You can withdraw cash from a credit card, but it costs more than a regular purchase and the interest starts immediately

A cash advance is money you borrow directly from your credit card issuer, not from an ATM or store. The card company charges you a fee upfront (usually 3 to 5 percent of the amount), and interest begins accruing the day you withdraw it — there is no grace period like there is for regular purchases. Most people pay between $3 and $10 per transaction, plus interest rates that run 5 to 10 percentage points higher than your regular purchase APR.

You have three ways to get cash: an ATM using your credit card, a bank teller, or a convenience check mailed by your issuer. Each has the same fee and interest structure, but different limits and timing. The process is straightforward, but the cost makes it worth avoiding unless you have no other option.

Key Takeaways

  • Cash advances charge an upfront fee of 3 to 5 percent plus a higher interest rate than purchases, with interest starting immediately.
  • You can withdraw cash at an ATM, through a bank teller, or by using a convenience check, but all three methods carry the same fees and rates.
  • Most cards set a cash advance limit that is lower than your credit limit, often 20 to 50 percent of what you can charge.
  • A personal loan, balance transfer, or debit card withdrawal costs far less and should be your first choice if you need cash.

ATM withdrawals: the most common method

Using your credit card at an ATM works like a debit card withdrawal, but the money comes from a line of credit, not your bank account. You insert the card, enter your PIN, and select the amount. The transaction posts within one to three business days.

Your card issuer sets a cash advance limit — the maximum you can withdraw in a single transaction and per day. This limit is separate from your credit limit and is often much lower. For example, you might have a $5,000 credit limit but only a $1,000 cash advance limit. Check your card's terms or call the issuer to find out your specific limit before you go to the ATM.

ATMs that are not owned by your card issuer's bank may charge an additional ATM operator fee on top of the cash advance fee. This can add $2 to $3 to the cost. Using an ATM at your issuer's own bank avoids this extra charge.

Bank teller withdrawals and convenience checks

You can also walk into a branch of your card issuer's bank and ask a teller for a cash advance. This method works the same way as an ATM — you pay the same fee and interest rate — but you can withdraw larger amounts in a single transaction if your limit allows. The teller will verify your identity and process the withdrawal on the spot.

Some card issuers mail convenience checks to cardholders. These look like regular checks but draw from your credit card account instead of a bank account. When you write and deposit a convenience check, the issuer treats it as a cash advance. The fee and interest rate are identical to ATM withdrawals. Convenience checks are slower than ATMs because they depend on mail delivery and check clearing time, so they are rarely the best option.

What the fees and interest actually cost

A $500 cash advance on a card with a 3 percent fee and a 24 percent APR costs you $15 upfront. If you pay back the full $515 within 30 days, you owe roughly $20 in interest. Total cost: $35, or 7 percent of the amount you borrowed.

If you carry the balance for three months, the interest alone grows to about $30, bringing your total cost to $45. The longer you carry the balance, the more the interest compounds. This is why a cash advance should only be a last resort — the cost climbs quickly.

Compare this to a personal loan from a bank or credit union, which typically charges 6 to 12 percent APR with no upfront fee. A $500 personal loan at 10 percent APR costs you roughly $13 in interest over three months, versus $30 for the cash advance. The personal loan is cheaper even though the APR looks higher, because there is no upfront fee.

Your cash advance limit and how to check it

Your cash advance limit is set by the card issuer based on your credit score, income, and payment history. It is usually between 20 and 50 percent of your total credit limit, but some issuers set it lower. A few cards offer no cash advance option at all.

To find your limit, log into your online account or mobile app and look for "cash advance limit" or "ATM limit" in the account details section. If you cannot find it there, call the customer service number on the back of your card. The representative can tell you your limit and any fees that apply to your specific card.

You can request a higher cash advance limit by calling customer service, but the issuer is not required to grant it. Some issuers will increase it if you have a good payment history; others will not raise it regardless of your creditworthiness.

Cheaper alternatives to a cash advance

Before you use a cash advance, consider these options:

  • A personal loan from a bank or credit union: Usually 6 to 12 percent APR with no upfront fee. Takes one to three business days to fund. Cheaper than a cash advance in almost every scenario.
  • A balance transfer to a 0 percent APR card: If you have access to another card with a 0 percent introductory rate, you can transfer a balance from your current card. You pay a 3 to 5 percent transfer fee upfront, but no interest during the promotional period (usually 6 to 21 months). This works only if you are moving debt, not getting new cash.
  • A debit card or savings account withdrawal: If you have money in the bank, this costs nothing. Use it first.
  • A payday loan or line of credit: These are expensive (often 400 percent APR or higher), so they are worse than a cash advance. Avoid them.

How a cash advance affects your credit score

A cash advance does not directly damage your credit score, but it can indirectly harm it in two ways. First, it increases your credit utilization ratio — the amount of 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 (above 30 percent) can lower your score by 10 to 50 points.

Second, if you carry the balance and miss a payment, the missed payment will be reported to the credit bureaus and will hurt your score for seven years. The interest charges also make it harder to pay down the balance, which keeps your utilization high for longer.

The cash advance itself does not appear separately on your credit report — it is just part of your credit card balance. But the behavior it creates (higher balance, higher utilization, potential missed payments) can damage your score over time.

Frequently Asked Questions

Can I use a credit card at any ATM to get cash?

Yes, you can use your credit card at any ATM that accepts Visa, Mastercard, or American Express (depending on your card type). However, ATMs outside your card issuer's bank network may charge an additional operator fee. Using an ATM owned by your issuer's bank avoids this extra charge.

Is there a grace period for cash advances like there is for purchases?

No. Interest on a cash advance starts accruing the day you withdraw it. There is no grace period, even if you pay the balance in full by your statement due date. This is one of the main reasons cash advances are expensive.

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

The ATM or teller will decline the transaction. You cannot exceed your cash advance limit, even if you have available credit on your card. If you need more cash, you would have to make a second withdrawal on a different day (if your daily limit allows) or find another source of funds.

Can I pay off a cash advance faster to reduce interest?

Yes. Any payment you make goes toward your entire balance, including the cash advance. If you pay more than the minimum, you reduce the principal faster and pay less interest. However, some issuers apply payments to purchases first and cash advances last, so check your card's terms. Paying the balance in full as soon as possible is always the cheapest approach.

Will my card issuer report a cash advance to credit bureaus?

The cash advance itself is not reported separately — it is part of your total credit card balance. However, if you carry the balance and your utilization increases, that can affect your credit score. If you miss a payment on the cash advance, that missed payment will be reported and will damage your score.