could get the boost you need to help alleviate the financial stress of the next few months.

How the Emerald Advance® Loan works

You can apply for the Emerald Advance^® Loan at participating H&R Block locations from Nov. 3 to Dec. 31, 2025.  If approved, you could get up to $1,500 to help with unexpected bills, holiday expenses and more.

There are no required monthly payments — or any payments due at all — until March 31, 2026, when the full payment of the loan is due.  

Apply now for an Emerald Advance® Loan

Get the details about the Emerald Advance® Loan or make an Emerald Advance Loan appointment to apply now.

Cash advance FAQs

Does a cash advance hurt your credit?

Yes, it can—especially if you miss payments or carry a high balance. It affects your credit utilization and payment history.

How much is a cash advance fee for $1,000?

The fees for a cash advance can vary, but many credit cards charge either a percentage of the advance amount (typically) 3–5% or a flat fee, whichever is larger. On top of the fee, you should factor the APR into the cost of a cash advance.

Do you pay back a cash advance?

Yes. You’ll need to repay the amount borrowed plus fees and interest, usually on your next billing cycle.

*H&R Block Emerald Advance® Loan originated by Pathward®, N.A. Subject to eligibility and credit approval. Annual Percentage Rate (APR) is 35.9%. Loan amounts vary from $350-$1500. If approved, loan proceeds will be disbursed as directed to prepaid card or checking account at Pathward. Additional terms and conditions apply, see account agreements for details. Offered for a limited time at participating locations.