Yes, you can take money off your credit card, but it costs more than a regular purchase
You can withdraw cash from your credit card at an ATM, bank teller, or through a cash advance at a store. The money comes from your credit limit, not a separate account. But unlike a purchase, a cash advance charges you fees upfront and starts charging interest immediately—there is no grace period like there is for regular purchases.
The cost difference matters. A $200 cash advance might cost you $6 to $10 in fees alone, plus interest that begins accruing the same day. A $200 purchase on the same card would have no fee and no interest if you pay the full balance by the due date. Cash advances are expensive because credit card companies treat them as higher risk than purchases.
Key Takeaways
- Cash advances charge an upfront fee (usually 3 to 5 percent of the amount) plus interest that starts immediately, with no grace period.
- You can get a cash advance at an ATM using your PIN, at your bank's teller window, or through a cash advance at a store checkout.
- The interest rate on a cash advance is often higher than your regular purchase APR, sometimes by 5 percentage points or more.
- Paying back a cash advance should be your priority because the interest compounds daily and there is no way to avoid it.
Where you can actually withdraw the cash
An ATM is the fastest route. Insert your credit card, enter your PIN, select "cash advance" or "withdraw cash," and choose the amount. The ATM will show you the fee before you confirm. Most ATMs allow withdrawals up to your available credit limit, though some cards set a lower daily limit.
Your bank's teller window is another option. Walk in with your credit card and ask for a cash advance. The teller will process it on the spot and hand you the cash. This method works well if you need a large amount or prefer not to use an ATM.
Some stores offer cash advances at checkout. You may see this option at grocery stores or pharmacies, though it is less common than it used to be. The process is similar to a debit card cash-back transaction, but the money comes from your credit card instead of a checking account.
What the fees and interest actually cost
The upfront fee is usually between 3 and 5 percent of the amount you withdraw. A $300 cash advance typically costs $9 to $15 in fees alone. Some cards charge a flat fee instead—say, $5 or $10—which is better if you are withdrawing a small amount but worse if you are withdrawing a large one.
Interest starts the day you withdraw the cash. There is no grace period. If your regular purchase APR is 18 percent, your cash advance APR might be 23 percent or higher. That interest compounds daily, so the longer the money sits in your account, the more you owe.
The math on a $300 advance: $9 fee upfront, plus interest at 23 percent APR. If you pay it back in 30 days, you owe roughly $18 in interest. Total cost: $27, or 9 percent of the original amount. If you carry it for three months, the interest alone could exceed $50.
How cash advances affect your credit score
A cash advance counts as a balance on your credit card, just like a purchase does. It uses up your available credit and raises your credit utilization ratio—the percentage of your credit limit you are using. A higher utilization ratio can lower your credit score, even if you pay the advance back quickly.
The impact is temporary. Once you pay off the cash advance, your utilization drops and your score recovers. But while the balance is there, it works against you. If you are trying to keep your utilization below 30 percent to protect your score, a cash advance can push you over that threshold.
Why paying it back fast matters more than usual
Because there is no grace period and interest is higher, a cash advance becomes expensive the moment you take it. Every day you carry the balance, you are losing money to interest. This is different from a purchase, where you have 21 to 25 days before interest kicks in.
If you took a cash advance because you needed emergency money, make it your first priority to pay it back. Put any money you can toward it before you pay other balances or bills. The interest rate is working against you every single day.
Some people use a balance transfer card to move a cash advance to a 0 percent APR period, but this is rarely worth it. The balance transfer fee (usually 3 to 5 percent) plus the cash advance fee you already paid means you are already out $15 to $30 on a $300 advance. You would need to carry the balance for many months for a balance transfer to save you money.
When a cash advance makes sense and when it does not
A cash advance makes sense only in a true emergency where you have no other option. You need cash immediately, you cannot use a debit card, and you cannot wait for a paycheck or a loan. Even then, you should plan to pay it back within days, not weeks.
A cash advance does not make sense if you have other options. A personal loan from a bank or credit union usually has a lower interest rate and no upfront fee. A payday loan is expensive but sometimes cheaper than a cash advance if you are paying it back within two weeks. Asking family or friends, borrowing from your 401(k), or selling something you own are all better than a cash advance.
Do not use a cash advance to pay other debts, fund a vacation, or cover regular expenses. The cost is too high and you will end up deeper in debt. If you are using cash advances regularly, that is a sign you need to look at your budget or talk to a credit counselor about your spending.
Frequently Asked Questions
Can I use my credit card at any ATM to get a cash advance?
Most ATMs accept credit cards for cash advances, but some do not. Your card issuer's own ATMs always work. Out-of-network ATMs may charge an additional fee on top of the cash advance fee. Check with your card issuer about which ATMs are free to use.
What is the difference between a cash advance and a balance transfer?
A cash advance gives you physical cash and charges interest immediately. A balance transfer moves debt from one card to another and may offer a 0 percent APR period. Balance transfers are for moving existing debt; cash advances are for getting cash in hand.
Will a cash advance show up on my credit report?
The cash advance itself does not show up separately on your credit report, but the balance does. It counts as part of your credit card balance and affects your utilization ratio. Once you pay it off, the impact fades.
Can I get a cash advance if my credit limit is low?
Yes. Your cash advance limit is usually the same as your credit limit, though some cards set it lower. You can withdraw up to that limit, minus any balance you already owe. Check your card's terms or call the issuer to confirm your cash advance limit.
What happens if I cannot pay back the cash advance?
The balance stays on your card and interest keeps accruing. Your minimum payment will include the cash advance. If you miss payments, your credit score drops and the card issuer may raise your interest rate or close your account. Contact your issuer if you are struggling to pay—they may offer a hardship program.