Yes, you can withdraw cash from a credit card, but it costs more than a regular purchase
A cash advance lets you borrow money against your credit card's available balance and get cash in your hand. You can do this at an ATM, at a bank teller window, or sometimes through a convenience store. The money appears in your account within hours or days, depending on the method and your bank.
The catch is that cash advances charge fees and interest rates that are higher than what you pay on regular credit card purchases. You start paying interest immediately — there is no grace period like there is for purchases. Most people should treat a cash advance as a last resort, not a convenient way to get spending money.
Key Takeaways
- Cash advances charge an upfront fee (usually 3 to 5 percent of the amount) plus a higher interest rate than purchases, with no grace period.
- You can withdraw cash at an ATM using your credit card PIN, at a bank teller, or through some retailers, but each method has different fees.
- Interest starts accruing the moment you withdraw the cash, so the longer you carry the balance, the more you pay.
- A personal loan, payday loan alternative, or even a balance transfer card may cost less if you need cash for more than a few days.
Where and how to withdraw cash from your credit card
The most common method is an ATM withdrawal. You insert your credit card, enter your PIN (which you may need to set up if you have not used it before), and withdraw the amount you need. The ATM charges a fee — usually $2 to $5 per transaction — on top of your card issuer's cash advance fee.
You can also visit a bank branch and ask a teller for a cash advance. This method often has the same or slightly lower fees than an ATM, and you can withdraw larger amounts. Some credit card issuers waive the ATM fee if you use their own bank's ATMs, so check your card's terms before you go.
A third option is a convenience check — a check issued by your credit card company that you can deposit or cash. These work like a cash advance but give you a few extra days before the money is drawn from your account. Fees are usually the same as an ATM advance.
What the fees and interest actually cost
A typical cash advance fee is 3 to 5 percent of the amount you withdraw. If you take out $500, you might pay $15 to $25 just to get the cash. Some cards charge a flat fee instead (like $10 per advance), which is better if you are withdrawing a large amount.
The interest rate on cash advances is almost always higher than your purchase APR. While a purchase might cost 15 to 20 percent APR, a cash advance could be 25 to 30 percent or more. This rate applies from day one — there is no 21-day grace period like there is for purchases. If you carry a $500 cash advance for 30 days at 28 percent APR, you will pay roughly $12 in interest alone, plus the upfront fee.
The total cost adds up fast. A $500 advance with a 4 percent fee ($20) plus 30 days of interest ($12) costs you $32 just to borrow $500 for a month. That is equivalent to an annual rate of about 77 percent when you add the fee and interest together.
When a cash advance makes sense
A cash advance is reasonable only in a true emergency — when you need cash immediately and have no other option. Examples include a car breakdown where the mechanic only takes cash, or a medical expense where a payment plan is not available.
If you can wait even a few days, other options are cheaper. A personal loan from a bank or credit union typically charges 6 to 36 percent APR with no upfront fee, and you get a fixed repayment schedule. A balance transfer to a 0 percent promotional card (if you may have access to) costs nothing for 6 to 21 months, though there is usually a 3 to 5 percent transfer fee upfront. Even a payday loan alternative through a credit union or nonprofit lender may cost less than a cash advance if you repay within two weeks.
How to minimize the damage if you do take a cash advance
If you must take a cash advance, keep the amount as small as possible and repay it as fast as you can. Every day you carry the balance, interest accrues at that high rate. Paying back $500 in one week instead of one month saves you roughly $10 in interest.
Check whether your card issuer charges a lower fee at their own ATMs or bank branches. Some cards waive the ATM fee for their own bank's machines, which cuts your cost by $2 to $5. Call the customer service number on the back of your card and ask what your cash advance fee is and what your cash advance APR is — these vary by card and by cardholder.
When you make a payment, make sure it goes toward the cash advance balance first, not your regular purchases. Credit card companies often apply payments to the lowest-interest balance first, which means your cash advance interest keeps growing. You may need to call and request that your payment be applied to the cash advance specifically.
Alternatives that cost less
Before you use a cash advance, consider these cheaper options. A personal loan from your bank or a credit union typically has a lower APR and no upfront fee. You get the money in your account in one to three business days, and you have a fixed repayment schedule so you know exactly when you will be done paying.
If you have good credit, a balance transfer card with a 0 percent introductory period lets you move debt from another card (or take a cash advance at a lower rate) and pay no interest for 6 to 21 months. You do pay a one-time transfer fee of 3 to 5 percent, but that is still cheaper than cash advance interest if you need the money for more than a few weeks.
A credit union payday loan alternative (sometimes called a PAL loan) caps the interest rate at 28 percent and charges no upfront fee. You repay it in installments over two to six months. These are available only if you are a credit union member, but they are worth joining a credit union to access if you need emergency cash regularly.
What happens if you cannot repay the cash advance
If you carry a cash advance balance for months, the interest compounds and the debt grows. Unlike a personal loan, there is no fixed end date — you can carry it indefinitely as long as you make the minimum payment. This is how people end up paying hundreds of dollars in interest on a small advance.
If you miss a payment, your interest rate may jump to a penalty rate (sometimes 29.99 percent or higher), and you will be charged a late fee. Your credit score will drop. If the balance stays unpaid for 180 days, the card issuer may charge off the account and sell the debt to a collection agency.
If you are struggling to repay, contact your card issuer and ask about a hardship program. Many issuers offer lower interest rates or payment plans for people in financial difficulty. You can also speak with a nonprofit credit counselor through the National Foundation for Credit Counseling (NFCC) — they offer free or low-cost guidance on managing debt.
Frequently Asked Questions
Can I use my credit card to withdraw cash at any ATM?
Yes, you can use your credit card at most ATMs that accept Visa or Mastercard, but you will pay an ATM fee plus your card issuer's cash advance fee. Using an ATM owned by your card issuer's bank often costs less or nothing. Check your card's website or call customer service to find fee-free ATMs near you.
What is the difference between a cash advance and a balance transfer?
A cash advance gives you physical cash but charges a high interest rate immediately. A balance transfer moves debt from one card to another, usually at a promotional 0 percent rate for several months. Balance transfers are cheaper if you need the money for longer than a few weeks, but they do not give you cash in hand.
Does a cash advance hurt my credit score?
A cash advance itself does not hurt your score, but carrying a high balance does. If your cash advance pushes your total credit card balance above 30 percent of your credit limit, your score will drop. Paying it off quickly keeps the damage minimal.
Can I get a cash advance if my credit card is maxed out?
No. A cash advance counts against your available credit, so you can only withdraw up to the amount of unused credit you have left. If your card is at its limit, you cannot take a cash advance.
How long does a cash advance stay on my credit report?
The cash advance itself does not appear on your credit report — only the balance does. Once you pay off the balance, it stops affecting your score. If you miss payments, the late payment stays on your report for seven years.