You can withdraw cash from a credit card, but it is not the same as using the card to buy something
A cash advance is a withdrawal of actual money from your credit card account. You can get it at an ATM, at a bank teller window, or sometimes at a convenience store. The card issuer treats it as a loan against your credit limit, separate from your regular purchases.
The catch is immediate: cash advances charge fees and interest that start right away. There is no grace period like there is for regular purchases. Most cards charge a fee of 3% to 5% of the amount you withdraw, plus a flat fee of $2 to $10. Interest accrues from the day you withdraw the money, not from your statement closing date.
Because of these costs, a cash advance should be a last resort, not a convenience. If you need cash and have other options — a debit card, a bank withdrawal, a personal loan — those will almost always cost you less.
Key Takeaways
- Cash advances charge a fee (usually 3% to 5% plus a flat amount) and interest that starts immediately, with no grace period.
- The interest rate on a cash advance is typically higher than the rate on regular purchases, sometimes 5 to 10 percentage points above your standard APR.
- You can withdraw cash at an ATM using your PIN, at a bank teller with your card and ID, or sometimes at a store customer service desk.
- The amount you can withdraw is limited by your cash advance limit, which is usually lower than your total credit limit and is set by your card issuer.
Where you can actually withdraw the cash
An ATM is the most common route. Insert your card, enter your PIN, select "cash advance" or "withdrawal," and choose the amount. The ATM will dispense the cash and charge your account immediately. You can use ATMs from your card issuer's network, but using an out-of-network ATM may add an extra fee on top of the cash advance fee.
A bank teller is another option. Walk into any bank branch (not necessarily your own bank), bring your credit card and a photo ID, and ask for a cash advance. The teller will process it on the spot. This method works even if you do not have a PIN set up, though some banks charge an extra fee for teller-processed advances.
Some retailers — grocery stores, pharmacies, convenience stores — offer cash advances at the register when you pay with a credit card. The process is like a debit card cash-back request, but the amount comes from your credit line instead of a bank account. Not all stores offer this, and limits are often lower than at an ATM.
The fees and interest that make cash advances expensive
The upfront cost is a cash advance fee, charged the moment you withdraw. This is typically 3% to 5% of the amount withdrawn, with a minimum of $2 to $10 and sometimes a maximum cap. On a $500 withdrawal, expect to pay $15 to $25 just to get the cash.
The ongoing cost is interest, which starts accruing immediately. Your cash advance APR is usually higher than your purchase APR — often 5 to 10 percentage points above it. If your purchase rate is 18%, your cash advance rate might be 23% or 25%. This interest compounds daily and is calculated from the withdrawal date, not from your statement closing date. There is no grace period.
If you withdraw $500 at a 25% APR and pay it back in 30 days, you will owe roughly $10 in interest alone, plus the $15 to $25 upfront fee. That is $25 to $35 in total cost for borrowing $500 for a month — an effective annual rate far higher than any personal loan or even a payday lender in most states.
Your cash advance limit is separate from your credit limit
Your card issuer sets a cash advance limit that is usually much lower than your total credit limit. If your credit limit is $5,000, your cash advance limit might be $1,000 or $1,500. You cannot withdraw more than this limit, even if you have available credit for purchases.
You can find your cash advance limit in your card's terms and conditions, in your online account, or by calling the card issuer's customer service number on the back of your card. Some issuers let you request a higher limit, though approval is not may provide.
The cash advance counts against your total credit limit. If you withdraw $500 and your limit is $5,000, you now have $4,500 available for purchases. This can affect your credit utilization ratio, which is part of your credit score calculation.
When a cash advance might make sense
A cash advance is rarely the right choice, but there are narrow situations where it is better than the alternatives. If you need cash for an emergency and have no other way to get it, a cash advance might cost less than a payday loan (which can charge 400% APR or more) or missing a bill payment (which damages your credit and triggers late fees).
If you are traveling internationally and your debit card does not work, a cash advance from a credit card might be your only option to get local currency. The fees are high, but being stranded is worse.
If you have a 0% APR promotional period on your card, a cash advance during that period would avoid interest charges — though the upfront fee still applies. Check your card's terms to confirm whether the 0% offer covers cash advances, because many do not.
How to pay back a cash advance quickly
The interest clock starts immediately, so the longer you carry the balance, the more you pay. Make a plan to repay it as fast as possible.
When you make a payment to your card, the issuer applies it first to your lowest-interest balance (usually regular purchases) and last to your highest-interest balance (usually cash advances). This means your cash advance interest keeps growing while you pay down purchases. To pay off the advance faster, contact your issuer and ask them to apply your next payment directly to the cash advance, or pay more than the minimum.
If you have multiple cards, paying off the cash advance on the card with the highest APR first will save you the most money. If you can pay the entire advance in one lump sum, do that before your next statement closes.
Alternatives that cost less than a cash advance
A personal loan from a bank or credit union typically charges 6% to 36% APR with no upfront fee, and you know the exact payment schedule upfront. For a $500 loan at 20% APR over 12 months, you would pay about $55 in interest — less than half what a cash advance costs.
A balance transfer to a card with a 0% introductory APR can move high-interest debt to a lower rate for 6 to 21 months, though a 3% to 5% balance transfer fee applies upfront. This works for existing credit card debt, not for getting cash.
Borrowing from family or friends, if that is an option, costs nothing. A short-term loan from your employer or credit union, if available, is usually cheaper than a cash advance. Even a payday loan, while expensive, is sometimes less costly than a cash advance if you can repay it in two weeks.
If you need cash regularly, the real solution is building an emergency fund in a savings account so you do not have to borrow at all.
Frequently Asked Questions
Does a cash advance hurt my credit score?
The withdrawal itself does not appear on your credit report, but it increases your credit utilization ratio because the amount counts against your total credit limit. High utilization can lower your score. If you carry the balance and miss payments, that will hurt your score. Paying it off quickly minimizes the damage.
Can I use a credit card cash advance to pay another credit card bill?
Technically yes, but it is a bad idea. You are borrowing at a high rate (cash advance APR) to pay off debt at a lower rate (your other card's APR), and you are paying a fee on top. You would be paying more in total interest and fees. If you need to move debt between cards, a balance transfer is cheaper.
What happens if I cannot pay back the cash advance?
The balance stays on your card and interest keeps accruing. If you miss payments, late fees apply and your credit score drops. The issuer can raise your APR, freeze your account, or send the debt to a collection agency. Contact your issuer immediately if you cannot pay — they may offer a hardship plan or lower rate.
Is there a difference between a cash advance and a convenience check?
A convenience check is a check issued by your card company that you can write against your credit line. It works like a cash advance — same fees, same high interest rate, no grace period — but you do not have to go to an ATM. The cost is identical, so neither is better than the other.
Can I get a cash advance from a secured credit card?
Yes, secured cards typically allow cash advances, though the limit is often lower than on unsecured cards. The fees and interest rates are the same. If you are building credit with a secured card, avoid cash advances because the high interest makes the balance harder to pay off.