Yes, you can withdraw cash from a credit card, but it works differently than a debit card and costs more
A cash advance is a withdrawal of cash from your credit card account, usually at an ATM or bank teller window. Unlike a debit card, which pulls money from your checking account, a cash advance borrows against your credit limit and counts as a debt you owe immediately.
The catch is that cash advances charge fees and interest rates that are almost always higher than your regular purchase rate. Most cards charge a flat fee (often $5 to $10 or a percentage of the amount, whichever is higher) plus a higher interest rate that starts accruing right away — sometimes 25% or more annually. There is no grace period like there is for purchases. Interest begins the day you withdraw the cash.
For these reasons, a cash advance should be a last resort, not a convenience. If you need cash, a debit card, ATM withdrawal from your own bank account, or a personal loan from a bank or credit union will almost always cost you less.
Key Takeaways
- Cash advances charge a fee (usually $5 to $10 or a percentage) plus a higher interest rate than purchases, with no grace period.
- Interest on a cash advance starts the moment you withdraw the money, not when your bill is due.
- You can withdraw cash at most ATMs, bank teller windows, or through a cash advance check, but the method does not change the cost.
- Paying off a cash advance should be your first priority because the interest rate is typically the highest rate on your card.
- Using a credit card to get cash is almost always more expensive than using a debit card or borrowing from a bank.
How to actually withdraw cash from your credit card
There are three main ways to get cash from a credit card account. The simplest is to go to an ATM that accepts your card's network (Visa, Mastercard, American Express, or Discover) and use your PIN. You will see the cash advance fee and interest rate in your cardholder agreement or by calling the number on the back of your card before you withdraw.
The second way is to visit a bank teller window — even if it is not your bank — and ask for a cash advance. You will need your card and ID. The teller will process it the same way an ATM does, and you will pay the same fees and interest.
The third way is a cash advance check. Your card issuer may send you checks that draw directly from your credit line. You write the check to yourself, deposit it in your bank account, and the amount becomes a cash advance on your credit card. This method has the same fees and interest as an ATM withdrawal, but it gives you a few days to move the money into your checking account.
What the fees and interest actually cost you
The total cost of a cash advance depends on three things: the amount you withdraw, the fee structure, and how long you carry the balance.
Let's say you withdraw $500 from an ATM. Your card charges a 3% cash advance fee (or $10, whichever is higher). That is $15 in fees right away. Your cash advance interest rate is 27% annually. If you pay back the $515 in one month, you owe roughly $11.50 in interest. Total cost: $26.50 for borrowing $500 for 30 days.
If you carry that same $500 for three months, the interest alone will be around $33.75, plus the original $15 fee. Now you have paid $48.75 to borrow $500 — nearly 10% of the amount borrowed.
Compare this to a personal loan from a credit union, which might charge 12% to 18% annually with no upfront fee. That same $500 borrowed for three months would cost roughly $15 to $22 in interest — less than half what the credit card charges.
Why cash advances hurt your credit score
A cash advance counts as a debt on your credit card account, so it increases your credit utilization ratio — the percentage of your available credit that you are using. If you have a $5,000 credit limit and you withdraw $500 in cash, your utilization jumps to 10%. The higher your utilization, the more it can lower your credit score.
The damage is temporary. Once you pay off the cash advance, your utilization drops and your score can recover. But while the balance is there, it works against you. This is another reason to pay off a cash advance as quickly as possible.
When a cash advance might make sense (and when it does not)
A cash advance is rarely the right choice, but there are narrow situations where it might be the least bad option. If you have an emergency that requires cash and you have no other way to get it — no debit card, no access to your bank account, no friends or family to borrow from — a cash advance is faster than a personal loan application.
It also makes sense only if you can pay it back within days or a week, not months. The interest compounds quickly, and the longer you carry the balance, the more expensive it becomes.
A cash advance does not make sense if you are using it for convenience — to avoid a trip to your bank, to get cash while traveling, or to have spending money. A debit card or ATM withdrawal from your own account costs nothing. A cash advance does not make sense if you are already carrying a balance on your card, because you should be paying that down first. And it does not make sense if you are considering it to cover a regular expense like groceries or rent — that is a sign you need a different solution, like a budget adjustment or a conversation with a lender about a personal loan.
How to avoid needing a cash advance
The best strategy is to never use a cash advance at all. Keep a debit card linked to a checking account with a small emergency fund — even $200 to $300 — so you have access to cash without paying credit card fees. If you do not have a bank account, a prepaid debit card from a retailer or online bank costs far less than a cash advance.
If you find yourself regularly needing cash advances, that is a sign your budget does not match your income. A credit counselor (many nonprofits offer free sessions) can help you figure out where the gap is and build a plan to close it. You can find a counselor through the National Foundation for Credit Counseling or by calling 211 for local resources.
Frequently Asked Questions
Is there a limit to how much I can withdraw as a cash advance?
Yes. Your card issuer sets a cash advance limit, which is usually lower than your total credit limit — often 20% to 50% of it. You can find your cash advance limit in your cardholder agreement or by calling the number on the back of your card. Some cards do not offer cash advances at all.
Can I use a credit card to withdraw cash from my own bank account?
No. A cash advance is always a loan against your credit line, not a withdrawal from your own money. If you want to access your own cash, use a debit card or visit your bank's ATM.
Do I have to pay interest on a cash advance if I pay it back right away?
You still owe the cash advance fee, but you can minimize interest by paying it back as quickly as possible. Interest starts accruing immediately, so even paying it back within a few days will cost you some interest. The fee, however, is charged regardless of how fast you repay.
What happens if I cannot pay back a cash advance?
The balance stays on your credit card and continues to accrue interest at the cash advance rate. It will be reported to credit bureaus and can damage your credit score. If you are struggling to repay, contact your card issuer to discuss a payment plan or hardship program.
Can I use a credit card cash advance to pay another credit card bill?
Technically yes, but it is a bad idea. You would be borrowing at the cash advance rate (often 25% or higher) to pay a balance that might be at a lower rate. You would also pay the cash advance fee on top of it. If you need to move a balance, a balance transfer (if your card offers one) is much cheaper.