Yes, you can withdraw cash from a credit card, but it costs more than a purchase and the interest starts immediately
A cash advance is a withdrawal of money from your credit card's available credit, treated as a loan rather than a purchase. You can get cash at an ATM using your card's PIN, at a bank teller window, or through a cash advance check that comes with your account. The catch: cash advances charge a separate fee (usually 3 to 5 percent of the amount withdrawn) plus a higher interest rate than regular purchases, and interest accrues from the day you withdraw, not from your statement date.
Most people use cash advances only when they have no other option — the cost is steep enough that even a short-term withdrawal can be expensive. If you need cash regularly, a debit card or a trip to your bank account is almost always cheaper.
Key Takeaways
- Cash advances charge a separate fee (typically 3 to 5 percent) plus a higher interest rate than purchases, with interest starting immediately.
- You can withdraw cash at an ATM, a bank teller, or through a cash advance check, depending on what your card issuer offers.
- The interest rate on a cash advance is usually 5 to 10 percentage points higher than your purchase APR and does not have a grace period.
- Your credit limit covers both purchases and cash advances combined, so a large withdrawal reduces what you can spend elsewhere.
- Paying off a cash advance should be your priority because the interest cost grows faster than on regular purchases.
How the fee and interest rate work
When you take a cash advance, your card issuer charges two separate costs. The first is an upfront cash advance fee, shown as a percentage of the amount withdrawn. Most cards charge between 3 and 5 percent, though some charge a flat dollar amount instead (like $10 minimum). A $300 withdrawal at 4 percent costs $12 in fees alone.
The second cost is the cash advance APR, which is almost always higher than your purchase APR. If your card charges 18 percent APR on purchases, the cash advance rate might be 23 or 25 percent. Unlike purchases, there is no grace period — interest starts accruing the day you withdraw the money, even if you pay your full statement balance on time.
The math adds up quickly. A $300 cash advance at 4 percent fee plus 24 percent APR costs $12 upfront plus roughly $6 in interest if you pay it back in one month. Over three months, the interest alone reaches $18. A debit card withdrawal costs nothing.
Where you can withdraw cash from a credit card
Your card issuer determines which methods are available. Most cards allow ATM withdrawals using your PIN, which you can set up through your online account or by calling the card's customer service number. The ATM itself may also charge a fee (typically $2 to $3) on top of the card issuer's cash advance fee, so a $100 withdrawal could cost $7 to $8 in fees before interest.
You can also visit a bank teller at any branch of your card's issuing bank and request a cash advance. This method avoids the ATM operator fee but requires you to go in person during business hours. Some cards still offer cash advance checks — physical checks you write against your credit line — though this option is becoming less common. These checks often have a higher fee than ATM withdrawals.
Before you withdraw, check your card's terms or call the issuer to confirm which methods are available and what the exact fee is. Some cards cap the amount you can withdraw in a single day or over a period of time, separate from your overall credit limit.
How a cash advance affects your credit limit and credit score
Your credit limit is a single pool of money that covers both purchases and cash advances combined. If your limit is $5,000 and you withdraw $1,000 in cash, you have $4,000 left to spend on purchases. This matters if you rely on your card for regular spending — a large cash advance can leave you without available credit when you need it.
A cash advance also shows up on your credit report as a separate transaction type, and it may affect your credit score differently than a purchase. The withdrawal itself does not hurt your score, but carrying a balance on a cash advance (especially at a higher interest rate) increases your overall credit utilization and can lower your score if the balance is high relative to your limit.
When a cash advance makes sense and when it does not
A cash advance is genuinely useful in narrow situations: you need cash immediately, you have no other way to get it, and you can pay it back within days. An example: your car breaks down and the mechanic takes cash only, you do not have cash on hand, and you get paid in three days. The fee and interest are annoying but manageable for a short-term emergency.
A cash advance does not make sense if you are trying to move debt around, if you need the cash for more than a week or two, or if you are considering it because you do not have money in your checking account. In those cases, the interest cost becomes substantial, and you are better off finding another solution — asking for a payment plan, borrowing from a friend, or waiting until you have the cash.
If you find yourself taking cash advances regularly, that is a sign your spending exceeds your income. A cash advance is not a solution to that problem; it is a temporary patch that costs money.
How to pay off a cash advance faster
Once you have taken a cash advance, paying it off should be your priority because the interest rate is high and accrues daily. When you make a payment to your card, the issuer applies it to your balance in a specific order set by law: first to the balance with the highest interest rate (usually the cash advance), then to purchases, then to balance transfers. This means your payment goes toward the cash advance first, which is what you want.
However, if you have both a cash advance and a purchase balance, and you only make the minimum payment, the minimum might not cover the full cash advance interest. Check your statement to see how much of your payment goes toward principal versus interest. If the interest is eating up most of your payment, you need to pay more than the minimum to make real progress.
Some people try to avoid cash advance fees by using a balance transfer instead — moving a purchase balance to a card with a 0 percent introductory rate. This works for purchases but not for cash advances, because balance transfers have their own fees and do not apply to cash that is already withdrawn.
Alternatives to a cash advance
Before you take a cash advance, consider these cheaper options. If you need cash and have a checking account, visit your bank and withdraw from your debit card or ask a teller — it costs nothing. If you need money before payday, some employers offer paycheck advances or early direct deposit. If you need a short-term loan, a credit union often charges lower rates than a credit card cash advance, and some offer small loans with no fee.
If you are in a genuine emergency and have no other option, a cash advance is better than missing a critical payment or going without necessities. But it should be a last resort, not a regular habit.
Frequently Asked Questions
Can I take a cash advance if my credit card is maxed out?
No. Your credit limit covers both purchases and cash advances as one combined total. If you have used your full limit, you cannot withdraw additional cash. You would need to pay down your balance first or request a credit limit increase from your issuer.
Does a cash advance show up on my credit report?
The withdrawal itself does not appear as a separate line item, but the balance does. If you carry a cash advance balance, it counts toward your credit utilization ratio, which affects your credit score. Paying it off quickly minimizes the impact.
What is the difference between a cash advance and a balance transfer?
A cash advance is money you withdraw from your credit line. A balance transfer moves an existing balance from one card to another. Both have fees and higher interest rates, but a balance transfer is for moving debt between cards, while a cash advance is for getting physical cash.
Can I take a cash advance from a secured credit card?
Yes, most secured cards allow cash advances, though the fee and interest rate are the same as on unsecured cards. Check your card's terms to confirm the cash advance APR and fee before you withdraw.
What happens if I cannot pay back a cash advance?
The balance stays on your card and accrues interest at the cash advance rate. If you do not pay, your account may go to collections, which damages your credit score and can result in legal action. Contact your issuer immediately if you cannot pay — some offer hardship programs that lower your interest rate temporarily.