Yes, you can get cash from a credit card, but it costs more than a regular purchase
A cash advance is a withdrawal of cash from your credit card account, treated as a loan rather than a purchase. Your card issuer will charge you a fee — usually 3 to 5 percent of the amount withdrawn — plus interest that starts accruing when ready, often at a higher rate than your regular purchase APR. You can get cash at an ATM using your credit card PIN, at a bank teller window, or through a cash advance check mailed by your card issuer.
The cost makes cash advances expensive for anything but genuine emergencies. If you need $200 and your card charges a 4 percent fee plus 24 percent APR, you pay $8 upfront and then interest on the full $208 from day one. That same $200 on a regular purchase at 24 percent APR costs you nothing until the statement closes.
Key Takeaways
- Cash advances charge a separate fee (usually 3 to 5 percent) plus a higher interest rate than regular purchases, with interest starting when ready.
- You can withdraw cash at an ATM with your credit card PIN, at a bank teller, or by depositing a cash advance check.
- Your credit card company sets a cash advance limit, which may be lower than your overall credit limit.
- The transaction appears on your credit report as a cash advance, not a purchase, and may affect how lenders view your account.
Where you can get cash with a credit card
The most common method is an ATM withdrawal. Insert your credit card and enter your PIN — the same way you would with a debit card. The ATM will dispense cash and charge your credit card account. Most ATMs charge an additional operator fee on top of your card issuer's cash advance fee, so you may pay $5 to $10 just to withdraw $100.
You can also visit a bank branch and ask a teller for a cash advance. Bring your credit card and a form of ID. The teller will process the transaction at the counter, and you walk out with cash. Bank tellers do not charge an extra fee beyond what your card issuer charges, so this route costs less than an ATM if your card issuer charges a flat fee rather than a percentage.
Some card issuers mail cash advance checks to cardholders. These look like regular checks but draw from your credit line instead of a bank account. You deposit the check into your bank account and the funds appear within one to three business days. The fee and interest rate explore the same way as an ATM withdrawal.
What fees and interest rates explore to cash advances
Your card issuer charges a cash advance fee at the time you withdraw the money. This is usually a percentage of the amount (3 to 5 percent is typical) or a flat dollar amount, whichever is higher. A card might charge "3% or $10, whichever is greater," meaning a $200 advance costs $10 and a $500 advance costs $15.
Interest on a cash advance starts accruing the day you withdraw it — there is no grace period like there is for purchases. The interest rate is often 2 to 5 percentage points higher than your purchase APR. If your card charges 18 percent for purchases, the cash advance rate might be 23 percent. This rate applies only to the cash advance balance, not to regular purchases.
ATM operators may charge an additional fee, usually $2 to $5 per transaction. This is separate from your card issuer's fee and goes to the ATM owner, not your card company. You will see both fees itemized on your statement.
Your cash advance limit versus your credit limit
Your card issuer sets a separate cash advance limit, which is often lower than your overall credit limit. If your credit limit is $5,000, your cash advance limit might be $1,000 or $1,500. You cannot withdraw more than this limit, even if you have available credit for purchases.
You can contact your card issuer to ask what your cash advance limit is. Call the number on the back of your card and ask customer service. Some issuers let you request a higher limit, though approval is not may provide. Others keep the limit fixed based on your credit profile.
The cash advance limit is separate from your purchase limit, so withdrawing $500 in cash does not reduce the $5,000 you can spend on purchases — it reduces only the $1,000 cash advance limit. Once you pay back the cash advance, the limit resets.
How a cash advance affects your credit and your account
A cash advance appears on your credit report as a cash advance, not as a purchase. Credit scoring models treat cash advances differently because they signal financial stress — people typically take cash advances when they cannot use a regular purchase or debit card. This can lower your credit score slightly, even if you pay it back on time.
The cash advance also counts toward your credit utilization ratio, which is the percentage of your total credit limit you are using. If you have a $5,000 limit and take a $500 cash advance, your utilization jumps to 10 percent. High utilization can lower your score, so paying back the cash advance quickly helps.
Some card issuers flag frequent cash advances as a sign of account misuse and may reduce your credit limit or close the account. If you take a cash advance every month, the issuer may contact you or restrict your access to the feature.
Paying back a cash advance
When you make a payment to your credit card, the payment is applied first to the balance with the highest interest rate. Since cash advances usually carry a higher rate than purchases, your payment goes to the cash advance first. This is good — it means you pay off the expensive balance before the cheaper one.
However, if you carry both a purchase balance and a cash advance balance, and you only make the minimum payment, the purchase balance may take longer to pay off. Check your statement to see how your payment is being split between the two balances.
To avoid interest entirely, pay back the cash advance before your statement closes. Interest starts the day you withdraw the cash, so paying within a few days stops it from growing. If you cannot pay it back quickly, the cash advance becomes an expensive way to borrow money — often more expensive than a personal loan or a credit card balance transfer.
Alternatives to a cash advance
If you need cash but want to avoid the high fees and interest, consider other options first. A balance transfer lets you move a purchase balance to a card with a lower or 0 percent introductory rate, freeing up cash in your budget without taking on new debt. This does not give you cash in hand, but it reduces what you owe.
A personal loan from a bank or credit union usually charges lower interest than a cash advance and has a fixed repayment schedule. If you need $500 and can wait a few days for approval, a personal loan often costs less over time than a cash advance.
If you have a debit card, withdrawing from your own bank account costs nothing. If you do not have a debit card, opening a basic checking account at a bank or credit union takes about 15 minutes and gives you free ATM access to your own money.
Frequently Asked Questions
Can I use a credit card to withdraw cash at any ATM?
Yes, any ATM that accepts credit cards will let you withdraw cash if you have a PIN set up. However, ATMs owned by banks other than your card issuer may charge an operator fee on top of your card issuer's fee. ATMs at your card issuer's branches usually charge only the card issuer's fee, not an extra operator fee.
What happens if I cannot pay back a cash advance?
The balance stays on your account and interest keeps accruing at the cash advance rate. If you miss payments, your card issuer may charge late fees and report the missed payment to credit bureaus, which damages your credit score. After several months of missed payments, the issuer may close your account and send the debt to a collection agency.
Is the cash advance fee the same as the interest rate?
No. The fee is a one-time charge (usually 3 to 5 percent) charged when you withdraw the cash. The interest rate is an annual percentage rate (APR) that accrues daily on the balance you owe. You pay both — the fee upfront and the interest over time.
Can I get a cash advance with a secured credit card?
Yes, most secured cards allow cash advances, though the limit is often lower than the card's overall credit limit. Check your card's terms or call the issuer to confirm whether cash advances are available and what the fee and interest rate are.
Does paying off a cash advance early stop the interest?
Interest stops accruing once the balance reaches zero. If you withdraw $200 on Monday and pay it back on Wednesday, you owe the $200 plus three days of interest at the cash advance rate, plus the cash advance fee. Paying it back as soon as possible minimizes the interest you owe.