Yes, you can withdraw cash from a credit card, but it costs more than a regular purchase
A cash advance is a withdrawal of actual cash from your credit card account. You can get it at an ATM, a bank teller, or sometimes at a store checkout. The money goes into your pocket immediately, but the card issuer charges you fees and interest right away — usually higher than what you pay on regular purchases.
The catch is that cash advances are treated differently from everyday card spending. You do not earn rewards points. Interest starts accruing the moment you withdraw the cash, with no grace period like you might have on a purchase. And the interest rate is typically 3 to 5 percentage points higher than your regular purchase APR.
Key Takeaways
- Cash advances charge an upfront fee (usually 3 to 5 percent of the amount) plus a higher interest rate than purchases, starting immediately with no grace period.
- You can withdraw cash at an ATM using your credit card PIN, at a bank branch, or through a cash advance check from your card issuer.
- The total cost of a cash advance grows quickly because interest compounds daily, so the longer you carry the balance, the more you pay.
- If you need cash, a debit card withdrawal, personal loan, or credit card purchase followed by a store refund are usually cheaper alternatives.
Where and how to get the cash
The most common way is to use an ATM. You insert your credit card, enter your PIN (which you may need to set up first if you have not used it), and withdraw the amount you need. The ATM will show you the fee before you confirm the transaction — usually $3 to $10 depending on the ATM operator and your card issuer.
You can also visit a bank branch in person. Walk in with your credit card and ask the teller for a cash advance. They will process it on the spot and hand you the cash. This method avoids ATM fees but may have a minimum withdrawal amount.
Some card issuers mail you convenience checks — checks drawn on your credit card account. You write one out and deposit it like a regular check, or hand it to a merchant. The issuer treats it as a cash advance and charges the same fees and interest.
The fees and interest you will pay
A cash advance fee is usually 3 to 5 percent of the amount you withdraw. If you take out $500, expect to pay $15 to $25 just to get the cash. Some cards have a flat minimum fee (like $5) or a maximum fee (like $100), so the percentage might not apply to very small or very large withdrawals.
Interest starts accruing immediately — there is no grace period. If your regular purchase APR is 18 percent, your cash advance APR might be 23 or 24 percent. That interest compounds daily, so every day you carry the balance, the amount you owe grows. A $500 advance at 24 percent APR costs about $10 in interest after one month if you make no payments.
Your card issuer applies your monthly payment to balances in a specific order set by law. Usually, they pay off purchases first, then cash advances. This means if you have both on your card, your cash advance interest keeps growing while you pay down the purchase balance.
When a cash advance makes sense
A cash advance is worth considering only when you have no other option and you can pay it back within days. If a store or service accepts only cash and you have no other way to get it, the convenience might justify the fee. But if you can wait a day or two, a trip to your bank to withdraw from a checking or savings account costs nothing.
Do not use a cash advance to cover an emergency expense you cannot afford. The fees and interest will make the debt harder to repay, not easier. If you are in a tight spot, look at whether you can borrow from a friend, negotiate a payment plan with the creditor, or use a personal loan instead — most personal loans charge less interest than a credit card cash advance.
Cheaper ways to get cash when you need it
If you have a debit card linked to a checking or savings account, use that instead. Debit card withdrawals at your bank's ATM are free, and even out-of-network ATM fees are usually $2 to $3 — less than a credit card cash advance fee.
Some employers offer paycheck advances or loans to employees. Credit unions often have lower-cost personal loans than banks. If you have a friend or family member who can lend you the money, that is almost always cheaper than a cash advance.
In a pinch, you can also make a purchase on your credit card and then return it for cash refund — though this only works if the merchant allows refunds in cash rather than back to the card. The purchase will have a grace period for interest, so you have time to pay it off before charges kick in.
How to pay back a cash advance
Pay it as soon as you can. Because interest starts immediately and compounds daily, every day you carry the balance costs you money. If you took a $500 advance and can pay it back within a week, do it — the interest will be minimal. If you need to carry it longer, make payments larger than the minimum to bring down the balance faster.
When you make a payment to your card, the issuer applies it to your lowest-interest balance first — usually purchases. To pay down the cash advance faster, contact your card issuer and ask if you can direct a payment specifically to the cash advance balance. Some issuers allow this; others do not.
What happens if you cannot pay it back
If the cash advance balance sits unpaid, it becomes part of your overall credit card debt. The interest keeps accruing, and if you miss payments, your card issuer will report it to the credit bureaus. This damages your credit score and can lead to a higher interest rate on the card or account closure.
If the debt goes to a collection agency, you may face calls and letters. You can dispute a debt if you believe it is wrong, but a cash advance you actually withdrew is hard to dispute. If you are struggling to pay, contact your card issuer to ask about a hardship program or payment plan.
Frequently Asked Questions
Can I get a cash advance if my credit card is maxed out?
No. A cash advance is a withdrawal from your available credit, so you need unused credit limit to take one. If your card is at its limit, you cannot withdraw cash until you pay down the balance.
Does a cash advance hurt my credit score?
Not directly. Taking a cash advance does not appear on your credit report as a separate item. But if it pushes your credit utilization higher (the percentage of your limit you are using), it can lower your score slightly. Missing payments on the cash advance will hurt your score.
What is the difference between a cash advance and a balance transfer?
A balance transfer moves debt from one card to another. A cash advance withdraws actual cash from your card's credit line. Cash advances charge higher fees and interest; balance transfers sometimes offer a low introductory rate for a set period.
Can I use a credit card cash advance to pay another bill?
Technically yes, but it is expensive. You pay the cash advance fee and high interest rate, then use that cash to pay another bill. Unless the other bill has a much higher penalty for late payment, this usually costs more than just paying late or asking for an extension.
Will my card issuer let me set a limit on cash advances?
Many issuers allow you to set a cash advance limit lower than your credit limit, or to disable cash advances entirely. Call your card issuer or log into your account online to see if this option is available.