Yes, you can get cash from a credit card, but it costs more than a purchase and starts charging interest when ready
A cash advance is money you withdraw from your credit card account using an ATM, bank teller, or convenience check. Unlike a regular purchase, the card issuer treats it as a loan from the moment you take it out. You pay an upfront fee (usually 3 to 5 percent of the amount), a higher interest rate than your regular APR, and interest begins accruing right away — there is no grace period like there is for purchases.
The mechanics are straightforward: you go to an ATM or bank, insert your credit card, enter a PIN you set up with your card issuer, and withdraw cash up to your cash advance limit. That limit is often lower than your credit limit. The money hits your account when ready, but the cost starts the same day.
Key Takeaways
- Cash advances charge an upfront fee of 3 to 5 percent plus a higher interest rate than regular purchases, with interest starting when ready.
- Your cash advance limit is usually lower than your credit limit and varies by card issuer and your account history.
- You can withdraw cash at ATMs, bank tellers, or through convenience checks, but each method has different fees and limits.
- If you need cash urgently, a personal loan or a balance transfer to a 0 percent card may cost less than a cash advance.
What a cash advance actually costs you
The fee structure is the first hit. Most card issuers charge between 3 and 5 percent of the amount you withdraw. On a $500 cash advance, that is $15 to $25 just to get the money. Some cards charge a flat fee instead (like $10), which is better for larger amounts but worse for small ones.
The interest rate is the second hit and the bigger one over time. Cash advances typically carry an APR that is 5 to 10 percentage points higher than your regular purchase APR. If your card charges 18 percent on purchases, the cash advance rate might be 24 percent. Unlike purchases, there is no grace period — interest starts accruing the day you withdraw the cash.
The math on a $500 advance at 24 percent APR: you pay $15 to $25 upfront, then roughly $10 per month in interest if you pay $50 monthly. If you take three months to pay it back, you will have paid $35 to $45 in interest alone, plus the original fee. A purchase on the same card would cost you nothing in interest if you paid it off within the grace period.
Where and how to get a cash advance
You have three main routes: ATMs, bank tellers, and convenience checks. ATMs are the fastest and most common. You insert your card, enter your PIN, and withdraw cash. Most ATMs let you take out up to your daily limit, which your card issuer sets separately from your cash advance limit. Daily limits are often $500 to $1,000, though they vary.
Bank tellers are slower but sometimes cheaper. You can walk into a bank branch, show your credit card, and ask for a cash advance. Some banks charge lower fees for teller-issued advances than ATM withdrawals, though this is less common now. Call your card issuer first to confirm the fee structure.
Convenience checks are checks linked to your credit card account that you can write to yourself or deposit directly. They work like cash advances but may have different fees. Some cards offer them; others do not. Check your card agreement or call the issuer to see if they are available to you.
Your cash advance limit is separate from your credit limit
When you open a credit card account, the issuer sets a cash advance limit that is usually 20 to 50 percent of your credit limit. If your credit limit is $5,000, your cash advance limit might be $1,000 or $2,500. This limit is not negotiable at the time of process — it is set based on your credit history and income.
You can request a higher cash advance limit by calling your card issuer, but there is no may provide they will grant it. Some issuers will increase it if you have a good payment history; others will not budge. The request may trigger a hard inquiry on your credit report, which can temporarily lower your credit score.
Your available cash advance amount is separate from your available credit. If you have $2,000 in available credit and a $1,000 cash advance limit, you can only withdraw $1,000 in cash even though you have more credit available. The cash advance counts against your overall credit limit once you take it.
Why a cash advance is usually a bad deal
The cost is the main reason. A $500 cash advance that takes you three months to repay will cost you $35 to $50 in fees and interest combined. A personal loan for the same amount from a credit union or online lender often costs less, especially if you have decent credit. A 0 percent balance transfer card, if you can get one, costs nothing for the first 6 to 21 months, though it requires a balance transfer fee of 3 to 5 percent.
The second reason is the impact on your credit score. A cash advance counts as a hard inquiry and a new account balance, both of which can lower your score. It also increases your credit utilization — the percentage of your available credit you are using — which damages your score further if it pushes you above 30 percent.
The third reason is the psychological trap. Cash feels different from a credit card charge. You are more likely to spend it quickly and then carry a balance, which means you pay interest for months. A purchase you can see on your statement; a cash advance you can spend without a record, which makes it easier to lose track of.
Cheaper alternatives to a cash advance
A personal loan from a bank, credit union, or online lender is often cheaper. Rates vary widely — from 6 percent to 36 percent depending on your credit score and the lender — but even a 24 percent personal loan is usually better than a cash advance because there is no upfront fee and the interest rate is fixed. You know exactly what you will pay.
A 0 percent balance transfer card works if you need to move existing debt or if you can transfer a cash advance to a new card. You pay a one-time balance transfer fee of 3 to 5 percent, but then you pay no interest for 6 to 21 months depending on the card. This only makes sense if you can pay off the balance before the promotional period ends, because the regular APR kicks in after that.
A credit union loan is often the cheapest option if you are a member. Credit unions typically charge lower rates and fees than banks or online lenders, and they may offer small personal loans of $500 to $2,500 with minimal paperwork. If you are not a member, you may be able to join through your employer, school, or a community organization.
A payment plan with a creditor or service provider is free. If you owe money to a utility company, medical provider, or other business, call and ask about a payment plan. Many will let you spread the payment over several months with no interest or fee.
How a cash advance affects your credit report
A cash advance does not show up on your credit report as a separate line item — it is just a balance on your credit card account. But it affects your score in two ways. First, it increases your credit utilization ratio, which is the total balance on all your cards divided by your total credit limits. If you use a cash advance and carry a balance, your utilization goes up, which lowers your score. Second, if you miss a payment on the cash advance, it shows up as a late payment on your credit report and damages your score for seven years.
The good news is that paying off a cash advance quickly does not hurt your score long-term. The damage is temporary and recovers as soon as you pay the balance down and your utilization drops.
Frequently Asked Questions
Can I use a cash advance to pay off another credit card?
Technically yes, but it is a bad idea. You would pay the cash advance fee and interest rate on top of the balance you are moving, which costs more than just paying the original card. A balance transfer to a new card is cheaper because the fee is the same but the interest rate is 0 percent for a promotional period.
What is the difference between a cash advance and a balance transfer?
A cash advance is cash you withdraw from your credit card account. A balance transfer is debt you move from one card to another. Cash advances charge higher fees and interest rates and start accruing interest when ready. Balance transfers charge a one-time fee but often have a 0 percent promotional period.
Do I have to set up a PIN to use a cash advance?
Yes, you need a PIN to withdraw cash from an ATM. You can set one up by calling your card issuer or through their online portal. If you do not have a PIN, you can still get a cash advance from a bank teller by showing your card and ID.
Will a cash advance show up on my credit card statement?
Yes. It will appear as a separate line item labeled "cash advance" or "ATM withdrawal" with the fee and the amount. It counts toward your balance and minimum payment just like a purchase does.
Can I get a cash advance if I have bad credit?
If you have a credit card, you can get a cash advance up to your cash advance limit regardless of your current credit score. Your limit was set when you opened the account. However, if you do not have a credit card yet, getting one with bad credit is harder and will come with a higher interest rate and lower limit.