Yes, you can get cash from a credit card, but it works differently than a debit card and costs more
When you withdraw cash using a credit card, you are borrowing money from your credit card issuer the same way you borrow when you make a purchase. The difference is that a cash advance starts charging interest immediately — there is no grace period like there is for regular purchases. You also pay an upfront fee, usually 3% to 5% of the amount you withdraw, on top of the interest.
Most people use cash advances only when they have no other option, because the cost adds up fast. If you need $200 in cash and your card charges a 4% fee plus 24% annual interest, you are paying $8 just to get the money out, plus interest that begins accruing the same day.
Key Takeaways
- Cash advances charge a fee (usually 3% to 5%) and interest that starts immediately, with no grace period.
- You can withdraw cash at an ATM using your credit card PIN, or ask a bank teller for a cash advance over the counter.
- The interest rate on cash advances is often higher than the rate on regular purchases, even on the same card.
- The money you withdraw counts toward your credit limit and appears as a separate line item on your statement.
- Paying back a cash advance should be a priority because the interest cost grows daily.
Where and how to get cash from your credit card
You have two main ways to withdraw cash. The first is to use an ATM: insert your credit card, enter your PIN (which you may need to set up if you have never used it), and withdraw the amount you need. The ATM will show you the fee before you confirm, so you can see the total cost before the transaction goes through.
The second way is to visit a bank branch in person and ask the teller for a cash advance. You hand over your card, they process the request, and you walk out with cash. This method works the same way as the ATM but may have different fees depending on the bank.
Some credit cards also let you write a check against your credit line, which functions as a cash advance when you cash it. Check your card's terms or call the number on the back to see if this option is available to you.
The fees and interest you will pay
Every cash advance comes with two costs. The cash advance fee is a percentage of the amount you withdraw — typically 3%, 4%, or 5% — charged the moment you take the money out. A $300 withdrawal with a 4% fee costs you $12 right away.
The second cost is interest, which starts accruing the day you withdraw the cash. Unlike a regular purchase, which may have a grace period of 20 to 25 days before interest kicks in, a cash advance charges interest from day one. The interest rate is often 2% to 5% higher than your regular purchase rate, even on the same card. If your card charges 18% on purchases, it might charge 23% on cash advances.
Interest is calculated daily on the outstanding balance. If you owe $300 on a cash advance at 24% annual interest, you are paying roughly $2 per day in interest alone. The longer you carry the balance, the more you pay.
How a cash advance affects your credit limit and statement
When you take a cash advance, the amount comes out of your available credit. If your card has a $2,000 limit and you withdraw $300 in cash, your available credit drops to $1,700. You can still use the card for purchases, but the total of all your borrowing — purchases plus cash advance — cannot exceed your limit.
On your statement, the cash advance appears as a separate line item from your regular purchases. You will see the amount withdrawn, the fee charged, and the interest accrued. Some cards apply payments to your lowest-interest debt first, which means if you have both a purchase balance and a cash advance balance, your payment may go toward the purchase while the cash advance interest keeps growing.
Why cash advances are expensive compared to other borrowing options
A cash advance is one of the most expensive ways to borrow money. The combination of an upfront fee plus a high interest rate means the cost grows quickly. For comparison: a personal loan from a bank might charge 8% to 15% with no upfront fee, and a payday loan (though also expensive) may have a lower total cost depending on how long you carry the balance.
Even a balance transfer to a card with a 0% introductory rate is often cheaper than a cash advance, because you avoid the daily interest during the promotional period. If you need cash, exploring other options first — a personal loan, a line of credit, or borrowing from family — usually costs less.
How to pay back a cash advance quickly
Because interest starts immediately and compounds daily, paying back a cash advance should be your priority. Make a payment as soon as you can, even if it is before your statement due date. Any payment you make goes toward reducing the balance, which stops the interest from growing.
If your card has multiple balances — a purchase balance and a cash advance balance — check your statement to see how payments are applied. Some cards apply payments to the lowest-interest balance first, which means your cash advance interest keeps accruing while you pay down a purchase. Call your card issuer and ask them to apply your payment directly to the cash advance if that is the case.
Alternatives to a cash advance
Before you use a cash advance, consider whether you actually need physical cash. Many places that once required cash now accept cards or digital payments, so you may not need to withdraw anything at all.
If you do need cash, a personal loan from a bank or credit union is usually cheaper. Interest rates are lower, there is no upfront fee, and you know exactly how much you will pay over time. A line of credit works similarly and gives you access to cash whenever you need it without paying a fee each time you withdraw.
If you are in a true emergency and have no other option, a cash advance is available, but treat it as a short-term solution. The goal should be to pay it back as fast as possible so the interest does not compound.
Frequently Asked Questions
What is the difference between a cash advance and a regular credit card purchase?
A regular purchase has a grace period (usually 20 to 25 days) before interest starts. A cash advance charges interest from day one. Cash advances also charge an upfront fee and usually have a higher interest rate than purchases on the same card.
Can I use a credit card to withdraw cash at any ATM?
Most credit cards work at ATMs that display the Visa, Mastercard, or American Express logo. Some ATMs charge an additional fee on top of your card's cash advance fee. Check the ATM screen before you confirm the withdrawal to see the total cost.
Does a cash advance hurt my credit score?
A cash advance itself does not hurt your score, but carrying a high balance does. If the cash advance pushes your total credit card balance close to your limit, your credit utilization ratio increases, which can lower your score. Paying it back quickly keeps this from happening.
What happens if I cannot pay back the cash advance?
If you miss a payment, the interest keeps accruing and you may be charged a late fee. The unpaid balance stays on your credit report and can damage your credit score. If you are struggling to pay, contact your card issuer to discuss options — some offer hardship programs or payment plans.
Is there a limit to how much cash I can withdraw?
Most cards set a cash advance limit that is lower than your total credit limit. This limit varies by card and issuer. You can find your limit in your card agreement or by calling the number on the back of your card.