You can withdraw cash from a credit card, but it costs more than a regular purchase
A cash advance is a withdrawal of cash from your credit card account. Unlike a purchase, which goes on your bill, a cash advance pulls money directly from your available credit. The card issuer treats it as a loan against your credit limit, and you pay interest on it when ready — usually at a higher rate than you pay on purchases.
You can get a cash advance at an ATM using your credit card and PIN, at a bank teller window, or through a cash advance check that comes with some credit cards. The money appears in your account within one to three business days, depending on your bank. But the cost is steep: most cards charge a fee (usually 3 to 5 percent of the amount withdrawn) plus a higher interest rate that starts accruing right away, with no grace period.
Key Takeaways
- Cash advances charge a separate, higher interest rate than purchases, and interest starts accruing when ready with no grace period.
- You pay an upfront fee — typically 3 to 5 percent of the amount withdrawn — on top of the interest.
- You can withdraw cash at an ATM, a bank branch, or through a cash advance check, depending on what your card issuer offers.
- A $300 cash advance at 5 percent fee plus 25 percent APR costs you $15 upfront and about $6 in interest per month if you carry the balance.
Where you can actually withdraw the cash
The most common method is an ATM. Insert your credit card, enter your PIN, select "cash advance" or "withdrawal," and choose your amount. The ATM will show you the fee before you confirm. This works at most ATMs that accept your card's network (Visa, Mastercard, American Express, or Discover), though some ATMs charge an additional operator fee on top of your card issuer's fee.
You can also visit a bank branch — yours or any bank that accepts your card — and ask a teller for a cash advance. Bring your card and ID. The teller will process it the same way an ATM does, but you may have a conversation about the fee first, which at least gives you a chance to reconsider.
Some credit cards come with cash advance checks in the mail. You write a check against your credit line, deposit it into your bank account, and the amount shows up as a cash advance on your credit card bill. This method takes longer (three to five business days) but can be useful if you need to move money between accounts without visiting an ATM.
The real cost: fees and interest rates
Every cash advance has two costs. The first is an upfront cash advance fee, charged the moment you withdraw. This is usually 3 to 5 percent of the amount, though some cards charge a flat fee (like $10) if that is higher. A $500 withdrawal at 4 percent costs you $20 when ready.
The second cost is interest. Cash advances carry a separate, higher APR (annual percentage rate) than purchases — often 5 to 10 percentage points higher. If your purchase APR is 18 percent, your cash advance APR might be 25 percent. Interest starts accruing the day you withdraw, with no grace period. That same $500 at 25 percent APR costs you about $10 in interest per month if you do not pay it down.
Together, a $500 cash advance at 4 percent fee and 25 percent APR costs you $20 upfront plus roughly $10 in the first month of interest. If you carry the balance for six months, you will pay $20 in fees plus about $60 in interest — a total of $80 on a $500 withdrawal.
How to check your cash advance limit and APR
Your credit card issuer sets a separate 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. Check your limit by logging into your online account, calling the customer service number on the back of your card, or looking at your most recent statement.
Your cash advance APR is also listed in your account or on your statement under "APRs and Fees." Write it down so you know exactly what you will pay. Some cards offer a promotional period (like 0 percent APR on cash advances for 60 days), though these are rare and usually only for new cardholders.
When a cash advance makes sense — and when it does not
A cash advance is almost never the cheapest way to borrow money. A personal loan, a line of credit, or even a payday loan from a credit union typically costs less. But there are narrow situations where it is the fastest option: you need cash urgently, you have no other access to credit, and you can pay it back within a month or two.
A cash advance does not make sense if you are already carrying a balance on your card, because the new cash advance will accrue interest at the higher rate while your old balance sits there. It also does not make sense if you are using it to pay another credit card or to cover regular expenses — that is a sign you need a different solution, like a budget review or a conversation with a credit counselor.
Alternatives that cost less
If you need cash but want to avoid the cash advance fee and high interest, consider these options instead. A personal loan from a bank or credit union usually has a lower APR (often 6 to 36 percent, depending on your credit) and no upfront fee. You borrow a fixed amount, make fixed monthly payments, and the interest is lower overall.
A balance transfer to a card with a 0 percent promotional period can work if you are moving debt from one card to another, though you will still pay a 3 to 5 percent transfer fee. A line of credit from a bank or credit union lets you borrow and repay flexibly, often at a lower rate than a cash advance.
If you are in a genuine emergency and have no other options, a credit union loan or credit union cash advance (called a "payday alternative loan" or PAL) is usually cheaper than a credit card cash advance. Credit unions cap the fee at $20 and the APR at 28 percent, and you can borrow up to $1,000.
How to pay off a cash advance quickly
Once you have withdrawn the cash, your priority is to pay it back as fast as possible. The interest clock is running from day one. Make a payment as soon as you can — even a partial payment reduces the balance and the interest you will owe.
When you make a payment to your credit card, the issuer applies it to your balance in a specific order set by law: first to the highest-interest debt (usually the cash advance), then to purchases. This works in your favor — your payment goes straight to the cash advance, not to a lower-interest purchase balance. If you have both a cash advance and a purchase balance, your payment will chip away at the cash advance first.
If you cannot pay the full amount back within a month, reconsider whether you should have taken the cash advance in the first place. The longer you carry it, the more you pay in interest, and the harder it becomes to escape the debt cycle.
Frequently Asked Questions
Can I use a credit card cash advance to pay off another credit card?
Technically yes, but it is a bad idea. You will pay the cash advance fee plus the higher cash advance APR, and you are not actually reducing your total debt — you are just moving it and paying more to do so. If you need to consolidate credit card debt, a personal loan or balance transfer is cheaper.
What happens if I do not pay back the cash advance?
The balance stays on your credit card and accrues interest every month. It will also show up on your credit report and damage your credit score. If you miss payments, the card issuer can raise your APR, close your account, or send the debt to a collection agency.
Is there a limit to how much I can withdraw?
Yes. Your card issuer sets a cash advance limit, which is separate from and usually lower than your overall credit limit. Check your account to see your limit. Some ATMs also have daily withdrawal limits, which may be lower than your card's limit.
Do I have to use my PIN to get a cash advance?
At an ATM, yes — you need your PIN. At a bank branch, you can ask a teller for a cash advance without a PIN, though you will need your card and ID. Cash advance checks do not require a PIN.
Will a cash advance hurt my credit score?
A single cash advance will not directly hurt your score, but it will increase your credit utilization (the percentage of your available credit you are using), which can lower your score slightly. If you miss payments or carry the balance for a long time, the damage will be much worse.