Yes, you can get cash from a credit card, but it costs more than a purchase
You can withdraw cash using your credit card at an ATM, through a bank teller, or sometimes at a store checkout. The catch is that cash advances — that's the official name — charge you interest and fees that start the moment you take the money out. There is no grace period like there is for regular purchases. You pay interest immediately, every single day, until the balance is gone.
A cash advance is treated as a separate transaction from your regular credit card balance. Your card issuer reports it separately to the credit bureaus, and it can affect how much credit you have available for purchases. Before you use this option, you should understand exactly what it will cost and what the alternatives are.
Key Takeaways
- Cash advances charge interest from day one with no grace period, and the interest rate is usually higher than your purchase rate.
- You also pay an upfront fee — typically 3 to 5 percent of the amount withdrawn — just to take the cash out.
- The total cost makes cash advances expensive for anything but genuine emergencies, and only then if you can pay it back within days.
- Alternatives like personal loans, payday loans, or borrowing from family are often cheaper, though each has its own tradeoffs.
The three ways to withdraw cash from a credit card
The most common method is using an ATM. Insert your card, enter your PIN, and withdraw up to your cash advance limit — which is usually lower than your total credit limit. Some cards set it at 20 to 30 percent of your credit line, though it varies by issuer.
You can also visit a bank branch and ask a teller for a cash advance. This works even if it is not your bank — the teller will process it through your card network. A third option is a store checkout, though fewer retailers offer this now. You ask the cashier for a cash advance instead of a purchase, and they process it like a debit transaction.
All three methods trigger the same fees and interest rates. The method you choose does not change the cost — only the convenience and whether you have a PIN set up.
What a cash advance actually costs you
There are two charges: an upfront fee and daily interest. The upfront fee is usually 3 to 5 percent of the amount you withdraw, though some cards charge a flat dollar amount instead (like $10 minimum). This fee is added to your balance immediately.
The interest rate on cash advances is almost always higher than your purchase rate. If your purchase APR is 18 percent, your cash advance APR might be 24 or 28 percent. And unlike purchases, there is no grace period — interest starts accruing the day you withdraw the money. If you withdraw $500 at a 25 percent APR, you owe roughly $3.42 in interest after one week, $13.70 after one month.
Here is a concrete example: You withdraw $500 with a 4 percent fee and a 25 percent APR. You pay $20 upfront (the fee), plus interest that starts immediately. If you pay it back in full after 30 days, you owe the $500 plus $20 plus about $10 in interest — a total of $530. That $30 in fees and interest is 6 percent of what you borrowed, just for one month.
How cash advances affect your credit score and available credit
A cash advance reduces your available credit the same way a purchase does. If your limit is $2,000 and you take out a $500 cash advance, you have $1,500 left to use. However, the cash advance shows up separately on your credit report, which can signal to lenders that you are in financial stress.
Your credit score itself is not directly damaged by taking a cash advance — it is the same transaction type as a purchase in that sense. But if the cash advance pushes your overall credit utilization higher (the percentage of your total limit you are using), your score can drop. Lenders also see cash advances as riskier behavior, so if you apply for new credit soon after, some may view you less favorably.
When a cash advance might make sense
A cash advance is rarely the right choice, but there are narrow situations where it is the least bad option. If you have a genuine emergency that requires cash — a car repair that a shop will not charge to a card, a medical bill that needs immediate payment, or a situation where you need cash and have no other way to get it — and you can pay it back within a few days, the total cost might be acceptable.
The key is speed. The longer you carry a cash advance balance, the more interest you pay. If you can pay it back in under a week, the interest cost stays low. If it sits for a month or longer, you are paying hundreds of dollars in interest on top of the upfront fee.
Cheaper alternatives to a cash advance
A personal loan from a bank or credit union is almost always cheaper. Interest rates on personal loans typically range from 6 to 36 percent depending on your credit, which is lower than most cash advance rates. You also know the exact payment schedule upfront, and there is no daily interest accrual — you pay a fixed amount each month. The downside is that approval takes a few days, so this does not work for same-day cash needs.
Borrowing from family or friends costs nothing if they agree to it, though it can strain relationships if repayment becomes difficult. A credit union loan (if you are a member) is often cheaper than a bank loan and faster to process. Some employers offer paycheck advances or emergency loans to employees.
A payday loan is faster than a personal loan but more expensive than a cash advance in most cases — typical fees are 15 to 20 percent of the loan amount for a two-week term, which works out to an APR of 400 percent or higher. Use this only if you are certain you can repay it on your next payday and have exhausted other options.
How to avoid needing a cash advance
The best strategy is to build a small emergency fund — even $500 to $1,000 — so you have cash available without borrowing. If you do not have one yet, start by setting aside whatever you can each month, even $20 or $50. This takes time, but it prevents you from being forced into expensive borrowing when something unexpected happens.
If you do take a cash advance, treat it as a debt that must be paid back immediately. Do not let it sit on your card. Set a specific payoff date before you withdraw the money, and stick to it. The longer it stays, the more you lose to interest.
Frequently Asked Questions
Can I use a cash advance to pay off other debts?
Technically yes, but it is usually a bad idea. You are replacing one debt with another that costs more in interest and fees. The only exception is if you are paying off a much higher-interest debt (like a payday loan at 400 percent APR) with a cash advance at 25 percent, and you can pay the cash advance back within days. Even then, explore personal loans first.
What is the difference between a cash advance and a balance transfer?
A balance transfer moves debt from one card to another and may come with a lower introductory rate. A cash advance is withdrawing actual cash. Balance transfers are for moving existing balances; cash advances are for getting cash in hand. Both charge upfront fees, but balance transfers sometimes offer a 0 percent introductory period while cash advances never do.
Will taking a cash advance hurt my credit score?
Not directly, but it can indirectly. If it raises your overall credit utilization, your score may drop slightly. More importantly, lenders see cash advances as a sign of financial stress, which can affect future loan decisions. The score impact is usually small if you pay it back quickly.
Can I get a cash advance if my card is maxed out?
No. Your cash advance limit is separate from your purchase limit, but both come from your total credit line. If you are at your limit, you cannot take a cash advance. You would need to pay down your balance first.
Is there a limit to how much I can withdraw?
Yes. Your card issuer sets a cash advance limit, which is usually 20 to 30 percent of your total credit limit, though it varies. Some cards also set a daily ATM withdrawal limit (like $500 per day). Check your card agreement or call your issuer to find out your specific limit.