Yes, you can get cash from a credit card, but it costs more than a regular purchase
You can withdraw cash using your credit card at an ATM, through a bank teller, or sometimes at a store checkout. The card issuer treats this as a cash advance — a short-term loan separate from your regular credit line. The moment you take the cash, you start paying interest and fees that are steeper than what you pay on purchases.
The reason it costs more is simple: the card company sees cash advances as riskier. You have the money in hand immediately, there is no merchant involved to dispute the charge, and you are borrowing against your credit limit without the protection of purchase disputes. That risk gets passed to you as higher fees and interest rates.
Before you take a cash advance, you should understand exactly what you will owe and whether the cost makes sense for your situation. Many people use cash advances only when they have no other option — and even then, they pay it back as fast as possible.
Key Takeaways
- A cash advance charges a fee (usually 3 to 5 percent of the amount) plus a higher interest rate than regular purchases, starting immediately with no grace period.
- You can get a cash advance at an ATM using your PIN, at a bank teller with your card and ID, or sometimes at a store checkout, but each method has different fees.
- Interest on a cash advance accrues from the day you withdraw it, not from your statement date, so the longer you carry the balance the more you owe.
- A cash advance counts against your available credit and can lower your credit score if it raises your overall credit utilization.
Where you can actually get cash from your credit card
An ATM is the most common way. You insert your card, enter your PIN (which you may need to set up first), and withdraw cash up to your daily limit. The ATM charges a fee — sometimes your own bank's fee, sometimes the ATM operator's fee, sometimes both — on top of the card issuer's cash advance fee.
A bank teller can also process a cash advance. Walk into any branch of your card issuer's bank (or sometimes a partner bank), show your ID and card, and ask for a cash advance. This method usually has a lower fee than an ATM because there is no third-party operator involved, but it requires you to visit during business hours.
Some retail stores let you request cash back when you use your credit card at checkout, similar to a debit card transaction. Not all stores offer this, and not all card issuers allow it, so you would need to ask first. If available, this method usually has no additional fee beyond the card issuer's cash advance fee.
The fees and interest rates you will pay
A cash advance fee is charged the moment you take the money. Most card issuers charge between 3 and 5 percent of the amount withdrawn, with a minimum fee (often $5 to $10). If you withdraw $300, you might pay $9 to $15 just to get the cash. If you withdraw $1,000, you might pay $30 to $50.
The interest rate on a cash advance is usually higher than your purchase APR — sometimes 2 to 5 percentage points higher, depending on your card and creditworthiness. If your purchase APR is 18 percent, your cash advance APR might be 23 percent. This rate applies immediately; there is no grace period like there is for purchases.
Interest starts accruing the day you withdraw the cash, not on your statement closing date. If you withdraw $500 on the 5th of the month and pay it back on the 20th, you owe interest for 15 days, not zero days. The longer the balance sits, the more interest compounds.
An ATM operator fee is charged by the ATM owner if you use an out-of-network machine. This is separate from your card issuer's fee and can range from $1 to $5 per transaction. Using your own bank's ATM avoids this extra cost.
How a cash advance affects your credit and available credit
A cash advance counts toward your credit utilization ratio — the percentage of your total credit limit you are currently using. If you have a $5,000 limit and take a $1,000 cash advance, your utilization jumps to 20 percent. High utilization can lower your credit score, even if you pay the balance in full the next month.
The cash advance also reduces your available credit for other purchases. If you have $5,000 in available credit and take a $1,000 cash advance, you now have only $4,000 left to spend on regular purchases. This matters if you need your credit line for emergencies.
A cash advance itself does not appear separately on your credit report — it shows up as part of your credit card balance. However, if you carry the balance for several months, the interest charges and high utilization can damage your score over time.
When a cash advance makes sense and when it does not
A cash advance makes sense only in specific situations. If you need cash for an emergency and have no other way to get it — no savings, no access to a personal loan, no friends or family who can help — then a cash advance might be your only option. The key is to pay it back as quickly as possible to minimize interest.
A cash advance does not make sense if you are trying to move money around for convenience, pay off another debt, or fund a purchase you cannot otherwise afford. In those cases, the fees and interest will cost you far more than the benefit is worth. A personal loan, a balance transfer card, or simply waiting until you have saved the money are almost always cheaper.
If you are considering a cash advance to pay a bill or debt, pause and ask yourself: would I be taking this cash advance if it cost me nothing? If the answer is no, then the cost is not worth it.
How to minimize the cost if you do take a cash advance
First, use your own bank's ATM to avoid operator fees. If your bank does not have many ATMs, consider switching to one that does, or use a bank teller instead.
Second, withdraw only what you need. Each withdrawal triggers a separate fee, so one $500 withdrawal costs less than five $100 withdrawals.
Third, pay it back as fast as possible. Every day the balance sits, interest accrues. If you can pay it back within a week, the interest charge will be much smaller than if you carry it for a month.
Fourth, check your card's terms before you take the advance. Some cards have different fees or rates for different types of cash advances (ATM versus teller, for example). Knowing the exact cost upfront helps you decide whether it is worth it.
Alternatives to a cash advance
A personal loan from a bank or credit union usually has a lower interest rate than a cash advance, even if your credit is not perfect. The rate is fixed, there is no daily interest accrual, and you know exactly what you owe from day one.
A balance transfer card offers a low or zero percent introductory rate for a set period (usually 6 to 18 months). If you are moving debt from another card, this can save you hundreds in interest. However, balance transfers also charge a fee (usually 3 to 5 percent), so they work best for larger amounts.
A line of credit from your bank — if you have an existing relationship and good standing — may offer better terms than a cash advance. Ask your bank whether you have a pre-approved line of credit available.
Asking for help — from family, friends, or a local nonprofit that offers emergency assistance — costs nothing and avoids debt entirely. If this is an option for you, it is almost always the cheapest choice.
Frequently Asked Questions
Does a cash advance show up differently on my credit report than a regular purchase?
No, a cash advance appears as part of your overall credit card balance, not as a separate line item. However, if you carry the balance for months, the high utilization and interest charges can hurt your score just like any other unpaid balance would.
Can I use a cash advance to pay off another credit card?
Technically yes, but it is almost never a good idea. You would pay a cash advance fee on top of a higher interest rate, making the debt more expensive, not less. A balance transfer or personal loan would cost far less.
What is my daily cash advance limit?
Most card issuers set a daily ATM withdrawal limit (often $500 to $1,000) that is separate from your overall credit limit. Your cardholder agreement or online account should show this limit. You can contact your card issuer to request a higher limit, though approval is not may provide.
If I pay off a cash advance immediately, do I still owe interest?
You still owe the cash advance fee, which is charged upfront. Interest accrues daily starting from the withdrawal date, so if you pay back the cash within a few days, the interest charge will be small but not zero. The fee, however, is non-refundable.
Can I take a cash advance if my credit card is maxed out?
No. A cash advance counts against your available credit, so you can only withdraw up to the amount of unused credit you have left. If your card is maxed out, you cannot take a cash advance.