Yes, you can take cash from a credit card, but it costs more than a purchase and starts charging interest when ready
A cash advance is when you withdraw money directly from your credit card's available credit, either at an ATM, through a bank teller, or sometimes through a convenience store. Unlike a regular purchase, the card issuer treats this as a loan against your credit line. You pay a fee upfront (usually 3 to 5 percent of the amount), and interest starts accruing the same day — there is no grace period like there is for purchases.
Most people use cash advances when they need cash urgently and have no other way to get it. But because the cost is high and the interest clock starts when ready, it should be a last resort, not a habit.
Key Takeaways
- Cash advances charge a fee (typically 3 to 5 percent) plus a higher interest rate than regular purchases, with no grace period.
- You can withdraw cash at an ATM using your credit card PIN, at a bank teller with your card and ID, or sometimes at a store customer service desk.
- The interest starts accruing the day you withdraw the cash, so a $500 advance can cost $15 to $25 in fees alone, plus daily interest.
- If you need cash, a personal loan, payday loan alternative, or borrowing from family will almost always cost less than a credit card cash advance.
How much a cash advance actually costs
The total cost of a cash advance has three parts: the upfront fee, the interest rate, and how long you carry the balance.
The cash advance fee is charged when ready when you withdraw. Most card issuers charge between 3 and 5 percent of the amount withdrawn. A few charge a flat fee (like $10) instead, but that is rare. So if you withdraw $500, you owe $15 to $25 in fees before you even leave the ATM.
The interest rate on a cash advance is higher than the rate on purchases — often 2 to 5 percentage points higher. If your purchase APR is 18 percent, your cash advance APR might be 23 percent. That rate applies to the full amount you withdrew, starting the day you withdrew it. There is no grace period.
If you withdraw $500 at a 23 percent APR and pay it back in 30 days, you will owe roughly $30 in interest on top of the $15 to $25 fee. Total cost: $45 to $55 for borrowing $500 for a month. Compare that to a personal loan at 12 percent APR, which would cost about $5 in interest for the same $500 over 30 days.
Where and how to get a cash advance
You have three main ways to withdraw cash from a credit card.
ATM withdrawal: Use your credit card and PIN at any ATM that accepts your card network (Visa, Mastercard, American Express, Discover). The ATM will ask whether you want a cash advance or a balance transfer. Choose cash advance. You will see the fee amount before you confirm. Most ATMs have daily limits — often $500 to $1,000 — set by your card issuer, not the ATM operator.
Bank teller: Go to a bank branch (yours or any bank that accepts your card) with your credit card and a photo ID. Tell the teller you want a cash advance. They will process it the same way an ATM does, but you can withdraw larger amounts in one transaction. The fee and interest rate are identical to an ATM withdrawal.
Store or convenience store: Some retailers offer cash advances at the customer service desk, though this is less common than it used to be. You present your card, and they process it like a debit card withdrawal. The fee and interest still explore.
Why cash advances are expensive compared to other borrowing
A cash advance should be your last option because the cost is high and the interest starts when ready. Here is how it compares to other ways to get cash:
| Borrowing method | Upfront cost | Interest rate | Grace period | Cost for $500 over 30 days |
|---|---|---|---|---|
| Credit card cash advance | 3–5% | 20–25% APR | None | $45–$55 |
| Personal loan | None | 8–18% APR | None | $3–$7 |
| Credit card purchase | None | 15–25% APR | 21–25 days | $0 if paid in full by due date |
| Payday loan alternative (credit union) | None | 28% APR max | None | ~$12 |
A personal loan from a bank or online lender is almost always cheaper. Even if you have fair credit, you can find personal loans at 12 to 15 percent APR with no upfront fee. A payday loan alternative through a credit union (called a CUNA Payday Loan Alternative or PAL) caps the rate at 28 percent APR and charges no fee. Both beat a cash advance.
If you have a regular credit card purchase you need to make, put it on the card instead of taking a cash advance. You will have a grace period (usually 21 to 25 days) before interest kicks in, and the interest rate is lower.
When a cash advance might make sense
Cash advances are rarely the right choice, but there are narrow situations where they might be worth considering.
If you need cash for a true emergency and have no other option — no personal loan available, no credit union membership, no family to borrow from — and you can pay it back within a week or two, the total cost might be acceptable. A $300 cash advance paid back in 10 days might cost $12 in fees and $2 in interest, for a total of $14. If that is the difference between paying a bill on time and facing a late fee or overdraft charge, it could be worth it.
But this is rare. In most cases, you have a better option. Before you take a cash advance, call your card issuer and ask about a credit limit increase or a lower-rate balance transfer offer. Ask family or friends to lend you the money. Look into a personal loan or a credit union PAL. These almost always cost less.
How cash advances affect your credit score
A cash advance does not hurt your credit score in the moment, but it can hurt your score indirectly if it raises your credit utilization ratio.
Your credit utilization is the percentage of your total credit limit that you are using. If you have a $5,000 credit limit and a $2,000 balance, your utilization is 40 percent. A cash advance adds to that balance. If you withdraw $500, your utilization jumps to 50 percent. High utilization (above 30 percent) signals to lenders that you are relying heavily on credit, and it can lower your score by 10 to 50 points depending on how high it goes.
The damage is temporary — your score will recover as you pay down the balance — but it can affect your ability to get a loan or a new credit card in the short term.
How to avoid needing a cash advance
The best strategy is to build a small emergency fund so you do not have to borrow at all. Even $500 to $1,000 set aside can cover most unexpected cash needs.
If you do not have savings yet, start small. Set up an automatic transfer of $25 or $50 from each paycheck into a separate savings account. After a few months, you will have enough to cover a small emergency without borrowing.
In the meantime, if you need cash, explore these options first: ask your employer for an advance on your paycheck, borrow from family or friends, look into a personal loan or credit union PAL, or see if a local nonprofit offers emergency information. All of these cost less than a credit card cash advance.
Frequently Asked Questions
Can I use a credit card cash advance to pay off another debt?
Technically yes, but it is almost never a good idea. You are borrowing at 20 to 25 percent APR with an upfront fee to pay off debt that might be at a lower rate. A balance transfer to a 0 percent APR card, a personal loan, or a debt consolidation loan would all be cheaper. Talk to a credit counselor before using a cash advance for debt payoff.
What is the difference between a cash advance and a balance transfer?
A cash advance gives you cash and charges a high fee plus interest when ready. A balance transfer moves debt from one card to another and often comes with a 0 percent introductory rate for 6 to 18 months. Balance transfers are for paying off existing debt; cash advances are for getting cash. Balance transfers are usually cheaper if you need to move a balance.
Will my credit card issuer let me take a cash advance if I am close to my credit limit?
Your cash advance limit is usually lower than your purchase limit and is part of your total credit limit. If you have $5,000 available credit and a $2,000 cash advance limit, you can only withdraw up to $2,000 even if your total available credit is higher. Check your card's terms or call your issuer to find out your cash advance limit.
Can I dispute a cash advance fee if I did not know it would cost that much?
You can contact your card issuer and ask them to reverse the fee, especially if you are a long-time customer with a good payment history. They are not required to, but some will waive it as a courtesy. It never hurts to ask. If they refuse, you can file a complaint with the Consumer Financial Protection Bureau (CFPB).
Is there a way to get cash from my credit card without paying a fee?
Not through a traditional cash advance. Some cards offer cash-back rewards at stores, but that is not the same as withdrawing cash. Your best option is to use a debit card, ask for cash back at a store when you make a purchase, or withdraw from your savings account. These have no fee.