Yes, you can withdraw cash from your credit card, but it costs more than a regular purchase
You can pull cash directly from your credit card at an ATM, bank teller, or through a cash advance at a store. The transaction itself takes minutes. But a cash advance is not the same as a purchase—your card issuer treats it as a loan and charges you fees and interest that start immediately, with no grace period.
Most people should avoid cash advances unless they have no other option. The fees alone—typically 3 to 5 percent of the amount withdrawn—plus daily interest charges make this an expensive way to get cash. If you need money urgently, a personal loan, payday loan alternative, or even a short-term loan from family usually costs less.
Key Takeaways
- Cash advances charge a fee (usually 3 to 5 percent) plus interest that begins accruing immediately, with no grace period like purchases have.
- You can withdraw cash at an ATM using your PIN, at a bank teller with your card and ID, or through a store cash advance if the merchant offers it.
- The interest rate on a cash advance is often higher than your card's regular purchase rate, and the daily cost adds up quickly on even small amounts.
- Your credit card's cash advance limit may be lower than your overall credit limit, so you cannot necessarily withdraw your full available balance.
How much it costs to take a cash advance
A cash advance charges you two things: an upfront fee and daily interest. The upfront fee is usually a flat percentage of the amount you withdraw—commonly 3 to 5 percent, though some cards charge as little as 2 percent or as much as 10 percent. On a $500 withdrawal, a 4 percent fee costs you $20 before you even leave the ATM.
Interest starts accruing the same day you withdraw the cash. Unlike a purchase, which may have a grace period (usually 21 to 25 days before interest kicks in), a cash advance charges interest from day one. The interest rate is often 2 to 3 percentage points higher than your regular purchase rate. If your card charges 18 percent APR on purchases, the cash advance rate might be 21 or 22 percent. On a $500 advance at 21 percent APR, you pay roughly $2.88 per day in interest alone.
If you carry the balance for a month, the fee plus interest can easily exceed $40 on that $500 withdrawal. Carry it for three months and you are paying $50 or more just for the privilege of accessing your own credit line.
Where you can withdraw cash from your credit card
You have three main routes: an ATM, a bank teller, or a store cash advance. The method does not change the fees or interest—only the convenience and the location.
ATM withdrawal is the fastest. Insert your card, enter your PIN, and select the cash advance option (not the debit option, if your card has both). The ATM will show you the fee before you confirm. Some ATMs charge an additional operator fee on top of your card issuer's fee, so you may pay twice—once to your card company and once to the ATM owner.
Bank teller withdrawal requires you to visit a branch in person with your credit card and a photo ID. You tell the teller you want a cash advance, and they process it like a withdrawal. This method avoids the ATM operator fee, but it only works during business hours and requires a trip to a physical location.
Store cash advance is available at some retailers and check-cashing services. You hand over your card, and they process a small transaction that includes a cash component. This is less common than it once was, and the fees can be higher than an ATM.
Your cash advance limit is separate from your credit limit
Your credit card company sets a cash advance limit that is often much lower than your overall credit limit. If your card has a $5,000 credit limit, your cash advance limit might be only $1,000 or $1,500. You cannot exceed this limit, even if you have available credit for purchases.
You can find your cash advance limit by logging into your online account, calling the customer service number on the back of your card, or checking your most recent statement. If you need to withdraw more than your limit allows, you would have to make multiple withdrawals on different days, or you would have to use a different method to get cash.
Why a cash advance is usually a bad idea
The math is straightforward: a cash advance is one of the most expensive ways to borrow money. A personal loan from a bank or credit union typically charges 6 to 36 percent APR depending on your credit, with no upfront fee. A payday loan alternative through a credit union (called a PAYDAY Alternative Loan, or PAL) caps interest at 28 percent APR and charges no fee. Even a payday lender, which is expensive, often costs less than a credit card cash advance when you factor in both the fee and the interest rate.
The only time a cash advance makes sense is when you have no other option and you can pay it back within days. If you are in that situation, pay off the cash advance as soon as possible—every day you carry it costs you money.
If you find yourself regularly needing cash advances, that is a sign your budget has a gap. Consider building an emergency fund of $500 to $1,000 so you have cash on hand for unexpected expenses, or look into a personal line of credit from your bank, which usually charges less than a cash advance.
How to minimize the damage if you do take a cash advance
If you decide to take a cash advance, follow these steps to keep the cost as low as possible. First, withdraw only what you actually need—every dollar you take costs you a percentage fee plus daily interest. Second, pay it back as fast as you can. Even paying it off a week earlier saves you money in interest charges.
Third, pay the cash advance balance before you make any new purchases on the card. When you make a payment, most card issuers apply it to the lowest-interest balance first (usually purchases), leaving the cash advance balance to accrue interest longer. Some cards let you specify where your payment goes—if yours does, direct the payment to the cash advance.
Fourth, do not take another cash advance to pay off the first one. That doubles your fees and extends the cycle. If you cannot pay off the advance with cash you have, you cannot afford to take it in the first place.
Frequently Asked Questions
Does a cash advance hurt my credit score?
A cash advance itself does not directly damage your credit score, but carrying a high balance does. If the advance pushes your overall credit utilization above 30 percent of your total limit, your score may drop. Paying it off quickly keeps utilization low and minimizes the impact.
Can I take a cash advance if I have a zero percent APR promotional offer?
No. The zero percent offer applies only to purchases, not to cash advances. Cash advances are charged the regular (or higher) interest rate from day one, regardless of any promotional rate on your account.
What happens if I cannot pay back the cash advance?
The balance rolls into your regular credit card debt. Interest continues to accrue daily, and if you miss payments, late fees apply and your credit score drops. The debt does not go away—it becomes part of your card balance until you pay it off.
Is there a difference between a cash advance and a balance transfer?
Yes. A balance transfer moves debt from one card to another (usually to take advantage of a lower rate), while a cash advance gives you physical cash. Balance transfers have their own fees and terms, but they are not the same transaction.
Can I use a credit card cash advance to pay another credit card bill?
Technically yes, but it is a bad idea. You are paying a cash advance fee plus interest to move money between cards, which costs you money for no benefit. Pay your other card directly from your bank account instead.