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

Most credit cards let you withdraw cash from an ATM using your card's PIN, or you can ask a bank teller for cash back. The catch: credit card companies charge a cash advance fee (usually 3% to 5% of the amount you withdraw) plus a higher interest rate than you pay on regular purchases. That interest starts accruing immediately — there is no grace period like there is for purchases. If you need cash, this is almost always the most expensive way to get it.

Before you use this feature, understand what you are paying for. A $200 cash advance with a 5% fee costs you $10 right away, then interest on the full $210 at a rate that might be 5 to 10 percentage points higher than your purchase APR. If you carry that balance for a month, you could owe $15 to $20 total. That matters.

Key Takeaways

  • Cash advances charge a separate fee (typically 3% to 5%) plus a higher interest rate than purchases, with interest starting immediately.
  • You can withdraw cash at an ATM with your PIN or ask a bank teller for cash back, but both trigger the same fees.
  • The interest rate on cash advances has no grace period, so you begin accruing charges the day you withdraw.
  • Cheaper alternatives include using a debit card, borrowing from a friend, or visiting your bank for a small personal loan.

How cash advances work on your credit card

When you take a cash advance, the credit card company treats it as a loan against your available credit, not as a purchase. You have a separate cash advance limit (often lower than your total credit limit) and a separate interest rate. The company charges the fee upfront, and interest begins accruing the same day you withdraw the money.

You can access cash in two ways. At an ATM, you insert your card and enter your PIN to withdraw up to your cash advance limit. At a bank or credit union branch, you can ask the teller for cash back, though not all institutions allow this with credit cards — call ahead if you are unsure. Some credit card companies also offer convenience checks that you can write like a regular check; these also count as cash advances and carry the same fees.

What fees and interest rates you will see

The cash advance fee is a percentage of the amount you withdraw, charged immediately. Most cards charge between 3% and 5%, though some charge a flat fee (like $5 or $10) if that is higher. A $300 withdrawal with a 5% fee costs $15 before you even leave the ATM.

The interest rate on cash advances is separate from your purchase APR and is almost always higher — often 5 to 10 percentage points above what you pay on regular purchases. If your purchase rate is 18%, your cash advance rate might be 23% or 25%. This rate applies to the full amount you withdrew, including the fee. Unlike purchases, there is no grace period: interest starts accruing on day one.

To see your card's specific cash advance fee and APR, check your cardholder agreement or call the number on the back of your card. These terms vary by card and by issuer.

Why cash advances are expensive compared to other borrowing

A cash advance is one of the most expensive ways to borrow money. To compare: a personal loan from a bank or credit union typically charges 6% to 36% APR with no upfront fee. A payday loan charges a flat fee (often $15 to $20 per $100 borrowed) but is meant to be repaid in two weeks. A cash advance charges both an upfront fee and a high interest rate with no set repayment date, making it expensive whether you repay in days or months.

The only scenario where a cash advance makes sense is if you have an immediate need for cash and no other option available. Even then, repay it as fast as you can. Every day you carry the balance, the interest compounds.

Alternatives to taking a cash advance

Before you use your credit card to withdraw cash, consider these cheaper options. If you have a debit card linked to a bank account, use that instead — you will pay only a small ATM fee (usually $0 to $3) with no interest. If you need money urgently, ask a friend or family member to lend it to you. If you need a larger amount, visit your bank or credit union and ask about a personal loan; the interest rate will almost certainly be lower than a cash advance.

Some employers offer paycheck advances or loans to employees. Some nonprofits and community organizations offer small emergency loans at low or no interest. If you are in financial hardship, 211.org can connect you with local resources. These routes take longer than an ATM withdrawal, but they cost far less.

How cash advances affect your credit score

A cash advance itself does not directly hurt your credit score, but carrying a high balance does. When you take a cash advance, you are using part of your available credit. If that pushes your total credit card balances above 30% of your total credit limits, your score may drop. The higher your balance relative to your limit, the bigger the impact.

Additionally, if you cannot repay the cash advance quickly and it sits on your card for months, you will pay substantial interest. If you miss a payment, that will damage your score significantly. The damage comes from the balance and the payment behavior, not from the cash advance itself.

How to repay a cash advance

Your credit card statement will show the cash advance as a separate line item from your regular purchases. When you make a payment, the card issuer applies it to your balance in a specific order set by law: first to the highest-interest debt (usually the cash advance), then to lower-interest debt. This is good news — your payment tackles the most expensive part of your balance first.

To avoid interest entirely, repay the full cash advance amount before your next billing cycle closes. If you cannot do that, repay as much as you can as soon as you can. Every dollar you repay stops the interest clock on that dollar.

Frequently Asked Questions

Can I take a cash advance on a credit card with no credit history?

You can only take a cash advance if you have an active credit card account. If you are new to credit or rebuilding, you may not have a card yet, or your card may have a very low cash advance limit. Once you have a card, the issuer sets your cash advance limit separately from your credit limit — it is often lower or even zero.

What happens if I cannot repay the cash advance?

If you do not repay by your due date, the card issuer will charge a late fee and report the missed payment to credit bureaus, which will damage your credit score. The interest will continue to accrue on the unpaid balance. If the debt goes unpaid for months, the issuer may close your account or send the debt to a collection agency.

Is there a limit to how much cash I can withdraw?

Yes. Your card issuer sets a separate cash advance limit, which is often lower than your total credit limit. You can find this limit in your cardholder agreement or by calling the number on your card. Some cards set the limit at 20% to 50% of your credit limit; others set it much lower.

Do I have to use my PIN to take a cash advance?

At an ATM, yes — you need your PIN. At a bank teller window, you typically do not need a PIN; you just show your card and ID. Convenience checks do not require a PIN. All three methods trigger the same cash advance fee and interest rate.

Can I take a cash advance to pay off another credit card?

Technically yes, but it is a bad idea. You would pay the cash advance fee and high interest rate on top of the balance you are trying to pay off, making your debt more expensive, not less. If you are trying to consolidate debt, a personal loan or balance transfer card (which charges a lower fee for transfers) would be cheaper.