Does a Cash Advance Affect Your Credit Score?

The short answer depends on the type

One of the most searched money questions is does a cash advance affect your credit score. The honest answer is: it depends entirely on which kind of cash advance you take.

When a cash advance can hurt your credit

A credit card cash advance can hurt your score. It raises your credit utilization ratio and starts accruing interest immediately, so a balance that lingers can drag your score down.

A payday loan can also cause damage — not usually from the loan itself, but from missed payments and collections if you fall into the rollover trap.

When it does not

A Self Cash Advance does not affect your credit score at all. There is no hard credit check to apply, and the advance is not reported to the credit bureaus — so taking one, or repaying one, is invisible to your score.

• No hard inquiry when you check your offer
• Not reported to Experian, Equifax, or TransUnion
• No utilization impact like a credit card advance