Yes, but it costs you money and works differently than a debit card

You can pull cash out of a credit card through something called a cash advance. A cash advance lets you borrow money against your credit limit at an ATM, bank teller, or convenience store. The catch: you pay fees upfront, a higher interest rate than regular purchases, and interest starts accruing immediately — there is no grace period like there is for regular credit card charges.

A cash advance is not the same as using your debit card. With a debit card, you are withdrawing your own money. With a credit card cash advance, you are borrowing money from the card issuer and going into debt right away. Most people should avoid cash advances unless they have no other option, because the cost adds up fast.

Key Takeaways

  • A cash advance charges a fee (usually 3 to 5 percent of the amount) plus a higher interest rate than regular purchases, starting immediately.
  • You can get a cash advance at an ATM using your PIN, at a bank teller with your card and ID, or sometimes at a convenience store or casino.
  • Interest on a cash advance begins the day you withdraw it, with no grace period, so the debt grows faster than a regular purchase.
  • Your credit card company sets a cash advance limit that may be lower than your total credit limit, so you cannot always withdraw your full available balance.

How a cash advance actually works

When you take a cash advance, you are borrowing money from your credit card issuer. The issuer charges you a fee right away — typically 3 to 5 percent of the amount you withdraw, though some cards charge a flat fee instead (like $10 minimum). So if you withdraw $500, you might pay $15 to $25 just to get the cash.

On top of that fee, you pay interest. The interest rate on a cash advance is almost always higher than the rate on regular purchases — often 5 to 10 percentage points higher. If your card charges 18 percent APR on purchases, the cash advance rate might be 28 percent. That interest starts the day you withdraw the money, not at the end of your billing cycle. There is no grace period.

The money counts against your credit limit. If your limit is $5,000 and you take a $500 cash advance, you now have $4,500 left to spend on purchases.

Where you can get a cash advance

You have several options for where to withdraw the cash. Most credit card companies let you use any ATM that displays your card's logo (Visa, Mastercard, American Express, Discover). You will need your PIN, which you may need to set up first if you have never used one. The ATM operator may charge an additional fee on top of your card issuer's fee — often $2 to $3.

You can also visit a bank teller at any bank that accepts your card brand and ask for a cash advance. Bring your card and a photo ID. Some banks charge a fee for this service; others do not.

Convenience stores, casinos, and some other merchants offer cash advances at the register, though this is less common. You will usually pay a higher fee this way.

Your cash advance limit is separate from your credit limit

Your credit card company sets a cash advance limit that is different from your overall credit limit. This limit is often much lower — sometimes 20 to 50 percent of your total credit limit. So even if you have $5,000 available to spend, your cash advance limit might be only $1,000.

You can find your cash advance limit in your cardholder agreement, on your online account, or by calling the customer service number on the back of your card. If you try to withdraw more than your limit, the ATM or teller will decline the transaction.

Why the cost matters: a real example

Say you take a $500 cash advance on a card with a 28 percent APR and a 5 percent fee. You pay $25 upfront. If you pay back the $500 in full the next month, you also owe about $11.67 in interest (28 percent annual rate ÷ 12 months × $500). Total cost: roughly $37.

If you carry that $500 balance for three months, the interest alone could be $35 or more, plus the original $25 fee. Now you have paid $60 to borrow $500 — that is a 12 percent cost for three months of borrowing.

By contrast, if you had charged a $500 purchase to the same card and paid it off in three months, you would have paid roughly $35 in interest with no upfront fee. The cash advance cost you an extra $25 just to access the money.

Better alternatives to a cash advance

Before you take a cash advance, consider other ways to get cash. If you have a debit card, use that — you are withdrawing your own money with no interest or fees. If you need a short-term loan, a personal loan from a bank or credit union usually charges less interest than a cash advance. Some credit unions offer small loans at rates under 20 percent.

If you are in a true emergency and have no other option, a cash advance is faster than a personal loan application. But the cost is high enough that it should be a last resort, not a habit.

If you regularly need cash, ask yourself why. If it is because you do not have a checking account or debit card, open one — most banks offer them free. If it is because you are spending more than you earn, a cash advance will make that problem worse, not better.

How a cash advance affects your credit score

A cash advance does not directly hurt your credit score the way a missed payment does. However, it does count toward your credit utilization — the percentage of your available credit that you are using. If you take a large cash advance, your utilization goes up, which can lower your score slightly.

The bigger risk is that a cash advance makes it easier to carry a balance. Because the interest rate is so high, carrying a cash advance balance for months can damage your score over time through late payments or high utilization. The damage comes from how you manage the debt afterward, not from taking the advance itself.

Frequently Asked Questions

Can I take a cash advance if my card is maxed out?

No. Your cash advance limit is part of your overall credit limit. If you have used your entire limit on purchases, you cannot take a cash advance. You would need to pay down your balance first.

Do I have to pay back a cash advance faster than regular purchases?

No. Your minimum payment covers both cash advances and purchases. However, most card issuers apply your payment to the lowest-interest debt first, so your cash advance (at the higher rate) will sit and accrue interest longer. Pay the cash advance balance off as fast as you can to minimize the cost.

What if I need cash but do not have a PIN set up?

Call the customer service number on the back of your card and ask to set up a PIN. This usually takes a few minutes. Once it is set, you can use any ATM. If you need cash immediately and cannot set up a PIN in time, visit a bank teller with your card and ID instead.

Will taking a cash advance hurt my credit score?

Not immediately. However, it increases your credit utilization, which can lower your score slightly. The real damage happens if you carry the balance for months — the high interest rate makes it easy to fall behind, and missed payments hurt your score much more than the advance itself.

Is there any way to avoid the cash advance fee?

No. Every credit card charges a fee for cash advances; it is built into how they work. Some cards have slightly lower fees than others, but you cannot avoid it entirely. The only way to avoid the fee is to not take a cash advance.