Yes, you can take cash out from a credit card, but it works differently than a debit card and costs more

A cash advance is when you borrow money directly from your credit card's line of credit and receive it as cash. You can do this at an ATM using your card's PIN, at a bank teller window, or through a cash advance check that your card issuer sends you. The money is yours to use immediately — but unlike a regular purchase, the card issuer charges you fees and interest right away, and the interest rate is usually much higher than your regular purchase rate.

The reason cash advances cost more is simple: the card issuer sees them as riskier than purchases. When you buy something, the merchant is responsible for delivering the goods or service. When you take cash, there is no merchant to hold accountable — only you and the money. That risk gets passed to you as a higher price.

Key Takeaways

  • Cash advances charge a separate, higher interest rate than purchases — often 20% to 30% or more — and interest starts accruing immediately with no grace period.
  • Most card issuers charge an upfront fee of 3% to 5% of the amount you withdraw, in addition to the interest you will owe.
  • You can withdraw cash at ATMs, bank teller windows, or by using convenience checks, but the method does not change the fees or interest rate.
  • Cash advances count toward your credit limit, so withdrawing $500 leaves you with $500 less available credit for purchases.

The fees and interest rates that apply to cash advances

When you take a cash advance, you pay two separate costs: an upfront fee and ongoing interest. The cash advance fee is typically 3% to 5% of the amount you withdraw, charged immediately. If you withdraw $300, you might pay $9 to $15 just to get the cash. Some cards cap this fee at a flat amount — for example, $10 maximum — which can be better or worse depending on how much you withdraw.

The cash advance interest rate is where the real cost adds up. This rate is separate from your regular purchase APR and is almost always higher. While a purchase APR might be 18%, a cash advance APR could be 28% or higher. The card issuer begins charging interest on the cash advance immediately — there is no grace period like there often is for purchases. This means interest starts accruing the day you withdraw the money, even if you pay it back within days.

To see what your card charges, check your card's terms and conditions or call the customer service number on the back of your card. The issuer is required to disclose both the cash advance fee percentage and the cash advance APR before you complete the transaction at an ATM.

Where you can withdraw cash and how much you can take

You have three main ways to get cash from a credit card. The first is an ATM withdrawal using your card and PIN. Most ATMs that accept your card brand will allow this, though some ATMs charge an additional ATM operator fee (separate from your card issuer's fee). The second is visiting a bank teller window — you can ask any bank or credit union to give you a cash advance on your card, and they will process it like a withdrawal. The third is using a convenience check, which is a check the card issuer mails to you that you can write against your credit line and deposit or cash.

Your card issuer sets a cash advance limit, which is often lower than your total credit limit. For example, you might have a $5,000 credit limit but only a $1,000 cash advance limit. You can find your cash advance limit in your online account or by calling customer service. This limit exists because card issuers want to discourage cash advances — they are riskier and more profitable for the issuer, so they restrict how much you can take.

How a cash advance affects your credit and available credit

When you take a cash advance, the amount you withdraw counts immediately toward your credit limit, just like a purchase does. If you have a $3,000 limit and withdraw $500 in cash, you now have only $2,500 available for new purchases or advances. This matters because your credit utilization ratio — the percentage of your credit limit you are using — affects your credit score. The higher your utilization, the lower your score tends to be. A cash advance that pushes your utilization from 30% to 50% can cause a small dip in your score.

The cash advance also appears on your credit report as a separate transaction type, though it does not affect your score differently than a purchase would at the same utilization level. What matters is the total amount owed and how quickly you pay it back.

Why paying back a cash advance takes longer than you might expect

When you make a payment to your credit card, the card issuer applies it to your balance in a specific order set by law. Purchases (which usually have a lower interest rate) are paid off first, then cash advances. This means if you have both a purchase balance and a cash advance balance, your payment goes toward the purchase first, and the cash advance keeps accruing interest at the higher rate while you are paying down the purchase.

For example, suppose you have a $200 purchase at 18% APR and a $300 cash advance at 28% APR. You make a $100 payment. That $100 goes toward the $200 purchase, leaving the $300 cash advance untouched and still accruing interest at 28%. This is why cash advances are expensive even if you pay quickly — the interest compounds while other balances get priority.

The best approach is to pay off the cash advance as quickly as possible, ideally before making other purchases. If you cannot pay it off immediately, make a payment large enough to cover the cash advance balance in full, then pay other balances separately.

When a cash advance might make sense, and when it does not

A cash advance is rarely the cheapest way to borrow money. A personal loan from a bank or credit union, a payday loan (despite its reputation), or even a cash advance from a friend will usually cost less. However, a cash advance might be your only option in a genuine emergency when you need cash immediately and have no other source.

Cash advances make the least sense when you are using them for everyday expenses or to avoid paying bills on time. If you are regularly taking cash advances to cover regular costs, that is a sign your income does not match your spending, and a cash advance will only delay the problem while making it more expensive.

A cash advance also does not make sense if you are trying to move a balance to a lower-interest card. Balance transfer offers (which move debt from one card to another at a promotional rate) are designed for this purpose and cost far less than a cash advance.

Alternatives to taking a cash advance

If you need cash but want to avoid the high fees and interest of a cash advance, consider these options first. A personal loan from a bank, credit union, or online lender typically has a lower interest rate than a cash advance and no upfront fee. The tradeoff is that approval takes a few days rather than minutes. A balance transfer to a card with a 0% introductory APR can move existing debt to a lower rate, though this does not give you new cash. Borrowing from family or friends, if possible, costs nothing and gives you time to repay without interest.

If you have a 401(k) or similar retirement account, some plans allow you to borrow against your balance at a low interest rate. This is not ideal because you are borrowing from your own retirement, but it is cheaper than a cash advance. Check with your plan administrator to see if this option is available to you.

Frequently Asked Questions

What is the difference between a cash advance and a regular purchase?

A purchase is a transaction with a merchant for goods or services. A cash advance is borrowing cash directly from your credit line. Purchases have a lower interest rate and usually a grace period before interest starts. Cash advances have a higher interest rate, charge an upfront fee, and start accruing interest immediately with no grace period.

Can I use a credit card at an ATM without a PIN?

No. To withdraw cash at an ATM, you need your card's PIN. If you do not have a PIN, contact your card issuer to request one. Some issuers will mail it to you; others let you set one online. You can visit a bank teller without a PIN and ask for a cash advance, but you will need to show ID.

Does taking a cash advance hurt my credit score?

A cash advance itself does not hurt your score, but it increases your credit utilization ratio, which can lower your score slightly. The effect is temporary — your score will recover as you pay down the balance. Missed payments or very high utilization cause more damage than the cash advance itself.

What happens if I cannot pay back a cash advance?

If you do not pay, the balance stays on your card and interest keeps accruing at the cash advance rate. After 30 days of non-payment, it will be reported to credit bureaus and damage your credit score. After 180 days, the card issuer may close your account and send the debt to a collection agency. Contact your card issuer immediately if you cannot pay — some offer hardship programs that lower your interest rate temporarily.

Is there a way to avoid the cash advance fee?

No. The fee is mandatory and charged by your card issuer. You cannot negotiate it away or avoid it by using a specific withdrawal method. The only way to avoid the fee is to not take a cash advance. Some cards marketed to people rebuilding credit do not offer cash advances at all, which removes the temptation.