What it means to pull money off a credit card
Pulling money off a credit card means taking out cash using your card at an ATM, through a bank teller, or sometimes at a store checkout. This is called a cash advance. Unlike a regular purchase, a cash advance charges you interest when ready — there is no grace period where you pay nothing. The interest rate is usually higher than your regular purchase rate, and many cards charge an upfront fee of 3 to 5 percent of the amount you withdraw.
You should know this is expensive borrowing. If you need $200 and your card charges a 4 percent fee plus 24 percent annual interest, you will owe $208 when ready plus interest that starts accruing the same day. Most people use cash advances only when they have no other option — an unexpected car repair, a medical bill, or a time when their debit account is temporarily empty.
Key Takeaways
- A cash advance charges interest from day one with no grace period, and the interest rate is typically higher than your purchase rate.
- Most cards charge an upfront fee of 3 to 5 percent of the amount withdrawn, on top of daily interest.
- You can withdraw cash at an ATM using your PIN, at a bank teller with your card and ID, or sometimes at a store register.
- Your credit card company sets a separate cash advance limit that may be lower than your total credit limit.
- Paying off a cash advance should be your priority because the interest cost grows faster than on regular purchases.
Where you can withdraw cash using your credit card
The most common way is at an ATM. Insert your card, enter your PIN, and select the cash withdrawal option. The ATM will show you the fee your card issuer charges (usually $2 to $5 per transaction) plus any fee the ATM owner charges. You can withdraw up to your cash advance limit, which your card company sets separately from your regular credit limit — it is often much lower, sometimes 20 to 30 percent of your total limit.
You can also go to a bank teller. Bring your credit card and a photo ID. Tell the teller you want a cash advance. They will process it the same way an ATM does, but you may avoid the ATM operator fee if you use your card issuer's own bank. Some grocery stores and pharmacies offer cash back at checkout when you make a purchase, though this is technically a debit transaction, not a credit card cash advance — it does not trigger the same fees or interest.
Fees and interest rates you will pay
Every cash advance costs you money upfront. The cash advance fee is a percentage of the amount you withdraw — typically 3 to 5 percent — charged when ready to your account. A $300 withdrawal with a 4 percent fee costs you $12 right away. Some cards have a flat fee instead (like $10 per advance) or a combination of both, whichever is higher.
The interest rate starts the day you withdraw the cash. There is no grace period. If your card's cash advance rate is 24 percent annual percentage rate (APR), that is roughly 2 percent per month. On a $300 advance, you owe about $6 in interest after 30 days, plus the original $12 fee. The longer you carry the balance, the faster the cost grows. Most cards charge a higher APR for cash advances than for regular purchases — sometimes 5 to 10 percentage points higher.
How to find your cash advance limit and rate
Log into your credit card account online or call the customer service number on the back of your card. Ask for your cash advance limit and your cash advance APR. Write both down. Your cash advance limit is the maximum you can withdraw; it is not the same as your total credit limit. If your total limit is $5,000, your cash advance limit might be only $1,500.
You can also check your card's terms and conditions document, which you received when you opened the account or can read from your card issuer's website. Look for the section labeled "Cash Advances" or "Fees and Interest Rates." The document will list the cash advance fee percentage, the APR, and any other terms specific to cash withdrawals.
Why a cash advance is more expensive than other borrowing
Compare a cash advance to other ways you might borrow money. A personal loan from a bank or credit union typically charges 8 to 20 percent APR with no upfront fee. A payday loan charges a fee but is meant to be repaid in two weeks. A cash advance on a credit card charges both an upfront fee and a high APR, and you can carry the balance indefinitely while interest compounds.
The math matters. A $500 cash advance at 24 percent APR with a 4 percent fee costs you $20 upfront plus roughly $10 in interest per month if you do not pay it down. After six months of minimum payments, you may have paid $80 or more in fees and interest alone. If you borrowed $500 from a credit union at 15 percent APR with no fee, the same six months would cost you roughly $37 in interest. That is more than half the cost.
Strategies to pay off a cash advance quickly
Once you withdraw the cash, treat paying it back as your top priority. The interest clock is running from day one. If you have other credit card balances, pay those first only if they have a lower interest rate — which is rare for cash advances. Most of the time, your cash advance is the most expensive debt you carry.
If you have money coming in soon — a paycheck, a tax refund, a bonus — wait for it if you can, then pay the entire cash advance balance at once. This stops the interest from compounding. If you must make payments over time, pay more than the minimum. A $500 advance at 24 percent APR will take you roughly 18 months to pay off if you only make minimum payments, and you will pay over $200 in interest. Paying $100 per month instead gets you out of debt in five months with roughly $50 in interest.
Alternatives to a cash advance
Before you withdraw cash on your credit card, explore other options. If you need cash for an emergency, ask family or friends for a short-term loan with no interest. If you need money for a specific bill, contact the creditor and ask about a payment plan or hardship program — many utilities, medical offices, and landlords will work with you rather than send you to collections.
If you have a bank account, check whether your bank offers an overdraft line of credit or overdraft protection. This is cheaper than a cash advance and is designed for exactly this situation. Some employers offer paycheck advances or emergency loans to employees. If you have a 401(k), you may be able to borrow against it, though this has tax consequences you should understand first. A personal loan from a credit union or online lender is almost always cheaper than a cash advance, even if your credit is not perfect.
Frequently Asked Questions
Can I use a credit card cash advance to pay another bill?
Yes, you can withdraw the cash and use it for any purpose — rent, a car repair, a medical bill. However, the high fees and interest make this an expensive way to borrow. If the bill is from a creditor who accepts credit cards, paying directly with the card (a purchase, not a cash advance) is cheaper because purchases usually have a lower interest rate and a grace period.
What happens if I only make the minimum payment on a cash advance?
The balance will take a long time to pay off and you will pay far more in interest than the amount you borrowed. A $500 cash advance at 24 percent APR with only minimum payments can take 18 months or longer to clear, costing you $200 or more in interest alone. Paying more than the minimum is strongly recommended.
Does a cash advance hurt my credit score?
A cash advance itself does not hurt your score, but carrying a high balance does. If the advance pushes your total credit card balance close to your limit, your credit utilization ratio increases, which can lower your score. Paying it off quickly keeps this damage minimal.
Can I get a cash advance if my card is maxed out?
No. Your cash advance limit is separate from your regular credit limit, but you still need available credit to use it. If your total limit is $5,000 and you have charged $5,000, you cannot withdraw a cash advance even if your cash advance limit is $1,500.
Is there a way to avoid the cash advance fee?
Not through the card itself — the fee is built into the cash advance product. However, you can avoid the fee entirely by not taking a cash advance. If you need cash, look for a personal loan, ask your bank about an overdraft line, or borrow from family instead.