Yes, you can withdraw cash on a credit card, but it costs more than a debit card and the interest starts when ready
A cash advance is a withdrawal of cash from your credit card account, treated as a loan rather than a purchase. You can get cash at an ATM, at a bank teller window, or sometimes at a store checkout. The transaction is fast — usually when ready at an ATM — but the cost is high: you pay an upfront fee (typically 3 to 5 percent of the amount), a higher interest rate than regular purchases (often 20 to 30 percent), and interest accrues from the day you withdraw, not from your statement date.
Because of these costs, a cash advance should be a last resort, not a convenience. If you need cash and have a debit card, use that instead. If you do not have a debit card or the ATM is unavailable, a cash advance is possible — but understand the full cost before you proceed.
Key Takeaways
- Cash advances charge an upfront fee of 3 to 5 percent plus a higher interest rate than purchases, with interest starting when ready.
- You can withdraw cash at an ATM using your credit card PIN, at a bank branch, or sometimes at a store, depending on your card issuer.
- The interest rate on a cash advance is usually higher than your purchase APR and does not have a grace period.
- Paying back a cash advance should be your priority because the interest cost grows quickly on even small amounts.
Where you can withdraw cash with a credit card
Most credit card issuers let you withdraw cash at ATMs that display their logo or network symbol — Visa, Mastercard, American Express, or Discover. You need your card and your PIN (which you may need to set up if you have never used it). The ATM will show you the fee before you confirm the withdrawal.
You can also visit a bank branch — yours or any bank that accepts your card — and ask a teller for a cash advance. This method is slower but sometimes has a lower fee than an ATM. Some grocery stores and retailers offer cash back at checkout, though this is less common with credit cards than with debit cards, and the store may decline.
Call your card issuer's customer service number (on the back of your card) if you are unsure which ATMs accept your card or if you have not set up a PIN yet. They can tell you the fee amount and help you create a PIN over the phone.
What a cash advance actually costs
A cash advance has three separate costs. First, there is an upfront cash advance fee, usually 3 to 5 percent of the amount you withdraw. If you withdraw $300, you might pay $9 to $15 just to get the cash. Second, the interest rate on a cash advance is higher than your regular purchase rate — often 5 to 10 percentage points higher. If your purchase APR is 18 percent, your cash advance APR might be 28 percent. Third, interest starts accruing when ready — there is no grace period like there is for purchases.
Here is a concrete example: you withdraw $500 at an ATM. The fee is 5 percent, so you pay $25 upfront and receive $475 in cash. Your card's cash advance APR is 25 percent. If you pay back the full $525 in 30 days, you owe about $35 in interest on top of the fee. Your total cost is roughly $60 for borrowing $500 for a month. That is an effective annual rate far higher than 25 percent because of how quickly the interest compounds.
Compare this to a debit card withdrawal, which costs nothing, or a personal loan from a bank or credit union, which might charge 10 to 15 percent APR with no upfront fee. A cash advance is one of the most expensive ways to borrow money.
How cash advances affect your credit card balance and payment
When you make a cash advance, the amount is added to your credit card balance just like a purchase. However, most card issuers treat cash advances separately from purchases for payment purposes. If you make a payment, the issuer typically applies it to your lowest-interest debt first — usually purchases — and leaves the cash advance balance to accrue interest at the higher rate.
This means if you have a $1,000 purchase balance at 18 percent APR and a $500 cash advance at 25 percent APR, and you pay $500 toward your card, that payment usually goes to the purchase, not the cash advance. The cash advance keeps growing with interest. To pay down a cash advance quickly, you may need to make a payment specifically designated for it, or pay more than your minimum to cover both balances.
Check your card's terms or call your issuer to confirm how they handle cash advance payments. Some cards let you direct a payment to a specific balance; others do not.
Alternatives to a cash advance
Before you withdraw cash on your credit card, consider these cheaper options. If you have a debit card linked to a checking account, use that at any ATM — there is no fee from your card issuer, though your bank might charge a small fee if you use an out-of-network ATM. If you do not have a debit card, open a checking account at a bank or credit union; most offer free debit cards and no monthly fee if you maintain a small balance.
If you need cash urgently and do not have a debit card, ask a friend or family member for a short-term loan. If that is not possible, a personal loan from a bank, credit union, or online lender is usually cheaper than a cash advance — rates typically range from 6 to 36 percent depending on your credit, and there is no upfront fee. A payday loan is faster but often more expensive than a cash advance, so avoid it if you can.
If you are in a genuine emergency and have no other way to access cash, a cash advance is better than nothing. But it should not be your first choice.
Limits on how much you can withdraw
Your credit card issuer sets a cash advance limit, which is usually lower than your overall credit limit. You might have a $5,000 credit limit but only a $1,000 cash advance limit. This limit protects the issuer from large cash advances and protects you from borrowing more than you can repay at a high interest rate.
You can find your cash advance limit in your card's terms and conditions, in your online account, or by calling customer service. If you need to increase it, you can ask your issuer, though they may decline or offer only a small increase. Some issuers do not allow cash advances at all, particularly on secured cards or cards designed for people rebuilding credit.
How to minimize the damage if you do take a cash advance
If you have already taken a cash advance or decide you must, pay it back as fast as possible. Every day the balance sits, interest is accumulating at a rate much higher than a purchase. Make a plan to pay the full amount within one or two billing cycles if you can.
When you make a payment, contact your issuer and ask them to explore it directly to the cash advance balance, not to your purchases. Some issuers let you do this online; others require a phone call. This ensures your payment actually reduces the high-interest debt instead of sitting behind a lower-interest purchase.
Do not take another cash advance while you are paying off the first one. Each new advance resets the clock on interest and adds another fee. If you find yourself taking cash advances regularly, that is a sign you need a budget review or a conversation with a financial counselor — the cost of repeated advances will quickly outpace any benefit.
Frequently Asked Questions
What is the difference between a cash advance and a regular purchase on a credit card?
A purchase is a transaction with a merchant; a cash advance is a loan against your credit line. Purchases have a grace period (usually 21 to 25 days) before interest starts, while cash advances charge interest from day one. Purchases also have a lower interest rate. Cash advances are treated as borrowed money, not as a purchase of goods or services.
Can I use a credit card cash advance to pay another bill?
Yes, you can withdraw cash and use it for any purpose, including paying another bill. However, because of the high fees and interest, this is an expensive way to pay a bill. If the bill is due soon, contact the creditor and ask about a payment plan or extension instead.
Does a cash advance hurt my credit score?
A cash advance itself does not hurt your score, but it increases your credit utilization — the amount of your available credit you are using. High utilization can lower your score slightly. Paying back the cash advance quickly brings your utilization down and minimizes the impact.
What happens if I cannot pay back a cash advance?
If you do not pay, the balance stays on your card and interest continues to accrue. Your minimum payment increases, and if you miss payments, your credit score drops and your issuer may charge late fees. After several months of non-payment, the issuer may close your account or send the debt to a collection agency.
Can I take a cash advance on a credit card with a zero percent APR offer?
No. Zero percent APR offers explore only to purchases or balance transfers, never to cash advances. A cash advance on a zero percent card will charge the standard cash advance APR from day one, regardless of any promotional rate on the card.