Getting cash from a credit card costs more than a purchase
You can withdraw cash using your credit card at an ATM, through a bank teller, or by using a cash advance service. The catch is that credit card cash advances charge fees and interest rates that are usually higher than what you pay on regular purchases. A cash advance fee typically runs 3% to 5% of the amount withdrawn, and interest starts accruing when ready — there is no grace period like there is for purchases.
Before you withdraw, understand that this is borrowing money at a premium cost. If you need cash urgently, a cash advance may be your only option. If you have time, other routes — a personal loan, a line of credit, or borrowing from someone you know — will almost always cost you less.
Key Takeaways
- Cash advances charge a fee (usually 3% to 5% of the amount) plus a higher interest rate than purchases, with interest starting when ready.
- You can get a cash advance at an ATM using your PIN, at a bank teller with your card and ID, or through a cash advance service like MoneyGram.
- Your credit card issuer sets a cash advance limit that may be lower than your overall credit limit, and you can find this limit in your account or by calling the card company.
- Interest on a cash advance accrues daily from the moment you withdraw it, so the longer you carry the balance, the more you pay.
ATM withdrawal: the most common method
The simplest way to get cash is to use an ATM with your credit card and PIN. Insert your card, enter your PIN, select "cash advance" or "withdraw cash" (the exact wording varies by ATM), and choose your amount. The ATM will dispense the cash and show you the fee before you confirm the transaction.
Not all ATMs accept credit cards for cash advances — some accept only debit cards. If you are unsure whether an ATM will work, use one at your credit card issuer's own bank or call the card company to ask which ATMs accept their cards for cash advances. Using an out-of-network ATM may add an extra fee on top of the cash advance fee.
Bank teller withdrawal: for larger amounts
You can also walk into a branch of your credit card issuer's bank and ask a teller for a cash advance. Bring your credit card and a government-issued ID. The teller will process the transaction, charge the same fee as an ATM would, and hand you the cash.
This method works well if you need a large amount and want to avoid multiple ATM visits, or if you want to ask questions about the fee or your cash advance limit before you proceed. Some banks will process this faster than an ATM, though the fee and interest rate remain the same.
Cash advance services and third-party options
Companies like MoneyGram and Western Union offer cash advances using a credit card, though they charge their own fees on top of your card issuer's fee. You pay the service's fee, then your credit card company charges you its fee, then interest starts accruing on the full amount. This route is the most expensive and should be used only if ATMs and bank branches are not available to you.
Some retailers like Walmart or grocery stores offer cash back when you make a purchase with a credit card, but this is not a cash advance — it is a purchase, so it does not carry the same high interest rate. If you can make a small purchase, this is a cheaper way to get cash in hand.
Understanding your cash advance limit and fees
Your credit card issuer sets a separate cash advance limit, which is often lower than your overall credit limit. You might have a $5,000 credit limit but only a $1,000 cash advance limit. To find your limit, log into your online account, check your card agreement, or call the customer service number on the back of your card.
The fee structure varies by card. A typical cash advance fee is a flat percentage — 3%, 4%, or 5% of the amount withdrawn — with a minimum fee (often $5 to $10). Some cards charge a flat dollar amount instead. The interest rate on cash advances is usually 2% to 5% higher than the rate on purchases, and it compounds daily. If your purchase APR is 18%, your cash advance APR might be 23%.
How interest accrues and what you will owe
Interest on a cash advance starts the day you withdraw it. Unlike a purchase, which may have a 21-day grace period before interest kicks in, a cash advance has no grace period. If you withdraw $500 on Monday and pay it back on Friday, you still owe interest for those five days.
The interest compounds daily, meaning each day's interest is added to the balance, and the next day's interest is calculated on the new, higher balance. A $500 cash advance at 23% APR costs roughly $3.15 per day in interest. If you carry it for a month, you owe about $95 in interest alone, plus the original 3% to 5% fee you paid upfront. This is why a cash advance should be treated as a short-term emergency measure, not a regular source of cash.
Alternatives that may cost less
Before you use a cash advance, consider other options. A personal loan from a bank or credit union typically charges 6% to 36% APR with no upfront fee, and interest does not start until you receive the money. A line of credit works similarly. Both allow you to borrow a larger amount and repay it over months or years, spreading the cost.
If you have a 0% introductory APR offer on your card, a cash advance does not may have access to for that rate — the higher cash advance rate applies when ready. A balance transfer to a 0% card also does not cover cash advances. If you need cash and have time to wait, a personal loan or a line of credit from your bank will almost always be cheaper than a credit card cash advance.
Frequently Asked Questions
Can I get a cash advance if my credit card is maxed out?
No. A cash advance counts against your available credit, just like a purchase does. If you have reached your credit limit, you cannot take a cash advance. You can only withdraw up to your cash advance limit, and only if you have available credit remaining.
Does a cash advance hurt my credit score?
A cash advance itself does not hurt your score, but carrying a high balance does. If you withdraw $500 and pay it back within a few days, the impact is minimal. If you carry the balance for months, your credit utilization ratio rises, which can lower your score. Paying late or defaulting will damage your score significantly.
What happens if I cannot pay back the cash advance?
The balance stays on your card and interest continues to accrue daily. If you miss payments, late fees are added, your interest rate may increase, and your credit score will drop. After 180 days of non-payment, the card issuer may charge off the account and sell the debt to a collection agency.
Can I use a cash advance to pay another credit card?
Technically yes, but it is expensive. You pay the cash advance fee and interest rate on the withdrawn amount, then use that cash to pay the other card. You are paying premium rates to move debt around. Paying down the original card directly, or using a balance transfer, is cheaper.
Is there a daily limit on how much I can withdraw?
Yes. Most credit card issuers set a daily ATM withdrawal limit, often $500 to $1,000 per day, separate from your cash advance limit. If you need more than the daily limit, you can make multiple withdrawals over several days, or visit a bank teller who may be able to process a larger amount in one transaction.