The main ways to get cash from your credit card
You can get cash from a credit card in three ways: a cash advance at an ATM using your PIN, a cash advance at a bank teller's window, or a balance transfer check if your card issuer sends them. Each method pulls money directly from your credit line and charges you fees and interest from the moment you withdraw it — there is no grace period like there is for purchases.
The most common method is the ATM cash advance. You insert your card, enter your PIN (which you may need to set up with your issuer first), and withdraw cash up to your daily limit. That limit is usually lower than your total credit line — often $500 to $1,000 per day, though it varies by card and issuer. The transaction posts to your account within one business day.
A bank teller cash advance works the same way in terms of cost and timing, but you walk into a branch with your card and ID and ask for cash. Some people use this method when they need more than their ATM daily limit allows, though the teller will still be bound by your card's cash advance limit.
Balance transfer checks are physical checks your issuer mails to you. You deposit or cash them like any check, and the amount is charged to your credit card as a cash advance. Not all cards offer them, and they may carry a different fee structure than ATM advances.
Key Takeaways
- Cash advances charge a fee (usually 3 to 5 percent of the amount withdrawn) and interest that starts accruing immediately, with no grace period.
- Your daily ATM withdrawal limit is typically $500 to $1,000, separate from your total credit limit, and varies by card issuer.
- Interest rates on cash advances are often higher than the rate on purchases, sometimes 2 to 3 percentage points above your regular APR.
- Paying back a cash advance is slower than paying back purchases because most issuers apply your payments to purchases first, then to cash advances.
- You can also get a cash advance at a bank teller's window or through balance transfer checks, though all methods carry the same immediate fees and interest.
Fees and interest charges on cash advances
A cash advance fee is charged the moment you withdraw the money. This fee is typically 3 to 5 percent of the amount withdrawn, with a minimum fee of $3 to $10. If you withdraw $500, expect to pay $15 to $25 in fees alone. Some cards charge a flat fee instead of a percentage, though this is less common.
Interest on the cash advance begins accruing immediately. Unlike a purchase, which may have a grace period of 20 to 30 days before interest kicks in, a cash advance has no grace period. Interest starts on day one. The interest rate on cash advances is usually higher than your regular purchase APR — often 2 to 3 percentage points higher. If your purchase rate is 18 percent, your cash advance rate might be 21 or 22 percent.
The total cost depends on how long you carry the balance. A $500 cash advance with a 4 percent fee ($20) and a 22 percent APR costs you $20 upfront plus roughly $9 in interest for the first month if you make no payments. Pay it back in full within a week and the interest is minimal; carry it for six months and the interest alone will exceed the fee.
How cash advances affect your credit and account balance
A cash advance counts toward your total credit utilization, which is the percentage of your available credit you are using. If you have a $5,000 credit limit and take a $1,000 cash advance, your utilization jumps to 20 percent. High utilization can lower your credit score, especially if you are already carrying a balance on purchases.
The cash advance appears as a separate line item on your statement, distinct from purchases. When you make a payment, most issuers apply it to purchases first, then to the cash advance. This means if you owe $2,000 in purchases and $500 in a cash advance, and you send in $1,500, the entire amount goes to the purchases first. The cash advance keeps accruing interest while you pay down the other balance. This payment hierarchy can make cash advances expensive to carry.
Some cards allow you to request that payments go to the cash advance first, but you have to ask your issuer to do this — it is not automatic. Check your account settings or call the customer service number on the back of your card to see if this option is available.
Daily limits and withdrawal restrictions
Your cash advance limit is separate from your credit limit. A card with a $10,000 credit limit might have a $1,000 cash advance limit, meaning you can only withdraw up to $1,000 total in cash advances at any time. Some issuers set the cash advance limit as a percentage of your credit limit — often 20 to 50 percent.
Your daily ATM withdrawal limit is also separate and usually lower. You might be able to withdraw $500 per day at an ATM but have a $2,000 total cash advance limit. This means you could make four separate ATM withdrawals over four days to reach your limit, but you cannot withdraw $2,000 in a single transaction.
These limits exist to reduce fraud risk and to manage the issuer's exposure. If you need to withdraw more than your daily limit allows, you can try a bank teller withdrawal, which may have a higher single-transaction limit. You can also contact your issuer and ask if they will temporarily increase your daily limit, though they are not required to do so.
Alternatives to cash advances
Before taking a cash advance, consider whether you have other options. A personal loan from a bank or credit union typically charges lower interest than a cash advance and does not count against your credit utilization. If you have time to wait a few days, this is usually cheaper.
A 0 percent introductory APR offer on a new card can be a lower-cost way to access credit if you are approved. However, you cannot use this for a cash advance — the 0 percent offer applies only to purchases and sometimes balance transfers, not to cash advances. Cash advances on a new card are charged at the regular cash advance rate from day one.
If you need cash for an emergency and have a savings account, withdrawing from savings avoids interest and fees entirely. If you do not have savings, asking friends or family for a short-term loan, negotiating a payment plan with a creditor, or looking into a paycheck advance from your employer may be cheaper than a cash advance.
How to set up and use your cash advance PIN
To withdraw cash at an ATM, you need a PIN. If you have never set one up, contact your card issuer before you try to withdraw. You can usually set a PIN online through your account portal, by calling the customer service number on the back of your card, or by visiting a bank branch if your card is issued by a bank.
Once your PIN is active, you can use it at any ATM that accepts your card's network — Visa, Mastercard, American Express, or Discover. The ATM will ask you to enter your PIN, select the withdrawal amount, and confirm. The cash is dispensed immediately, and the transaction posts to your account within one business day.
If you forget your PIN, you can reset it through your issuer's website or by calling customer service. Some issuers allow you to set a temporary PIN that expires after one use, which is useful if you need cash urgently and do not want to wait for a new PIN to arrive by mail.
Paying back a cash advance
The fastest way to stop interest from accruing is to pay the cash advance in full as soon as possible. Every day you carry the balance, interest accumulates at your cash advance rate. If you took a $500 cash advance at 22 percent APR, you are paying roughly $0.30 per day in interest.
When you make a payment, specify that you want it applied to the cash advance, or make a payment large enough to cover both your purchases and your cash advance. If you only pay the minimum, the issuer will apply most of it to purchases, leaving the cash advance to accrue interest for months.
Some issuers allow you to set up automatic payments, which can help you pay down the cash advance on a fixed schedule. Check your account settings to see if this option is available and whether you can direct automatic payments to the cash advance specifically.
Frequently Asked Questions
Can I use a credit card cash advance to pay another credit card?
Yes, you can withdraw cash and use it to pay another card, but this is expensive. You pay the cash advance fee and interest rate on the withdrawal, then use the cash to pay down the other card. You are essentially paying to move debt around. A balance transfer (moving the balance directly from one card to another) is cheaper because it usually charges a lower fee and may have a promotional 0 percent rate.
What happens if I go over my cash advance limit?
Most ATMs will simply decline the transaction if you try to withdraw more than your limit allows. You cannot overdraw a cash advance like you can overdraw a bank account. If you need more cash, you will have to wait until you pay down the existing advance or contact your issuer to request a limit increase.
Is the cash advance fee the same as the interest rate?
No. The fee is a one-time charge (usually 3 to 5 percent) charged when you withdraw. The interest rate is an annual percentage rate (APR) that accrues daily on the balance you owe. You pay both — the fee upfront and the interest over time.
Can I avoid the cash advance fee by using a balance transfer check?
Balance transfer checks usually charge a fee similar to a cash advance fee, often 3 to 5 percent. Some issuers offer promotional rates on balance transfer checks (like 0 percent for a set period), but these apply only to the transferred balance, not to the fee itself. Read your card's terms to see what the check fee is before you use one.
Do cash advances show up on my credit report?
The cash advance itself does not appear as a separate line item on your credit report. However, it increases your credit utilization, which is reported to the credit bureaus and can lower your score. It also increases your total debt balance, which factors into your credit score calculation.