Yes, you can take cash from your credit card, but it costs more than a purchase and starts charging interest immediately
Most credit cards let you withdraw cash at an ATM or get cash back at a store checkout. This is called a cash advance. The card issuer treats it differently from a regular purchase: you pay a fee upfront (usually 3% to 5% of the amount), the interest rate is higher than your purchase APR, and interest starts accruing the day you withdraw the money — there is no grace period like there is for purchases.
If you need $200 in cash and your card charges a 4% cash advance fee plus a 24% cash advance APR, you pay $8 immediately and then $4 per month in interest if you carry the balance. Over a year, that $200 becomes $256 in fees and interest alone. Most people should avoid cash advances unless they have no other option.
Key Takeaways
- Cash advances charge a separate fee (usually 3% to 5%) plus a higher interest rate than purchases, with no grace period.
- Interest on a cash advance starts the day you withdraw it, not at the end of a billing cycle like a purchase.
- You can get a cash advance at an ATM using your PIN, at a bank teller window, or sometimes at a store checkout.
- The cash advance limit is often lower than your credit limit and may be a fixed dollar amount rather than a percentage.
- Alternatives like a personal loan, borrowing from family, or using a debit card are usually cheaper than a cash advance.
Where and how to get a cash advance
You have three main ways to get cash from your credit card. The first is an ATM: insert your card, enter your PIN (which you may need to set up if you have never used it), and withdraw the amount you want. The ATM will show you the fee before you confirm the transaction.
The second is a bank teller window. Walk into any bank branch — not necessarily your own bank — and ask for a cash advance. You will need your card and ID. The teller will process it on the spot, though some banks charge an additional fee on top of your card issuer's fee.
The third is a store checkout. Some retailers let you request cash back when you make a purchase, though this is less common than it used to be. You do not pay a cash advance fee for cash back at checkout — you only pay the purchase fee on the item you bought. This is the cheapest way to get cash from your card if you need to buy something anyway.
Fees and interest rates for cash advances
Your card's cash advance fee appears in your cardholder agreement under "Cash Advance Fee" or "ATM Withdrawal Fee." Most cards charge between 3% and 5% of the amount withdrawn, with a minimum fee of $2 to $10. A $300 cash advance at 4% costs $12 upfront. Some cards charge a flat fee instead — for example, $5 per withdrawal regardless of amount — which is cheaper if you are withdrawing large sums but more expensive for small amounts.
The cash advance APR is separate from your purchase APR and is almost always higher. If your purchase APR is 18%, your cash advance APR might be 24% or 28%. This rate applies only to the cash advance balance, not to purchases you make with the same card. Unlike purchases, there is no grace period: interest starts accruing on day one.
Your cash advance limit is also separate from your credit limit. If your credit limit is $5,000, your cash advance limit might be $1,500 or $2,000. You can usually find this in your online account or by calling the card issuer's customer service number on the back of your card.
How cash advances affect your credit and account
A cash advance counts as a balance on your credit card just like a purchase does. It appears on your credit report and affects your credit utilization ratio — the percentage of your available credit you are using. If you have a $5,000 limit and take a $1,000 cash advance, your utilization jumps to 20%, which can lower your credit score slightly.
The cash advance balance is separate from your purchase balance in your account. If you make a payment, your card issuer applies it to whichever balance has the highest interest rate first — usually the cash advance. This means you pay off the cash advance faster, but you still owe interest on it every day until it is gone.
If you miss a payment, the cash advance is included in the missed payment, and your entire account may be reported as late to the credit bureaus. This can lower your score by 100 points or more depending on how late you are.
When a cash advance makes sense and when it does not
A cash advance makes sense only in narrow situations. If you have a genuine emergency — a car repair you must pay in cash, a medical bill, or an urgent travel expense — and you have no other way to pay, a cash advance is better than going without. You should pay it back as quickly as possible, ideally within one or two months before interest compounds.
A cash advance does not make sense if you are using it for everyday spending because you prefer cash, or if you are trying to move money between accounts, or if you are using it to pay another debt. In all these cases, you are paying 3% to 5% upfront plus 24% or higher in interest for money you could get cheaper elsewhere.
Do not take a cash advance to pay a credit card bill, a loan, or another debt. This is called a balance transfer, and it has its own fees and rules. If you are trying to move money between your own accounts, use a transfer between banks instead.
Cheaper alternatives to a cash advance
If you need cash, explore these options first. A personal loan from a bank or credit union usually has a lower interest rate than a cash advance — often 8% to 15% — and no upfront fee. You can get one in a few days if you have decent credit.
Borrowing from family or friends costs nothing if they agree to it. If you want to formalize it, you can write a simple promissory note saying when you will repay them and at what interest rate (if any).
A payday loan from a storefront lender is faster than a personal loan but more expensive than a cash advance — often 400% APR or higher. Avoid this unless you are certain you can repay it in full on your next paycheck.
Using your debit card to withdraw cash from your own bank account costs nothing. If you do not have a debit card, you can visit your bank and withdraw cash directly from your account.
If you have a 401(k) or similar retirement account, you may be able to borrow from it at a low interest rate. This is cheaper than a cash advance, but you lose the investment growth on that money while you are paying it back.
How to pay off a cash advance quickly
Once you have taken a cash advance, pay it off before interest compounds. Make a payment as soon as you can — even a partial payment reduces the balance and the interest you owe going forward.
If you have other credit card balances, prioritize the cash advance because it has the highest interest rate. Put any extra money toward it each month until it is gone.
Do not take another cash advance to pay off the first one. This only extends the cycle and costs you more in fees.
Frequently Asked Questions
What is the difference between a cash advance and a balance transfer?
A cash advance is money you withdraw as cash. A balance transfer is when you move a balance from one credit card to another. Cash advances have higher fees and interest rates. Balance transfers sometimes have a 0% introductory rate for 6 to 12 months, making them cheaper if you are moving existing debt.
Can I get a cash advance if I have bad credit?
Yes. Your credit score does not affect whether you can take a cash advance — you can do it as long as you have available cash advance limit on your card. However, cards issued to people with bad credit often have lower cash advance limits and higher fees.
Do I have to use my PIN to get a cash advance?
At an ATM, yes — you need your PIN. At a bank teller window, you only need your card and ID. At a store checkout, you do not need a PIN if you are getting cash back with a purchase.
Will taking a cash advance hurt my credit score?
It may lower your score slightly because it increases your credit utilization. The impact is usually small and temporary if you pay it back quickly. Missing a payment on a cash advance will hurt your score much more.
Can I take a cash advance from a credit card I do not have in my wallet?
No. You need the physical card to withdraw cash at an ATM or a teller window. Some card issuers offer a mobile wallet option that lets you add your card to your phone, but you still need the card number and other details to set it up.