Yes, you can pull cash from your credit card, but it costs more than a regular purchase
You can withdraw cash directly from your credit card at an ATM or by asking a bank teller for a cash advance. The money appears in your account within minutes or hours. But a cash advance is not the same as spending on the card—it charges you a separate fee upfront, a higher interest rate than purchases, and interest starts accruing immediately with no grace period.
Most people use a cash advance only when they have no other option, because the cost adds up fast. If you need cash regularly, a debit card or a trip to your bank is almost always cheaper.
Key Takeaways
- Cash advances charge a fee (usually 3 to 5 percent of the amount) plus a higher interest rate than regular purchases, with no grace period.
- You can get a cash advance at any ATM using your credit card PIN, or by visiting a bank branch and asking the teller.
- Interest on a cash advance starts the day you withdraw it, so even a short-term advance costs money.
- The total cost of a cash advance can exceed 30 percent annually depending on your card's terms and how long you carry the balance.
What fees and interest rates apply to cash advances
A cash advance fee is charged the moment you withdraw the money. This fee is typically 3 to 5 percent of the amount withdrawn, though some cards charge a flat dollar amount instead (for example, $10 minimum). A $500 cash advance at 4 percent costs $20 in fees alone.
The interest rate on a cash advance is separate from your purchase rate. Most cards charge 2 to 5 percentage points higher on cash advances than on regular purchases. If your purchase rate is 18 percent, your cash advance rate might be 23 percent. Unlike purchases, there is no grace period—interest starts accruing the day you withdraw the cash.
Check your credit card statement or call the card issuer to find your specific cash advance fee and interest rate. These numbers vary by card and by issuer, and they are not negotiable.
Where you can withdraw cash from your credit card
The easiest method is an ATM. Insert your credit card and enter your PIN (the same one you use for debit). The ATM will ask how much you want to withdraw. The money comes out immediately, and the advance appears on your statement within one business day.
If you do not know your PIN, call the card issuer's customer service number on the back of your card. They can reset it or send you a temporary one. Some cards do not allow cash advances at all—the ATM will decline the transaction if yours is one of them.
You can also visit a bank branch in person and ask the teller for a cash advance on your credit card. Bring your card and a photo ID. The teller will process it the same way an ATM does, and you walk out with cash. This method works even if you do not have a PIN set up yet.
How a cash advance affects your credit and your balance
A cash advance counts toward your credit utilization ratio—the percentage of your total credit limit you are using. If you have a $5,000 limit and you take a $1,000 cash advance, your utilization jumps to 20 percent. High utilization can lower your credit score, even if you pay the advance back quickly.
The advance also appears as a separate line item on your statement, distinct from regular purchases. When you make a payment, credit card companies apply it to the lowest-interest debt first—usually your purchases. This means your cash advance balance can sit and accumulate interest while you pay down purchases, making it more expensive to clear.
If you are trying to rebuild credit or you are close to your credit limit, a cash advance can work against you. The short-term gain of having cash is often outweighed by the damage to your score and the cost of carrying the balance.
Comparing a cash advance to other ways to get cash
A personal loan from a bank or credit union usually charges 6 to 36 percent interest depending on your credit, with no upfront fee. If you need $500 and you can borrow it at 15 percent, you will pay less in interest over six months than you would on a cash advance at 23 percent plus a $20 fee.
A payday loan charges a flat fee (often $15 to $20 per $100 borrowed) but is meant to be repaid in two weeks. If you can repay it that fast, the total cost may be lower than a cash advance. If you cannot, the fee rolls over and compounds, making it far more expensive.
Asking a friend or family member for a short-term loan costs nothing and carries no interest. If that is an option, it is almost always the cheapest choice. A line of credit from your bank, if you have one, typically charges less interest than a cash advance and no upfront fee.
When a cash advance makes sense and when it does not
A cash advance makes sense only in narrow situations: you need cash immediately, you have no other source, and you can repay it within days or a week. For example, if your car breaks down and the mechanic only takes cash, and you do not have time to visit your bank, a $200 cash advance might be worth the $8 to $10 fee and a few days of interest.
A cash advance does not make sense if you are using it to cover regular expenses, to pay off other debt, or if you cannot repay it within a few weeks. Carrying a cash advance balance month to month is one of the most expensive ways to borrow money. If you find yourself taking cash advances regularly, that is a sign your budget has a gap that needs fixing, not a gap that borrowing can solve.
How to minimize the cost if you do take a cash advance
Repay it as fast as possible. Every day you carry the balance, interest accrues. If you take a $500 advance at 23 percent and repay it in one week, you pay roughly $2 in interest plus the upfront fee. If you carry it for a month, you pay roughly $10 in interest plus the fee. The difference is small in dollars but compounds quickly.
Pay the cash advance before you pay other balances. Even though the card issuer applies your payment to the lowest-interest debt first, you can request that a payment go toward the cash advance specifically. Call customer service and ask them to apply your next payment to the cash advance line item.
Do not take out more than you need. The fee is a percentage, so a $1,000 advance costs twice as much in fees as a $500 advance. Withdraw only what you will actually use.
Frequently Asked Questions
Can I take a cash advance if my credit card is maxed out?
No. A cash advance counts toward your credit limit, so you need available credit to withdraw. If your limit is $5,000 and you have already charged $5,000, you cannot take a cash advance. You would need to pay down the balance first or request a higher limit.
Does a cash advance show up on my credit report?
The advance itself does not appear as a separate line on your credit report. However, it increases your credit utilization ratio, which is reported to the credit bureaus and can lower your score. Once you repay it, the utilization drops and your score can recover.
What happens if I cannot repay the cash advance?
The balance carries over to the next month and continues to accrue interest at your cash advance rate. If you miss a payment, late fees apply and your credit score drops. The debt does not go away—it stays on your account until you pay it or the card issuer writes it off (which damages your credit for years).
Can I use a cash advance to pay another credit card?
Technically yes, but it is a bad idea. You are borrowing at 23 percent interest plus a fee to pay off debt that might be at 18 percent. You end up paying more, not less. If you are trying to consolidate debt, a personal loan or balance transfer card is a better option.
Is there a limit to how much I can withdraw?
Yes. Most card issuers set a cash advance limit that is lower than your total credit limit—often 20 to 50 percent of it. Check your statement or call customer service to find your limit. You cannot withdraw more than that amount, even if you have available credit.