Yes, you can get cash from a credit card, but it costs more than a regular purchase

A cash advance is when you borrow money directly from your credit card's available credit, just like you would from an ATM or bank teller. The money goes into your bank account or your pocket, not toward a purchase. You can do this at an ATM, at a bank branch, or sometimes through a convenience check your card issuer sends you.

The catch is that cash advances are expensive. You pay an upfront fee (usually 3 to 5 percent of the amount you withdraw), and the interest rate on that cash is almost always higher than the rate on regular purchases. Interest starts accruing immediately—there is no grace period like there is for credit card purchases. This means a $500 cash advance can cost you $15 to $25 just to take it out, plus interest from day one.

Key Takeaways

  • You can withdraw cash at an ATM, bank branch, or through a convenience check, using your credit card's available credit.
  • Cash advances charge an upfront fee (typically 3 to 5 percent) plus a higher interest rate than regular purchases, with no grace period.
  • Interest begins accruing immediately on the day you take the advance, not when your statement closes.
  • Your credit card statement will show the cash advance separately from regular purchases, and you must pay it back like any other credit card balance.

Where you can actually get the cash

The most common way is at an ATM. You insert your credit card, enter your PIN (which you may need to set up first if you have never done a cash advance), and withdraw money up to your available credit limit. Most ATMs that accept Visa or Mastercard will work, though your card issuer may charge you a fee on top of what the ATM operator charges.

You can also go to a bank branch—yours or any bank that accepts your card—and ask the teller for a cash advance. They will verify your identity and process it on the spot. This route sometimes avoids the ATM operator fee, though your card issuer's fee still applies.

Some card issuers send convenience checks with your account. You write one like a regular check, deposit it in your bank account, and the amount counts as a cash advance. These checks have the same fees and interest rates as ATM withdrawals.

What the fees and interest actually cost

The cash advance fee is charged the moment you withdraw the money. It is a percentage of the amount—usually 3, 4, or 5 percent depending on your card and issuer. A $500 withdrawal with a 4 percent fee costs you $20 upfront. This fee is added to your credit card balance immediately.

The interest rate on cash advances is separate from your purchase APR and is typically much higher. While a card might charge 18 percent APR on purchases, the cash advance APR could be 24 or 28 percent. Interest accrues daily from the moment you take the cash, with no grace period. On a $500 advance at 25 percent APR, you owe roughly $3.42 in interest per day.

If you carry the balance for a month, you could owe $20 (fee) plus $100+ (interest) on top of the original $500. This is why cash advances are a last resort, not a regular way to get spending money.

How it shows up on your statement and how to pay it back

Your credit card statement breaks down cash advances separately from regular purchases. You will see a line item labeled "Cash Advance" with the amount, the fee charged, and the interest accrued so far. The balance is part of your total credit card debt and counts toward your credit utilization ratio.

You pay back a cash advance the same way you pay any credit card balance: by making a payment to your card issuer. However, most card issuers apply your payment to the lowest-interest debt first—usually regular purchases—before paying down the cash advance. This means if you have both purchases and a cash advance on your card, your payment will chip away at the purchase balance while the cash advance keeps accruing interest. To pay off the cash advance faster, you may need to contact your issuer and request that your payment be applied to it specifically.

Why your credit limit for cash advances might be lower than your purchase limit

Many card issuers set a separate, lower limit for cash advances. Your purchase limit might be $5,000, but your cash advance limit could be $1,500. This is a built-in safeguard for the issuer because cash advances are riskier—there is no merchant involved to dispute the transaction, and the money is in your hands immediately.

You can contact your card issuer to ask what your cash advance limit is. Some issuers allow you to request an increase, though this is not may provide. The limit is independent of your purchase limit and does not change automatically when your purchase limit changes.

When a cash advance makes sense (and when it does not)

A cash advance is rarely the right choice for everyday spending. If you need cash for a purchase, using your debit card or withdrawing from your bank account costs nothing. If you need to borrow money, a personal loan or line of credit usually has a lower interest rate than a credit card cash advance.

Cash advances can make sense in genuine emergencies when you have no other option—a car repair you must pay in cash, a medical bill, or an urgent travel expense. Even then, the goal should be to pay it back as quickly as possible. If you find yourself regularly taking cash advances, that is a sign your budget needs attention or you need a different type of credit.

How a cash advance affects your credit score

Taking a cash advance itself does not directly hurt your credit score, but it can indirectly. The advance increases your credit card balance, which raises your credit utilization ratio (the percentage of your available credit you are using). A higher utilization ratio can lower your score. If you carry the balance for months, the interest charges make it harder to pay down, keeping your utilization high for longer.

A single cash advance that you pay back within a month or two will have minimal impact. Repeated cash advances or a large advance you carry for months can noticeably affect your score.

Frequently Asked Questions

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

Technically yes, but it is a costly trap. You would pay the cash advance fee and interest rate on money borrowed just to move debt around. Your total debt does not decrease, but your costs go up. This is a sign you need a debt repayment plan, not another cash advance.

What if I do not have a PIN for my credit card?

You will need to set one up before you can use an ATM. Call your card issuer's customer service number (on the back of your card) and ask them to set a PIN for you. Some issuers let you set it online through your account. Without a PIN, you can still get a cash advance at a bank branch with your ID.

Is there a difference between a cash advance and a balance transfer?

Yes. A cash advance gives you cash and charges a high fee and interest rate. A balance transfer moves debt from one card to another and usually has a lower fee but a promotional period with 0 percent interest. Balance transfers are for moving existing debt; cash advances are for getting cash.

What happens if I only pay the minimum on a cash advance?

The balance will grow because interest accrues faster than your minimum payment covers it. You could end up paying hundreds in interest on a small advance. Always try to pay more than the minimum, or pay the full balance as soon as you can.