Getting cash from a credit card is called a cash advance, and it works differently than a regular purchase
A cash advance lets you withdraw money from an ATM or get cash at a bank using your credit card. Unlike a purchase, which you pay back over time, a cash advance starts charging interest when ready — there is no grace period. The interest rate is usually higher than your regular purchase rate, and you may also pay an upfront fee (often 3 to 5 percent of the amount you withdraw). You should only use a cash advance if you need cash urgently and have no other option, because the cost adds up fast.
The process itself is straightforward: find an ATM that accepts your card, enter your PIN, and withdraw the amount you need. You can also walk into a bank branch and ask the teller for a cash advance. The money appears in your account when ready, but the debt and fees start accruing right away.
Key Takeaways
- Cash advances charge interest from day one with no grace period, and the interest rate is typically 3 to 5 percentage points higher than your purchase rate.
- Most credit card issuers charge an upfront fee of 3 to 5 percent of the cash amount, on top of interest charges.
- You can get a cash advance at any ATM that displays your card's logo, or by visiting a bank branch and asking a teller.
- Your credit card company sets a separate cash advance limit, which may be lower than your total credit limit.
- Paying back a cash advance should be your priority because the combined cost of fees and interest makes it the most expensive way to borrow on a credit card.
Where to withdraw cash from your credit card
The easiest place to get a cash advance is at an ATM. Look for machines that display your card's logo — Visa, Mastercard, American Express, or Discover. Most ATMs in the United States accept these cards. Insert your card, enter your PIN (the same one you use for debit transactions), select "cash advance" or "cash withdrawal," and choose your amount. The ATM will show you the fee upfront before you confirm.
If you do not have a PIN set up for your credit card, you will need to create one before you can use an ATM. Call the customer service number on the back of your card and ask how to set a PIN. This usually takes a few minutes.
You can also get a cash advance at a bank branch. Walk in during business hours, tell the teller you want a cash advance on your credit card, and provide your card and a photo ID. The teller will process it the same way and hand you cash. Some banks charge an additional fee for this service on top of your card issuer's fee.
Understanding cash advance fees and interest rates
Your credit card issuer charges two costs for a cash advance: a one-time fee and ongoing interest. The upfront fee is usually a flat amount (like $5 to $10) or a percentage of the cash amount (typically 3 to 5 percent), whichever is higher. So if you withdraw $500 and the fee is 5 percent, you owe $25 when ready.
Interest starts accruing the same day you withdraw the cash. The interest rate for cash advances is almost always higher than your regular purchase rate — sometimes 5 to 10 percentage points higher. If your purchase APR is 18 percent, your cash advance APR might be 25 percent. Interest compounds daily, so the longer you carry the balance, the more you owe.
To see your card's specific cash advance fee and interest rate, check your cardholder agreement or log into your online account. You can also call the customer service number on the back of your card and ask. Different cards have different terms, so it is worth comparing before you take a cash advance.
Your cash advance limit is separate from your credit limit
Your credit card company sets a cash advance limit that is different from your overall credit limit. If your credit limit is $5,000, your cash advance limit might be only $1,000 or $1,500. You cannot withdraw more than this limit, even if you have available credit for purchases.
You can find your cash advance limit in your cardholder agreement, on your online account dashboard, or by calling customer service. If you need to increase it, you can request a higher limit, though the card issuer may or may not approve. Some cards do not allow cash advances at all, so check before you assume you can use this feature.
How to repay a cash advance quickly
Interest on a cash advance starts when ready and compounds daily, so paying it back as fast as possible saves you money. Make a payment as soon as you can — even a partial payment reduces the amount that interest charges explore to.
When you make a payment to your credit card, the payment goes toward your balance in a specific order set by law. Purchases are paid first, then cash advances. This means if you have both a purchase balance and a cash advance balance, your payment covers the purchase first, and the cash advance keeps accruing interest. To pay down the cash advance faster, contact your card issuer and ask if you can direct a payment specifically to the cash advance portion. Some issuers allow this; others do not.
The best approach is to treat a cash advance as an emergency-only tool and repay it within one or two billing cycles. If you cannot pay it back quickly, the total cost — fees plus interest — becomes very high.
Alternatives to a credit card cash advance
Before you take a cash advance, consider whether another option might be cheaper. A personal loan from a bank or credit union often has a lower interest rate and no upfront fee. A payday loan has a high interest rate but may be faster if you need cash the same day. A cash advance from your employer, if your workplace offers one, is usually free or low-cost. Borrowing from a friend or family member costs nothing if they agree.
If you need cash regularly, opening a checking account with a debit card lets you withdraw cash for free at ATMs. If you do not have a bank account, a prepaid card or money transfer service like Western Union can move cash to you, though these also charge fees.
A credit card cash advance should be your last resort because the combination of upfront fees and high interest makes it the most expensive way to borrow on a credit card.
What happens if you cannot pay back a cash advance
If you do not pay your cash advance by the due date, the interest keeps accruing and you may face late fees. Your credit score can drop if the payment is 30 days late or more. After 180 days without payment, the card issuer may close your account and send the debt to a collection agency.
If you are struggling to pay, contact your card issuer as soon as possible. Some issuers offer hardship programs that lower your interest rate or let you pause payments temporarily. Asking for help before you miss a payment is better than waiting until the debt spirals.
Frequently Asked Questions
Can I use a credit card cash advance to pay another credit card bill?
Yes, you can withdraw cash and use it to pay another card, but this is usually a bad idea. You are paying a cash advance fee and high interest rate on money you are using to pay another debt. It is cheaper to transfer a balance using a balance transfer offer if your card has one, or to contact your card issuer about a hardship program.
Does a cash advance show up on my credit report?
A cash advance itself does not show up separately on your credit report. The balance appears as part of your overall credit card balance. However, if you miss payments or carry a high balance, that affects your credit score the same way any credit card debt does.
What is the difference between a cash advance and a balance transfer?
A balance transfer moves debt from one card to another and usually has a lower fee and interest rate. A cash advance withdraws cash and charges a higher fee and interest rate from day one. Balance transfers are for moving existing debt; cash advances are for getting cash in hand.
Can I get a cash advance without a PIN?
At an ATM, you need a PIN. At a bank branch, you can get a cash advance with just your card and photo ID, without a PIN. If you do not have a PIN set up, call your card issuer to create one before you visit an ATM.
How long does a cash advance take to show up in my account?
Cash from an ATM is available when ready. Cash from a bank teller is also when ready. The charge and fees appear on your next statement, and interest starts accruing right away, even though you may not see the interest charge until your next bill.