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

You can withdraw cash from a credit card at an ATM or bank teller window using your card's PIN. This is called a cash advance. The money comes from your credit line, not a separate account, and you owe it back like any other credit card balance.

The catch is immediate: cash advances charge fees and interest rates that are higher than regular purchases. Most cards charge a cash advance fee (usually 3% to 5% of the amount withdrawn, with a minimum dollar amount) plus a higher interest rate that starts accruing the same day you withdraw the cash — there is no grace period like there is for purchases. If you need cash, this is an expensive way to get it.

Key Takeaways

  • Cash advances charge a separate fee (typically 3% to 5% of the amount) plus a higher interest rate that begins immediately, with no grace period.
  • You can withdraw cash at any ATM that accepts your card, or at a bank teller window, but the amount is limited by your card's cash advance limit, which is usually lower than your credit limit.
  • Interest on a cash advance accrues daily from the withdrawal date, so the longer you carry the balance, the more you pay in interest alone.
  • Paying back a cash advance takes longer than paying back a purchase because card payments are applied to purchases first, then to cash advances.
  • Alternatives like personal loans, bank loans, or borrowing from friends cost less than a cash advance in most situations.

How much you can withdraw and where

Your card issuer sets a cash advance limit, which is separate from your credit limit and usually much lower. You might have a $5,000 credit limit but only a $500 cash advance limit. Check your card's terms or call the issuer to find your limit before you go to an ATM.

You can withdraw cash at any ATM that displays your card's logo (Visa, Mastercard, American Express, Discover). You can also go to a bank teller and request a cash advance, though this is less common. ATMs charge a fee for the transaction itself (usually $2 to $5 per withdrawal), on top of the cash advance fee your card issuer charges.

The fees and interest that make cash advances expensive

A cash advance triggers three separate costs. First, the cash advance fee is charged by your card issuer — typically 3% to 5% of the amount withdrawn, with a minimum fee (often $5 to $10). If you withdraw $200, you might pay $6 to $10 in fees alone. If you withdraw $1,000, you might pay $30 to $50.

Second, the cash advance interest rate is higher than your purchase APR. Where your purchases might carry 18% APR, cash advances might be 25% or higher. This rate varies by card and issuer — check your card's terms to see the exact rate.

Third, interest starts accruing immediately. Unlike purchases, which have a grace period (usually 21 to 25 days before interest kicks in), cash advances begin charging interest the day you withdraw the money. If you withdraw $1,000 at 25% APR, you owe about $6.85 in interest per day, compounding daily.

A concrete example: you withdraw $500 at a 5% cash advance fee ($25) and 25% APR. If you pay it back in 30 days, you owe $25 in fees plus roughly $10 in interest — $35 total. If you carry it for 90 days, you owe $25 in fees plus roughly $31 in interest — $56 total.

How payment works when you have both purchases and cash advances

When you make a payment to your credit card, the issuer applies it to your balances in a specific order set by law. Payments go to the lowest-interest balance first, which means they go to purchases before cash advances. This means your cash advance sits there accruing interest while you pay down your purchases.

If you owe $300 in purchases at 18% APR and $500 in a cash advance at 25% APR, and you send in a $400 payment, that $400 goes entirely to the $300 purchase plus $100 toward the purchase interest. Your $500 cash advance keeps accruing interest at the higher rate. You end up paying more interest overall because the cash advance balance stays larger for longer.

To pay off a cash advance faster, you need to pay more than the minimum or make a separate payment specifically for the cash advance. Ask your issuer how to direct a payment to the cash advance balance only.

Why a cash advance is usually the most expensive borrowing option

Compare the cost of a cash advance to other ways of getting cash. A personal loan from a bank or credit union typically charges 6% to 36% APR with no upfront fee — lower than a cash advance's interest rate and no separate fee. A payday loan charges high interest but no upfront percentage fee. Borrowing from a friend or family member costs nothing.

Even a balance transfer to a 0% APR card (if you have access to one) costs less than a cash advance, because you avoid the interest for a set period, though you still pay the balance transfer fee (usually 3% to 5%).

The only scenario where a cash advance makes sense is if you need cash for a true emergency and have no other option — and even then, you should pay it back as fast as possible to minimize interest.

How to avoid needing a cash advance

Keep cash on hand for emergencies so you do not have to use a credit card to get it. If you use a debit card for everyday purchases, you can withdraw cash at any ATM for free (or a small ATM fee, which is much cheaper than a cash advance fee). If you know you will need cash for a specific event, withdraw it before you leave home.

If you are regularly short on cash and turning to credit cards, that is a sign your budget needs adjustment or your income is not covering your expenses. A cash advance is a temporary fix that makes the problem worse by adding debt and interest. Address the underlying issue instead — cut expenses, increase income, or both.

Frequently Asked Questions

What is the difference between a cash advance and a regular credit card purchase?

A purchase uses your credit line to pay a merchant, and interest does not start until after the grace period (usually 21 to 25 days). A cash advance gives you cash directly, charges a separate fee, and starts charging interest immediately with no grace period. The interest rate is also higher for cash advances.

Can I use a credit card to withdraw money from my bank account?

No. A credit card is a line of credit, not a debit card. You cannot access your bank account with it. If you want to withdraw money from your bank account, use your debit card or visit a teller. If you use your credit card at an ATM, you are taking a cash advance against your credit line, not withdrawing your own money.

Does a cash advance hurt my credit score?

A cash advance itself does not hurt your score, but carrying a high balance does. If the cash advance pushes your total credit card balance close to your credit limit, your credit utilization ratio goes up, which can lower your score. Paying it off quickly keeps utilization low and minimizes the damage.

Can I get a cash advance if my credit is bad?

If you already have a credit card, you can take a cash advance up to your cash advance limit regardless of your credit score. Your limit was set when the card was issued. If you do not have a credit card, you cannot get a cash advance — you would need to open a card first, which does require a credit check.

What happens if I cannot pay back a cash advance?

The balance stays on your credit card and keeps accruing interest. If you miss payments, your credit score drops, late fees are added, and the issuer may increase your interest rate. If the debt goes unpaid long enough, the issuer may close your account or send the debt to a collection agency. Contact your issuer immediately if you cannot pay — many offer hardship programs or payment plans.