You can get cash from a credit card, but it costs more than a regular purchase

A cash advance is when you withdraw money directly from your credit card's credit line, either at an ATM, a bank teller window, or sometimes through a convenience check. The card issuer treats it as a loan against your available credit, not as a purchase. This matters because cash advances come with their own fees and interest rate — usually higher than what you pay on regular card purchases — and the interest starts accruing immediately, with no grace period.

You can pull money off a credit card in three main ways: using your PIN at an ATM, visiting a bank branch and asking the teller for a cash advance, or depositing a convenience check that came with your card. Each method has the same cost structure but different limits and convenience levels. Most people use ATMs because they are fastest, but the fees and interest make cash advances expensive compared to other ways to borrow money.

Key Takeaways

  • Cash advances charge a separate fee (usually 3 to 5 percent of the amount) plus a higher interest rate than purchases, with no grace period before interest starts.
  • You can withdraw cash at ATMs using your PIN, at bank teller windows, or by depositing a convenience check, but all three methods cost the same.
  • Your credit card issuer sets a cash advance limit that is often lower than your total credit limit, so you may not be able to withdraw your full available balance.
  • Interest on a cash advance accrues from the day you withdraw it, so the longer you carry the balance, the more you pay in interest alone.
  • Alternatives like personal loans, payday loans, or borrowing from family usually cost less unless you need the money in the next few hours.

What the fees and interest actually cost

When you take a cash advance, you pay two separate charges on top of the amount you withdraw. First is the cash advance fee, which your card issuer charges upfront. This fee is typically 3 to 5 percent of the amount you withdraw, though some cards charge a flat dollar amount instead (like $10 minimum). If you withdraw $500, expect to pay $15 to $25 just to get the cash.

Second is the cash advance interest rate, which is almost always higher than your card's regular purchase APR. Where a purchase might carry an APR of 18 percent, a cash advance on the same card might be 25 percent or higher. Unlike purchases, there is no grace period — interest starts accruing the moment you withdraw the money. If you carry a $500 cash advance for 30 days at 25 percent APR, you will owe roughly $10 in interest alone, on top of the $15 to $25 fee you already paid.

The total cost compounds quickly if you cannot pay the balance back fast. A $1,000 cash advance at 5 percent fee plus 25 percent APR costs you $50 upfront, then $20 per month in interest if you only make minimum payments. After six months, you will have paid $170 in fees and interest on a $1,000 withdrawal.

How to find your cash advance limit and PIN

Your credit card issuer sets a separate cash advance limit that is often much lower than your total credit limit. You might have $5,000 in available credit on your card, but only $1,000 available for cash advances. This limit is set by the issuer based on your credit history and account activity, and you cannot change it yourself.

To find your cash advance limit, log into your online account or call the customer service number on the back of your card. The limit will be listed in your account details or the representative can tell you over the phone. You can also check your most recent statement — many issuers print the cash advance limit there.

If you do not have a PIN set up yet, you will need one to withdraw cash at an ATM. Call the customer service number on your card or use your online account to request a PIN. The issuer will either give you one immediately over the phone or mail it to you. Some cards let you set your own PIN online; others assign one and mail it separately for security. This process usually takes a few minutes to a few days depending on the issuer.

The three ways to pull cash from your card

ATM withdrawal is the fastest method. Find an ATM that accepts your card's network (Visa, Mastercard, American Express, or Discover), insert your card, enter your PIN, and select "cash advance" or "withdrawal." The ATM will ask how much you want and confirm the transaction. You get the cash immediately. The downside is that some ATMs charge their own fee on top of your card issuer's fee — usually $2 to $5 — so you end up paying double.

Bank teller withdrawal avoids the ATM surcharge. Walk into any bank branch that accepts your card's network, tell the teller you want a cash advance, and show your card and ID. The teller will process it like a regular transaction and hand you cash. This takes about five minutes and costs only your card issuer's fee, not an ATM operator's fee. The trade-off is that you have to go during business hours and find a branch location.

Convenience checks are blank checks that your card issuer mails to you as part of your account. You write one out to yourself or to someone else, deposit it in your bank account, and the amount is charged to your credit card as a cash advance. This method is useful if you need to transfer money to another account or pay a bill by check, but it is slower than an ATM because you have to wait for the check to clear. You still pay the same fee and interest rate as an ATM withdrawal.

Why a cash advance is usually the most expensive option

Before you take a cash advance, compare the total cost to other ways of borrowing. A personal loan from a bank or credit union typically charges 6 to 36 percent APR with no upfront fee, and interest does not start until you receive the money. A $1,000 personal loan at 20 percent APR costs you about $100 in interest over six months — less than half what a cash advance costs. Personal loans take a few days to process, but if you can wait, they are cheaper.

A payday loan is faster than a personal loan but more expensive than a cash advance if you pay it back quickly. A typical payday loan charges $15 to $20 per $100 borrowed, which equals 400 percent APR if you carry it for two weeks. That sounds worse than a cash advance, but payday loans are meant to be repaid in full in two weeks. If you can pay back a cash advance in two weeks, the payday loan fee alone ($15 to $20 per $100) is actually cheaper than the cash advance fee plus two weeks of interest.

Borrowing from family or friends costs nothing if they agree, but it carries relationship risk. If you have no other option and need cash in the next few hours, a cash advance is faster than a personal loan. Otherwise, the fee and interest make it one of the most expensive ways to borrow money.

How cash advances affect your credit score

Taking a cash advance does not directly hurt your credit score the way a missed payment does, but it can indirectly lower your score in two ways. First, a cash advance uses up part of your available credit, which raises your credit utilization ratio — the percentage of your total credit limit that you are using. If you have $5,000 in total credit and take a $1,000 cash advance, your utilization jumps from 0 percent to 20 percent. High utilization signals to lenders that you are relying heavily on credit, and credit scoring models penalize it.

Second, if you cannot pay back the cash advance quickly and carry a balance, you will owe interest every month. This makes the balance harder to pay down, which keeps your utilization high for longer. Over time, a large cash advance balance that you carry for months can lower your score by 50 to 100 points or more, depending on your overall credit profile.

The impact is temporary — your score will recover once you pay off the balance and your utilization drops. But during the months you carry the cash advance, your score will be lower, which can affect your ability to get approved for new credit cards, loans, or favorable interest rates.

What to do if you cannot pay back the cash advance

If you take a cash advance and realize you cannot pay it back quickly, your options are limited but not zero. The interest rate on a cash advance is usually fixed and higher than your purchase rate, so you cannot negotiate it down. However, you can try to pay down the balance as fast as possible to minimize the total interest you owe.

If you have other credit cards with lower interest rates, you might be able to transfer the cash advance balance to a card with a 0 percent introductory APR on balance transfers. This is not a perfect solution — balance transfer fees are usually 3 to 5 percent — but it can save you money if the introductory period is long enough. Check whether your other cards offer balance transfer options before you take the cash advance.

If you are in a financial crisis and cannot pay any of your debts, contact a nonprofit credit counselor through the National Foundation for Credit Counseling (NFCC). They offer free or low-cost counseling and can help you create a repayment plan or explore other options like debt consolidation. Do not ignore the debt — unpaid cash advances will accrue interest and eventually be reported to credit bureaus, damaging your credit for years.

Frequently Asked Questions

Can I use a credit card to withdraw cash at a grocery store or convenience store?

No. Cashback at a store is a purchase, not a cash advance, and it does not carry the same fees or interest rate. You can ask for cashback when you swipe your card at checkout, and the amount is added to your purchase total. Cashback is much cheaper than a cash advance because it uses your regular purchase APR and grace period.

What happens if I try to withdraw more than my cash advance limit?

The ATM or teller will decline the transaction. You cannot withdraw more than your issuer's cash advance limit, even if you have available credit remaining on your card. If you need more cash, you will have to pay down the cash advance balance first or use a different method like a personal loan.

Do I have to pay the cash advance fee even if I pay it back right away?

Yes. The cash advance fee is charged upfront when you withdraw the money, not based on how long you carry the balance. Even if you pay back the full amount the next day, you still owe the 3 to 5 percent fee. You will avoid the interest charges by paying quickly, but the fee itself is unavoidable.

Can I use a credit card cash advance to pay off another credit card?

Technically yes, but it is a bad idea. A cash advance to pay another card's balance costs you the cash advance fee plus the higher interest rate, while a balance transfer costs only the balance transfer fee and uses a lower introductory rate. If you need to move money between cards, a balance transfer is always cheaper than a cash advance.

Will taking a cash advance hurt my chances of getting approved for a new credit card?

It can, indirectly. A large cash advance balance raises your credit utilization and can lower your credit score, which makes you look riskier to new card issuers. The cash advance itself does not disqualify you, but the score impact might. If you are planning to apply for a new card soon, it is better to pay down any cash advance balance first.