Yes, you can withdraw cash from 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 get it as actual cash. You can do this at an ATM, at a bank teller window, or sometimes through a convenience store or casino cage. The money appears in your hand or bank account within minutes or hours.

The catch is that cash advances are expensive. You pay an upfront fee (usually 3 to 5 percent of the amount you withdraw), plus a higher interest rate than you pay on regular purchases. Interest starts accruing immediately—there is no grace period like there often is for 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.

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 get a cash advance at an ATM, bank branch, or through a teller at any bank that accepts your card.
  • Your credit card company sets a separate cash advance limit, which may be lower than your total credit limit.
  • Most credit cards charge between 20 and 30 percent annual interest on cash advances, compared to 15 to 25 percent on purchases.

Where you can actually get the cash

An ATM is the fastest route. Insert your card, enter your PIN, select "withdrawal" or "cash advance," and choose your amount. The ATM dispenses cash immediately and your credit card company records the transaction within hours.

If you do not know your PIN or prefer not to use an ATM, you can visit any bank branch—not just your card issuer's bank. Walk in, tell the teller you want a cash advance on your credit card, and show your ID and card. The teller will process it at the counter. This takes a few minutes and the cash is yours on the spot.

Some convenience stores, casinos, and other businesses offer cash advances at the register or a service desk, though this is less common than it used to be. Ask before you assume a location offers it.

Your cash advance limit is separate from your credit limit

Your credit card company sets two different limits: your credit limit (how much you can charge for purchases) and your cash advance limit (how much you can borrow as cash). The cash advance limit is often much lower—sometimes 25 to 50 percent of your total credit limit.

If your credit limit is $5,000, your cash advance limit might be only $1,000 or $1,500. You can request a higher cash advance limit by calling your card issuer, but they may decline. Check your card's terms or call the number on the back of your card to find out what your current limit is.

The fees and interest rates that make cash advances expensive

Most credit card companies charge a cash advance fee of 3 to 5 percent of the amount you withdraw. On a $500 advance, that is $15 to $25 paid upfront. Some cards charge a flat fee instead (like $10 per advance), which is cheaper if you are withdrawing a large amount but more expensive for small amounts.

The interest rate on cash advances is higher than the rate on purchases. While a typical purchase might carry 15 to 25 percent annual interest, cash advances often run 20 to 30 percent. More importantly, interest starts accruing the moment you withdraw the cash—there is no grace period. If you carry a balance on purchases, the card company may apply your payments to the purchase balance first, leaving the cash advance to accrue interest longer.

If you withdraw $500 at a 25 percent annual interest rate and pay nothing for a month, you owe roughly $10 in interest alone, plus the original $15 to $25 fee. The total cost of borrowing that $500 for one month is $25 to $35.

When a cash advance makes sense and when it does not

A cash advance is useful only in specific situations. If you need cash urgently and have no other way to get it—no ATM access, no nearby bank, no time to visit a store—the convenience may be worth the cost. If you are traveling internationally and your debit card does not work, a cash advance might be your only option.

A cash advance does not make sense if you have other options. Withdrawing from your own bank account costs nothing. Asking a friend or family member for a loan costs nothing. Even a payday loan, which is expensive, is often cheaper than a credit card cash advance if you repay it within two weeks. If you are considering a cash advance to cover an ongoing expense or to pay off other debt, stop and look for a different solution—the interest and fees will make your situation worse.

How to minimize the damage if you do take a cash advance

If you must take a cash advance, repay it as fast as you can. Every day the balance sits, interest accrues at that higher rate. Pay more than the minimum payment if possible, because the minimum usually covers only the fee and a small portion of interest.

Some people use a cash advance to move money into their checking account, then pay the credit card bill immediately with that money. This works only if you have the money to repay it right away—otherwise you are just paying a fee and interest to borrow your own money.

Check whether your card offers a lower-interest balance transfer option instead. A balance transfer (moving debt from one card to another) sometimes carries a lower rate or an introductory 0 percent period. This is not the same as a cash advance, but if you are trying to borrow money, it may be cheaper.

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 pay a cash advance fee and high interest on the money you withdraw, then pay it toward another card. You have spent money to move money between cards. The only exception is if the new card has a 0 percent introductory rate on balance transfers and you can repay the balance during that period.

What happens if I try to withdraw more than my cash advance limit?

The ATM or teller will decline the transaction. You cannot exceed your cash advance limit, even if you have available credit remaining on your card. You would need to request a higher limit from your card issuer first, which may take a few days.

Do cash advances show up on my credit report?

The cash advance itself does not appear separately on your credit report, but the balance does. If you carry a cash advance balance, it counts toward your credit utilization (how much of your available credit you are using), which can lower your credit score. Paying it off quickly minimizes this impact.

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

Yes. A cash advance gives you physical cash and charges a higher interest rate immediately. A balance transfer moves debt from one card to another and often has a lower rate or an introductory 0 percent period. Balance transfers are usually cheaper if you are borrowing money.