Yes, you can get cash back from a credit card, but it costs money and works differently than a debit card
When you use a debit card at a store, you can ask for cash back at no charge. A credit card does not work that way. You can withdraw cash using your credit card, but the transaction is treated as a loan, not a purchase. You pay interest when ready, plus a fee upfront. The cash advance appears on your credit card statement as a separate line item, and interest accrues from the day you withdraw it — there is no grace period like there is for regular purchases.
The most common way to get cash from a credit card is at an ATM using your card's PIN. You can also visit a bank branch and ask the teller for a cash advance. Some credit card issuers let you transfer money to your bank account online, which then appears as available cash. Each method charges a fee and interest rate that may differ from your regular purchase APR.
Key Takeaways
- Cash advances from a credit card charge an upfront fee (usually 3 to 5 percent of the amount) plus a higher interest rate than purchases, starting when ready with no grace period.
- You can withdraw cash at an ATM using your credit card PIN, at a bank teller, or through a balance transfer to your checking account.
- The interest rate for cash advances is often 5 to 10 percentage points higher than your purchase APR and begins accruing the same day you withdraw the money.
- If you carry a balance on your card, payments go toward purchases first, not the cash advance, so the advance debt can sit and accumulate interest for months.
How much a cash advance actually costs
A cash advance fee is charged upfront, usually between 3 and 5 percent of the amount you withdraw. On a $500 cash advance, that is $15 to $25 in fees before you even leave the ATM. Different card issuers set different percentages, and some cards have a minimum fee (for example, $3 or $5) even if the percentage would be lower.
The interest rate on a cash advance is separate from your purchase APR and is typically much higher. If your card charges 18 percent APR on purchases, the cash advance APR might be 25 or 28 percent. Interest starts accruing the day you withdraw the cash, not at the end of your billing cycle. This means a $500 cash advance at 25 percent APR costs you roughly $3.42 per day in interest alone, on top of the upfront fee.
To find your card's cash advance fee and APR, check your credit card agreement or log into your online account. The terms are listed under "cash advance" or "cash-like transactions." Some cards do not allow cash advances at all, particularly secured cards or cards designed for people rebuilding credit.
Where you can withdraw cash using a credit card
An ATM is the fastest option. Insert your credit card and enter your PIN — the same PIN you use for debit transactions. The ATM will show you the cash advance fee before you confirm the withdrawal. Most ATMs have a daily limit on how much you can withdraw, often $500 to $1,000, set by your card issuer. Some ATMs also charge their own fee on top of your card issuer's fee, usually $2 to $3.
A bank branch teller can process a cash advance without an ATM. Walk in, give them your credit card, and ask for a cash advance. The teller will verify your identity and process the transaction. This method works even if you do not have a PIN set up, though you will still pay the same fees and interest. Bank branches are useful if you need more than your ATM daily limit or if you prefer not to use an ATM.
Some card issuers let you transfer money from your credit card to your bank account through their website or mobile app. The money appears in your checking account within one to three business days. This method still charges a cash advance fee and interest rate, but it avoids the ATM experience. Check your card issuer's website to see if this option is available on your card.
Why cash advances are expensive compared to purchases
The main reason cash advances cost more is that credit card companies treat them as riskier than purchases. When you buy something with a credit card, the merchant guarantees the transaction and the card issuer can dispute it if something goes wrong. A cash advance is just money in your hand — there is no merchant protection, so the card issuer charges more to cover the risk.
The lack of a grace period is another cost factor. On a regular purchase, you have roughly 21 days before interest starts accruing. On a cash advance, interest starts the same day. If you withdraw $500 on the 1st of the month and pay it back on the 30th, you pay 30 days of interest at the higher cash advance rate, even though you only had the money for a month.
Payment priority also works against you. If you carry a balance on your credit card, your payments are applied to purchases first, then to cash advances. This means a cash advance can sit on your card for months while you pay down purchases, accumulating interest the entire time. A $500 cash advance at 25 percent APR that sits for three months costs roughly $31 in interest alone, plus the original upfront fee.
When a cash advance might make sense
A cash advance is rarely the best option, but there are narrow situations where it is less bad than the alternative. If you have an emergency that requires cash and you have no other way to get it, a cash advance is faster than a personal loan or payday loan, both of which often charge even higher rates or have stricter terms.
If you know you can pay back the cash advance within a few days, the interest cost is smaller. A $500 cash advance at 25 percent APR costs roughly $0.34 per day in interest. If you pay it back in three days, you pay about $1 in interest plus the upfront fee. That is still expensive, but it is less damage than carrying the balance for weeks.
Some people use cash advances to pay off a higher-interest debt, like a payday loan or credit card with a much higher APR. This only makes sense if your cash advance APR is genuinely lower than what you are paying now, and if you have a concrete plan to pay off the cash advance quickly. Run the math before you do this — the upfront fee plus interest can add up faster than you expect.
Alternatives to a credit card cash advance
A personal loan from a bank or credit union usually has a lower interest rate than a cash advance, typically 6 to 36 percent depending on your credit. The loan is disbursed to your bank account, and you repay it in fixed monthly installments. There is no upfront fee like a cash advance, and interest does not start accruing until you receive the money. If you have time to explore, a personal loan is usually cheaper than a cash advance.
A balance transfer to a new credit card can be useful if you are trying to move debt from a high-interest card to a lower one. Some cards offer a 0 percent introductory APR on balance transfers for 6 to 21 months, though there is usually a 3 to 5 percent balance transfer fee. This is not the same as a cash advance — you are moving debt between cards, not withdrawing cash. But if you need cash and have time, opening a new card with a 0 percent offer and using it for purchases instead of a cash advance can save money.
Borrowing from friends or family, if that is an option, costs nothing and has no interest. A short-term loan from an employer or credit union member loan program may also be available at lower rates than a cash advance. Before you use a credit card for cash, explore these alternatives first.
How a cash advance affects your credit score
A cash advance does not directly hurt your credit score the way a missed payment does, but it can indirectly lower your score by increasing your credit utilization ratio. Your utilization ratio is the amount of credit you are using divided by your total credit limit. If you have a $5,000 credit limit and you withdraw a $500 cash advance, your utilization jumps to 10 percent. Credit scoring models penalize high utilization, so your score may drop a few points.
The bigger risk is that a cash advance makes it harder to pay down your balance. Because interest accrues when ready and payments go toward purchases first, the cash advance can sit on your card for months. The longer you carry a balance, the more your utilization stays high, and the longer your score stays depressed. If you miss a payment on the cash advance, your score will drop significantly.
Frequently Asked Questions
Can I get a cash advance from any credit card?
Most credit cards allow cash advances, but not all. Secured cards, student cards, and some cards designed for people rebuilding credit do not offer cash advances. Check your card agreement or call your card issuer to confirm. Even if your card allows cash advances, there may be a limit on how much you can withdraw — often 20 to 50 percent of your credit limit.
What happens if I do not pay back a cash advance?
If you do not pay back a cash advance, it is treated like any other credit card debt. Interest continues to accrue at the cash advance rate, and if you miss a payment, your card issuer can report it to credit bureaus, damaging your credit score. After 180 days of nonpayment, the debt may be charged off and sold to a collection agency.
Is there a difference between a cash advance and a balance transfer?
Yes. A cash advance is withdrawing cash from your credit card and paying interest when ready. A balance transfer is moving debt from one credit card to another, usually to take advantage of a lower introductory rate. Balance transfers have a fee but no interest during the promotional period. Cash advances have both an upfront fee and interest from day one.
Can I use a credit card to withdraw cash at a store like I do with a debit card?
No. Most stores do not offer cash back on credit card transactions. You can only get cash from a credit card at an ATM, a bank teller, or through a transfer to your bank account. All three methods charge a cash advance fee and interest.
How long does a cash advance stay on my credit card statement?
A cash advance appears as a separate line item on your statement and stays there until you pay it off. If you make only a minimum payment, the cash advance balance will remain on your card for months or years, accruing interest the entire time. The only way to remove it is to pay the full amount owed.