Yes, you can take cash out with a credit card, but it costs more than a regular purchase
You can withdraw cash directly from your credit card account at an ATM or by asking a bank teller for cash over the counter. This is called a cash advance. The money comes from your available credit, not from a separate bank account — you are borrowing against your credit limit, just as you do when you swipe the card at a store.
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 often is for purchases. If you carry a balance, the cash advance interest is calculated daily from the moment you withdraw it.
Key Takeaways
- Cash advances charge a fee at the time of withdrawal, typically 3 to 5 percent of the amount, plus a higher interest rate than purchases.
- Interest on cash advances begins immediately with no grace period, even if you pay your full statement balance by the due date.
- You can withdraw cash at any ATM that accepts your card's network, or ask a bank teller at any bank branch for an over-the-counter advance.
- Your credit card issuer sets a separate cash advance limit, which may be lower than your overall credit limit.
- Cash advances appear on your credit card statement and count toward your credit utilization, which affects your credit score.
Where you can take out cash with a credit card
The easiest method is an ATM. Any ATM that displays your card's logo (Visa, Mastercard, American Express, or Discover) will let you withdraw cash. You insert your card, enter your PIN, and select the cash advance option — it is usually labeled separately from a debit card withdrawal. The ATM will show you the fee before you confirm the transaction.
You can also walk into any bank branch, even one that is not your own bank, and ask the teller for a cash advance. Bring your credit card and your ID. The teller will process it the same way they would a debit card cash withdrawal, and you will pay the same fee. Some banks charge an additional fee for over-the-counter advances, so ask before you hand over your card.
What fees and interest rates you will pay
The upfront fee is non-negotiable and appears on your statement immediately. Most credit card issuers charge between 3 and 5 percent of the amount withdrawn. On a $300 cash advance, that is $9 to $15 just to get the money out. Some cards charge a flat fee instead (like $5 or $10) if the percentage would be smaller, so the issuer uses whichever costs you more.
The interest rate is where the real cost lives. Your regular purchase APR might be 18 percent, but your cash advance APR is often 22 to 28 percent or higher. Check your card's terms to see the exact rate — it is listed separately from your purchase rate. Interest accrues daily from the withdrawal date, so even a short-term cash advance costs more than you might expect.
If you carry a balance on your card, the issuer applies your monthly payment to the lowest-interest debt first — usually purchases — which means your cash advance balance sits there accruing interest while you pay down other charges. This can make a cash advance surprisingly expensive even if you pay it back within a month or two.
Your cash advance limit and how it affects your credit
Your credit card issuer sets a separate cash advance limit, which is often much lower than your overall credit limit. If your credit limit is $5,000, your cash advance limit might be only $1,000 or $1,500. You cannot exceed this limit, even if you have available credit remaining on the card. You can usually find your cash advance limit in your online account or by calling the customer service number on the back of your card.
A cash advance counts toward your credit utilization ratio — the percentage of your available credit that you are using. If you have a $5,000 limit and you take a $500 cash advance, your utilization jumps to 10 percent. High utilization can lower your credit score, even if you pay the balance off immediately. The advance also appears on your credit report as a cash advance, which some lenders view differently than regular purchases.
When a cash advance makes sense and when it does not
A cash advance is rarely the right choice for everyday cash needs. If you need $100 for groceries or gas, the fee and interest make it an expensive way to get cash. A debit card, ATM withdrawal from a bank account, or a trip to your bank is almost always cheaper.
A cash advance might make sense in a genuine emergency — you need cash immediately and have no other way to get it. Even then, pay it back as fast as you can. Every day you carry the balance, the interest compounds. If you take a $500 cash advance at 25 percent APR and pay it back over three months, you will pay roughly $31 in interest alone, on top of the $15 fee. Over six months, the interest nearly doubles.
If you find yourself regularly taking cash advances, that is a sign you are spending more than you earn. A cash advance is not a solution — it is a way to borrow at a high cost. Consider whether you need to adjust your budget or build an emergency fund instead.
Alternatives to a cash advance
If you need cash but want to avoid the fees and interest, a few options exist. Many banks let you withdraw cash from your checking or savings account for free at any ATM or branch. If you do not have a bank account, some employers and check-cashing services offer cash advances on your paycheck at a lower cost than a credit card advance.
A personal loan from a bank or credit union usually carries a lower interest rate than a cash advance, though you have to may have access to and wait for approval. A payday loan is faster but often more expensive than a credit card advance, so compare the total cost before you choose. If you are in a true financial crisis, a nonprofit credit counselor can help you explore options without pushing you toward debt.
How to avoid cash advance fees and interest
The simplest way is not to take a cash advance at all. Keep a small amount of cash at home for emergencies, or use your debit card when you need cash. If you do take an advance, pay it back immediately — do not let it sit on your statement. The sooner you pay it off, the less interest you owe.
Some credit cards marketed to people with poor credit offer cash advances with lower fees or rates, but these cards usually have other drawbacks like high annual fees or low credit limits. Read the full terms before you sign up. If you are considering a card primarily for cash advances, that is a sign you should look at other options first.
Frequently Asked Questions
Can I use a credit card cash advance to pay off another credit card?
Yes, but it is almost never a good idea. You pay the cash advance fee and high interest rate, then use that cash to pay another card. You end up paying more in fees and interest than if you had just transferred the balance directly. A balance transfer (if your card offers one) is cheaper.
What happens if I do not pay back a cash advance?
The balance stays on your credit card and accrues interest daily. If you do not pay at least the minimum, your account goes past due, your credit score drops, and the issuer may charge you a late fee. After 180 days of non-payment, the debt may be sold to a collection agency.
Is there a grace period for cash advances like there is for purchases?
No. Interest on a cash advance starts the day you withdraw it. Even if you pay your full statement balance by the due date, you still owe interest on the cash advance. This is one of the biggest differences between a cash advance and a regular purchase.
Can I take a cash advance from a credit card I just opened?
Usually yes, but some issuers restrict cash advances for new cardholders or charge a higher fee for the first 30 to 60 days. Check your card's terms or call customer service to confirm your cash advance limit and any restrictions.
Does taking a cash advance hurt my credit score?
It can, because it increases your credit utilization ratio. It may also appear differently on your credit report than a regular purchase. The impact is usually temporary and smaller than missing a payment, but it is still a factor lenders consider.