Yes, you can take money out of 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 a cash advance is not the same as spending on the card — the bank charges you a fee upfront, usually 3 to 5 percent of the amount you withdraw, and the interest rate starts when ready, with no grace period like you get on purchases.
Most people use a cash advance only when they have no other way to get cash quickly. If you have a debit card, a bank account you can transfer from, or a friend who can lend you money, those are cheaper options. But if you truly need cash and your credit card is your only tool, here is how it works and what it will cost you.
Key Takeaways
- A cash advance charges a fee of 3 to 5 percent of the amount withdrawn, taken out when ready when you get the cash.
- Interest on a cash advance starts right away with no grace period, so the longer you carry the balance, the more you pay.
- You can withdraw cash at any ATM that accepts your card, or ask a bank teller at a branch to give you cash over the counter.
- Your credit card company sets a cash advance limit, which may be lower than your total credit limit, and you can call to find out what yours is.
- A personal loan, payday loan, or borrowing from family are often cheaper than a cash advance if you have time to explore them.
How to withdraw cash at an ATM
Insert your credit card into any ATM that displays your card's logo — Visa, Mastercard, American Express, or Discover. Enter your PIN. Select "Withdraw Cash" or "Cash Advance" from the menu. The ATM will show you the fee and ask you to confirm the amount. Once you do, the cash comes out and the transaction posts to your account.
The entire process takes less than a minute. You will see the cash advance fee appear on your next statement as a separate line item, not rolled into the purchase total. The fee is charged whether you withdraw $20 or $500.
How to get a cash advance from a bank teller
Walk into any bank branch that accepts your card — this does not have to be your own bank. Tell the teller you want a cash advance on your credit card. Hand over your card and ID. The teller will ask how much you want to withdraw, run the transaction, and hand you the cash.
This method works the same way as an ATM but gives you a chance to ask questions if you are unsure about the fee or your limit. Some branches will also let you withdraw larger amounts than an ATM allows, though this varies by bank and card.
What fees and interest you will pay
The fee for a cash advance is usually a flat percentage — most cards charge between 3 and 5 percent of the amount you withdraw. A $200 cash advance at 4 percent costs $8 in fees alone. Some cards have a minimum fee (for example, $3 even if the percentage would be less) or a maximum fee, so check your card's terms.
Interest starts the day you withdraw the cash. Unlike a purchase, which may have a grace period of 20 to 25 days before interest kicks in, a cash advance begins accruing interest when ready. The interest rate on a cash advance is often higher than the rate on purchases — sometimes 2 to 3 percentage points higher. If your purchase APR is 18 percent, your cash advance APR might be 21 percent.
If you withdraw $200 at a 4 percent fee and 21 percent APR, you pay $8 in fees plus interest. If you pay back the $200 in one month, the interest is roughly $3.50, for a total cost of $11.50. If you carry the balance for six months, the interest grows to around $21, making your total cost $29.
Finding out your cash advance limit
Your credit card company sets a separate limit for cash advances, which is often lower than your total credit limit. You might have a $5,000 credit limit but only a $1,000 cash advance limit. Call the customer service number on the back of your card and ask what your cash advance limit is. The representative will tell you in seconds.
You can also log into your online account or mobile app — many card issuers display your cash advance limit in the account details section. If you need to increase your limit, you can ask during the call, though approval is not may provide and depends on your account history and credit score.
Cheaper ways to get cash when you need it
Before you take a cash advance, consider these options. If you have a debit card linked to a checking account, withdraw cash from your own account for free at any ATM. If you have a savings account at a different bank, transfer money to your checking account through your bank's app or website — most transfers are free and take one to three business days, or when ready if both accounts are at the same bank.
If you need cash today and have no other account, ask a friend or family member to lend you the money. A personal loan from a bank or credit union usually has a lower interest rate than a credit card cash advance, though it takes a few days to process. A payday loan is faster but often more expensive than a cash advance, so compare the total cost before you choose.
What happens if you do not pay back the cash advance
If you do not pay back the cash advance, the balance stays on your credit card and interest keeps growing. The unpaid balance counts toward your credit utilization ratio — the amount of your total credit limit you are using — which can lower your credit score. After 30 days of non-payment, the late payment appears on your credit report and stays there for seven years.
If the balance goes unpaid for several months, your card issuer may freeze your account or close it. They can also send your debt to a collection agency, which will contact you to demand payment. At that point, you may face legal action and wage garnishment, depending on your state's laws.
Frequently Asked Questions
Can I use a credit card cash advance to pay another credit card bill?
Technically yes, but it is one of the most expensive ways to move money between cards. You pay the cash advance fee plus interest on the cash advance, then you pay interest again on the new card. A balance transfer, where you move debt directly from one card to another, usually costs less. Call the card you want to transfer to and ask about their balance transfer offer.
Does a cash advance hurt my credit score?
A cash advance itself does not hurt your score, but the balance it creates does. If the cash advance pushes your total credit card balances higher, your credit utilization ratio goes up, which can lower your score by a few points. Paying off the balance quickly brings your score back up.
What is the difference between a cash advance and a balance transfer?
A cash advance gives you physical cash and charges a fee plus interest starting when ready. A balance transfer moves debt from one credit card to another and usually has a lower fee (often 0 to 3 percent) and may offer a period with no interest. Balance transfers are for moving existing debt; cash advances are for getting cash.
Can I get a cash advance if my credit is bad?
Yes. Your cash advance limit is set when you open the card and does not change based on your credit score. Even if your credit has dropped since you opened the account, you can still withdraw up to your cash advance limit. The fee and interest rate stay the same regardless of your current credit score.
How long does a cash advance take to show up on my statement?
The cash appears in your wallet or account when ready. The transaction and fee show up on your next statement, usually within one to three business days. Interest starts accruing the day you withdraw the cash, even if it has not appeared on your statement yet.