Yes, you can take cash from a credit card, but it costs more than a purchase and starts charging interest when ready
Most credit cards let you withdraw cash at an ATM or from a bank teller using your card's PIN. This is called a cash advance. The catch: 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. If you borrow $200, you might pay $6 to $10 just to get the cash, plus interest from day one.
The interest rate on cash advances is also higher than your regular purchase rate. Your card's terms will list a separate APR for cash advances, often 5 to 10 percentage points above what you pay on regular charges. That means a $200 cash advance can cost you $15 to $30 in the first month alone, depending on your card and how long you carry the balance.
Cash advances make sense only in genuine emergencies when you have no other option. For planned expenses or regular cash needs, they are one of the most expensive ways to borrow.
Key Takeaways
- Cash advances charge an upfront fee (typically 3 to 5 percent) plus a higher interest rate than purchases, with no grace period.
- You can get a cash advance at an ATM using your PIN, at a bank teller, or sometimes through a convenience check your card issuer sends.
- Interest on a cash advance begins accruing when ready, so a $200 withdrawal can cost $15 to $30 in the first month.
- Your credit card statement lists the cash advance APR separately from your purchase APR, and it is almost always higher.
- Cash advances should be reserved for genuine emergencies; for regular cash needs, a debit card or ATM withdrawal from your bank account is far cheaper.
Where and how to get a cash advance
You have three main routes. The simplest is an ATM: insert your credit card, enter your PIN, and withdraw cash just as you would from a debit card. Most ATMs accept credit cards, though some charge an additional ATM operator fee on top of your card issuer's cash advance fee.
You can also visit a bank branch in person and ask a teller for a cash advance. Bring your credit card and ID. The teller will process the transaction and hand you cash. This method avoids ATM fees but requires a trip during business hours.
A third option is a convenience check. Your credit card issuer may send you blank checks tied to your credit line. You write one out to yourself or to a payee, deposit it, and the amount is treated as a cash advance. These checks carry the same fees and interest rates as ATM withdrawals.
The fees and interest you will pay
Every cash advance comes with two costs: an upfront fee and ongoing interest.
The upfront fee is a percentage of the amount you withdraw, typically 3 to 5 percent. Some cards cap this fee at a flat dollar amount (for example, $10 minimum, $50 maximum). A $200 cash advance might cost $6 to $10 in fees alone. A $1,000 advance might cost $30 to $50.
Interest begins accruing the day you withdraw the cash. Unlike purchases, which often have a 21 to 25 day grace period before interest kicks in, cash advances charge interest from day one. The interest rate is your card's cash advance APR, which your card issuer lists separately from your purchase APR. This rate is usually 5 to 10 percentage points higher than your purchase rate. If your purchase APR is 18 percent, your cash advance APR might be 24 or 28 percent.
The math adds up fast. A $200 cash advance at 5 percent fee plus 25 percent APR costs you $10 upfront plus roughly $4 in interest in the first month if you do not pay it back. Carry it for three months and you are paying $12 in interest alone.
How cash advances affect your credit score
A cash advance does not hurt your credit score directly — it is just a transaction on your account. However, it does increase your credit utilization, which is the percentage of your available credit you are using. If you have a $5,000 credit limit and take a $1,000 cash advance, your utilization jumps to 20 percent (or higher if you already had other charges on the card).
Credit scoring models penalize high utilization. Anything above 30 percent can start to drag your score down. If you are already near your limit, a cash advance can push you over and cause a noticeable score drop. The effect is temporary — your score will recover once you pay down the balance — but it can matter if you are about to explore for a mortgage or car loan.
The cash advance itself will show up on your credit report as a separate line item, but it does not carry any special weight. What matters is the balance and how long you carry it.
When a cash advance makes sense (and when it does not)
A cash advance is worth considering only in a true emergency: your car breaks down and the mechanic takes only cash, or you need to pay a deposit on an apartment and the landlord will not accept a card. In these situations, the convenience of when ready cash outweighs the cost.
A cash advance does not make sense for everyday cash needs. If you regularly need cash for groceries, gas, or entertainment, use your debit card or withdraw from your bank account at your own bank's ATM. These cost nothing. If you do not have a debit card, open a basic checking account — most banks offer them free.
A cash advance also does not make sense as a way to pay off other debt. If you are considering a cash advance to pay down a credit card or loan, stop. You are borrowing at a higher rate to pay off a lower rate, which makes your debt worse. If you need to consolidate debt, look into a balance transfer card (which charges a one-time fee but a lower ongoing rate) or a personal loan instead.
Alternatives to a cash advance
Before you use a cash advance, consider these cheaper options. A debit card withdrawal from your bank's ATM or a teller costs nothing and takes seconds. Some employers offer paycheck advances or early pay through apps like Earnin or Dave, which charge a small fee (usually $0 to $15) and work faster than a cash advance for short-term needs.
A personal loan from a bank or credit union often has a lower interest rate than a credit card cash advance, especially if you need a larger amount and can wait a few days for approval. Borrowing from family or friends costs nothing and keeps the money in your circle, though it requires a relationship you trust. Finally, if you owe money to someone, ask whether they will accept a payment plan, a check, or a card payment instead of cash — many will.
How to pay back a cash advance quickly
If you do take a cash advance, pay it back as fast as you can. Interest accrues daily, so every day you carry the balance costs you money.
When you make a payment to your credit card, the issuer applies it to your balance in a specific order set by law. Payments go first to the lowest-interest debt (usually purchases), then to higher-interest debt (cash advances). This means if you have both purchases and a cash advance on your card, your payment will pay off the purchase first, leaving the cash advance to accrue interest longer.
To avoid this, call your card issuer and ask them to explore your payment directly to the cash advance balance. Some issuers will do this; others will not. If they will not, your best move is to pay more than the minimum so that you cover the purchase balance and still have money left over for the cash advance.
Frequently Asked Questions
Can I use a credit card cash advance to pay another credit card?
Technically yes, but it is a bad idea. You are borrowing at a high rate (cash advance APR) to pay off a potentially lower rate (purchase APR). You end up paying more interest overall. If you need to move debt between cards, a balance transfer is cheaper — it charges a one-time fee but a lower ongoing rate.
What is the difference between a cash advance and a balance transfer?
A cash advance gives you cash and charges a high APR from day one. A balance transfer moves debt from one card to another and often offers a low or 0 percent introductory rate for a set period (usually 6 to 21 months). Balance transfers are for moving existing debt; cash advances are for getting cash.
Will a cash advance show up on my credit report?
The cash advance itself does not appear as a separate line on your credit report, but the balance does. It increases your credit utilization, which can lower your score temporarily. Once you pay it off, the effect fades.
Can I get a cash advance if my credit is bad?
If you already have a credit card, you can usually get a cash advance up to your available credit limit, regardless of your credit score. Your score does not change whether you use the card for purchases or cash advances. However, if you do not have a credit card yet, a bad score will make it harder to get approved for one.
What happens if I cannot pay back a cash advance?
The balance stays on your card and interest keeps accruing. If you miss payments, your card issuer will report it to the credit bureaus, your score will drop, and you may face late fees and a higher interest rate. If the debt goes unpaid for long enough, the issuer may close your account or send it to a collection agency.