You can take cash out with a credit card, but it costs you immediately and works differently than a debit card withdrawal
A cash advance is a withdrawal of cash from your credit card account. You can do it at an ATM using your card and PIN, at a bank teller window, or through a cash advance check that your card issuer mails to you. The moment you take the money out, interest starts accruing on that amount — usually at a higher rate than your regular purchase APR — and you pay a fee upfront, typically 3 to 5 percent of the amount withdrawn.
This is not the same as using your debit card or a bank account. With a credit card cash advance, you are borrowing money from your card issuer and immediately entering debt. The cash does not come from your own funds; it comes from your credit line, and you must repay it with interest.
Key Takeaways
- Cash advances charge interest from the day you withdraw the money, with no grace period like purchases have.
- You pay an upfront fee (usually 3 to 5 percent) plus a higher APR than your regular purchase rate, making cash advances expensive.
- You can withdraw cash at an ATM, bank branch, or through a cash advance check, depending on what your card issuer offers.
- The amount you can withdraw is limited by your available credit and your card's cash advance limit, which is often lower than your total credit limit.
How the fees and interest work on a cash advance
When you take a cash advance, two costs hit immediately. The cash advance fee is a percentage of the amount you withdraw — most cards charge between 3 and 5 percent, though some charge a flat dollar amount instead (like $10 minimum). This fee is added to your balance right away.
The second cost is interest, which begins accruing the same day you withdraw the cash. Unlike a purchase, which typically has a grace period (usually 21 to 25 days before interest starts), a cash advance has no grace period. If you withdraw $500 with a 4 percent fee and a 24 percent APR, you owe $520 immediately, plus daily interest on that $520 starting that day.
The APR on cash advances is usually higher than your purchase APR. If your card charges 18 percent on purchases, the cash advance APR might be 24 or 26 percent. Check your card's terms or call the issuer to find out your specific rates — they vary by card and sometimes by cardholder.
Where you can withdraw cash and what limits apply
Most credit cards let you withdraw cash at ATMs that display your card network's logo (Visa, Mastercard, American Express, or Discover). You need your PIN, which you set up when you opened the account or can request from your issuer. Some ATMs charge an additional fee on top of your card issuer's fee — typically $2 to $3 — so you may pay both.
You can also visit a bank branch and ask a teller for a cash advance. Bring your card and ID. This route sometimes avoids the ATM operator fee, though your card issuer's fee and interest still apply.
Some card issuers mail cash advance checks to cardholders. These checks draw directly from your credit line. You deposit or cash them like any check, and the same fees and interest apply. Not all cards offer this option.
Your card issuer sets a cash advance limit, which is separate from your credit limit. You might have a $5,000 credit limit but only a $1,500 cash advance limit. Check your account online or call your issuer to find out your limit before you try to withdraw.
Why a cash advance is expensive compared to other borrowing
A cash advance is one of the most expensive ways to borrow money. The combination of an upfront fee, a higher APR, and no grace period means you pay interest immediately and continuously until the balance is gone.
Compare the costs: if you borrow $500 on a cash advance at 4 percent fee plus 24 percent APR, you pay $20 upfront and then roughly $10 per month in interest (depending on how quickly you repay). A personal loan for the same amount might charge 8 to 12 percent APR with no upfront fee, costing you far less over time. A payday loan is predatory and should be avoided, but a credit card cash advance is usually more expensive than a personal loan or a line of credit from your bank.
The only scenario where a cash advance makes sense is an emergency where you have no other option and can repay it within days or weeks. If you need cash regularly, a cash advance signals that your credit card is not the right tool for that need.
How to repay a cash advance and what happens if you don't
A cash advance balance appears on your credit card statement as a separate line item from purchases. When you make a payment to your card, the issuer applies it according to their own rules — usually to the highest-APR balance first, which is often the cash advance. Check your statement to confirm where your payment went.
If you carry a cash advance balance month to month, interest compounds daily. A $500 advance at 24 percent APR costs about $10 in interest the first month, but if you only pay $20 that month, the remaining $490 balance accrues interest the next month, and so on. The balance grows faster than a purchase balance would.
If you do not repay the cash advance, it becomes part of your overall credit card debt. Missed payments damage your credit score, trigger late fees, and can result in a higher APR on your entire card. If the account goes to collections, a debt collector may contact you. The cash advance does not disappear — you owe it until you pay it or it is discharged in bankruptcy (a last resort with serious long-term consequences).
Alternatives to a credit card cash advance
Before you take a cash advance, consider whether another option exists. If you need cash for an emergency, ask family or friends for a short-term loan with no interest. If you need cash for a planned expense, save ahead or use a debit card linked to your bank account.
If you need to borrow money, a personal loan from a bank or credit union usually has a lower APR than a cash advance and no upfront fee. A line of credit from your bank works similarly. Both take a few days to fund, so they do not work for same-day emergencies, but they cost far less if you have time to apply.
If you are in a true emergency and have no savings, family support, or access to a personal loan, a cash advance is faster than other borrowing options. But it should be a last resort, not a regular source of cash.
How a cash advance affects your credit score
Taking a cash advance itself does not directly hurt your credit score — the withdrawal is not reported to the credit bureaus. However, a cash advance does increase your credit utilization, which is the percentage of your available credit you are using. If you have a $5,000 credit limit and take a $1,000 cash advance, your utilization jumps to 20 percent. High utilization (above 30 percent) can lower your score.
The bigger risk is what happens after. If you carry the cash advance balance and make late payments, those missed payments are reported and damage your score. If the balance grows and you eventually default, that default stays on your credit report for seven years.
If you must take a cash advance, repay it as quickly as possible to keep your utilization low and avoid interest charges that make the debt grow.
Frequently Asked Questions
Can I use a credit card to withdraw cash at any ATM?
You can use ATMs that display your card's network logo (Visa, Mastercard, American Express, Discover). Not all ATMs accept credit cards — some only accept debit cards. You need your PIN to complete the withdrawal. International ATMs may charge higher fees or have daily limits.
What is the difference between a cash advance and a balance transfer?
A cash advance is cash you withdraw from your credit line. A balance transfer moves debt from one card to another. Both charge fees and interest, but a balance transfer sometimes offers a 0 percent introductory APR for a set period, while a cash advance charges interest immediately. A balance transfer is for moving existing debt; a cash advance is for getting cash.
Can I get a cash advance if my credit card is maxed out?
No. A cash advance draws from your available credit, not from funds you have already paid. If your credit limit is $5,000 and you have charged $5,000, your available credit is zero and you cannot take a cash advance. You must pay down the balance first.
Does taking a cash advance hurt my credit immediately?
The withdrawal itself does not appear on your credit report. However, it increases your credit utilization ratio, which can lower your score slightly. Late or missed payments on the cash advance balance will hurt your score more significantly and stay on your report for seven years.
What happens if I cannot repay a cash advance?
The balance remains on your credit card and accrues interest. Missed payments trigger late fees and damage your credit score. If the account goes unpaid long enough, it may be sent to a debt collector. The debt does not disappear unless you repay it, settle it, or discharge it in bankruptcy.