Yes, you can take money out of a credit card, but it works differently than a debit card withdrawal and costs more

A cash advance is when you use your credit card to pull cash from an ATM, bank teller, or convenience store. The money goes into your pocket, not toward a purchase. Your credit card company lends you that cash, and you pay it back like any other credit card balance — except with higher fees and interest rates than regular purchases.

The catch: cash advances are expensive. You'll pay an upfront fee (usually 3 to 5 percent of the amount you withdraw), and the interest rate on that cash starts accruing immediately — often 2 to 3 percentage points higher than your regular purchase APR. There's also no grace period. While a purchase might have 21 days before interest kicks in, cash advance interest begins the day you withdraw it.

Most people use cash advances only when they have no other option: paying a contractor who won't take cards, covering an emergency when they can't access their bank account, or getting cash for a place that doesn't accept cards. If you're considering a cash advance, it's worth asking first whether a personal loan, balance transfer, or even a short-term loan from a credit union would cost less.

Key Takeaways

  • Cash advances charge an upfront fee of 3 to 5 percent plus a higher interest rate than regular purchases, with no grace period before interest starts.
  • You can withdraw cash at ATMs, bank tellers, or some convenience stores using your credit card PIN, up to your card's cash advance limit.
  • Your cash advance limit is usually lower than your credit limit and may be as little as $300 or $500 on a new card.
  • The interest and fees are reported to credit bureaus as part of your balance, so a cash advance affects your credit utilization ratio immediately.
  • Paying back a cash advance is slower than paying back purchases because payments go toward the lowest-interest debt first.

How to withdraw cash and what you'll need

To take a cash advance, you need your credit card and your PIN (personal identification number). If you don't have a PIN set up, you can request one from your card issuer — usually through their app or website, or by calling the number on the back of your card. Setting up a PIN takes a few minutes and doesn't cost anything.

Once you have a PIN, you can withdraw cash at:

  • ATMs that accept your card's network (Visa, Mastercard, American Express, or Discover)
  • Your bank's teller window, if your credit card issuer has physical branches
  • Some convenience stores and grocery stores that offer cash back at the register

The amount you can withdraw is limited by your cash advance limit, which is separate from your credit limit. A new cardholder might have a cash advance limit of $300 to $500, even if their overall credit limit is $2,000. As you build a payment history, your issuer may raise this limit, but you can also request an increase by calling customer service.

The fees and interest you'll pay

Every cash advance comes with at least two costs: a fee and interest. The cash advance fee is charged upfront and is usually 3 to 5 percent of the amount you withdraw. On a $500 withdrawal, that's $15 to $25 added to your balance immediately. Some cards cap the fee at a flat amount (like $10 maximum), so check your card's terms to see which applies to you.

The cash advance APR is the interest rate applied to the cash you borrowed. This rate is typically 2 to 3 percentage points higher than your regular purchase APR. If your purchase APR is 18 percent, your cash advance APR might be 21 percent. Unlike purchases, there is no grace period — interest starts accruing the day you withdraw the cash.

To see what you'll actually pay, consider a $500 cash advance at 5 percent fee and 21 percent APR. The fee costs $25 immediately. If you pay back the $525 in full within 30 days, you'll owe roughly $9 in interest, for a total cost of $34. If you carry the balance for three months, interest alone will exceed $25. The longer you carry the balance, the more expensive it becomes.

Your cash advance limit versus your credit limit

Your cash advance limit is how much you're allowed to withdraw, and it's set separately from your overall credit limit. A card issuer might give you a $5,000 credit limit but only a $1,000 cash advance limit. This protects the lender because cash advances are riskier — they're harder to dispute, and the borrower has already received the money in hand.

When you use your cash advance limit, it counts against your overall credit limit. If you withdraw $500 in cash and have a $5,000 credit limit, you now have $4,500 available for purchases. This matters for your credit utilization ratio, which is the percentage of your available credit you're using. High utilization (above 30 percent) can lower your credit score, so a cash advance affects your score immediately, even before you miss a payment.

You can find your cash advance limit in your card's terms and conditions, on your statement, or by logging into your online account. If you need to withdraw more than your limit allows, you can request an increase from your card issuer, though they may deny it if your account is new or if you have a history of late payments.

How cash advances appear on your statement and affect repayment

When you make a payment on your credit card, the payment goes toward your lowest-interest debt first. If you have both a purchase balance (at 18 percent APR) and a cash advance balance (at 21 percent APR), your payment will pay down the purchase first, leaving the higher-interest cash advance to accrue interest longer. This is the opposite of what you'd want, and it's why cash advances are so expensive over time.

Your statement will show the cash advance as a separate line item from your purchases, with its own balance, fee, and interest charges. You can see exactly how much of your payment is going toward the cash advance and how much interest you're being charged each month. Some card issuers allow you to make a payment specifically toward the cash advance balance, which bypasses the lowest-interest-first rule — call customer service to ask if your card offers this option.

The cash advance balance, fee, and interest all report to the credit bureaus as part of your overall credit card balance. This means a cash advance affects your credit score the same way any other balance does: it raises your utilization ratio and shows that you're carrying debt.

Cheaper alternatives to a cash advance

Before you take a cash advance, consider whether one of these options might cost less:

  • A personal loan from a bank or credit union: These typically charge 6 to 36 percent APR depending on your credit, with no upfront fee. For larger amounts or longer repayment periods, a personal loan is usually cheaper than a cash advance.
  • A balance transfer to a 0 percent APR card: If you're trying to move debt from one card to another, a balance transfer card charges a one-time fee (usually 3 to 5 percent) but offers 0 percent interest for 6 to 21 months. This doesn't give you cash, but it's cheaper if you're moving existing debt.
  • A short-term loan from a credit union: Credit unions often offer small loans (called payday alternative loans, or PALs) at rates capped by federal law, usually 28 percent APR or less, with no upfront fee.
  • Borrowing from family or friends: If possible, this costs nothing and doesn't affect your credit.
  • Asking your employer for an advance on your paycheck: Some employers offer this at no cost, though it's not common.

Each of these has tradeoffs. A personal loan requires a credit check and takes a few days to fund. A balance transfer only works if you already have debt to move. A credit union loan requires membership. But all of them are worth comparing to a cash advance before you decide.

What happens if you can't pay back the cash advance

If you don't pay back a cash advance, it works like any other credit card debt. The balance will accrue interest, and if you miss a payment, your card issuer will report it to the credit bureaus. A missed payment can lower your credit score by 100 points or more and stay on your credit report for seven years.

If the debt goes unpaid long enough, your card issuer may close the account, send the debt to a collection agency, or sue you for the money. The debt itself doesn't disappear — it can follow you for years and make it harder to borrow money in the future.

If you're struggling to pay back a cash advance, contact your card issuer as soon as possible. Some issuers offer hardship programs that lower your interest rate or allow you to pause payments temporarily. It's better to ask for help before you miss a payment than to wait until the debt is sent to collections.

Frequently Asked Questions

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

You can use ATMs that accept your card's network (Visa, Mastercard, American Express, or Discover). Not all ATMs accept all networks, so you may need to try a few. ATMs run by your card issuer's bank are usually free, but out-of-network ATMs often charge an additional fee of $2 to $5 on top of your cash advance fee.

Is there a grace period for cash advances like there is for purchases?

No. Interest on a cash advance starts accruing the day you withdraw it. Purchases typically have a grace period of 21 to 25 days before interest kicks in, but cash advances have no grace period at all.

Does a cash advance hurt my credit score?

Yes, immediately. The cash advance increases your credit utilization ratio (the percentage of your available credit you're using), which can lower your score by a few points right away. If you carry the balance for months, the ongoing interest and high utilization will continue to affect your score.

What's the difference between a cash advance and a balance transfer?

A cash advance gives you physical cash in your pocket but charges a high interest rate and fee. A balance transfer moves debt from one card to another and usually offers a lower introductory rate (often 0 percent for several months) but also charges a fee. Neither is cheap, but a balance transfer is better if you're moving existing debt, while a cash advance is for when you need actual cash.

Can I request a higher cash advance limit?

Yes. Call the customer service number on the back of your card and ask to increase your cash advance limit. Your issuer will review your account history and may approve or deny the request. A higher limit doesn't mean you should use it — it just means you have the option if you need it.