Yes, you can get a cash advance on your credit card, but it costs more than a regular purchase
A cash advance is when you withdraw cash directly from your credit card's line of credit at an ATM, bank, or through a cash-like transfer. Unlike a purchase, the money goes into your pocket when ready as actual cash. Your card issuer treats it as a loan against your credit limit, and you pay interest on it right away — there is no grace period like there is for purchases.
Most credit cards allow cash advances, but the fees and interest rates are steeper than for regular spending. You will pay a cash advance fee (usually 3 to 5 percent of the amount withdrawn, with a minimum fee of $5 to $10), plus a higher interest rate that starts accruing the moment you withdraw the money. If you need cash urgently, a cash advance is possible, but it should be a last resort because the cost adds up fast.
Key Takeaways
- Cash advances charge a fee (typically 3 to 5 percent) plus a higher interest rate than purchases, with no grace period.
- You can withdraw cash at ATMs, bank teller windows, or through balance transfer checks, depending on your card and issuer.
- The interest rate for cash advances is usually 2 to 5 percentage points higher than your purchase APR and varies by card and issuer.
- Cash advances count against your credit limit, so withdrawing $500 reduces your available credit by $500.
- Paying off a cash advance should be your priority because the interest compounds daily and costs more than any other type of credit card debt.
How to withdraw a cash advance at an ATM
The simplest way to get a cash advance is at an ATM. Insert your credit card (not your debit card), enter your PIN, select "cash advance" or "withdrawal," and choose the amount. The ATM will dispense cash and charge your credit card account when ready. Most card issuers set a daily limit on how much you can withdraw — often $500 to $1,000 per day, though this varies by card and issuer.
Not all ATMs accept credit cards for cash advances. Bank-owned ATMs and ATMs in the card issuer's network are most likely to work. If you use an out-of-network ATM, you may pay an additional ATM operator fee on top of the cash advance fee your card issuer charges. Check your card's terms or call the issuer's customer service number (usually on the back of your card) to find ATMs in their network.
Getting a cash advance at a bank or credit union
You can also walk into a bank branch or credit union and ask a teller for a cash advance on your credit card. Bring your card and a photo ID. The teller will process the transaction, and you will walk out with cash. This method works even if you do not have a checking account at that bank — the transaction is between you and your credit card issuer, not the bank itself.
Bank tellers can sometimes withdraw larger amounts than ATMs allow, and you avoid the risk of an out-of-network ATM fee. However, you will still pay the cash advance fee and interest rate set by your card issuer. Call ahead if you are planning to withdraw a large amount, because some branches may need to order cash or verify the transaction with your issuer first.
Understanding cash advance fees and interest rates
Every cash advance comes with two costs: an upfront fee and ongoing interest. The cash advance fee is charged once, at the time of withdrawal. Most cards charge 3 to 5 percent of the amount withdrawn, with a minimum fee of $5 to $10. So a $200 cash advance might cost $10 to $15 in fees alone. This fee is added to your credit card balance when ready.
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 — often 2 to 5 percentage points higher. If your purchase APR is 18 percent, your cash advance APR might be 23 or 25 percent. Interest accrues daily from the moment you withdraw the cash, with no grace period. This means you are paying interest even if you pay the full balance when your statement arrives.
To estimate the true cost, use your card issuer's online calculator or do the math yourself: multiply the amount withdrawn by the fee percentage, then add the daily interest. For a $500 advance at 4 percent fee plus 25 percent APR, you would pay $20 upfront plus roughly $3.42 per day in interest. Over 30 days, that is $122.60 in total cost.
How a cash advance affects your credit limit and credit score
A cash advance reduces your available credit dollar-for-dollar. If your credit limit is $2,000 and you withdraw $500, your available credit drops to $1,500. This counts toward your credit utilization ratio — the percentage of your total credit limit that you are using. A higher utilization ratio can lower your credit score, especially if it pushes you above 30 percent of your limit.
The cash advance itself does not appear separately on your credit report, but the balance does. If you carry the balance for several months, the issuer may report it as a regular credit card balance. However, if you pay it off quickly, the impact on your score is minimal. The bigger risk is the interest cost — if you cannot pay it off within a month or two, the debt grows faster than with regular purchases.
Alternatives to a credit card cash advance
Before you take a cash advance, consider whether another option might cost less. A personal loan from a bank or credit union often has a lower interest rate than a cash advance, even if it takes a few days to fund. A payday loan is faster but usually more expensive. A balance transfer to a card with a 0 percent introductory APR can move existing debt without new interest, though it does not give you cash.
If you need cash for an emergency, ask whether you can borrow from family or friends, negotiate a payment plan with the person or business you owe money to, or look into whether you may have access to for a hardship program through your bank or a nonprofit credit counselor. These options carry no interest and no fees. A cash advance should be your last resort, not your first choice.
How to pay off a cash advance quickly
Once you have taken a cash advance, paying it off should be your top priority. Credit card issuers typically explore your payment to the lowest-interest balance first — so if you have both purchases and a cash advance, your payment goes toward the purchase balance, and the cash advance keeps accruing interest. To pay off the cash advance faster, contact your issuer and ask them to explore your next payment directly to the cash advance balance, or pay more than the minimum.
Set a target date to pay off the full amount within 30 days if possible. Every day you carry the balance, interest compounds. A $500 cash advance at 25 percent APR costs about $3.42 per day in interest alone — so waiting 60 days instead of 30 costs you an extra $100+. If you cannot pay it off within a month, reconsider whether you should have taken the advance in the first place, and focus on paying it down as aggressively as your budget allows.
Frequently Asked Questions
What is the difference between a cash advance and a balance transfer?
A cash advance gives you physical cash and charges a fee plus a high interest rate when ready. A balance transfer moves debt from one card to another (or gives you a check to deposit), usually with a lower fee and sometimes a 0 percent introductory APR. Balance transfers are for moving existing debt; cash advances are for getting cash in hand.
Can I get a cash advance if my credit card is maxed out?
No. A cash advance counts against your credit limit, so you can only withdraw up to your available credit. If your limit is $2,000 and your balance is $2,000, you have no available credit and cannot take an advance. You would need to pay down your balance first.
Do I have to use my PIN to get a cash advance?
At an ATM, yes — you need your PIN. At a bank teller window, you typically do not need a PIN; a photo ID and your card are usually enough. Check with your card issuer about their specific requirements.
Will a cash advance show up on my credit report?
The cash advance itself does not show separately, but the balance does. If you pay it off within a billing cycle, it may not appear on your credit report at all. If you carry it for multiple months, it reports as a regular credit card balance and can affect your credit utilization and score.
Can I take a cash advance on a secured credit card?
Yes, most secured cards allow cash advances, though the fees and interest rates are the same as on regular cards. Some secured card issuers set lower cash advance limits than traditional cards, so check your card's terms or call customer service to confirm.