Credit cards are not designed for cash withdrawal, but most issuers allow it through a feature called a cash advance
A cash advance is a withdrawal of money from your credit card account, usually at an ATM or bank teller window. Unlike a debit card, which pulls from money you already have, a cash advance borrows against your credit limit and immediately starts accruing interest and fees. The moment you withdraw the cash, you owe the card issuer that amount plus a cash advance fee (typically 3 to 5 percent of the amount withdrawn, with a minimum of $5 to $10) and a higher interest rate than your regular purchase APR.
Most credit card issuers allow cash advances, but the process and terms vary by card and issuer. You can withdraw cash at ATMs using your card's PIN, at bank teller windows with your card and ID, or sometimes through a convenience check mailed by your issuer. The cash advance limit is often lower than your total credit limit — sometimes 20 to 30 percent of it — and you can find yours by calling the number on the back of your card or logging into your online account.
Key Takeaways
- A cash advance charges a fee (usually 3 to 5 percent) and a higher interest rate than regular purchases, starting immediately with no grace period.
- Your cash advance limit is often much lower than your total credit limit and must be confirmed with your issuer before you attempt a withdrawal.
- Interest on a cash advance accrues daily from the withdrawal date, so the longer you carry the balance, the more you pay.
- Paying off a cash advance should be your priority because the interest rate is typically 5 to 10 percentage points higher than your purchase APR.
How to find your cash advance limit and PIN
Before you can withdraw cash, you need two pieces of information: your cash advance limit and your PIN. Your cash advance limit is separate from your credit limit and is set by your issuer when you open the account. To find it, log into your online account or mobile app — most issuers display it on the dashboard or in the account details section. If you cannot find it there, call the customer service number on the back of your card and ask directly.
Your PIN is a four-digit code you create to use at ATMs. If you have never set one, you can usually create it through your online account, mobile app, or by calling customer service. Some issuers mail a temporary PIN when you open the account; if you have lost it, you can reset it immediately through the same channels. Write down your PIN and keep it separate from your card — never share it with anyone, including bank employees.
Withdrawing cash at an ATM versus a bank teller
The fastest way to get a cash advance is at an ATM. Insert your credit card, enter your PIN, select "cash advance" or "withdrawal," and choose the amount. The ATM will show you the fee before you confirm, so you can see the total cost upfront. Most ATMs dispense cash immediately, though some may have daily withdrawal limits set by your issuer (often $500 to $1,000, though this varies).
If you need more cash than your ATM limit allows, or if you do not have a PIN set up, you can visit a bank teller window. Bring your credit card and a photo ID. Tell the teller you want a cash advance and provide the amount. The teller will process it like a debit transaction, charge the fee to your card, and hand you the cash. This method takes longer than an ATM but works even if you have not set a PIN, and some banks do not apply the same daily limits.
Understanding cash advance fees and interest rates
A cash advance costs money in two ways: an upfront fee and daily interest. The cash advance fee is charged the moment you withdraw the money and is usually 3 to 5 percent of the amount withdrawn, with a minimum fee of $5 to $10. If you withdraw $500, expect to pay $15 to $25 in fees alone. This fee is added to your balance immediately and cannot be waived or negotiated.
The cash advance APR is the interest rate applied to the balance. It is almost always higher than your purchase APR — often 5 to 10 percentage points higher — and starts accruing the day you withdraw the money. Unlike purchases, which usually have a grace period before interest kicks in, cash advances have no grace period. Interest compounds daily, so a $500 cash advance at 25 percent APR costs about $3.42 per day in interest alone. After 30 days, you will owe roughly $102 in interest plus the original $15 to $25 fee.
Your card issuer will show the cash advance APR in your card's terms and conditions, usually labeled as "Cash Advance APR" or "Other APR." You can also find it on your monthly statement, which breaks down interest charges by category (purchases, cash advances, balance transfers).
How cash advances affect your credit utilization and credit score
A cash advance counts toward your credit utilization ratio, which is the percentage of your available credit you are using. If your credit limit is $5,000 and you take a $1,000 cash advance, your utilization jumps to 20 percent. Credit scoring models treat utilization as a major factor — higher utilization signals higher risk and can lower your score by 10 to 50 points, depending on how high it goes. The impact is temporary and reverses as you pay down the balance, but it happens immediately.
The cash advance itself does not appear separately on your credit report; it shows as part of your overall credit card balance. However, if you miss a payment or carry the balance for months, the late payment or high utilization will damage your score. The best way to minimize credit score impact is to pay off the cash advance as quickly as possible.
Paying off a cash advance faster than regular purchases
When you make a payment to your credit card, the issuer applies it to your balance in a specific order set by federal law. Payments go first to the balance with the highest interest rate, which is usually your cash advance. This means if you have both a purchase balance and a cash advance balance, your payment will reduce the cash advance first — which is actually in your favor, since the cash advance interest rate is higher.
However, if your purchase balance has a higher APR (for example, if you are in a promotional period on the cash advance), the payment may go to the purchase first. Check your statement to see how payments are being applied. The fastest way to eliminate a cash advance is to pay more than the minimum payment and make it a priority. Even an extra $50 per month on top of your minimum payment will cut the interest cost significantly.
If you have multiple cards, consider paying off the cash advance from the card with the highest APR first, then moving to the next. This strategy, called the avalanche method, saves the most money on interest.
Alternatives to cash advances
Because cash advances are expensive, explore other options before using one. If you need cash for an emergency, consider a personal loan from a bank or credit union, which typically charges 6 to 36 percent APR — often lower than a cash advance APR. A personal loan also has a fixed repayment schedule, so you know exactly when you will be debt-free.
If you have a 0 percent introductory APR on your credit card, a balance transfer from another card may be cheaper than a cash advance, though balance transfers also charge a fee (usually 3 to 5 percent). Some cards offer 0 percent APR on balance transfers for 6 to 21 months, which can save thousands in interest if you are moving high-interest debt.
For smaller amounts, a short-term loan from a family member or friend, a paycheck advance from your employer, or a line of credit from your bank may be cheaper and faster. A payday loan is generally more expensive than a cash advance and should be a last resort.
Frequently Asked Questions
Can I use a credit card cash advance to pay off another credit card?
Technically yes, but it is almost never a good idea. A cash advance fee plus a high APR makes it more expensive than just paying the other card with money from your bank account or income. The only scenario where it might make sense is if the other card has a much higher APR and you are in a true emergency, but even then, a personal loan or balance transfer is usually cheaper.
What happens if I withdraw more than my cash advance limit?
The ATM or teller will decline the transaction if you try to withdraw more than your limit. Your limit is a hard cap set by your issuer. If you need more cash, you can call customer service and ask if they will temporarily increase your cash advance limit, though they are not required to do so.
Does a cash advance show up differently on my credit report?
No. A cash advance appears as part of your overall credit card balance on your credit report. It does not have a separate line item. However, if you carry the balance for a long time or miss a payment, the late payment will show on your report and damage your credit score.
Can I get a cash advance if I am near my credit limit?
Your cash advance limit is separate from your overall credit limit, so you may be able to take a cash advance even if you are close to your total limit. However, the cash advance will count toward your overall limit once it is processed. If you are already at your limit, the cash advance will push you over, which may trigger a penalty fee or a temporary rate increase.
How long does a cash advance stay on my account?
A cash advance stays on your account until you pay it off. Interest accrues daily, so the longer you carry it, the more you owe. There is no time limit — you can carry a cash advance balance indefinitely, but the interest will keep growing. Most people should prioritize paying it off within 30 days to minimize interest charges.