Yes, you can take cash out of a credit card, but it costs more than a purchase

Most credit cards let you withdraw cash at an ATM using your card's PIN, or request cash back at a store checkout. The card issuer treats this as a cash advance — a short-term loan separate from your regular credit line. You pay interest on the full amount immediately, at a higher rate than you pay on purchases. There is also an upfront fee, usually 3% to 5% of the amount withdrawn.

The math matters. If you withdraw $500 at a 5% fee plus 27% annual interest, you are paying $25 upfront plus roughly $3.38 per month in interest if you carry the balance. That is why cash advances are a last resort, not a convenience.

Key Takeaways

  • Cash advances charge a separate, higher interest rate than purchases — often 25% to 30% — and interest starts accruing immediately with no grace period.
  • You pay an upfront fee of 3% to 5% of the amount withdrawn, charged to your card balance on the day you take the cash.
  • The cash advance limit is often lower than your credit limit, sometimes 20% to 50% of what you can charge for purchases.
  • Payments toward your balance go to purchases first, then cash advances, so the cash advance interest keeps growing while you pay down other charges.

Where and how to take a cash advance

You have two main routes: ATMs and store checkout. At an ATM, insert your card, enter your PIN, and select the withdrawal amount — the machine dispenses cash and charges the advance to your card immediately. At a store, ask the cashier for cash back when you pay, and the amount is added to your purchase total.

Some card issuers also let you request a cash advance by phone or through their mobile app, though this is less common. The money typically arrives in your bank account within one to two business days if you use the app or phone method.

Not every ATM accepts every card. Your card issuer's website lists ATM networks you can use without an extra fee — Visa and Mastercard have their own networks, and American Express and Discover have smaller ones. Using an out-of-network ATM adds a second fee on top of the cash advance fee, usually $2 to $3.

The fees and interest that add up fast

The cash advance fee is charged once, on the day you withdraw. It is typically 3% to 5% of the amount, with a minimum of $5 to $10. A $200 withdrawal at 4% costs $8 upfront. This fee is added to your card balance immediately.

The cash advance interest rate is separate from your purchase rate and is almost always higher — often 25% to 30% or more. Unlike purchases, there is no grace period. Interest starts accruing the day you take the cash, even if you pay your full statement balance on time.

Your card issuer applies payments in a specific order: first to the lowest-interest balance (usually purchases), then to higher-interest balances (usually cash advances). This means if you have both a purchase balance and a cash advance balance, your payment reduces the purchase first, and the cash advance keeps accruing interest at the higher rate.

Cash advance limits and how they work

Your cash advance limit is separate from your credit limit. It is often 20% to 50% of your total credit limit — so if your credit limit is $5,000, your cash advance limit might be $1,000 to $2,500. Some cards do not publish this limit; you can find it in your card agreement or by calling the issuer.

Taking a cash advance counts against both your cash advance limit and your overall credit limit. If you withdraw $500 on a $5,000 credit limit with a $1,000 cash advance limit, you have $4,500 left to charge for purchases and $500 left for additional cash advances.

Why cash advances hurt your credit score

A cash advance does not directly damage your credit score, but it can indirectly. The withdrawal increases your credit utilization — the percentage of your available credit you are using. If you use 30% or more of your limit, your score may drop. The higher your utilization, the bigger the hit.

If you carry the cash advance balance month to month, the interest charges increase your total balance, which keeps your utilization high and your score lower. Paying off the cash advance quickly is the only way to avoid this effect.

Alternatives that cost less

Before taking a cash advance, consider other options. A personal loan from a bank or credit union typically charges 6% to 36% interest with no upfront fee — often cheaper than a cash advance. A balance transfer to a card with a 0% introductory rate can move existing debt at no interest for 6 to 21 months, though you still pay a 3% to 5% transfer fee upfront. A payday loan is faster but far more expensive, with interest rates of 300% to 400% or higher.

If you need cash for an emergency, asking friends or family, negotiating a payment plan with a creditor, or contacting a nonprofit credit counselor are all cheaper than a cash advance.

How to pay off a cash advance quickly

The longer you carry a cash advance, the more interest you pay. If you took a $500 advance at 28% interest and pay $100 per month, you will pay roughly $68 in interest over five months. If you pay $250 per month, you will pay roughly $17 in interest over two months.

Make a plan to pay the cash advance in full within one or two billing cycles if possible. Put any extra money toward it — tax refunds, bonuses, side income. Once the cash advance is paid off, stop using the card for cash advances unless it is a true emergency.

Frequently Asked Questions

Can I take a cash advance if I have a 0% introductory rate?

No. The 0% rate applies only to purchases, not cash advances. Cash advances charge the regular cash advance interest rate from day one, regardless of any promotional rate on your account.

What happens if I exceed my cash advance limit?

The ATM or store will decline the transaction. You cannot withdraw more than your cash advance limit allows. If you need more cash, you would have to pay down the existing advance first or use a different payment method.

Does a cash advance show up differently on my credit report?

No. A cash advance appears as a charge on your credit card account, not as a separate loan. It affects your credit utilization and payment history the same way any other balance does.

Can I transfer a cash advance balance to another card?

Typically no. Balance transfers are for purchase balances, not cash advances. You would need to pay off the cash advance with money from another source, then transfer the purchase balance if you want to move it.

What if I need cash but do not have a PIN for my card?

You can request cash back at a store checkout without a PIN — just use your card like a debit card and ask the cashier. For ATM withdrawals, you will need to set up a PIN through your card issuer's website or app first, which usually takes one to three business days.