Yes, you can get cash with a credit card, but it costs more than a regular purchase
A cash advance lets you withdraw money from an ATM or get cash back at a bank using your credit card. The card issuer treats it as a loan against your credit line, not a purchase. This matters because cash advances carry their own fees and interest rate — usually higher than your regular purchase APR — and interest starts accruing immediately with no grace period.
Most people use cash advances when they need physical money and have no other option. The cost is steep enough that it should be a last resort, not a convenience.
Key Takeaways
- Cash advances charge a separate fee (typically 3% to 5% of the amount withdrawn) plus a higher interest rate than purchases, with interest starting the day you withdraw.
- You can get cash at ATMs, banks, or sometimes through a convenience check from your card issuer, but each method has different limits and fees.
- Your cash advance limit is often lower than your credit limit and may be set separately by the issuer.
- The total cost of a $500 cash advance can easily reach $50 to $100 or more depending on your APR and how long you carry the balance.
How cash advances work and where to get them
When you withdraw cash using your credit card, you are borrowing directly against your credit line. The issuer charges you a cash advance fee upfront — this is a percentage of the amount you withdraw, usually between 3% and 5%, with a minimum dollar amount (often $2 to $10). So a $500 withdrawal might cost $15 to $25 just in fees.
You can get cash three ways: at an ATM using your card and PIN, at a bank teller's window with your card and ID, or through a convenience check that the issuer mails to you. ATMs are the fastest but may have additional ATM operator fees on top of your card's cash advance fee. Banks are slower but usually charge only the card issuer's fee. Convenience checks take days to arrive and may have their own fees.
Your cash advance limit is separate from your credit limit. If your credit limit is $5,000, your cash advance limit might be $1,500 or $2,000 — the issuer sets this independently. You can call the number on the back of your card to ask what your cash advance limit is.
The real cost: fees and interest rates
The fee is only the first cost. Cash advances also carry a higher APR than purchases. While your purchase APR might be 18%, your cash advance APR could be 22% or higher. More importantly, there is no grace period — interest starts accruing the day you withdraw, not at the end of the billing cycle like a purchase.
Here is what a $500 cash advance actually costs. Assume a 3% fee ($15), a 22% APR, and you pay it back over three months:
| Item | Cost |
|---|---|
| Cash advance fee (3%) | $15 |
| Interest over 3 months at 22% APR | $27 |
| Total cost | $42 |
| Effective cost as % of amount withdrawn | 8.4% |
If you carry the balance longer, the interest compounds. Over six months, that same $500 advance could cost $60 or more in fees and interest combined. This is why cash advances are expensive — you are paying for speed and convenience at a significant premium.
When a cash advance makes sense
A cash advance is worth considering only in specific situations. If you need cash for an emergency and have no other way to get it — no savings, no access to a debit card, no friends or family to borrow from — then a cash advance is better than missing a critical payment or going without necessary money.
It also makes sense if you can pay it back within days. A $500 advance paid back in five days might cost only $5 to $10 in interest, making the total cost closer to $20 to $25. That is still expensive, but it is not catastrophic.
A cash advance does not make sense if you are using it for regular spending, to avoid a purchase you cannot afford, or to fund a habit. If you are regularly taking cash advances, that is a sign your spending exceeds your income, and the interest will make the problem worse.
Alternatives that cost less
Before you take a cash advance, consider these options. A debit card withdrawal from your own bank account costs nothing. A personal loan from a bank or credit union typically has a lower APR than a cash advance, though it takes longer to get. A payday loan is also expensive, but some have lower total costs than a cash advance if you repay within two weeks.
If you need cash regularly, opening a checking account with a debit card is the cheapest long-term solution. If you need a one-time emergency amount, asking family or friends, or checking whether a local nonprofit offers emergency assistance, costs nothing.
If you have a 0% APR promotional period on your card, a cash advance does not may have access to — the promotional rate applies only to purchases. So even during a 0% offer, cash advances charge the full APR immediately.
How cash advances affect your credit score
A cash advance does not directly hurt your credit score the way a missed payment does. However, it does increase your credit utilization ratio — the percentage of your available credit you are using. If you have a $5,000 limit and take a $500 cash advance, your utilization jumps to 10%. High utilization (above 30%) can lower your score slightly.
The bigger risk is that a cash advance signals financial stress to the issuer. If you take multiple cash advances or carry the balance for months, the issuer may lower your credit limit or close the account, which would hurt your score. Lenders also see cash advances as riskier behavior than regular purchases, so it may affect future lending decisions.
Limits and restrictions on cash advances
Your card issuer sets a separate cash advance limit, which is often much lower than your credit limit. Some cards cap cash advances at 20% to 25% of your credit limit. You cannot exceed this limit, even if you have available credit for purchases.
Some cards restrict where you can get cash. For example, you might be able to use any ATM for a cash advance, but some issuers charge extra fees at out-of-network ATMs. Convenience checks may be restricted to a certain number per year or may not be available at all on some cards.
If you are near your cash advance limit and need more money, you cannot simply increase it — you would need to contact the issuer and request a higher limit, which may require a hard inquiry into your credit.
Frequently Asked Questions
What is the difference between a cash advance and a balance transfer?
A cash advance gives you physical money and charges a cash advance fee plus a high APR with no grace period. A balance transfer moves debt from another card to yours and may have a lower APR or a promotional 0% period, but it does not give you cash. Balance transfers are for paying off other debts; cash advances are for getting spending money.
Can I get a cash advance from a credit card at a grocery store or gas station?
No. Cash back at a store is a debit card feature, not a credit card feature. You can get cash back with a debit card at most retailers, but not with a credit card. Credit card cash advances are only available at ATMs, banks, or through convenience checks.
Does taking a cash advance hurt my credit score immediately?
Not immediately, but it can lower your score over time if it increases your credit utilization or if you carry the balance for months. A single small cash advance paid back quickly will have minimal impact. Repeated advances or a large balance will be more noticeable to credit scoring models.
What happens if I cannot pay back a cash advance?
The balance stays on your card and continues to accrue interest at the cash advance APR. If you miss payments, late fees apply and your credit score drops. The issuer may eventually close your account or send the debt to a collection agency. Contact your issuer immediately if you cannot pay — they may offer a hardship plan.
Can I use a cash advance to pay another credit card bill?
Technically yes, but it is a bad idea. You are borrowing at a high APR with a fee to pay off debt at a potentially lower APR. You end up paying more interest overall. If you are struggling to pay multiple cards, contact a nonprofit credit counselor instead.