Yes, you can take cash out of your credit card, but it is not the same as using it to buy something

A cash advance is a withdrawal of actual money from your credit card account. You go to an ATM, a bank teller, or a money transfer service, and you receive cash in hand. The amount you withdraw is added to your credit card balance, just like a purchase would be — but the fees and interest rate are different and usually much higher.

Most credit cards allow cash advances up to a percentage of your credit limit, often 20 to 50 percent. If your limit is $5,000, you might be able to withdraw $1,000 to $2,500 in cash. The exact amount depends on your card's terms and your account status.

The catch is that cash advances cost more than regular purchases. Interest starts accruing immediately — there is no grace period like there is for regular spending. You also pay an upfront fee, usually 3 to 5 percent of the amount withdrawn, charged to your account right away.

Key Takeaways

  • A cash advance charges interest from the moment you withdraw the money, with no grace period, and adds a fee of 3 to 5 percent of the amount withdrawn.
  • You can withdraw cash at an ATM using your credit card PIN, at a bank teller, or through a money transfer service like Western Union or MoneyGram.
  • The interest rate on a cash advance is typically higher than the rate on regular purchases, sometimes 2 to 5 percentage points above your standard APR.
  • Cash advances count toward your credit utilization ratio and can lower your credit score if they push your total balance high relative to your credit limit.

Where and how to withdraw cash from your credit card

You have three main routes to get cash from your credit card: an ATM, a bank branch, or a money transfer service.

At an ATM, insert your credit card and enter your PIN. The machine will ask how much you want to withdraw. You will see the transaction fee displayed before you confirm. The cash comes out immediately, and the charge appears on your statement within one to two business days. Most ATMs charge a fee of $2 to $5 per transaction on top of the card issuer's cash advance fee.

At a bank branch, you can ask a teller for a cash advance. Bring your credit card and a photo ID. The teller will process the withdrawal, and you will receive cash on the spot. This route often has no ATM operator fee, only the card issuer's fee, but not all banks offer this service to cardholders from other institutions.

Through a money transfer service like Western Union or MoneyGram, you can request a cash advance at a physical location. You provide your credit card and the amount, and they give you cash. These services charge their own fee on top of your card's cash advance fee, making them the most expensive option in most cases.

The fees and interest rates that apply to cash advances

Every cash advance comes with two separate charges: an upfront fee and ongoing interest.

The cash advance fee is a one-time charge applied when you withdraw the money. It is usually 3 to 5 percent of the amount withdrawn, though some cards charge a flat fee (like $10) if that is higher. If you withdraw $500 with a 4 percent fee, you pay $20 immediately. That $20 is added to your balance and accrues interest just like the $500 does.

The interest rate on a cash advance is almost always higher than your regular purchase APR. While a regular purchase might carry a 15 percent APR, a cash advance on the same card might be 22 to 25 percent. This higher rate applies only to the cash advance balance, not to regular purchases you make on the card.

Interest on a cash advance starts accruing the day you withdraw it. There is no grace period. If you withdraw $500 on the 1st of the month and pay it back on the 30th, you owe interest for all 30 days, even if you pay in full. With a 24 percent APR, that $500 costs roughly $10 in interest alone.

ATM fees add another layer. If you withdraw $500 from an out-of-network ATM, you might pay $3 to $5 to the ATM operator, plus your card issuer's cash advance fee. Always check whether the ATM will charge you before you confirm the transaction.

How a cash advance affects your credit score and account

A cash advance shows up on your credit report as a balance on your credit card account. It counts toward your credit utilization ratio — the percentage of your available credit that you are using. If you have a $5,000 limit and a $1,000 cash advance, your utilization jumps to 20 percent. High utilization can lower your credit score, even if you pay the balance on time.

The impact is temporary. Once you pay off the cash advance, your utilization drops and your score can recover. But while the balance is active, it works against you.

A cash advance also does not help your credit history in the way a regular purchase does. Paying off a purchase on time shows you can manage revolving credit responsibly. A cash advance is treated more like a loan — it shows you needed emergency cash, which some scoring models view less favorably than consistent, small purchases paid in full.

If you carry a cash advance balance for several months, the interest compounds quickly. A $500 advance at 24 percent APR costs about $10 per month in interest if you make no payments. After three months, you owe $530 in principal and interest combined, and the interest portion grows each month.

When paying off a cash advance should be your priority

Because cash advances carry higher interest rates and no grace period, they should be paid off before regular purchases whenever possible. If you have $500 in cash advance balance and $500 in regular purchase balance, both at different interest rates, your payment goes toward the cash advance first in most cases — but check your card's terms to be sure.

The longer you carry a cash advance, the more expensive it becomes. A $500 advance at 24 percent APR costs $120 per year in interest alone if you never pay it down. Over two years, that is $240 in interest on top of the original $500 and the upfront fee.

If you need cash, consider alternatives first. A personal loan from a bank or credit union usually has a lower interest rate and no upfront fee. A payday loan, while controversial, is sometimes cheaper than a credit card cash advance if you repay it within two weeks. Borrowing from family or friends costs nothing if they agree to it. A cash advance should be a last resort, not a regular way to get spending money.

How to avoid needing a cash advance

The best way to manage cash advances is to not use them. Build an emergency fund of $500 to $1,000 in a savings account so you have cash on hand for unexpected expenses. Even a small fund prevents you from reaching for a cash advance when your car breaks down or a medical bill arrives.

If you regularly need cash, ask your bank about a debit card linked to your checking account. Debit withdrawals have no interest and no cash advance fee — you are simply accessing money you already have. Many banks offer free ATM access to their own machines and reimburse fees at out-of-network ATMs if you maintain a minimum balance.

If you are considering a cash advance because you cannot pay a bill, contact the creditor or service provider directly. Many utilities, medical offices, and other billers offer payment plans or hardship programs that cost far less than a cash advance. Being upfront about your situation often opens options that a cash advance does not.

Frequently Asked Questions

What is the difference between a cash advance and a balance transfer?

A cash advance gives you actual cash in hand and charges a high interest rate immediately. A balance transfer moves debt from one card to another and often comes with a 0 percent introductory rate for 6 to 21 months. Balance transfers are for moving existing debt; cash advances are for getting cash. Both charge an upfront fee, usually 3 to 5 percent.

Can I use a credit card to withdraw cash at any ATM?

Most credit cards work at ATMs that display your card's logo — Visa, Mastercard, American Express, or Discover. Some ATMs decline credit card cash advances or charge higher fees. Always check the ATM screen before you enter your PIN. Bank teller withdrawals are more reliable if you want to avoid surprises.

Does paying off a cash advance early save me money on interest?

Yes. Interest is calculated daily, so paying off a cash advance in 15 days instead of 30 days cuts your interest cost roughly in half. You still pay the upfront fee, but you avoid the ongoing daily interest. Paying as soon as you can is always the cheapest option.

Will a cash advance hurt my credit score?

It can, because it raises your credit utilization ratio. The impact is usually small and temporary — your score recovers once you pay it off. However, if the cash advance pushes your total balance very high relative to your limit, the damage is larger and lasts longer.

What happens if I cannot pay back a cash advance?

The balance stays on your card and accrues interest at the higher cash advance rate. If you miss payments, your card issuer may report it to credit bureaus, damaging your credit score. They may also close your account or pursue collection action. Contact your card issuer immediately if you cannot pay — many offer hardship programs that lower your interest rate temporarily.