Yes, you can pull money off a credit card, but it costs more than a regular purchase
You can withdraw cash directly from your credit card at an ATM or by asking a bank teller for a cash advance. The money goes into your pocket or account the same day. But unlike a purchase, a cash advance charges you interest immediately — there is no grace period where you pay nothing if you settle the bill quickly. You also pay an upfront fee, usually 3 to 5 percent of the amount you withdraw.
A cash advance is different from using your debit card at an ATM, which costs little or nothing. It is also different from a balance transfer, where you move debt from one card to another. A cash advance is borrowing money against your credit limit, and the card company treats it as a loan from day one.
Key Takeaways
- You can get a cash advance at any ATM that accepts your card, or by visiting a bank branch and asking a teller.
- Cash advances charge an upfront fee (typically 3 to 5 percent) plus interest that starts accruing immediately, with no grace period.
- The interest rate on a cash advance is usually higher than the rate on regular purchases, sometimes by several percentage points.
- The amount you can withdraw is limited by your available credit and your card's cash advance limit, which may be lower than your total credit limit.
- Cash advances count against your credit utilization, which can lower your credit score if you are already carrying a balance.
Where and how to get the cash
The easiest method is to use an ATM. Insert your credit card, enter your PIN, and select "cash advance" or "withdrawal." The ATM will show you how much you can take out based on your available credit and your card's cash advance limit. Some ATMs let you withdraw up to your full limit in one transaction; others have daily caps.
If you do not have a PIN or prefer not to use an ATM, visit a bank branch — yours or any other bank — and ask the teller for a cash advance. Bring your credit card and a photo ID. The teller will process it the same way and hand you the cash. This method works even if you have never set up a PIN.
Some credit card companies also let you request a cash advance by phone or through their mobile app, and the money goes directly into your bank account instead of your hand. This takes one to three business days instead of being instant.
The fees and interest you will pay
Every cash advance charges a cash advance fee, which is a percentage of the amount you withdraw. Most cards charge between 3 and 5 percent, though some charge a flat fee (like $10) if that is higher. A $500 cash advance at 4 percent costs $20 upfront.
On top of the fee, you pay interest starting the day you withdraw the money. There is no grace period. If your regular purchase APR is 18 percent, your cash advance APR might be 22 or 25 percent — the card company sets these separately, and the cash advance rate is almost always higher. That interest accrues daily until you pay the balance off.
The combination of fee plus high interest makes a cash advance expensive quickly. A $500 advance at 4 percent fee plus 24 percent APR costs you $20 upfront and roughly $10 in interest per month if you do not pay it back.
Your cash advance limit is not the same as your credit limit
Your credit card company sets a separate cash advance limit, which is usually lower than your total credit limit. If your card has a $5,000 credit limit, your cash advance limit might be $1,500 or $2,000. You cannot withdraw more than this amount, even if you have unused credit available for purchases.
You can find your cash advance limit in your card's terms and conditions, on your statement, or by calling the card company's customer service number. Some cards let you request a higher limit, but the company does not have to grant it.
The amount you withdraw counts against both your cash advance limit and your overall credit limit. If you take out $500, you have $500 less available for purchases and $500 less available for future cash advances.
How a cash advance affects your credit score
A cash advance raises your credit utilization — the percentage of your available credit that you are using. If you have a $5,000 limit and withdraw $500, your utilization jumps to 10 percent. Credit scoring models penalize high utilization, so this can lower your score by a few points.
The impact is temporary. Once you pay off the cash advance, your utilization drops and your score recovers. But while the balance sits on your card, it works against you. This is one reason cash advances are worth avoiding unless you truly need the cash and have no other option.
A cash advance also appears on your credit report as a separate transaction type, which some lenders view differently than a regular purchase. It signals that you needed immediate cash, which can be a minor red flag if you are applying for a loan or mortgage soon.
When a cash advance makes sense (and when it does not)
A cash advance is worth considering only in specific situations. If you need cash for an emergency and have no other way to get it — no savings, no access to a personal loan, no friends or family to borrow from — a cash advance is faster than most alternatives. You get the money in minutes.
A cash advance does not make sense if you are trying to pay off debt, if you are already carrying a balance on the card, or if you can wait a few days for a bank transfer or paycheck. The fees and interest are too high to justify using it for convenience.
If you are considering a cash advance to cover a shortfall, pause and ask whether you can reduce spending, pick up extra work, or borrow from someone else instead. Those options cost less.
How to pay back a cash advance
A cash advance is part of your credit card balance. When you make a payment, the card company applies it to your balance in a specific order set by law: first to the highest-interest debt (usually the cash advance), then to lower-interest debt (usually purchases). This means your payment tackles the expensive part first, which is good.
Pay as much as you can as soon as you can. Every day the balance sits on your card, interest accrues. If you can pay the full amount back within a week or two, the total cost stays manageable. If it sits for months, the interest compounds and you end up paying far more than you borrowed.
Some people use a cash advance to move money into a savings account temporarily, planning to pay it back from their next paycheck. This works only if you actually receive that paycheck and pay it back immediately. If your income is uncertain, this is a risky strategy.
Alternatives to a cash advance
Before you use a cash advance, consider these options. A personal loan from a bank or credit union usually has a lower interest rate and no upfront fee. The approval takes a few days, but if you can wait, it costs less. A payday loan is faster but often more expensive than a cash advance, so it is not better — just different.
A balance transfer to a card with a 0 percent introductory rate can help if you are trying to move existing debt, but it does not give you cash in hand. A line of credit from your bank is another option if you have one set up already.
If you have a 401(k) or similar retirement account, some plans let you borrow against your own money. This is not ideal — you miss out on investment growth and risk penalties if you cannot repay — but it is cheaper than a cash advance and the interest goes back to you.
Frequently Asked Questions
What is the difference between a cash advance and a balance transfer?
A cash advance gives you physical cash or a deposit to your bank account. A balance transfer moves debt from one card to another. Both charge fees, but a balance transfer often has a lower fee and may offer a 0 percent introductory rate on interest, while a cash advance charges interest from day one.
Can I use a cash advance to pay off another credit card?
Technically yes, but it is expensive. You pay the cash advance fee and high interest rate, then use that cash to pay another card. You end up paying more in fees and interest than if you had just let both balances sit. A balance transfer is a better option if you want to consolidate debt.
Do I need a PIN to get a cash advance?
No. You can visit a bank branch and ask a teller for a cash advance using just your card and ID. You only need a PIN if you want to use an ATM. If you do not have a PIN, you can call your card company to set one up, or skip the ATM entirely.
How long does it take to get a cash advance?
An ATM or bank teller gives you cash instantly. If you request a cash advance through your card's app or by phone and ask for it to be deposited into your bank account, it takes one to three business days. Weekend requests may take longer.
Will a cash advance hurt my credit score?
Yes, temporarily. It raises your credit utilization, which can lower your score by a few points. Once you pay it off, your score recovers. The impact is small compared to missing a payment, but it is real while the balance is on your card.