You can withdraw cash from a credit card, but it costs more than a regular purchase

A cash advance is a withdrawal of cash from your credit card account, treated as a loan rather than a purchase. You can get one at an ATM using your card's PIN, at a bank teller's window, or through a cash advance check mailed by your card issuer. The moment you withdraw the money, interest starts accruing — there is no grace period like there is for regular purchases. You also pay an upfront fee, usually 3 to 5 percent of the amount withdrawn, charged immediately to your account.

The interest rate on cash advances is typically higher than your regular purchase APR — often 5 to 10 percentage points above it — and that rate applies from day one. A $500 cash advance at a 25 percent APR with a 4 percent fee costs you $20 upfront plus interest that compounds daily. If you carry that balance for a month, you will owe roughly $30 in interest alone. This makes cash advances one of the most expensive ways to borrow money on a credit card.

Key Takeaways

  • Cash advances charge an upfront fee (usually 3 to 5 percent) and a higher interest rate than purchases, with no grace period.
  • Interest on a cash advance begins accruing immediately, not after a grace period like a regular purchase.
  • You can withdraw cash at an ATM with your PIN, at a bank teller window, or by using a convenience check from your issuer.
  • Payments toward a cash advance are applied after purchases are paid off, so the debt lingers longer if you carry a balance.

Where and how to withdraw cash from your credit card

The most common method is an ATM withdrawal. Insert your credit card and enter your PIN — the same one you use for a debit card. The ATM will show you the available cash advance limit (which may be lower than your credit limit) and ask you to confirm the amount. The cash is dispensed immediately, and the transaction posts to your account within one to three business days.

You can also visit a bank branch and ask a teller for a cash advance. Bring your credit card and a photo ID. The teller will process the withdrawal and hand you cash on the spot. This method works even if the bank is not your card issuer — most banks will advance cash on any major credit card for a fee, though some charge an additional bank fee on top of your card issuer's fee.

A third option is a convenience check. Your card issuer may mail you blank checks that draw directly from your credit line. You write a check to yourself or a payee, deposit it like any other check, and the funds appear in your bank account. These checks also trigger cash advance fees and rates, even though they look like regular checks. Read the fine print on any convenience checks you receive — some issuers charge a higher fee for checks than for ATM withdrawals.

Fees and interest rates for cash advances

Every cash advance incurs two separate costs: a transaction fee and interest. The transaction fee is charged once, at the time of withdrawal, and ranges from 3 to 5 percent of the amount withdrawn. A $300 cash advance with a 4 percent fee costs $12 immediately. Some card issuers set a minimum fee (such as $5) and a maximum fee (such as $10), so a very small advance might cost the minimum, and a very large one might hit the cap.

The interest rate on cash advances is set by your card issuer and appears in your card agreement under "Cash Advance APR." This rate is almost always higher than your purchase APR and does not change based on your credit score or payment history — it is fixed for all cardholders on that card product. Interest accrues daily from the moment you withdraw the cash, calculated on the outstanding balance. If you withdraw $500 on the 1st of the month and make no payment, by the 30th you will owe roughly $500 plus the transaction fee plus 30 days of interest at your cash advance rate.

Some card issuers offer a 0 percent introductory rate on purchases but not on cash advances. Cash advances are never included in a promotional rate offer. If your card has a 0 percent APR for 12 months on purchases, a cash advance taken during that period will still accrue interest at the full cash advance rate.

How cash advances affect your credit and account balance

A cash advance does not appear on your credit report as a separate item — it is part of your credit card balance. However, it does count toward 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 percent. High utilization can lower your credit score, even if you pay the advance back quickly.

When you make a payment on a credit card with both purchases and a cash advance, the payment is applied in a specific order set by federal law. Payments go first to the balance with the lowest interest rate (usually purchases), then to higher-rate balances (the cash advance). This means if you owe $500 in purchases at 18 percent APR and $500 in a cash advance at 28 percent APR, and you send in a $300 payment, that $300 goes toward the purchases first. The cash advance keeps accruing interest at the higher rate while you pay down the cheaper debt. This can make a cash advance balance very difficult to eliminate if you carry other balances on the same card.

Alternatives to a credit card cash advance

Before taking a cash advance, consider whether another option would cost less. A personal loan from a bank or credit union typically carries a lower interest rate than a cash advance and has no upfront fee. If you have decent credit, you may may have access to for a rate between 8 and 15 percent, compared to 25 to 30 percent for a cash advance. The loan is repaid in fixed monthly installments, so you know exactly when the debt will be gone.

A balance transfer to a new card with a 0 percent introductory rate can help if you already have a cash advance balance on another card. You transfer the balance to the new card, pay no interest for the promotional period (usually 6 to 21 months), and avoid the daily interest accrual. Balance transfers do charge a fee (typically 3 to 5 percent), but that is a one-time cost, not an ongoing interest charge. This works only if you can pay down the balance before the promotional rate expires.

If you need cash for an emergency, a payday loan or line of credit from your bank may be faster and cheaper than a cash advance, depending on the terms. A payday loan is expensive but short-term (usually two weeks). A line of credit from your bank may offer a lower rate if you have an existing relationship with them. Compare the total cost — fee plus interest — across all options before deciding.

What happens if you cannot pay back a cash advance

If you do not pay a cash advance, it behaves like any other credit card debt. Interest continues to accrue daily at your cash advance rate. After 30 days of non-payment, the issuer reports the account as late to the credit bureaus, which damages your credit score. After 60 days, you may receive a phone call or letter from the card issuer's collections department. After 180 days (six months) of non-payment, the issuer typically closes the account and may sell the debt to a third-party collection agency.

You remain legally responsible for the debt even after the account is closed. A collection agency can pursue you for payment and, if you do not respond, may file a lawsuit. A judgment against you can result in wage garnishment or a bank account levy, depending on your state's laws. The debt can remain on your credit report for up to seven years from the date of first non-payment.

If you are struggling to pay a cash advance, contact your card issuer before you miss a payment. Some issuers offer hardship programs that lower your interest rate or allow you to pause payments temporarily. These programs are not automatic — you have to ask for them, and approval depends on your situation and the issuer's policies.

Frequently Asked Questions

Can I use a credit card to withdraw money from an ATM that belongs to a different bank?

Yes. Most ATMs accept credit cards from any major issuer. However, you will likely pay an ATM fee from the bank that owns the machine (usually $2 to $3) in addition to your card issuer's cash advance fee. Using an ATM owned by your card issuer's bank, or a bank in their network, usually waives the ATM fee.

Does a cash advance show up differently on my credit card statement?

Yes. Your statement lists cash advances separately from purchases, showing the amount withdrawn, the transaction fee, and the interest charged. The cash advance appears under a line item labeled "Cash Advance" or "ATM Withdrawal," making it easy to see how much you owe on that portion of your balance.

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

A cash advance withdraws cash from your credit line and charges interest immediately. A balance transfer moves debt from one card to another and may include a 0 percent introductory period. Balance transfers are for existing debt; cash advances create new debt. Both charge fees, but balance transfers can be cheaper if you use the promotional rate.

Can I get a cash advance if my credit card is maxed out?

No. Your cash advance limit is part of your overall credit limit. If you have used your entire limit on purchases, you cannot take a cash advance. Some issuers set a separate, lower cash advance limit — for example, $500 on a $5,000 card — so you may have room for a cash advance even if purchases are high.

Will paying off a cash advance quickly help my credit score?

Paying it off quickly stops the interest from growing and shows responsible behavior, but it does not immediately boost your score. Your credit utilization will drop once the balance is paid, which helps over time. The payment history matters more — making on-time payments on any balance, including a cash advance, is what improves your score.