You can take money off a credit card, but it is not the same as using the card to buy something

Yes, you can withdraw cash from a credit card using an ATM or by asking a bank teller. This is called a cash advance. The money goes into your bank account or your wallet as actual cash, not a store credit or a balance you can use only at certain places.

The catch is that a cash advance costs you more than a regular purchase. You pay an upfront fee (usually 3 to 5 percent of the amount you withdraw), and the interest rate on that cash is higher than the rate on purchases — often several percentage points above your regular APR. Interest starts accruing immediately; there is no grace period like there is for purchases. This means a $500 cash advance can cost you $15 to $25 just to take it out, plus interest that begins the day you withdraw it.

Most people use cash advances only when they have no other option — they need physical cash and cannot get it any other way. If you are considering a cash advance, it is worth asking first whether you could use your debit card, borrow from a friend, or visit your bank during business hours instead.

Key Takeaways

  • A cash advance lets you withdraw cash from your credit card at an ATM or bank, but charges a separate fee (usually 3 to 5 percent) plus a higher interest rate than regular purchases.
  • Interest on a cash advance starts the day you withdraw it, with no grace period, so the cost adds up faster than it does for purchases.
  • You can take a cash advance at any ATM that displays your card's logo, or by visiting a bank branch and asking a teller.
  • Your credit card statement will show the cash advance as a separate line item from your regular purchases, with its own balance and interest charges.

Where and how to withdraw cash from your credit card

You can withdraw cash at any ATM that accepts your card's network — Visa, Mastercard, American Express, or Discover. Look for the logo on the ATM screen or the machine itself. Insert your card, enter your PIN, select "cash withdrawal" or "cash advance," and choose your amount. The ATM will dispense the cash and give you a receipt.

If you do not know your PIN, you will need to set one up before you can use an ATM. Call the number on the back of your card and ask how to create or reset your PIN. This usually takes a few minutes on the phone.

You can also visit a bank branch in person and ask a teller for a cash advance. Bring your card and a photo ID. The teller will process the transaction and hand you cash. This method works even if you do not have a PIN set up yet, and some people prefer it because they can ask questions about the fees before they commit.

What fees and interest rates you will pay

Every credit card charges a cash advance fee — a one-time charge taken out when you withdraw the money. This fee is usually a percentage of the amount you take out, ranging from 3 to 5 percent. Some cards cap the fee at a flat dollar amount (for example, $10 minimum, $50 maximum), so a very small withdrawal might cost you a flat fee instead of a percentage. Check your card's terms or call the number on the back to find out your specific fee.

On top of the upfront fee, you pay cash advance APR — an interest rate that is almost always higher than your regular purchase APR. Where a purchase might carry 18 percent APR, a cash advance might be 24 or 28 percent. This rate applies to the full amount you withdrew, starting the day you took it out. Unlike purchases, there is no grace period; interest begins accruing immediately.

The interest compounds daily, so the longer you carry the balance, the more you owe. A $500 cash advance at 25 percent APR costs roughly $10 per month in interest alone, on top of the $15 to $25 fee you paid upfront. If you pay it back within a week, the interest is minimal. If you carry it for months, the interest can exceed the original fee.

How a cash advance appears on your statement and credit report

Your credit card statement breaks down your balance into separate categories. You will see your regular purchases in one section, and your cash advance in another. Each has its own balance, interest rate, and minimum payment. The cash advance fee appears as a separate charge on the statement.

When you make a payment to your card, the payment is usually applied to the lowest-interest balance first — your regular purchases — before it touches the cash advance. This means if you owe $1,000 in purchases and $500 in a cash advance, and you send in $500, that money typically goes toward the purchases, and the cash advance keeps accruing interest. Check your card's payment hierarchy in your terms and conditions, because some cards do it differently.

A cash advance does not hurt your credit score any more than a regular purchase does. What matters to your score is your credit utilization (how much of your available credit you are using) and whether you pay on time. A $500 cash advance uses $500 of your available credit, just like a $500 purchase does. But because the cash advance costs more in interest, carrying it longer damages your finances more than carrying a purchase would.

When a cash advance makes sense and when it does not

A cash advance makes sense only in specific situations. You might use one if you need cash for an emergency — a car repair that requires a cash deposit, a medical bill that must be paid in person, or a situation where the only payment method available is cash. Even then, it should be a last resort after you have checked whether your bank offers a free cash withdrawal, whether a friend or family member can lend you money, or whether you can delay the expense until you have cash on hand.

A cash advance does not make sense if you are using it to pay off other debts, to fund everyday spending, or because you want cash back from a purchase. For everyday cash, use your debit card or visit your bank's ATM for a free withdrawal. If you are paying off a credit card debt, a cash advance from another card only moves the problem around and adds fees. If you need spending money, look at whether you can adjust your budget or use a different payment method.

If you find yourself regularly needing cash advances, that is a sign that your income and expenses are not aligned. Consider talking to a credit counselor or financial advisor about building an emergency fund or adjusting your spending plan. Many nonprofits offer free financial counseling.

Alternatives to a cash advance

Before you take a cash advance, explore these options:

  • Debit card withdrawal: If you have a bank account, use your debit card at your bank's ATM or ask a teller for cash. This is free and immediate.
  • Paycheck advance: Some employers offer paycheck advances or early pay options. Ask your HR or payroll department whether this is available to you.
  • Personal loan: If you need a larger amount, a personal loan from a bank or credit union often has a lower interest rate than a cash advance. The application takes longer, but the cost is lower if you need the money for more than a few weeks.
  • Borrow from friends or family: If the amount is small and you can repay it quickly, borrowing from someone you trust avoids fees and interest entirely.
  • Payment plan: If you owe money to a business, ask whether they offer a payment plan instead of requiring cash upfront.

Frequently Asked Questions

Can I take out more cash than my credit limit?

No. Your cash advance limit is usually part of your overall credit limit. If your credit limit is $2,000 and you have already charged $1,500 in purchases, you can take out only $500 in a cash advance. Some cards set a separate, lower cash advance limit — for example, 50 percent of your credit limit — so you might be able to charge $2,000 in purchases but take out only $1,000 in cash.

Does a cash advance hurt my credit score?

A cash advance itself does not hurt your score more than a regular purchase does. What matters is your credit utilization and payment history. However, because cash advances cost more in interest, people often carry them longer, which keeps your utilization high and can indirectly damage your score over time.

What if I do not have a PIN for my credit card?

Call the number on the back of your card and ask to set up a PIN. This usually takes a few minutes. You can also visit a bank branch in person and ask a teller for a cash advance without a PIN — bring your card and photo ID.

Can I reverse a cash advance?

Once you have withdrawn the cash, you cannot reverse the transaction. You can only pay back the amount you withdrew plus the fee and interest. If you took out the cash by mistake, contact your card issuer right away to explain, but they cannot undo the withdrawal — you will still owe the fee.

Why is the interest rate on a cash advance higher than on purchases?

Card issuers charge a higher rate on cash advances because they see cash as higher risk than purchases. With a purchase, the merchant is accountable and the card issuer can dispute the charge. With cash, once you have it, the card issuer has no way to recover it if you do not pay. The higher rate reflects that risk.