Yes, you can take cash out of a credit card, but it costs more than a regular purchase
You can withdraw cash from a credit card at an ATM, bank teller, or through a cash advance at a store checkout. The money goes into your account immediately, but the card issuer charges you a cash advance fee (usually 3 to 5 percent of the amount) plus a higher interest rate than you pay on regular purchases. That interest starts accruing the moment you withdraw the cash—there is no grace period like there is for purchases.
The total cost depends on how much you take out, how long you carry the balance, and your card's specific terms. A $500 cash advance at 5 percent fee costs $25 upfront, then interest on top of that. If your cash advance rate is 24 percent and you pay it back over three months, you will pay roughly $30 in interest alone. That same $500 purchase on the card would cost you nothing if you paid the full balance by the due date.
Key Takeaways
- Cash advances charge a fee (usually 3 to 5 percent) plus a higher interest rate than purchases, with interest starting immediately.
- You can get cash at an ATM using your card's PIN, at a bank teller with your card and ID, or sometimes at a store checkout.
- The interest rate on a cash advance is typically 2 to 5 percentage points higher than your purchase rate and varies by card and issuer.
- Paying back a cash advance should be your priority because the cost compounds quickly compared to other ways of borrowing.
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 if you have never used it), and select the cash withdrawal amount. The ATM will dispense the cash and charge it to your card immediately. Most ATMs accept credit cards, though some are restricted to debit cards only—the machine will tell you if yours is not accepted.
You can also visit a bank branch in person. Bring your credit card and a photo ID, and ask the teller for a cash advance. They will process it on the spot and hand you the cash. This method works even if you do not have a PIN set up. Some retail stores—particularly larger chains—offer cash advances at checkout, though this is less common than it once was. Ask the cashier whether the store offers this service.
The amount you can withdraw is limited by your cash advance limit, which is usually lower than your overall credit limit. Your card issuer sets this separately, and you can find it in your account online or by calling the number on the back of your card. Some cards allow you to withdraw up to 30 percent of your credit limit; others cap it at a fixed dollar amount like $500.
What fees and interest rates you will pay
Every cash advance comes with an upfront fee. This is a percentage of the amount withdrawn—typically 3, 4, or 5 percent depending on your card. A $300 withdrawal at 4 percent costs $12 in fees before you owe a single cent in interest. Some cards cap the fee at a minimum (like $5) or maximum (like $15), so a very small withdrawal might cost the minimum, and a very large one might hit the cap.
The interest rate on cash advances is separate from your purchase rate and is almost always higher. If your purchase APR is 18 percent, your cash advance APR might be 24 or 25 percent. This rate applies to the full amount you withdrew, and interest accrues daily starting the day you take the cash out. Unlike a purchase, there is no grace period—you do not get 21 days interest-free.
The total cost depends on how long you carry the balance. A $500 cash advance with a $20 fee and 24 percent APR costs you $20 upfront. If you pay it back in one month, you will owe roughly $10 in interest (the exact amount varies by how your issuer calculates daily interest). If you carry it for three months, interest alone could reach $30. The longer you hold the cash, the more expensive it becomes.
How a cash advance affects your credit score
Taking a cash advance does not directly damage your credit score the way a missed payment does. However, it does increase your credit utilization—the percentage of your available credit you are using. If your credit limit is $2,000 and you take a $500 cash advance, your utilization jumps to 25 percent. Credit scoring models penalize high utilization, so your score may drop a few points.
The impact is temporary. Once you pay off the cash advance, your utilization drops and your score recovers. The bigger risk is if the cash advance tempts you to miss a payment or carry a large balance for months. A 30-day late payment or a maxed-out card will hurt your score far more than the utilization bump from a cash advance itself.
Alternatives to a cash advance
If you need cash urgently, a cash advance is rarely your cheapest option. A personal loan from a bank or credit union typically charges 6 to 36 percent APR depending on your credit, with no upfront fee. The interest is lower than a cash advance rate, and you know the exact payment schedule upfront. If you have time to wait a few days, this is usually cheaper.
A payday loan is faster but more expensive—often 400 percent APR or higher—so it is worse than a cash advance. A line of credit from your bank, if you have one, usually charges less than a cash advance. Borrowing from family or friends costs nothing if they agree, though it carries relationship risk. If you have a 401(k), some plans allow loans against your balance at a low rate, though you risk losing retirement savings if you cannot repay.
If you need cash for an emergency expense, consider whether you can use your debit card instead, pay with your credit card and carry the balance (if your purchase rate is lower than the cash advance rate), or ask a creditor for a payment extension. These options cost less or nothing compared to a cash advance.
How to pay back a cash advance quickly
Treat a cash advance as your highest-priority debt. Make a plan to pay it off within one or two months if you can, because the interest compounds fast. If your card issuer lets you make extra payments without penalty, send money toward the cash advance as soon as you have it.
Be aware that your card issuer may apply your payments to the lowest-interest balance first—usually purchases—before touching the cash advance. Check your statement or call the issuer to confirm how payments are allocated. If you want to may provide your payment goes to the cash advance, ask the issuer to apply it there specifically, or pay the cash advance balance in full in one lump sum.
If you cannot pay it back quickly, the interest will grow faster than on a regular purchase balance. A $500 cash advance at 24 percent APR costs roughly $10 per month in interest alone if you make no payments. After six months of no payments, you will owe $530 in principal plus $150 in interest. The sooner you pay it back, the less you will pay overall.
When a cash advance makes sense
A cash advance is worth considering only in narrow situations. If you need cash for an emergency and have no other way to get it, and you can pay it back within a month or two, the total cost might be acceptable. For example, if your car breaks down and you need $400 for a repair, a cash advance with a $16 fee and $10 in interest (paid back in one month) costs $26 total—less than a payday loan or overdraft fee.
A cash advance makes less sense if you are already carrying a credit card balance, because you will be adding high-interest debt on top of existing high-interest debt. It also makes less sense if you need the cash for ongoing expenses like rent or groceries, because you will not be able to pay it back quickly and the interest will compound.
Frequently Asked Questions
Can I use a credit card cash advance to pay another credit card bill?
Technically yes, but it is a bad idea. You are borrowing at the cash advance rate (usually 24 percent or higher) to pay a purchase rate (usually 18 percent or lower). You are paying more to move the debt around. If you are struggling to pay a credit card bill, contact the issuer about a hardship plan or payment extension instead.
Does taking a cash advance hurt my credit score?
It can slightly, because it increases your credit utilization. The impact is usually small and temporary. A bigger risk is if the cash advance leads you to miss a payment or carry a large balance for months—those will hurt your score much more.
What is the difference between a cash advance and a balance transfer?
A cash advance gives you actual cash and charges a high fee plus a high interest rate. A balance transfer moves debt from one card to another and usually charges a lower fee but may have a lower introductory rate. Use a balance transfer to move existing debt; use a cash advance only if you need physical cash.
Can I withdraw my entire credit limit as a cash advance?
No. Your cash advance limit is usually much lower than your overall credit limit—often 20 to 30 percent of it. Check your account online or call your issuer to find out your specific cash advance limit.
What happens if I cannot pay back a cash advance?
The balance will accrue interest at your cash advance rate and may be reported to credit bureaus if you miss payments. After 30 days late, it will damage your credit score. After 180 days, the issuer may charge off the account. Contact your issuer immediately if you cannot pay to discuss a hardship plan or payment arrangement.