Yes, you can get cash from a credit card, but it costs more than a regular purchase
You can withdraw cash using your credit card at an ATM, through a bank teller, or sometimes at a store checkout. The money comes from your credit line, not a savings account. But unlike swiping your card for groceries, a cash advance charges you fees upfront and starts charging interest immediately — there is no grace period like there is for regular purchases.
Most people use cash advances only when they have no other option. The fees and interest make them expensive fast. Understanding how they work and what they cost helps you decide whether this is the right move for your situation.
Key Takeaways
- Cash advances charge a fee (usually 3% to 5% of the amount) plus a higher interest rate than regular purchases, with interest starting the day you withdraw the cash.
- You can get cash at an ATM using your credit card PIN, at a bank teller with your card and ID, or sometimes at a store checkout.
- The interest rate on a cash advance is typically several percentage points higher than your regular purchase APR and varies by card issuer.
- Paying back a cash advance should be your priority because the interest compounds daily and there is no grace period to avoid charges.
How to withdraw cash using your credit card
The easiest method is an ATM. Insert your credit card, enter your PIN (the same one you use for debit), and select the cash withdrawal amount. The ATM will show you the fee before you confirm. Most ATMs accept credit cards, though some machines in certain locations may not.
You can also visit a bank branch in person. Bring your credit card and a photo ID. Tell the teller you want a cash advance, and they will process it at the counter. This method works even if you do not have a PIN set up yet, though you may need to verify your identity.
Some retail stores offer cash back at checkout when you use a credit card, though this is less common than it is with debit cards. Ask the cashier whether your store offers this option.
What fees and interest rates you will pay
A cash advance fee is charged the moment you withdraw the money. This fee is usually between 3% and 5% of the amount you take out, though some cards charge a flat dollar amount instead (for example, $10 minimum). A $300 cash advance with a 4% fee costs you $12 right away.
The interest rate on a cash advance is separate from your regular purchase APR and is almost always higher. While a card might charge 18% APR on purchases, the cash advance APR could be 25% or more. Interest starts accruing the day you withdraw the cash — there is no grace period. This means you pay interest even if you pay the full balance when your statement arrives.
Interest compounds daily. On a $500 cash advance at 25% APR, you owe roughly $3.42 in interest per day. After 30 days, that is over $100 in interest charges alone, on top of the initial fee.
How cash advances affect your credit score
A cash advance shows up on your credit report as a balance on your credit card, just like a purchase does. It counts 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%, which can lower your credit score slightly.
The cash advance itself does not hurt your score more than a regular purchase would. What matters is whether you pay it back on time. Missing a payment on a cash advance damages your score the same way missing any credit card payment does.
When a cash advance makes sense
A cash advance is worth considering only when you genuinely need physical cash and have no other way to get it. Examples include a medical emergency where a provider only accepts cash, or a situation where your debit card is lost and you need money immediately.
It does not make sense to use a cash advance for everyday spending just because you want cash in your wallet. The fees and interest are too high. If you regularly need cash, a better option is to visit your bank and withdraw from a savings account, or use an ATM that does not charge a fee.
If you are considering a cash advance because you cannot afford something, that is a sign to pause and reassess. Taking on high-interest debt to cover expenses you cannot afford now will make your situation harder later.
How to pay back a cash advance quickly
Treat a cash advance as an emergency debt. Make it your priority to pay it back as soon as you can, because the interest charges grow every single day.
When you make a payment to your credit card, the payment goes toward your lowest-interest debt first. This means if you have both regular purchases (at 18% APR) and a cash advance (at 25% APR), your payment will reduce the purchase balance first, leaving the cash advance to keep accruing interest. Some card issuers let you specify which balance to pay toward — call and ask if you can direct your payment to the cash advance instead.
The fastest way to stop the bleeding is to pay the full cash advance amount in one lump sum if you can. Even paying an extra $50 or $100 toward it each week makes a real difference because you are reducing the balance that interest is calculated on.
Alternatives to a cash advance
Before you use a cash advance, explore these options: If you have a savings account, withdraw cash from your bank for free. If you need a short-term loan, a personal loan from a bank or credit union typically charges less interest than a credit card cash advance. If you are short on money, some employers offer paycheck advances or hardship loans to employees.
If you do not have access to any of these, a cash advance from your credit card is still cheaper than a payday loan, which often charges 400% APR or more. But that does not make it a good choice — it just means both are expensive options you should avoid if possible.
Frequently Asked Questions
What is the difference between a cash advance and a regular credit card purchase?
A regular purchase uses your credit line but does not charge a fee or interest if you pay the full balance by the due date. A cash advance charges a fee immediately and starts charging interest the same day, with no grace period. The interest rate is also higher.
Can I get a cash advance if my credit is bad?
If you already have a credit card, you can get a cash advance up to your available credit limit, regardless of your credit score. Your card issuer has already decided to extend you credit. However, the cash advance limit may be lower than your purchase limit — some cards set it at 50% of your total credit line.
Will a cash advance hurt my credit score?
A cash advance itself does not hurt your score more than a regular purchase. It counts toward your credit utilization, which can cause a small dip. The real damage comes if you do not pay it back on time. A late payment on a cash advance damages your score the same way any late payment does.
How long does a cash advance stay on my credit report?
The cash advance balance itself does not stay on your report — it disappears once you pay it off. If you miss a payment, that late payment stays on your report for seven years. The fee and interest charges are just part of your monthly statement and do not appear separately on your credit report.
Can I use a credit card cash advance to pay another credit card?
Technically yes, but it is a bad idea. You would pay a cash advance fee on top of the interest, making your debt more expensive. If you are trying to move a balance to a lower-interest card, look for a balance transfer offer instead, which usually charges a lower fee and a lower interest rate.