Yes, you can take money off a credit card—it's called a cash advance

You can withdraw cash directly from your credit card at an ATM, bank teller, or through a cash advance check. The money appears in your account within one to three business days. But a cash advance is not the same as a regular purchase: it charges you a fee upfront (usually 3 to 5 percent of the amount), starts charging interest immediately (often 20 to 30 percent APR), and that interest accrues daily from the moment you withdraw it—there is no grace period like there is for regular credit card purchases.

Because of these costs, a cash advance should only be your choice if you have no other way to get cash and you plan to pay it back within days or weeks, not months. If you need money for a longer period, a personal loan, payday loan alternative, or borrowing from family will almost always cost you less.

Key Takeaways

  • Cash advances charge an upfront fee (typically 3 to 5 percent) plus interest that starts immediately, with no grace period.
  • Interest rates on cash advances are usually higher than rates on regular purchases, often 20 to 30 percent APR or more.
  • You can withdraw cash at an ATM using your credit card PIN, at a bank teller with your card and ID, or by depositing a cash advance check.
  • Paying off a cash advance should be your priority because the interest compounds daily and will quickly exceed the cost of other borrowing options.
  • If you need cash regularly, a personal line of credit or a bank overdraft protection plan may cost less than repeated cash advances.

Where and how to withdraw cash from your credit card

The easiest method is an ATM. Insert your credit card, enter your PIN (which you may need to set up first if you have never used it), and select the cash advance option. The ATM will show you the fee and the amount you are withdrawing; confirm and the cash comes out. Most credit card companies let you withdraw up to a certain percentage of your credit limit—often 50 percent—though some allow less.

If you do not have a PIN or prefer not to use an ATM, visit a bank teller at any bank (not just your card issuer). Bring your credit card and a photo ID. Tell the teller you want a cash advance, and they will process it on the spot. You will pay the same fee and interest as an ATM withdrawal.

Some credit card companies also send you cash advance checks in the mail. You write one like a regular check, deposit it into your bank account, and the amount is charged to your credit card. These checks often come with a slightly lower fee than ATM withdrawals, but read the terms carefully—some have different interest rates or fees than ATM cash advances on the same card.

The fees and interest you will pay

A cash advance fee is charged the moment you withdraw the money. It is usually 3 to 5 percent of the amount, though some cards charge a flat fee (like $10) if that is higher. A $500 cash advance at 4 percent costs $20 upfront. A $1,000 advance at 5 percent costs $50. This fee is added to your credit card balance immediately.

Interest starts accruing the same day you withdraw the cash. Unlike a regular purchase, which may have a 21-day grace period before interest kicks in, a cash advance has zero grace period. If your card charges 25 percent APR on cash advances, that 25 percent is being calculated and added to your balance every single day until you pay it off. On a $500 advance, that is roughly $3.42 per day in interest alone.

The interest rate on a cash advance is often higher than the rate on regular purchases on the same card. Check your card's terms or call the issuer to confirm the exact rate before you withdraw. Some cards charge 5 to 10 percentage points more for cash advances than for regular spending.

How cash advances affect your credit score

A cash advance does not directly hurt your credit score the way a missed payment does. However, it increases your credit utilization—the percentage of your available credit 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 (above 30 percent) can lower your score slightly, and the effect is temporary: once you pay off the advance, your utilization drops and your score recovers.

The bigger risk is that a cash advance can make it harder to pay off your balance. Because interest compounds daily and there is no grace period, the balance grows faster than a regular purchase would. If you cannot pay it off quickly, you may end up carrying a balance for months, which will hurt your score through both high utilization and a history of revolving debt.

When a cash advance makes sense (and when it does not)

A cash advance makes sense only in narrow situations: you need cash urgently, you have no other source of funds, and you can pay it back within a few days or a week. For example, if your car breaks down and the mechanic only takes cash, and you can pay off the advance from your next paycheck, the fee and a week of interest might be $30 to $50—acceptable for an emergency.

A cash advance does not make sense if you need the money for longer than a week or two. A personal loan from a bank or credit union, even at a higher APR, will cost less over a month or more because there is no upfront fee and the interest is calculated differently. A payday loan alternative like a credit union payday loan or a buy-now-pay-later service may also be cheaper. Borrowing from family or friends, if possible, costs nothing.

Never use a cash advance to pay off another debt unless that debt has an even higher interest rate (which is rare). You are simply moving the problem and adding a fee.

How to pay off a cash advance quickly

Once you have taken a cash advance, your priority is to pay it off before the interest balloons. Make a payment as soon as you can—ideally within days. When you make a payment to your credit card, the payment goes toward your lowest-interest balance first (usually regular purchases), so you may need to contact your card issuer and ask them to apply your payment to the cash advance specifically. Some cards let you do this online or through the app.

If you cannot pay the full amount immediately, pay as much as you can. Every dollar you pay reduces the daily interest charge. A $500 cash advance at 25 percent APR costs about $3.42 per day in interest; paying $250 of it within a week saves you roughly $24 in interest compared to waiting two weeks.

Set a firm deadline to pay off the advance completely. Write it down or set a phone reminder. The longer a cash advance sits on your card, the more you pay in interest, and the harder it becomes to escape the cycle.

Alternatives to a cash advance

If you need cash but want to avoid the fees and interest of a cash advance, consider these options first:

  • A personal loan from a bank or credit union: Usually 8 to 36 percent APR with no upfront fee. You get the money in one to five business days and pay it back in fixed monthly installments. Better for amounts over $500 or if you need more than a week to repay.
  • A credit union payday loan alternative: Some credit unions offer small loans (up to $1,000) at 28 percent APR or less, with no fee. You must be a member, but membership is often open to anyone in your area.
  • A line of credit: If your bank offers one, you can draw cash as needed and pay interest only on what you use. Often cheaper than a cash advance if you use it regularly.
  • Overdraft protection: Some banks let you link a savings account or credit line to your checking account. If you overdraw, the bank covers it automatically, usually at a lower cost than a cash advance.
  • Selling something or picking up extra work: If you have time, selling items you no longer need or working a few extra hours may get you the cash without borrowing at all.

Frequently Asked Questions

What is the difference between a cash advance and a regular credit card purchase?

A regular purchase has a grace period (usually 21 days) before interest starts, and a lower interest rate. A cash advance charges a fee immediately, has no grace period, and interest starts accruing the same day. Interest on a cash advance is also usually 5 to 10 percentage points higher than on regular purchases.

Can I take a cash advance from any ATM?

You can use most ATMs, but you will pay a fee from the ATM operator (usually $2 to $5) on top of your credit card's cash advance fee. Using an ATM owned by your card issuer or your bank usually avoids the operator fee. A bank teller withdrawal has only the card issuer's fee, no ATM operator fee.

What happens if I cannot pay back a cash advance?

The balance stays on your card and interest continues to accrue daily. If you miss a payment, you may face a late fee and your interest rate may increase. The debt can also be reported to credit bureaus, which will lower your credit score. Contact your card issuer as soon as you know you cannot pay to discuss options like a payment plan.

Does taking a cash advance hurt my credit immediately?

Not immediately, but it increases your credit utilization, which can lower your score slightly. The bigger damage comes if you carry the balance for months or miss payments. Once you pay off the advance, your utilization drops and the score impact fades.

Can I take a cash advance from a credit card I just opened?

Most cards allow cash advances right away, but some new cards have a waiting period or a lower cash advance limit for the first 30 to 90 days. Check your card's terms or call the issuer to confirm before you try to withdraw.