Yes, you can withdraw cash using your credit card, but it costs more than a regular purchase

You can get cash from your credit card at an ATM, bank teller, or through a cash advance at a store checkout. The card issuer treats this as a cash advance — a short-term loan against your credit limit — rather than a purchase. The moment you withdraw the money, interest starts accruing at a rate higher than your regular purchase APR, and you pay an upfront fee (usually 3 to 5 percent of the amount withdrawn). Most people use this only when they have no other option, because the cost adds up fast.

Unlike a regular purchase, there is no grace period on a cash advance. Interest begins the day you withdraw the money, not at the end of your billing cycle. This means you are paying interest from day one, even if you pay the full balance when your statement arrives. Combined with the upfront fee, a cash advance is one of the most expensive ways to borrow money on a credit card.

Key Takeaways

  • Cash advances charge interest immediately with no grace period, unlike purchases, which means you pay interest from day one.
  • You will pay an upfront fee of 3 to 5 percent of the cash amount, plus a higher interest rate than your regular purchase APR.
  • ATM withdrawals and bank teller withdrawals work the same way — both trigger the same fees and interest.
  • The total cost of a $500 cash advance can easily reach $50 to $100 or more depending on how long you carry the balance.

Where to withdraw cash and what it costs

You can get cash at any ATM that displays your card's logo (Visa, Mastercard, American Express, Discover). Walk up, insert your card, enter your PIN, and withdraw up to your cash advance limit — which is usually lower than your total credit limit and varies by card. You can also visit a bank branch and ask a teller for a cash advance, or use a point-of-sale cash advance at some retail stores (you ask the cashier for cash back beyond your purchase amount).

Every withdrawal triggers two charges. First, a cash advance fee of 3 to 5 percent of the amount withdrawn — so a $500 withdrawal costs $15 to $25 upfront. Second, cash advance interest starts accruing immediately at a rate that is typically 2 to 5 percentage points higher than your regular purchase APR. If your purchase APR is 18 percent, your cash advance APR might be 23 percent. Unlike purchases, there is no grace period — interest begins the day you withdraw, not at the end of the billing cycle.

How much you can withdraw

Your card issuer sets a cash advance limit that is separate from your credit limit. This limit is often 20 to 50 percent of your total credit limit, though it varies by card and issuer. If your credit limit is $5,000, your cash advance limit might be $1,000 or $2,500. You can find your cash advance limit by calling the number on the back of your card, logging into your online account, or checking your most recent statement.

ATMs have their own daily withdrawal limits — typically $500 to $1,000 per day — so you may not be able to pull out your entire cash advance limit in one transaction. Bank tellers can often override this and give you more in a single withdrawal, so if you need a larger amount, visiting a branch is faster. Some issuers also allow you to request a higher daily limit before you visit the ATM, though this does not change your overall cash advance limit.

The real cost of a cash advance

A $500 cash advance at a 4 percent fee costs $20 upfront. If your cash advance APR is 24 percent and you pay the minimum payment (usually 1 to 3 percent of the balance), you could carry that $500 for months. After six months of minimum payments, you might have paid $60 in interest alone, plus the original $20 fee — a total of $80 on a $500 withdrawal. If you carry it for a year, the interest cost can exceed the fee.

The longer you hold the cash, the worse the math gets. This is why cash advances are meant to be repaid quickly — ideally within a billing cycle or two. If you need cash for more than a few weeks, a personal loan from a bank or credit union (which charges less interest and has a longer repayment window) is almost always cheaper. Even a payday loan, despite its high rates, may cost less than a cash advance if you repay it within two weeks.

How a cash advance affects your credit score

A cash advance does not directly damage your credit score, but it does increase your credit utilization — the percentage of your available credit you are using. If you have a $5,000 credit limit and you take a $500 cash advance, your utilization jumps from 0 to 10 percent (or higher if you already had a balance). Credit scoring models penalize high utilization, so a large cash advance can cause a small dip in your score.

The bigger risk is missing a payment. Cash advance balances are treated the same as purchase balances — a late payment reports to the credit bureaus and damages your score. Because cash advances carry higher interest, they are easier to fall behind on, especially if you only make minimum payments. One missed payment can lower your score by 50 to 100 points or more, depending on your current score.

Alternatives to a cash advance

Before you use a cash advance, consider these lower-cost options. A personal loan from a bank, credit union, or online lender typically charges 6 to 36 percent APR with no upfront fee and a fixed repayment schedule. A payday loan is faster to get but costs far more (often 400 percent APR or higher), so avoid it unless you are in a true emergency. A balance transfer to a 0 percent introductory APR card (if you have good credit) lets you move debt interest-free for 6 to 21 months, though this does not give you cash — it only helps if you are paying off another card.

If you need cash for an emergency, ask family or friends for a short-term loan first. If that is not possible, a personal loan or credit union loan will cost less than a cash advance in almost every scenario. A cash advance should be your last resort, not your first choice. Even borrowing from a retirement account (if your plan allows it) may have lower costs than a cash advance, though you should understand the tax and long-term consequences before doing so.

How to repay a cash advance quickly

The moment you take a cash advance, make a plan to repay it. Because interest starts immediately and accrues daily, every week you delay costs you money. Pay more than the minimum — ideally the full balance within one or two billing cycles. If your card issuer allows it, make multiple payments during the month rather than waiting until the due date.

When you make a payment to your credit card, the issuer applies it to your lowest-interest balance first (usually purchases), then to higher-interest balances (cash advances). To pay off a cash advance faster, call your issuer and ask if you can designate a payment specifically to the cash advance balance. Some issuers allow this; others do not. Either way, the sooner you pay it off, the less interest you owe. Setting up automatic payments from your bank account can also help you stay on track and avoid missing a due date.

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 you are paying off the other card with that cash. You are essentially paying two sets of fees to move money around. A balance transfer (moving the balance directly from one card to another) is cheaper if you have good credit.

What happens if I don't pay back a cash advance?

The balance stays on your card and interest keeps accruing daily. After 30 days, the late payment reports to the credit bureaus and your credit score drops. After 60 days, your interest rate may increase. After 180 days, the issuer may charge off the account and sell the debt to a collection agency. At that point, collectors can sue you for the full amount owed.

Is there a way to avoid the cash advance fee?

No. Every credit card issuer charges a cash advance fee — it is built into the terms of the card. You cannot negotiate it away or find a workaround. Some cards marketed to people with poor credit charge higher fees (5 to 10 percent), while premium cards charge lower fees (2 to 3 percent), but the fee is always there.

Can I take a cash advance if I am maxed out on my credit limit?

No. Your cash advance limit is part of your total credit limit. If you have used your entire limit, you cannot take a cash advance until you pay down the balance. You would need to pay off some of your existing balance first to free up room for a cash advance.

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. It is part of your overall credit card balance and shows up in your utilization ratio. However, if you miss a payment on the cash advance, that late payment is reported and damages your score.