Yes, you can withdraw cash from a credit card, but it comes with fees and a higher interest rate than purchases
A cash advance lets you borrow money against your credit card's available balance and withdraw it as cash from an ATM, bank teller, or through a convenience check. The money appears in your bank account or wallet the same day, but you start paying interest on it immediately — there is no grace period like there is for regular purchases. Most credit cards charge a fee (usually 3 to 5 percent of the amount withdrawn) plus a higher interest rate, often 5 to 10 percentage points above your regular purchase rate.
The mechanics are straightforward: you use your card at an ATM, call your card issuer to request a check, or visit a bank branch. But the cost is not. A $500 cash advance at a 5 percent fee ($25) plus 25 percent annual interest ($104 per year if you carry the balance for 12 months) becomes expensive quickly. Most people use cash advances only when they have no other option.
Key Takeaways
- Cash advances charge a fee (typically 3 to 5 percent) and a higher interest rate than purchases, with no grace period.
- Interest begins accruing the moment you withdraw the cash, not when your statement closes.
- You can withdraw cash at ATMs, bank branches, or through convenience checks, depending on your card issuer.
- Paying back a cash advance should be your priority because the interest cost grows faster than on regular purchases.
Where and how to take cash out
Most credit card issuers let you withdraw cash at any ATM that displays your card's network logo (Visa, Mastercard, American Express, or Discover). You insert your card, enter your PIN, and select the cash advance option — not a regular withdrawal. The ATM will show you the fee before you confirm.
You can also visit a bank branch and ask a teller for a cash advance. Bring your card and ID. Some card issuers issue convenience checks tied to your credit card account; you write a check to yourself or a payee, deposit it, and the amount is treated as a cash advance. Check your card's terms or call the issuer to see which methods are available to you.
Your credit limit applies to cash advances, but many issuers set a separate, lower cash advance limit — often 20 to 50 percent of your total credit limit. If you try to withdraw more than that limit, the ATM or teller will decline the transaction.
Fees and interest rates you will pay
The fee structure varies by card and issuer. Most charge a flat percentage of the amount withdrawn (typically 3 to 5 percent, with a minimum of $5 to $10), though some charge a flat dollar amount instead. A few cards marketed to people with limited credit history charge higher percentages — up to 10 percent or more.
The interest rate on cash advances is almost always higher than the rate on purchases. If your purchase APR is 18 percent, your cash advance APR might be 28 percent. This rate applies from the day you withdraw the cash, not from your statement closing date. If you carry the balance for a month, you owe interest for that full month even if you pay before your statement arrives.
Some cards offer a promotional 0 percent APR on purchases for the first 6 to 12 months, but that offer never applies to cash advances. Cash advances are charged interest from day one.
How a cash advance affects your credit score
A cash advance does not show up as a separate line item on your credit report, but it counts toward your credit utilization — the percentage of your available credit you are using. If you have a $5,000 limit and take a $1,000 cash advance, your utilization jumps to 20 percent. High utilization can lower your credit score, even if you pay the balance in full.
The impact is temporary. Once you pay off the cash advance, your utilization drops and your score typically recovers within a month or two. However, if you carry the balance, the ongoing high utilization will continue to weigh on your score.
When a cash advance makes sense (and when it does not)
A cash advance is rarely the best option, but there are narrow situations where it might be the only one. If you need cash for an emergency and have no other source — no savings, no family loan, no personal loan available — a cash advance is faster than waiting for a paycheck or selling something. The money is in your hand the same day.
It does not make sense if you have other options. A personal loan, even at a higher interest rate, often costs less than a cash advance because personal loans do not charge an upfront fee and the interest rate is fixed. A payday loan is usually worse — higher fees and rates — but a credit card cash advance is not automatically better. A balance transfer to a 0 percent card, if you may have access to, is cheaper if you can pay off the balance before the promotional period ends.
Do not use a cash advance to pay off other debt unless the math clearly works. If you are paying 28 percent on a cash advance to pay off a 15 percent credit card balance, you are making your situation worse.
How to pay back a cash advance quickly
Treat a cash advance as your highest-priority debt. The interest accrues daily, and the longer you carry it, the more you pay. If you took a $500 advance at 25 percent APR and pay it back in three months, you owe roughly $31 in interest. If you take six months, that rises to $63. At 12 months, you owe $125 — a 25 percent surcharge on top of the original amount.
When you make a payment to your credit card, the issuer applies it to your lowest-interest debt first — usually purchases — and your highest-interest debt last. This means your cash advance balance shrinks slowly even if you are paying the card down. To speed this up, contact your issuer and ask if you can direct a payment specifically to the cash advance portion of your balance. Some issuers allow this; others do not. If yours does not, your only option is to pay down the entire card balance.
Alternatives to a cash advance
Before you take a cash advance, explore these options. A personal loan from a bank, credit union, or online lender typically charges 6 to 36 percent APR with no upfront fee. The interest rate is fixed, and you know exactly how much you owe each month. A credit union loan (if you are a member) often has lower rates and more flexible terms than a bank. A payment plan with the person or business you owe money to might let you spread the cost over time with no interest.
If you have a savings account, withdraw from that first, even if it means missing out on a small amount of interest. The interest you save by avoiding a cash advance far outweighs the interest you earn on savings. A balance transfer to a 0 percent card works only if you can pay off the new balance before the promotional rate ends — usually 6 to 21 months — and if you may have access to for the card. A side gig or selling items takes longer but costs nothing.
Frequently Asked Questions
Can I use a credit card cash advance to pay another credit card bill?
Technically yes, but it is almost always a bad idea. You are borrowing at 25 to 28 percent to pay off debt at 15 to 20 percent, and you are paying a 3 to 5 percent fee on top. The math does not work unless the card you are paying off has a much higher rate and you can pay off the advance in a month or two.
What happens if I do not pay back a cash advance?
The balance stays on your card and interest keeps accruing. Your credit score drops as the balance grows and your utilization stays high. After 30 days, the issuer reports the late payment to the credit bureaus. After 180 days, the issuer may close your account and send the debt to a collection agency.
Do I have to use a PIN to get a cash advance?
At an ATM, yes — you need your PIN. At a bank branch, you can ask a teller for a cash advance with just your card and ID, no PIN required. Convenience checks do not require a PIN.
Is there a limit to how much I can withdraw?
Yes. Your card issuer sets a cash advance limit, which is often lower than your total credit limit. You can call the issuer to ask what your limit is, and some issuers let you request a higher limit, though they may charge an additional fee.
Can I get a cash advance from a debit card?
No. Debit cards draw from your own money in a bank account, so there is no borrowing and no cash advance option. You can withdraw money at an ATM for free (or a small ATM fee), but that is a regular withdrawal, not an advance.