Yes, you can withdraw cash from a credit card, but it works differently than a debit card and costs more
You can take cash out of a credit card at an ATM, bank teller, or convenience store, but the transaction is called a cash advance and it is not the same as withdrawing from a checking account. The money comes from your credit line, not a separate account. You start paying interest on it immediately — usually within one day — and you pay a fee upfront just for taking it out.
Most credit cards allow cash advances, but the terms vary by card and by issuer. Before you do this, you should know what it will cost you and how it affects your credit card balance.
Key Takeaways
- Cash advances charge an upfront fee (usually 3 to 5 percent of the amount) plus interest that starts accruing right away, with no grace period like you get on purchases.
- You can get a cash advance at an ATM using your PIN, at your bank's teller window, or at some convenience stores, but each method has different fees.
- The interest rate on cash advances is typically higher than the rate on regular purchases, sometimes by several percentage points.
- A cash advance counts as a balance on your credit card and affects your credit utilization ratio, which can lower your credit score.
- You should check your card's terms or call the issuer before taking a cash advance to learn the exact fee and interest rate.
Where you can actually take out cash
The easiest place is an ATM. Insert your credit card, enter your PIN, and withdraw the amount you need. Most ATMs that accept credit cards will process the transaction as a cash advance. You will see the fee charged immediately on the screen.
You can also go to a bank branch — yours or any bank that issues the same card brand — and ask the teller for a cash advance. This is useful if you need a large amount or do not know your PIN. The teller will verify your identity and process the advance at the counter.
Some convenience stores and grocery stores offer cash advances at the register when you use a credit card. This is less common than it used to be, and the fees are often higher than an ATM. Call ahead or ask at the register whether they offer this service.
The fees and interest you will pay
A cash advance charges two separate costs: a one-time fee and ongoing interest.
The upfront fee is usually between 3 and 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 cap the fee at a flat dollar amount — for example, $10 minimum or $50 maximum — so a very small advance might cost a flat $10, and a very large one might cap at $50.
Interest starts accruing immediately. Unlike a purchase, which typically has a grace period (usually 21 to 25 days before interest kicks in), a cash advance charges interest from day one. The interest rate is also higher than your purchase rate — often 2 to 5 percentage points higher. If your purchase APR is 18 percent, your cash advance APR might be 23 percent.
The interest compounds daily, so the longer you carry the balance, the more you pay. A $500 cash advance at 23 percent APR costs roughly $9.50 in interest per month if you do not pay it down.
How a cash advance affects your credit
A cash advance shows up on your credit card statement as a separate balance, just like a purchase does. It counts toward your total credit card balance and affects your credit utilization ratio — the percentage of your available credit that you are using.
If you have a $5,000 credit limit and you take a $1,000 cash advance, your utilization jumps to 20 percent (or higher if you already had a purchase balance). High utilization can lower your credit score, even if you pay the advance off quickly. This effect is temporary — your score recovers once you pay down the balance — but it is worth knowing about if you are trying to keep your score stable.
How to pay off a cash advance
When you make a payment to your credit card, the issuer applies it to your balances in a specific order. Most cards pay off purchases first, then cash advances. This means if you have both a purchase balance and a cash advance balance, your payment goes to the purchase first, and the cash advance keeps accruing interest longer.
To pay off a cash advance faster, contact your issuer and ask them to apply your payment directly to the cash advance balance. Some issuers will do this; others will not. If yours will not, you may need to pay off the purchase balance completely before the cash advance balance starts going down.
The best approach is to pay the cash advance back as soon as you can. Because interest starts immediately and the rate is high, carrying a cash advance for weeks or months is expensive.
When a cash advance makes sense
A cash advance is useful in a genuine emergency when you need cash and have no other option — for example, a car repair that a mechanic will not charge to a card, or a medical bill that requires cash payment. In these cases, the fee and interest are the cost of solving an immediate problem.
A cash advance does not make sense for everyday spending or to move money around. If you need cash regularly, a debit card or a checking account withdrawal is free. If you are short on money and considering a cash advance to pay bills, that is a sign to look at your budget or explore other options like a personal loan, which usually has a lower interest rate.
Alternatives to a cash advance
If you need cash but want to avoid the fees and high interest, consider these options first:
- Withdraw from a checking account. If you have a debit card or can visit your bank, this is free and instant.
- Use a personal loan. If you need a larger amount, a personal loan from a bank or credit union typically has a lower interest rate than a cash advance, though it takes a few days to fund.
- Ask for a paycheck advance. Some employers will advance you part of your next paycheck with little or no fee.
- Borrow from family or friends. If possible, this avoids fees and interest entirely.
Frequently Asked Questions
What is the difference between a cash advance and a regular purchase?
A purchase goes on your credit card and has a grace period before interest starts. A cash advance charges interest immediately, costs an upfront fee, and has a higher interest rate. Both count toward your balance and credit utilization, but a cash advance is more expensive overall.
Can I use a credit card cash advance to pay another credit card?
Technically yes, but it is expensive. You pay the cash advance fee and interest rate on the amount, then use that cash to pay the other card. Most people in this situation are better off calling the second card's issuer to discuss a lower interest rate or a payment plan.
Does a cash advance hurt my credit score?
It can, because it increases your credit utilization ratio. The impact is temporary and goes away once you pay the balance down. However, if you miss a payment on the cash advance, that will hurt your score more seriously and stay on your report for years.
How long does a cash advance take to show up on my statement?
It appears within one to two business days, depending on the ATM or bank you used. The fee and interest charges appear on your next monthly statement.
Can I get a cash advance if my credit card is maxed out?
No. A cash advance uses part of your available credit, so you need unused credit limit to take one out. If your card is at its limit, you cannot take a cash advance.