Yes, you can take cash out of your credit card, but it costs more than a regular purchase

You can withdraw cash from your credit card at an ATM or bank teller window using your card's PIN. The transaction is called a cash advance, and it treats the money differently than a purchase. Your card issuer charges a fee upfront—usually 3% to 5% of the amount you withdraw—and the interest rate on that cash is typically higher than your regular purchase rate, often 20% to 30% annually. Interest starts accruing immediately; there is no grace period like there is for purchases.

The process itself is straightforward: insert your card at an ATM, enter your PIN, select "cash advance" or "withdrawal," and take the money. At a bank teller, you hand over your card and ask for a cash advance. The money hits your account instantly. But the cost compounds quickly. A $500 cash advance at 5% fee plus 25% annual interest will cost you roughly $37.50 in fees and interest charges within the first month if you do not pay it back immediately.

Key Takeaways

  • Cash advances charge an upfront fee of 3% to 5% plus a higher interest rate than purchases, with no grace period before interest starts.
  • You can withdraw cash at any ATM using your card's PIN or at a bank teller by asking for a cash advance.
  • The interest rate on cash advances is usually 5% to 10% higher than your regular purchase APR and begins accruing immediately.
  • If you need cash regularly, a debit card, personal loan, or line of credit will cost you far less than repeated cash advances.

Where you can withdraw cash from your credit card

ATMs are the most common place to take a cash advance. Your card issuer's own ATMs usually charge no ATM fee on top of the cash advance fee, but out-of-network ATMs often add an extra $2 to $4 charge. Some credit card companies waive their own ATM fees for cash advances; others do not. Check your cardholder agreement or call the number on the back of your card to confirm whether your issuer charges an ATM fee.

Bank tellers can also process cash advances. Walk into any branch of your card issuer's bank or a partner bank and ask for a cash advance. This route avoids ATM fees but may require you to show ID and may take longer than using an ATM. Some banks limit how much you can withdraw in a single day—often $500 to $1,000—so if you need a larger amount, you may need to make multiple trips or call ahead.

How much it actually costs you

The fee structure is simple but the total cost adds up fast. You pay a cash advance fee upfront, usually calculated as a percentage of the amount withdrawn. A $300 withdrawal at 4% costs $12 immediately. That $12 is added to your balance and starts accruing interest right away.

The interest rate—called the cash advance APR—is separate from your purchase APR. If your purchase rate is 18%, your cash advance rate might be 28%. On a $300 advance, that 28% APR costs you roughly $7 per month in interest alone if you carry the balance. Over a year without paying it down, you would pay about $84 in interest plus the original $12 fee.

Your credit card statement will show the cash advance as a separate line item from purchases. Payments you make go toward your lowest-interest balance first, so if you have both purchases and a cash advance, your payment will reduce the purchase balance before touching the cash advance. This means the cash advance sits and accrues interest longer.

Why cash advances are expensive compared to other borrowing

A personal loan from a bank or credit union typically charges 6% to 36% APR with no upfront fee and a grace period before interest starts. A line of credit works similarly. Both spread the cost over a fixed repayment schedule, so you know exactly when you will be done paying. A cash advance has no fixed end date—you pay only the interest and fees until you decide to pay the principal down.

A debit card withdrawal costs nothing because the money comes directly from your bank account. If you do not have the cash on hand, a debit card advance from your bank (if available) usually costs less than a credit card cash advance. Even a payday loan, despite its bad reputation, often costs less than a credit card cash advance if you repay it within two weeks.

Credit card companies make cash advances expensive on purpose. They want you to use your card for purchases, where they earn a percentage from merchants. Cash advances earn them only the fee and interest, so they price it high to discourage the behavior.

How a cash advance affects your credit score

A cash advance itself does not show up on your credit report as a separate item. However, it increases your credit card balance, which raises your credit utilization ratio—the percentage of your available credit you are using. If you have a $5,000 limit and take a $1,500 cash advance, your utilization jumps to 30%, which can lower your credit score by 5 to 10 points.

The damage is temporary. Once you pay down the cash advance, your utilization drops and your score recovers. But if you carry the balance for months, the high utilization will drag your score down for that entire period. If you miss a payment on the cash advance, that missed payment will appear on your credit report and hurt your score for seven years.

When a cash advance might make sense

A cash advance is rarely the best option, but there are narrow situations where it is the fastest way to get cash. If you need money for an emergency and have no other source—no savings, no access to a personal loan, no family to borrow from—a small cash advance might be better than missing a bill payment or bouncing a check. The key is to treat it as a short-term bridge and pay it back within a month or two, before the interest compounds.

Some people use cash advances to pay off higher-interest debt, though this usually backfires because the cash advance rate is often just as high. If your credit card cash advance APR is 28% and your payday loan is 400% APR, the cash advance is the lesser evil—but only if you pay it back immediately.

Do not use a cash advance for routine expenses or discretionary spending. The fees and interest make it the most expensive way to borrow money for everyday needs.

Alternatives to taking a cash advance

If you need cash but want to avoid the cost of a cash advance, explore these options first. A personal loan from a bank, credit union, or online lender usually has a lower APR and no upfront fee. You receive the money in your bank account within one to three business days and repay it over a fixed schedule, typically 2 to 7 years. A line of credit works like a credit card but with a lower interest rate; you draw what you need and pay interest only on what you use.

If you have a savings account, withdraw from that instead. You lose the interest your savings would have earned, but you avoid the cash advance fee and high interest rate. If you have a 401(k), some plans allow you to borrow against your balance at a low interest rate; the interest goes back into your own account, not to a lender.

A balance transfer to a card with a 0% introductory rate can help if you already have a cash advance balance on another card. You move the balance to the new card and pay no interest for 6 to 21 months, giving you time to pay it down. Balance transfers charge a fee—usually 3% to 5%—but it is often lower than the ongoing interest you would pay on the original card.

Frequently Asked Questions

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

A purchase uses your credit line and has a grace period—you do not pay interest if you pay the full balance by the due date. A cash advance charges a fee upfront and interest starts accruing immediately, with no grace period. The interest rate on a cash advance is also typically 5% to 10% higher than your purchase rate.

Can I get a cash advance if my credit card is maxed out?

No. A cash advance counts against your available credit, just like a purchase. If your card is maxed out, you cannot take a cash advance. You would need to pay down your balance first or request a credit limit increase from your card issuer.

Do I have to use my PIN to take a cash advance?

At an ATM, yes—you need your PIN to withdraw cash. At a bank teller, you typically do not need a PIN; you show your ID and the card. Some card issuers require you to set up a PIN before you can use an ATM; if you have not done this, call the number on the back of your card to set one up.

How long does it take for a cash advance to show up on my statement?

The withdrawal is instant, but it may take one to three business days to appear on your online account or statement. Interest and fees start accruing immediately, even if the transaction has not posted yet.

Can I reverse a cash advance if I change my mind?

No. Once you withdraw the cash, the transaction is complete. You can pay it back immediately to minimize interest, but you cannot undo the cash advance fee. Some card issuers may waive the fee if you call within a few hours of the withdrawal and have never taken a cash advance before, but this is not may provide.