Yes, you can get cash from a credit card, but it costs more than a regular purchase

A cash advance is when you withdraw money directly from your credit card's available credit, either at an ATM, a bank teller, or through a convenience check. The cash is yours to use however you want — it is not tied to a merchant or a purchase. But the card issuer charges you for this service in ways that make it expensive compared to using your card to buy something.

The moment you take the cash, three things happen: you start paying interest immediately (no grace period like you get with purchases), you pay an upfront fee, and that cash counts against your credit limit just like a purchase does. For most people, a cash advance should be a last resort, not a regular way to get spending money.

Key Takeaways

  • Cash advances charge an upfront fee (usually 3 to 5 percent of the amount) plus interest that starts accruing right away, with no grace period.
  • The interest rate on a cash advance is often higher than your regular purchase APR, sometimes by several percentage points.
  • You can get cash at an ATM using your PIN, at a bank teller with your card and ID, or by depositing a convenience check the card issuer sends you.
  • Your available credit for cash advances may be lower than your total credit limit, and some cards do not offer cash advances at all.
  • If you need cash regularly, a debit card or a personal loan will cost you far less than repeated cash advances.

How the fees and interest work

When you take a cash advance, your card issuer charges you a cash advance fee upfront. This fee is usually between 3 and 5 percent of the amount you withdraw, though some cards charge a flat dollar amount instead (for example, $10 minimum). If you withdraw $200, you might pay $6 to $10 just to get the cash in your hand.

On top of that fee, you pay interest starting the day you withdraw the money. Unlike a purchase, which has a grace period (usually 21 to 25 days before interest kicks in), a cash advance begins accruing interest immediately. The interest rate is often 2 to 5 percentage points higher than your regular purchase APR. If your card charges 18 percent APR on purchases, the cash advance APR might be 23 percent.

The combination of an upfront fee plus a higher interest rate makes cash advances one of the most expensive ways to borrow money on a credit card. A $500 cash advance with a 5 percent fee ($25) plus 24 percent APR will cost you roughly $100 in fees and interest over a year if you only make minimum payments.

Where you can get a cash advance

You have three main ways to access a cash advance. The easiest is an ATM — you insert your card, enter your PIN, and withdraw cash up to your daily limit. Most ATMs charge an additional fee (usually $2 to $3) on top of your card issuer's cash advance fee, so this method stacks fees quickly.

You can also visit a bank teller at your card issuer's bank or at many other banks and ask for a cash advance. You will need your card and a photo ID. The teller will process the transaction and give you cash. This method usually avoids the ATM operator fee, but you are still paying the card issuer's cash advance fee and interest.

Some card issuers send convenience checks in the mail — these are blank checks drawn on your credit card account. You can write one to yourself or to someone else, deposit it in your bank account, and the amount becomes a cash advance on your card. This method also triggers the cash advance fee and interest, but it may be useful if you need to transfer money to another account.

Your cash advance limit may be lower than your credit limit

Your card issuer sets a separate cash advance limit, which is often lower than your total credit limit. If your credit limit is $5,000, your cash advance limit might be only $1,500 or $2,000. This limit is set by the issuer based on your creditworthiness and account history, and you cannot change it yourself.

You can find your cash advance limit by calling the customer service number on the back of your card, logging into your online account, or checking your most recent statement. Some cards do not offer cash advances at all — particularly secured cards or cards designed for people rebuilding credit — so it is worth checking before you need the cash.

When you take a cash advance, it reduces your available credit just like a purchase does. If you have a $5,000 limit and a $1,500 cash advance limit, and you withdraw $500, you now have $1,000 left in cash advance availability and $4,500 in total available credit.

Why cash advances are expensive compared to other borrowing

To understand why a cash advance is costly, compare it to other ways you might get cash. A personal loan from a bank or credit union typically charges 6 to 36 percent APR depending on your credit, with no upfront fee. A payday loan is predatory and should be avoided, but it is worth knowing that a cash advance is often cheaper than a payday loan — which is not saying much.

A debit card withdrawal from your own bank account costs nothing. If you have an emergency and need cash, using your debit card or visiting your bank is always cheaper than a credit card cash advance. The only reason to use a cash advance is if you have no other option and you need the money urgently.

If you find yourself taking cash advances regularly, that is a sign you are spending more than you earn. The real fix is to build an emergency fund (even $500 to $1,000 helps) or to look at your budget and find where money is going. A cash advance feels like a solution in the moment, but it makes the underlying problem worse by adding debt and interest.

How a cash advance affects your credit score

Taking a cash advance does not directly hurt your credit score the way a missed payment does. However, it can indirectly lower your score in two ways. First, a cash advance increases your credit utilization ratio — the percentage of your available credit you are using. If you have a $5,000 limit and you take a $1,000 cash advance, your utilization jumps to 20 percent. High utilization signals risk to credit scoring models, and your score may drop a few points.

Second, if you cannot pay off the cash advance quickly and it sits on your card accruing interest, you are carrying a balance. Carrying a balance does not hurt your score directly, but it costs you money in interest, and if you miss a payment, your score will drop significantly. The best approach is to take a cash advance only if you can pay it back within a month or two.

Alternatives to a cash advance

Before you take a cash advance, consider these cheaper options. If you need cash for an emergency, ask family or friends for a short-term loan with no interest. If you need money for a specific purchase, use your credit card to buy the item instead — you will pay no cash advance fee and you get a grace period before interest starts.

If you have a savings account, even a small one, withdraw from that first. If you have a 401(k) or similar retirement account, some plans allow you to borrow against your balance at a low interest rate (though this has tax implications, so check with your plan administrator). If you have a line of credit from your bank, that usually charges less interest than a cash advance.

If you are in a true financial crisis — facing eviction, unable to pay utilities, or needing emergency medical care — look into local assistance programs, nonprofits, or government aid before you borrow. A cash advance will only make your situation worse.

Frequently Asked Questions

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

A balance transfer moves debt from one card to another, while a cash advance gives you actual cash. Balance transfers sometimes have a lower fee and a promotional interest rate, but they are meant for moving existing debt, not for getting spending money. Cash advances are for getting cash in hand.

Can I use a cash advance to pay off a credit card balance?

Technically yes, but it is a bad idea. You would pay a cash advance fee to get the money, then use it to pay off a balance that you could have paid with a regular payment. You would be paying extra fees for no benefit. Just pay the balance directly from your bank account.

Do all credit cards offer cash advances?

No. Secured cards, student cards, and some cards designed for people rebuilding credit do not offer cash advances. Check your card's terms or call customer service to learn about yours does. Even if your card offers cash advances, you may have a limit lower than your credit limit.

What happens if I cannot pay back a cash advance?

The balance stays on your card and accrues interest at your cash advance APR (usually higher than your purchase rate). If you miss a payment, your interest rate may increase further and your credit score will drop. Contact your card issuer if you are struggling — some offer hardship programs that lower your interest rate temporarily.

Is there a way to avoid the cash advance fee?

No. The fee is built into the product. Some cards charge lower fees than others (3 percent instead of 5 percent), but you cannot avoid it entirely. The only way to avoid the fee is to not take a cash advance.