Yes, you can withdraw cash using a credit card, but it costs more than a regular purchase and the interest starts immediately.

A cash advance is a withdrawal of money from your credit card account, taken at an ATM, bank teller, or through a cash-like transfer. The card issuer treats it as a loan against your available credit, not as a purchase. You will pay a fee upfront — usually 3 to 5 percent of the amount withdrawn — plus a higher interest rate than you pay on regular purchases, and interest accrues from the moment you take the cash, with no grace period.

The mechanics are straightforward: you insert your card into an ATM, enter your PIN, and withdraw the amount you need. Some banks also allow you to request a cash advance at a teller window or through a balance transfer check. The money appears in your account immediately, but the cost compounds quickly because the interest rate on cash advances is typically 5 to 10 percentage points higher than your purchase APR, and many cards charge interest daily from day one.

Key Takeaways

  • Cash advances charge an upfront fee of 3 to 5 percent of the amount withdrawn, plus a higher interest rate than purchases, with no grace period.
  • Interest on a cash advance begins accruing the same day you withdraw the money, even if you pay your full balance by the due date.
  • Your available credit for cash advances may be lower than your total credit limit, and some cards set a separate, smaller cash advance limit.
  • Paying off a cash advance takes longer because most card issuers apply payments to purchases first, then to cash advances.
  • Alternatives like personal loans, payday loans, or borrowing from friends usually cost less unless you need the money for only a few days.

How the fees and interest work

When you take a cash advance, you are charged two separate costs: a cash advance fee and cash advance interest. The fee is a one-time charge calculated as a percentage of the amount withdrawn. If you withdraw $500 and the fee is 4 percent, you pay $20 immediately — the card issuer either deducts it from the cash you receive or adds it to your balance. This fee is non-negotiable and appears on your statement as a separate line item.

The interest rate on cash advances is set by your card issuer and is almost always higher than your purchase APR. Where a purchase might carry 18 percent APR, a cash advance on the same card might be 24 or 28 percent. More importantly, there is no grace period: interest begins accruing the day you withdraw the cash. If you take out $500 at 25 percent APR, you owe roughly $3.42 in interest after one day, $10.27 after three days, and $34.25 after ten days — before you have even made a payment. This is why a cash advance that you repay within a week still costs significantly more than a purchase.

Cash advance limits and how they differ from your credit limit

Your card issuer sets a cash advance limit that is separate from your overall credit limit. This limit is often much lower — sometimes 10 to 25 percent of your total credit limit. If your credit limit is $5,000, your cash advance limit might be only $500 or $1,000. You cannot exceed this limit, even if you have unused credit available for purchases.

The card issuer determines your cash advance limit based on your credit history, income, and account history with them. You can contact your issuer to request an increase, but they are not required to grant it. Some cards do not offer cash advances at all, particularly secured cards or cards designed for rebuilding credit. Check your card's terms or call the number on the back of your card to find out your specific cash advance limit.

How payments are applied when you have both purchases and cash advances

If your statement includes both a purchase balance and a cash advance balance, your payment is applied in a specific order set by your card issuer — and it almost always favors the issuer, not you. Most cards apply your payment to the purchase balance first, then to the cash advance. This means that if you owe $300 on purchases and $200 on a cash advance, and you send in a $400 payment, the $400 goes toward the $300 purchase first, leaving only $100 applied to the $200 cash advance. The remaining $100 of the cash advance continues to accrue interest at the higher rate.

This payment order is why a cash advance can be expensive even if you pay quickly. The interest on the unpaid cash advance compounds while your payment sits against the purchase balance. Some card issuers allow you to specify how your payment is divided, so it is worth calling to ask. If your issuer does allow it, you can direct your payment entirely to the cash advance to stop the high-rate interest from growing.

Where you can take a cash advance

You can withdraw a cash advance at any ATM that displays your card network's logo — Visa, Mastercard, American Express, or Discover. You will need your PIN, which you set up when you activated your card. If you do not have a PIN, you can request one from your card issuer before you need it.

You can also take a cash advance at a bank teller window, even if it is not your own bank. Bring your card and a photo ID. Some card issuers also issue convenience checks linked to your cash advance limit — you write a check against your credit line, and it functions as a cash advance. These checks carry the same fees and interest rates as an ATM withdrawal.

ATMs charge their own fee on top of your card issuer's fee. An out-of-network ATM might charge $2 to $4 per transaction. If you withdraw $500 and pay a $20 cash advance fee plus a $3 ATM fee, your total upfront cost is $23, or 4.6 percent of the amount withdrawn.

Why cash advances are expensive compared to other borrowing options

A cash advance is one of the most expensive ways to borrow money in the short term. The combination of an upfront fee, a high interest rate, and immediate interest accrual makes it costly even for a one-week loan. If you need $500 for seven days, a cash advance might cost you $20 in fees plus roughly $24 in interest — $44 total, or an effective annual rate of over 3,000 percent.

A personal loan from a bank or credit union, even with a higher stated APR, often costs less because the interest is calculated over the full loan term and you know the exact total cost upfront. A payday loan is also expensive but may be cheaper if you repay it within two weeks. Borrowing from a friend or family member, if that is an option, costs nothing. Even a balance transfer to a 0 percent introductory APR card — if you have access to another card — is cheaper than a cash advance on your current card.

How a cash advance affects your credit score

Taking a cash advance does not directly harm your credit score, but it can indirectly affect it in two ways. First, a cash advance increases your credit utilization ratio — the percentage of your available credit that you are using. If you have a $5,000 limit and a $500 cash advance limit, and you withdraw $400, your utilization jumps to 8 percent of your total limit. High utilization can lower your score slightly. Second, if the cash advance causes you to carry a balance and miss a payment, the missed payment will damage your score.

The cash advance itself does not appear separately on your credit report — it is simply part of your credit card balance. What matters to credit bureaus is whether you pay on time and how much of your limit you are using. If you repay the cash advance quickly and keep your overall utilization low, the impact on your score is minimal.

Frequently Asked Questions

Can I use a credit card to withdraw cash from my bank account?

No. A cash advance is a loan against your credit line, not a withdrawal from a linked bank account. You are borrowing money from your card issuer, not accessing money you already have. If you want to withdraw from your bank account, use your debit card or visit your bank's ATM.

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

A cash advance gives you physical cash and charges a fee plus a high interest rate immediately. A balance transfer moves debt from one card to another and often includes a 0 percent introductory APR period. Balance transfers are meant for existing debt; cash advances are for getting cash. Both charge upfront fees, but balance transfers are cheaper if you need time to pay off the balance.

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

No. Your cash advance limit is separate from your purchase limit, but you still cannot exceed your total credit limit. If your total limit is $5,000 and you have already charged $5,000 in purchases, you cannot take a cash advance. You would need to pay down your balance first.

Do I have to pay back a cash advance if I dispute it?

Cash advances cannot be disputed the way purchases can. You authorized the withdrawal when you entered your PIN and took the cash. You are responsible for repaying it plus the fees and interest. If you believe the withdrawal was fraudulent — for example, someone else used your card — report it to your card issuer immediately, and they will investigate.

What happens if I only make the minimum payment on a cash advance?

The unpaid balance continues to accrue interest at the cash advance rate, which is higher than your purchase rate. If you owe $500 at 25 percent APR and make only the minimum payment, it will take many months to pay off, and you will pay hundreds of dollars in interest. The longer you carry the balance, the more expensive it becomes.