Yes, you can pull cash from a credit card, but it costs more than a regular purchase
You can withdraw cash from a credit card at an ATM or by asking a bank teller for a cash advance. The money goes into your bank account or your wallet the same day. But the card issuer charges you a fee upfront — usually 3 to 5 percent of the amount you withdraw — and the interest rate on that cash is higher than the rate on regular purchases, often 5 to 10 percentage points higher. You start paying interest when ready, with no grace period like you get on a purchase.
A cash advance is a loan against your credit limit, not a transfer of money you already have. If your card has a $5,000 limit and you withdraw $500 in cash, your available credit drops to $4,500 right away.
Key Takeaways
- Cash advances charge an upfront fee (usually 3 to 5 percent) plus a higher interest rate than purchases, with no grace period.
- You can get cash at an ATM using your credit card PIN, or by visiting a bank branch and asking for a cash advance.
- Interest starts accruing the day you withdraw the cash, so the longer you carry the balance, the more you pay.
- If you need cash urgently, a personal loan or a balance transfer to a 0% card may cost less than a cash advance.
How to withdraw cash from your credit card
The simplest method is to use an ATM. Insert your credit card, enter your PIN, select "cash withdrawal" or "cash advance," and choose the amount. The ATM will dispense the cash and charge your card when ready. Most credit cards come with a PIN, but if you do not have one, call the number on the back of your card and ask for it.
You can also visit a bank branch — yours or any bank that accepts your card — and ask the teller for a cash advance. Bring your card and a photo ID. The teller will process the transaction and hand you cash. This method works even if you do not have a PIN set up.
Some credit card issuers also let you request a cash advance through their mobile app or website, and the money lands in your linked bank account within one to two business days. Check your card's app to see if this option is available.
The fees and interest you will pay
Every cash advance comes with a cash advance fee, charged the moment you withdraw the money. This fee is a percentage of the amount you take out — typically 3 to 5 percent, though some cards charge as little as 2 percent or as much as 10 percent. A $500 cash advance with a 4 percent fee costs you $20 upfront.
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. If your purchase rate is 18 percent, your cash advance rate might be 25 percent or higher. Interest accrues daily from the moment you withdraw the cash — there is no grace period like there is for purchases.
To see what you will actually pay, ask your card issuer for the cash advance fee percentage and the cash advance APR before you withdraw. Both numbers are in your card's terms and conditions, but calling is faster.
When a cash advance makes sense
A cash advance is rarely the cheapest way to borrow money, but it can be the fastest. If you need cash today and have no other option, a cash advance is quicker than a personal loan (which takes days to fund) or a payday loan (which often charges 400 percent APR or higher).
A cash advance also makes sense if you need a small amount and can pay it back within a few days. If you withdraw $100 and repay it before the next billing cycle, the interest charge will be minimal — maybe a dollar or two — and you will only pay the upfront fee.
Do not use a cash advance to fund everyday spending or to carry a balance month to month. The combination of the fee and the high interest rate will cost you far more than a personal loan or a balance transfer card.
Cheaper alternatives to a cash advance
If you have time to wait a few days, a personal loan from a bank or credit union usually costs less. Personal loans have a fixed interest rate (often 8 to 18 percent, depending on your credit) and no upfront fee. You borrow a set amount and repay it in fixed monthly installments. The total interest you pay is lower than a cash advance, especially if you need more than a few hundred dollars.
A balance transfer card with a 0 percent introductory APR can also work if you have a few weeks to wait. You transfer a balance from another card or account to the new card, and you pay no interest for 6 to 21 months (depending on the card). There is usually a balance transfer fee of 3 to 5 percent, but if you pay off the balance before the intro period ends, you save money compared to a cash advance.
If you are short on cash because of an unexpected bill, ask the creditor or service provider if they offer a payment plan. Many utilities, medical offices, and online retailers will let you split a bill into smaller payments at no extra cost.
How a cash advance affects your credit score
A cash advance does not directly hurt your credit score the way a late payment does. However, it does increase your credit utilization ratio — the percentage of your available credit that you are using. If you have a $5,000 limit and withdraw $1,000 in cash, your utilization jumps to 20 percent. High utilization can lower your score by a few points, especially if you carry the balance for several months.
The bigger risk is that a cash advance makes it easier to overspend. If you withdraw cash and then also make regular purchases on the same card, your balance grows faster and becomes harder to pay off. That extended balance will hurt your score more than the cash advance itself.
What to do if you cannot pay back a cash advance
If you carry a cash advance balance month to month, the interest charges will grow quickly. A $500 cash advance at 25 percent APR costs about $10 in interest the first month, but if you only make minimum payments, the balance will take years to clear and you will pay hundreds in interest.
If you are struggling to repay, contact your card issuer and ask about a hardship program. Many issuers offer temporary interest rate reductions or payment plans for customers in financial difficulty. You will not be able to withdraw more cash while in a hardship program, but the lower rate will help you pay down the balance faster.
Another option is to transfer the cash advance balance to a personal loan or a 0 percent balance transfer card. This stops the high interest from accruing and gives you a fixed repayment timeline. A credit counselor can help you compare these options — the National Foundation for Credit Counseling (NFCC) offers free or low-cost sessions.
Frequently Asked Questions
Is there a limit to how much cash I can withdraw?
Yes. Most card issuers set a cash advance limit that is lower than your total credit limit — often 20 to 50 percent of your credit limit. Some cards also cap the amount you can withdraw per day (often $500 to $1,000). Call your card issuer to find out your specific limits.
Can I use a credit card cash advance to pay off another credit card?
Technically yes, but it is not a good idea. You will pay the cash advance fee and the high interest rate, and you will not save money compared to making regular payments on the original card. A balance transfer (moving the balance directly from one card to another) is cheaper because it avoids the cash advance fee.
What happens if I do not have a PIN for my credit card?
You can still get a cash advance by visiting a bank branch in person with your card and ID. You can also call your card issuer and request a PIN, which usually arrives by mail within 7 to 10 business days. Some issuers let you set a PIN online or through their app.
Do cash advances show up on my credit report?
The cash advance itself does not appear on your credit report, but the balance does. If you carry the balance for several months, it will show as an outstanding balance and may lower your credit score. Once you pay it off, it will no longer affect your score.
Can I get a cash advance if I have bad credit?
If you already have a credit card, you can get a cash advance regardless of your credit score — the card issuer has already decided to lend to you. If you do not have a credit card, you will need to open one first, which may be harder with bad credit. Secured credit cards (which require a cash deposit) are easier to get and can be used for cash advances.