Yes, you can pull cash out of a credit card, but it costs more than a purchase
You can withdraw cash from a credit card at an ATM, bank teller, or through a cash advance at a store. The card issuer treats this as a cash advance — a separate transaction from a purchase. The moment you take the cash, you start paying interest at a higher rate than you would on a regular purchase, and you pay a fee upfront.
The three ways to get cash are: use your card at an ATM (most common), ask a bank teller to process a cash advance, or ask a cashier at a store if they offer cash back on credit card transactions. Not all cards offer all three options, and not all stores allow cash back on credit.
Key Takeaways
- Cash advances charge a fee (usually 3 to 5 percent of the amount) and a higher interest rate than purchases, starting when ready with no grace period.
- Interest on a cash advance begins accruing the day you withdraw it, even if you pay your full balance by the due date.
- ATM withdrawals are the easiest method but often charge an additional ATM operator fee on top of your card issuer's cash advance fee.
- Your credit card's cash advance limit is usually lower than your credit limit and is set separately by your card issuer.
- Cash advances can damage your credit score if they push your overall credit utilization too high or if you carry a balance.
How much a cash advance actually costs you
A cash advance has two costs: a one-time fee and daily interest. The fee is usually between 3 and 5 percent of the amount you withdraw — so a $500 cash advance might cost $15 to $25 just to take it out. Some cards charge a flat fee instead (like $10), which is cheaper on large withdrawals but more expensive on small ones.
The interest rate on cash advances is higher than the rate on purchases. Where a purchase might carry an APR of 18 percent, a cash advance might be 22 or 25 percent. This rate varies by card and by your creditworthiness. Unlike purchases, there is no grace period — interest starts accruing the day you withdraw the cash, even if you pay it back within days.
If you withdraw $500 at a 5 percent fee plus 24 percent APR, you pay $25 upfront and roughly $3.29 in interest per day until you pay it back. After one week, you owe $48.03 in fees and interest alone.
Where you can withdraw cash and what each method costs
An ATM is the fastest way to get cash. Insert your card, enter your PIN, and withdraw up to your cash advance limit. The downside is that ATMs often charge an operator fee — usually $2 to $3 — on top of your card issuer's cash advance fee. So a $500 withdrawal might cost $25 (card fee) plus $3 (ATM fee) before interest.
A bank teller can process a cash advance if you visit a branch in person. You will need your card and ID. The card issuer's fee still applies, but you avoid the ATM operator fee. This is useful if you need a large amount or if your card's ATM limit is too low.
Some stores allow cash back on credit card transactions — you buy something small and ask for extra cash back. This method has no ATM fee and sometimes no cash advance fee if the store treats it as a regular purchase. However, not all stores offer this, and not all credit cards allow it. Call your card issuer to confirm before you try.
Your cash advance limit is separate from your credit limit
Your credit card issuer sets a cash advance limit that is usually much 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. Some issuers let you increase it, though doing so may trigger a hard inquiry on your credit report. Others keep it fixed. If you need more cash than your limit allows, you will have to use a different method — a personal loan, a line of credit, or borrowing from someone else.
How a cash advance affects your credit score
A cash advance can hurt your credit score in two ways. First, it counts toward your credit utilization ratio — the amount of available credit you are using. If you have a $5,000 credit limit and you take a $1,000 cash advance, your utilization jumps to 20 percent. High utilization signals risk to credit scoring models, and your score may drop.
Second, if you carry the cash advance balance month to month instead of paying it off, you are paying interest and carrying debt. This shows up on your credit report and can lower your score over time. The damage is usually temporary if you pay it back quickly, but it can be significant if you let it sit.
Checking your cash advance limit or asking about fees does not hurt your credit. Only actually withdrawing the cash and carrying a balance does.
When a cash advance makes sense and when it does not
A cash advance makes sense only in a true emergency when you need cash when ready and have no other option. Examples: your car breaks down and the mechanic takes cash only, or you are traveling and your debit card stops working. In these cases, the cost is worth the speed and convenience.
A cash advance does not make sense if you are trying to pay off debt, cover a shortfall in your budget, or get cash for a non-urgent reason. The fees and interest are too high. A personal loan, a line of credit, or a payment plan with the person or business you owe money to will almost always be cheaper.
If you find yourself taking cash advances regularly, that is a sign your budget is not covering your expenses. The real fix is to look at your spending and income, not to keep paying high fees for cash.
Alternatives that cost less than a cash advance
A personal loan from a bank or credit union usually has a lower interest rate than a cash advance and no upfront fee. You borrow a fixed amount, receive it in your bank account, and pay it back in monthly installments. The downside is that approval takes a few days, so this does not work for same-day emergencies.
A line of credit works like a credit card but usually with a lower interest rate. You draw what you need and pay interest only on what you use. Some banks offer these to existing customers with good credit.
A payday loan gives you cash the same day but charges very high fees and interest — often worse than a cash advance. Avoid this unless you are certain you can pay it back within two weeks.
Borrowing from a friend or family member costs nothing if they do not charge interest, but it risks the relationship if you cannot pay it back on time. Be clear about when you will repay before you ask.
Frequently Asked Questions
Can I use a credit card cash advance to pay off another credit card?
Technically yes, but it is a bad idea. You are taking on a high-fee, high-interest debt to pay off another debt. You end up paying more in fees and interest, not less. If you are trying to consolidate debt, a personal loan or a balance transfer card (which moves debt between cards at a lower rate) is cheaper.
What happens if I cannot pay back a cash advance?
The balance stays on your credit card and accrues interest at the cash advance rate. If you miss a payment, your card issuer may report it to the credit bureaus, and your credit score will drop. You may also face late fees and a higher interest rate on your entire card balance. Contact your issuer when ready if you cannot pay to discuss a payment plan.
Does a cash advance show up differently on my credit report?
A cash advance does not appear as a separate line item on your credit report — it is part of your credit card balance. However, credit bureaus and lenders can see the cash advance activity if they pull your detailed card statements. Carrying a cash advance balance signals higher risk than carrying a purchase balance.
Can I get a cash advance from a debit card?
No. Debit cards draw directly from your bank account, so there is no advance. You can withdraw cash at an ATM or ask a teller for cash back, but these are not cash advances — they are just accessing your own money. Debit card ATM withdrawals may still charge a fee if you use an out-of-network ATM.
Is there a limit to how many cash advances I can take?
Your card issuer sets a cash advance limit, and you cannot exceed it. Some issuers also limit how often you can take advances in a month or year, though this is less common. Check your card agreement or call your issuer to learn the rules for your specific card.