Yes, you can take cash out of your credit card, but it costs more than a regular purchase and starts charging interest immediately

A cash advance lets you withdraw money from your credit card at an ATM, bank, or through a cash-back transaction at a store. The money goes into your bank account or your hand, not toward a purchase. But unlike a regular credit card purchase, a cash advance charges you a fee upfront—usually 3 to 5 percent of the amount you withdraw—and begins accruing interest the same day, with no grace period. If you need cash, this is one of the most expensive ways to get it.

Most people use cash advances only when they have no other option: an emergency expense that requires cash, a vendor who won't take cards, or a situation where a personal loan or payday loan isn't available. Before you do, you should understand exactly what you'll pay and what the alternatives are.

Key Takeaways

  • Cash advances charge a fee (typically 3 to 5 percent) plus interest that starts accruing immediately, with no grace period like regular purchases have.
  • The interest rate on a cash advance is often higher than your regular purchase APR, sometimes by 5 to 10 percentage points.
  • You can withdraw cash at an ATM using your credit card PIN, at a bank teller, or sometimes through a cash-back request at a store.
  • A personal loan, credit union loan, or even a payday loan may cost less than a cash advance, depending on the amount and how quickly you can repay.

Where you can actually get cash from your credit card

You have three main ways to pull cash from a credit card. The most common is an ATM withdrawal: find an ATM that accepts your card brand (Visa, Mastercard, American Express, Discover), insert your card, enter your PIN, and withdraw up to your cash advance limit. Your card issuer sets this limit separately from your credit limit—it's often 20 to 50 percent of your total credit limit, but you can call and ask what yours is.

You can also visit a bank branch and ask a teller for a cash advance. Bring your credit card and a photo ID. The teller will process it the same way an ATM does, and you'll walk out with cash. Some credit card issuers also allow cash-back transactions at grocery stores and retailers: when you check out, you can ask to withdraw cash along with your purchase, and the amount gets added to your credit card bill.

The cash-back option is sometimes cheaper because some card issuers don't charge a fee for it, though interest still starts immediately. Check your card's terms or call your issuer to confirm whether cash-back counts as a cash advance on your card.

What a cash advance actually costs you

The fee is the first hit. Most issuers charge between 3 and 5 percent of the amount you withdraw—so a $500 cash advance costs $15 to $25 in fees alone. Some cards charge a flat fee instead (like $10), which is better if you're withdrawing a large amount but worse if you're withdrawing $50.

The interest rate is the second, larger hit. Your regular credit card purchases might carry an APR of 18 to 24 percent. Cash advances often carry a higher APR—sometimes 25 to 30 percent or more—and that rate starts the day you withdraw the money. There is no grace period. If you withdraw $500 and pay it back in 30 days, you'll owe roughly $12 to $15 in interest alone, on top of the $15 to $25 fee.

Here's a concrete example: you withdraw $500 at 28 percent APR with a 4 percent fee. You pay $20 in fees immediately. If you repay the $500 in 30 days, you owe about $11.67 in interest. Total cost: roughly $32. If you take 90 days to repay, the interest grows to about $35, bringing your total cost to $55.

How cash advances affect your credit score

A cash advance itself doesn't directly hurt your credit score the way a missed payment does. But it does increase your credit utilization—the percentage of your available credit you're using. If you have a $5,000 credit limit and you take a $1,000 cash advance, your utilization jumps to 20 percent. High utilization can lower your score by a few points, especially if you're already using a lot of your other cards.

The bigger risk is that a cash advance can make it harder to pay down your balance. Because the interest rate is higher and starts immediately, the money you owe grows faster. If you're already carrying a balance on your card, adding a cash advance on top of it can trap you in a cycle where your minimum payment barely covers interest.

Cheaper ways to get cash in an emergency

Before you take a cash advance, consider these alternatives. A personal loan from a bank or credit union usually has a lower interest rate than a cash advance—often 8 to 15 percent if you have decent credit—and you know the exact repayment schedule upfront. The application takes a few days, but if you're not in a same-day emergency, it's worth the wait.

A credit union loan can be even cheaper, especially if you're a member. Some credit unions offer payday alternative loans (PALs) with rates capped at 28 percent APR and no fees, which is still better than most cash advances. You need to be a member, usually for at least a month, but if you are, this is worth a call.

A payday loan has a bad reputation for good reason—typical fees are 15 to 20 percent of the loan amount for a two-week loan, which translates to an APR of 400 percent or higher. But for a small amount you can repay in two weeks, the total dollar cost might still be less than a cash advance. Compare the numbers before you dismiss it.

If you have family or friends who can lend you money, that's free. If you have a 401(k), some plans allow you to borrow against your balance at a low interest rate, though you'll owe taxes and penalties if you don't repay on time. Ask your plan administrator whether this option exists for you.

How to minimize the damage if you do take a cash advance

If none of the alternatives work and you need to take a cash advance, take these steps to keep the cost as low as possible. First, withdraw only what you need. Every dollar you withdraw costs you the fee plus interest, so don't round up or take extra "just in case."

Second, repay it as fast as you can. The interest clock starts the moment you withdraw the money, so every day you carry the balance costs you money. If you can repay it within a week or two, do it. If you're going to carry it for months, a personal loan would have been cheaper.

Third, make sure your payment goes toward the cash advance, not your regular balance. Credit card issuers typically apply payments to the lowest-interest debt first, which means your payment might go toward a regular purchase at 20 percent APR instead of your cash advance at 28 percent APR. Call your issuer and ask them to apply your payment specifically to the cash advance, or pay online and specify where the money should go.

Finally, don't take another cash advance while you're still paying off the first one. Each new advance resets the clock and adds another fee. If you're in a situation where you need multiple cash advances, you need a different solution—a personal loan, a side income source, or help from a nonprofit credit counselor.

Frequently Asked Questions

What's the difference between a cash advance and a balance transfer?

A cash advance gives you physical cash and charges a fee plus a high interest rate. A balance transfer moves debt from one card to another and usually has a lower interest rate (often 0 percent for a promotional period), but you can't use it to get cash—only to move existing debt. If you need actual money, a cash advance is your only option with a credit card.

Can I take a cash advance if I'm already maxed out on my credit card?

Your cash advance limit is separate from your credit limit, so you might be able to take a cash advance even if your credit limit is maxed out. But if you're already maxed out, taking a cash advance will push your utilization even higher and damage your credit score more. Call your issuer to check your cash advance limit before you try.

Will taking a cash advance hurt my credit score?

A cash advance itself doesn't hurt your score, but it increases your credit utilization, which can lower your score by a few points. The bigger risk is that the high interest rate makes it easy to carry a balance for months, which keeps your utilization high and costs you a lot of money.

How long does it take to get cash from a credit card?

An ATM withdrawal is instant. A bank teller withdrawal takes a few minutes. A cash-back transaction at a store is instant. The money appears in your account or your hand immediately, but the charge and interest start accruing right away.

Can I take a cash advance from a rewards credit card?

Yes, but you won't earn rewards on the cash advance. Cash advances are treated differently from purchases, and most cards don't award points or miles for them. You'll pay the fee and interest with no upside.