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Yes, you can take money out of a credit card, but it's not the same as withdrawing from a savings account. The process is called a cash advance, and it comes with costs and considerations that often make it an expensive option compared to other ways of accessing cash.
A cash advance is a short-term loan you take against your credit card's available credit. You can get cash through an ATM, at a bank teller window, or sometimes through a cash advance check your card issuer sends you. The money comes from your credit card's credit line, not a linked bank account.
The key distinction: you're borrowing money at credit card rates, not simply accessing funds you already have.
Most credit card issuers set a cash advance limit that's separate from and often lower than your overall credit limit. This limit might be 20–50% of your total credit limit, though it varies by card and issuer. You'll need to check your specific card's terms or contact your issuer to learn your cash advance limit.
Three factors make cash advances significantly costlier than regular purchases:
Cash advance fees — Most issuers charge a flat fee (often $5–$10) or a percentage of the amount (typically 3–5%), whichever is greater. A $300 cash advance might cost $10–$15 just in fees.
No grace period — Unlike regular purchases, interest on a cash advance starts accruing immediately. There's no interest-free window, even if you have a 0% introductory rate on purchases.
Higher interest rates — Cash advance APRs are typically higher than the rate for regular purchases. Your card might charge 18% APR on purchases but 24% APR on cash advances.
For example, a $300 cash advance with a 4% fee ($12) and 24% APR that you repay in 30 days could cost roughly $24 in combined fees and interest—far more than it costs to make a regular purchase.
Cash advances make sense in narrow situations:
If you need cash regularly or for routine expenses, a cash advance is almost always more expensive than using a debit card, visiting your bank, or using an ATM tied to a checking account.
Before taking a cash advance, explore lower-cost options:
| Option | Cost | Speed | Access |
|---|---|---|---|
| Debit card withdrawal | None | Immediate | Linked checking account required |
| Bank ATM | None (usually) | Immediate | Bank account required |
| Personal loan | Fixed rate, no fee spike | 1–3 days | Credit approval needed |
| Credit card balance transfer | Balance transfer fee | 1–7 days | Requires qualifying offer |
| Payday loan (high-risk) | Extremely high rates | Immediate | High cost, predatory terms |
Taking a cash advance doesn't directly hurt your credit score, but it does increase your credit utilization ratio (the amount you owe divided by your available credit), which can lower your score slightly. More importantly, it adds debt you must repay—often at high interest—which affects your monthly cash flow and total interest costs over time.
Before you proceed:
The answer to whether a cash advance is right for you depends on your specific financial situation, the urgency of your need, and whether you have alternatives. What matters is understanding the true cost before you commit.
