Yes, you can take a cash advance on 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 withdraw it as cash. You can do this at an ATM using your PIN, at a bank teller window, or through a cash advance check that comes with your card. The money hits your account within hours or a few business days.

The catch is that cash advances are expensive. You pay an upfront fee (usually 3 to 5 percent of the amount you withdraw), a higher interest rate than you pay on purchases (often 5 to 10 percentage points higher), and interest starts accruing immediately—there is no grace period like there is for regular purchases. If you borrow $500, you might pay $15 to $25 just to get the cash, then pay interest on the full $500 from day one.

Banks offer cash advances because they make money on the fees and the higher rate. You should treat a cash advance as a last resort, not a convenience.

Key Takeaways

  • Cash advances charge an upfront fee of 3 to 5 percent plus a higher interest rate than purchases, with interest starting immediately.
  • You can withdraw cash at an ATM, a bank branch, or through a cash advance check, depending on what your card issuer offers.
  • Your cash advance limit is often lower than your credit limit and is tracked separately on your statement.
  • Paying off a cash advance should be your priority because the interest rate is higher than almost any other form of borrowing.

Where and how to get the cash

The method depends on what your card issuer allows. Most cards let you withdraw cash at any ATM that accepts your card's network (Visa, Mastercard, American Express, or Discover). You use your PIN, just as you would with a debit card. The ATM will show you the fee upfront before you confirm the withdrawal.

You can also visit a bank branch—yours or any bank—and ask a teller for a cash advance. Bring your card and ID. The teller will process it on the spot. Some card issuers also mail you cash advance checks that you can deposit into your bank account or cash at a check-cashing service. These checks work like a loan against your credit card balance.

Check your card's terms or call the number on the back to find out which methods your issuer supports. Not all cards offer all three options.

What fees and interest rates you will pay

Every cash advance comes with at least two costs. The cash advance fee is charged upfront and ranges from a flat amount (like $5 to $10) to a percentage of the amount withdrawn (usually 3 to 5 percent). A $500 advance with a 4 percent fee costs $20 immediately.

The cash advance APR (annual percentage rate) is the interest rate applied to the balance. This rate is almost always higher than your purchase APR. If your purchase rate is 18 percent, your cash advance rate might be 25 or 28 percent. Unlike purchases, there is no grace period—interest starts accruing the day you withdraw the cash.

On a $500 cash advance at 25 percent APR, you will owe about $10 in interest after one month if you make no payments. The longer you carry the balance, the faster the interest compounds.

Your cash advance limit versus your credit limit

Your card issuer sets a separate cash advance limit, which is often much lower than your total credit limit. If your credit limit is $5,000, your cash advance limit might be only $1,000 or $1,500. This limit is tracked independently, so a $500 cash advance uses $500 of your cash advance limit but also counts toward your overall credit utilization.

You can find your cash advance limit in your card's online account, in the terms and conditions, or by calling the issuer. If you need a higher limit, you can request one, though the issuer may deny it or require a hard credit inquiry.

Once you hit your cash advance limit, you cannot withdraw more until you pay down the balance.

How cash advances affect your credit score

A cash advance itself does not show up as a separate item on your credit report. However, it increases your credit utilization—the percentage of your available credit you are using. If you have a $5,000 limit and take a $500 cash advance, your utilization jumps to 10 percent. High utilization can lower your credit score, especially if you are already carrying other balances.

The impact is temporary. Once you pay off the cash advance, your utilization drops and your score typically recovers within a month or two. The real damage comes from carrying the balance long-term, because the high interest rate makes it harder to pay down quickly.

Why a cash advance is usually a bad idea

The combination of upfront fees, high interest rates, and no grace period makes cash advances one of the most expensive ways to borrow money. A payday loan, personal loan, or even a balance transfer to a 0 percent promotional card is often cheaper.

The only time a cash advance makes sense is if you have a genuine emergency, no other options, and a solid plan to pay it back within a month or two. If you are considering a cash advance to cover regular expenses, that is a sign your budget needs attention or your income is not keeping up with your costs.

If you do take a cash advance, treat it as your top priority for repayment. Put any extra money toward it before you pay down other balances, because the interest rate is higher.

Alternatives to a cash advance

Before you go to an ATM, consider these options. A personal loan from a bank or credit union usually has a lower interest rate and no upfront fee. A balance transfer to a card offering 0 percent APR for 6 to 21 months lets you borrow at no interest, though you will pay a one-time transfer fee of 3 to 5 percent. A line of credit from your bank or a peer-to-peer lender often has a lower rate than a cash advance.

If you need cash for an emergency and have no credit options, a family loan, a payment plan with a creditor, or a local assistance program may be available. These are worth exploring before you pay cash advance rates.

Frequently Asked Questions

Can I use a credit card cash advance to pay off another debt?

Technically yes, but it is usually a bad financial move. You are borrowing at a high rate and paying an upfront fee just to move money around. A balance transfer or personal loan is almost always cheaper. The only exception is if the cash advance rate is lower than the debt you are paying off, which is rare.

What happens if I do not pay back a cash advance?

The balance stays on your credit card and accrues interest at your cash advance APR. If you miss payments, your card issuer will charge late fees, your interest rate may increase, and the unpaid balance will damage your credit score. After 180 days of non-payment, the card issuer may charge off the account and sell the debt to a collection agency.

Is there a limit to how much I can withdraw as a cash advance?

Yes. Your card issuer sets a cash advance limit, which is separate from your credit limit and is usually lower. You cannot withdraw more than this limit. Some issuers also cap daily ATM withdrawals at $500 or $1,000, so you may need multiple transactions to access your full limit.

Do cash advances show up on my credit report?

The cash advance itself does not appear as a separate line item, but it increases your credit utilization, which can lower your score. Once you pay it off, the utilization drops and your score typically recovers. Carrying the balance long-term will hurt your score more because of the high interest rate and the utilization it creates.

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

No. Your cash advance limit is part of your overall credit limit. If you have used your full limit, you cannot take a cash advance until you pay down the balance. Some issuers allow you to request a credit limit increase, but that requires a new application and a hard inquiry.