Yes, you can take cash out of your credit card, but it costs more than a purchase
You can withdraw cash from your credit card at an ATM, bank teller, or through a cash advance at a store — but the card issuer treats this differently from a regular purchase. A cash advance is a short-term loan against your credit limit. It starts charging interest immediately, usually at a higher rate than purchases, and often includes an upfront fee.
The cost depends on three things: the cash advance fee (a percentage of the amount or a flat dollar amount, whichever is higher), the interest rate (which varies by card and is often 3 to 5 percentage points higher than your purchase APR), and how long you carry the balance. A $500 cash advance might cost you $15 to $25 in fees alone, plus daily interest from day one.
Key Takeaways
- Cash advances charge a fee (usually 3 to 5 percent of the amount) plus a higher interest rate than purchases, with interest starting immediately.
- You can get cash at an ATM using your PIN, at a bank teller with your card and ID, or sometimes at a store checkout, depending on your card.
- The interest rate on a cash advance is typically 3 to 5 percentage points higher than your purchase APR and does not have a grace period.
- Paying off a cash advance should be your first priority because the interest compounds daily and the rate is steep.
- If you need cash regularly, a debit card or personal loan is usually cheaper than repeated cash advances.
Where you can actually withdraw cash
The easiest method is an ATM. Insert your credit card, enter your PIN, and withdraw up to your cash advance limit — which is often lower than your total credit limit. Most cards set a cash advance limit at 50 percent of your credit limit or a fixed dollar amount, whichever is lower. Your card's terms will tell you what yours is.
A bank teller can also process a cash advance if the bank is your card issuer or a partner bank. Bring your card and a photo ID. Some retail stores offer cash back at checkout, though this is less common with credit cards than debit cards — ask the cashier whether your card is accepted for this.
International ATMs charge an additional fee on top of the cash advance fee, usually $2 to $5 per transaction. If you are traveling, check your card's foreign transaction policy before you withdraw.
The fees and interest rates you will pay
Most cards charge a cash advance fee of 3 to 5 percent of the amount withdrawn, with a minimum of $3 to $10. A $200 withdrawal at 5 percent costs $10 in fees. Some cards cap the fee at a maximum amount per transaction or per statement cycle — check your card's disclosure document (called the Schumer Box) to see your card's exact fee.
The cash advance APR is separate from your purchase APR and is almost always higher. If your purchase APR is 18 percent, your cash advance APR might be 23 or 24 percent. This rate applies from the day you withdraw the cash — there is no grace period like there is for purchases. Interest accrues daily and compounds, so the longer you carry the balance, the more you owe.
A $500 cash advance at a 5 percent fee ($25) and 24 percent APR costs you $25 upfront plus roughly $10 in interest if you pay it back in 30 days. If you carry it for three months, the interest alone reaches $30.
How cash advances affect your credit score and available credit
A cash advance counts as a balance on your credit card, so it increases your credit utilization ratio — the percentage of your credit limit you are using. If you have a $5,000 limit and take a $1,000 cash advance, your utilization jumps to 20 percent. High utilization can lower your credit score, even if you pay the balance in full the next month.
The cash advance also reduces your available credit immediately. If you have a $5,000 limit and a $1,000 cash advance limit, taking out $500 in cash leaves you with only $500 in remaining cash advance credit and $4,500 in purchase credit. You cannot use the cash advance limit for purchases.
Because cash advances report to the credit bureaus like any other balance, they appear on your credit report and factor into your payment history and utilization calculations.
When a cash advance makes sense (and when it does not)
A cash advance is rarely the cheapest way to get cash, but it can be the fastest in an emergency. If you need $200 for a car repair today and your bank account is empty, a cash advance takes minutes. A personal loan takes days to a week. A payday loan charges even higher interest.
A cash advance does not make sense if you have other options. A debit card withdrawal costs nothing. A personal loan from a bank or credit union typically charges 6 to 36 percent APR with no daily interest accrual before you borrow. A balance transfer to a 0 percent introductory APR card (if you have time to open one) is cheaper if you can pay the balance during the promo period.
If you find yourself taking cash advances regularly, that is a sign your budget does not match your income. A cash advance is a short-term fix, not a solution.
How to pay off a cash advance quickly
Prioritize the cash advance balance above everything else on the card. Credit card payments are applied to the lowest-APR balance first by law, so if you have both a purchase balance and a cash advance balance, your payment goes toward the purchase first. To pay off the cash advance faster, contact your card issuer and ask them to apply your next payment to the cash advance specifically, or pay more than the minimum.
The math is simple: every day you carry a $500 cash advance at 24 percent APR costs you about $0.33 in interest. Over 30 days, that is $10. Over 90 days, it is $30. Paying it off in full within a week or two is the only way to keep the cost reasonable.
If you cannot pay it off quickly, consider a balance transfer to a 0 percent card or a personal loan to pay off the cash advance. The interest savings usually justify the effort.
Alternatives to a cash advance
If you need cash and want to avoid the fees and high interest, explore these options first:
- Debit card withdrawal: No fees, no interest, instant access to your own money.
- Personal loan: Fixed rate (usually 6 to 36 percent depending on your credit), fixed term, and interest charged only on the amount borrowed. Approval takes a few days.
- Credit union loan: Often lower rates than banks, sometimes with same-day funding for members in good standing.
- Paycheck advance: Some employers offer advances on future paychecks with no interest, though this is less common.
- 0 percent balance transfer card: If you have time (2 to 3 weeks for approval), you can open a new card with a 0 percent introductory APR, transfer cash from your current card, and pay no interest during the promo period — though a balance transfer fee (usually 3 to 5 percent) still applies.
Frequently Asked Questions
What is the difference between a cash advance and a balance transfer?
A cash advance is cash withdrawn from your credit limit and charged a cash advance fee plus a high APR. A balance transfer moves a balance from one card to another and is charged a balance transfer fee (usually 3 to 5 percent) but may have a 0 percent introductory APR. Balance transfers are meant for moving debt between cards; cash advances are for getting physical cash.
Can I use a credit card cash advance to pay another credit card?
Technically yes, but it is expensive. You pay the cash advance fee and high APR on the withdrawn cash, then use it to pay another card. You are paying fees to move money between cards. A balance transfer is cheaper if both cards allow it.
Does a cash advance hurt my credit score?
Yes, temporarily. It increases your credit utilization ratio, which can lower your score by 10 to 50 points depending on how much you borrow. The impact fades as you pay down the balance. A cash advance also appears on your credit report as a balance, which factors into payment history and utilization calculations.
What happens if I do not pay back a cash advance?
The balance accrues interest at your cash advance APR (usually 23 to 29 percent) and compounds daily. After 30 days of non-payment, the card issuer reports it to the credit bureaus as a late payment, which damages your credit score. After 180 days, the account may be charged off and sold to a debt collector.
Can I get a cash advance with a credit card that has a 0 percent introductory APR?
No. The 0 percent rate applies only to purchases or balance transfers, depending on the card. Cash advances always charge the card's cash advance APR, which is separate and higher. Check your card's terms to confirm.