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

Most credit cards let you withdraw cash at an ATM or from a bank teller using your card's PIN. This is called a cash advance. The moment you take the cash, your card issuer charges you a fee — usually 3% to 5% of the amount withdrawn — and starts charging interest on that amount immediately, with no grace period. A $200 cash advance might cost you $6 to $10 just to get the money out, plus interest that begins accruing the same day.

The interest rate on cash advances is almost always higher than the rate on regular purchases. If your card charges 18% APR on purchases, the cash advance rate might be 24% or higher. This combination — an upfront fee plus a higher interest rate with no grace period — makes cash advances one of the most expensive ways to borrow money on a credit card.

Key Takeaways

  • Cash advances charge a fee of 3% to 5% upfront, plus interest that starts immediately with no grace period like purchases have.
  • The interest rate on cash advances is typically 3% to 10% higher than your regular purchase APR, and varies by card and issuer.
  • You can take a cash advance at an ATM using your PIN, at a bank teller, or through a convenience check from your issuer.
  • Your available credit for cash advances is often lower than your total credit limit, and some cards set it at 20% to 50% of your limit.
  • Paying off a cash advance should be your priority because the interest compounds daily and the rate is higher than almost any other borrowing option.

Where and how to get a cash advance

You can withdraw cash at any ATM that displays your card's logo — Visa, Mastercard, American Express, or Discover. You will need your PIN. If you do not have a PIN, you can call the number on the back of your card to set one up, which usually takes a few minutes.

You can also walk into any bank branch and ask a teller for a cash advance using your credit card. This method works the same way as an ATM withdrawal: the teller will process the transaction, charge you the fee, and hand you cash. Some card issuers also send convenience checks — checks drawn against your credit line — that you can deposit or cash at your bank. These are treated as cash advances with the same fees and interest rates.

Your card issuer sets a separate cash advance limit, which is often lower than your total credit limit. For example, if your credit limit is $5,000, your cash advance limit might be $1,000 or $2,500. Check your card's terms or call the issuer to find out your specific limit before you go to an ATM.

The fees and interest you will pay

A cash advance fee is charged the moment you withdraw the money. This fee is a percentage of the amount withdrawn — typically 3%, 4%, or 5% — with a minimum dollar amount (often $2 to $5). If you withdraw $100 with a 4% fee and a $2 minimum, you pay $4. If you withdraw $50 with the same terms, you still pay $2.

Interest begins accruing immediately on the full amount, with no grace period. If your card normally gives you 21 days to pay a purchase before interest kicks in, that grace period does not apply to cash advances. A $300 cash advance at 24% APR costs you about $2 per day in interest alone, before you even count the upfront fee.

The interest compounds daily, meaning each day's interest is added to the balance and the next day's interest is calculated on the new, larger amount. Over 30 days, that $300 advance at 24% APR will cost you roughly $18 in interest, plus the $9 to $15 upfront fee — a total of $27 to $33 just to borrow $300 for a month.

How cash advances affect your credit and available credit

A cash advance counts against your available credit immediately, just like a purchase does. If you have a $5,000 limit and take a $500 cash advance, your available credit drops to $4,500 right away. This affects your credit utilization ratio — the percentage of your total credit limit you are using — which is a factor in your credit score.

The cash advance itself does not show up differently on your credit report than a regular purchase. However, if you carry the balance and miss a payment, that missed payment will be reported and will damage your score. The key difference is that the balance grows faster because of the higher interest rate and the lack of a grace period.

Paying off a cash advance quickly

Because cash advances charge interest from day one, paying them off should be your priority. If you have a balance on both purchases and a cash advance, your card issuer will apply your payment to the purchase balance first (this is required by law), so the cash advance interest keeps compounding while you pay down the purchase.

The fastest way to stop the bleeding is to pay more than the minimum payment and direct it specifically to the cash advance balance. Call your issuer and ask how to make a payment that targets the cash advance, or pay online and look for an option to specify which balance the payment applies to. Some card issuers let you do this; others do not, so confirm before you assume.

If you cannot pay the full cash advance immediately, paying even a small extra amount toward it each week will reduce the total interest you pay. A $300 cash advance paid off in one week costs roughly $1.40 in interest; paid off in four weeks, it costs roughly $5.60. The difference compounds quickly.

Alternatives to a cash advance

If you need cash urgently, a cash advance is rarely the best option. A personal loan from a bank or credit union typically charges 6% to 36% APR with no upfront fee, and interest does not start until you receive the money. A payday loan is more expensive than a cash advance in the short term but cheaper if you need the money for only a few days. A balance transfer to a 0% APR card (if you have good credit) moves the balance without interest for 6 to 21 months, though you will pay a 3% to 5% transfer fee upfront.

If you need cash for an emergency and have no other option, a cash advance is faster than a personal loan. But if you have time to explore alternatives, doing so will almost always save you money.

Frequently Asked Questions

What is the difference between a cash advance and a balance transfer?

A cash advance gives you physical cash and charges a fee plus interest immediately. A balance transfer moves a balance from one card to another and may offer a 0% APR period, but charges a transfer fee upfront. Cash advances are for getting cash; balance transfers are for moving existing debt to a lower-rate card.

Can I use a credit card cash advance to pay another credit card?

Technically yes, but it is expensive. You would pay the cash advance fee, then use that cash to pay the other card. Most people use a balance transfer instead, which avoids the cash advance fee and may offer a promotional 0% APR period.

Does a cash advance hurt my credit score?

Not immediately. But it increases your credit utilization ratio, which can lower your score slightly. If you carry the balance and miss a payment, the missed payment will hurt your score more significantly.

What happens if I do not pay back a cash advance?

The balance will grow as interest compounds daily at your cash advance rate. If you miss payments, your issuer will report the missed payment to credit bureaus, your score will drop, and the issuer may eventually close your account or pursue collection.

Can I get a cash advance from a debit card?

No. Debit cards withdraw money directly from your bank account; they do not borrow money. You can withdraw cash from a debit card at an ATM for free (or a small ATM fee), but that is not a cash advance.