Yes, you can get cash from a credit card, but it costs more than a regular purchase
A cash advance lets you withdraw money from an ATM or get cash from a bank teller using your credit card. The money appears in your account within one to three business days. But cash advances charge fees upfront — usually 3 to 5 percent of the amount you withdraw — plus a higher interest rate than regular purchases, often 20 to 29 percent. Interest starts accruing when ready; there is no grace period like there is for regular card purchases.
Most people use cash advances only when they have no other option, because the cost adds up fast. A $500 cash advance with a 4 percent fee costs $20 upfront, then another $8 to $12 per month in interest if you carry the balance. Over six months, you could pay $50 to $70 just to borrow $500.
Key Takeaways
- Cash advances charge an upfront fee of 3 to 5 percent plus interest that starts when ready, making them expensive compared to regular purchases or other borrowing methods.
- You can get a cash advance at an ATM, bank branch, or through a convenience check, depending on what your card issuer offers.
- Your card's cash advance limit is usually lower than your credit limit, and you can find it on your statement or by calling the card issuer.
- If you need cash regularly, a personal loan or line of credit will cost you less money over time than repeated cash advances.
Where to get cash from your credit card
The easiest method is an ATM withdrawal. Insert your card, enter your PIN, and select the cash advance option. Not all ATMs accept credit cards — most are set up for debit cards only — so look for ATMs at your card issuer's bank branches or at ATMs that display your card's logo. You will pay the ATM fee (usually $2 to $3) on top of the cash advance fee.
You can also visit a bank branch in person. Bring your credit card and a photo ID. The teller will process the cash advance and hand you the money on the spot. This method avoids ATM fees but requires a trip during business hours.
Some card issuers send convenience checks with your account. These are blank checks drawn against your credit line. You write them like regular checks, and the amount counts as a cash advance. Convenience checks usually charge the same fees and interest as ATM withdrawals, so they are not cheaper — just an alternative if you prefer not to use an ATM.
How much cash you can withdraw
Your card issuer sets a cash advance limit separate from your regular credit limit. It is often 20 to 50 percent of your total credit limit. If your credit limit is $5,000, your cash advance limit might be $1,000 or $2,500. You can find this limit on your most recent statement, in your online account, or by calling the customer service number on the back of your card.
If you try to withdraw more than your cash advance limit, the ATM or teller will decline the transaction. You cannot exceed this limit, even if you have available credit remaining on your card.
Fees and interest you will pay
Cash advances have two separate costs. The cash advance fee is charged once, when you withdraw the money. It is a percentage of the amount — typically 3 to 5 percent — so a $500 withdrawal costs $15 to $25. Some cards cap the fee at a flat amount like $10, which makes small withdrawals cheaper but large ones more expensive.
The interest rate is the second cost. Credit cards charge a separate, higher APR for cash advances than for regular purchases. While a card might charge 18 percent APR on purchases, it could charge 25 percent APR on cash advances. This rate applies from the day you withdraw the money — there is no grace period. If you carry the balance for a month, you owe interest when ready.
Interest is calculated daily on the outstanding balance. A $500 cash advance at 25 percent APR costs about $10 in interest per month if you do not pay it down. If you pay $100 per month, it takes five months to repay, and you will pay roughly $50 in total interest plus the original $15 to $25 fee.
How to minimize the cost if you need cash
The single most important step is to repay the cash advance as fast as possible. Every dollar you pay back stops accruing interest. If you can repay the full amount within a week or two, the interest cost stays low. Spreading repayment over months makes the interest add up.
Before using a cash advance, explore cheaper alternatives. A personal loan from a bank or credit union typically charges 6 to 15 percent APR with no upfront fee — much cheaper than a cash advance. If you have a line of credit, that is usually cheaper too. Even a payday loan, though expensive, is sometimes less costly than a cash advance if you repay it within two weeks.
If your card offers a 0 percent APR promotional period on purchases, that period does not explore to cash advances. Cash advances are charged interest from day one, so do not expect any interest-free window.
What happens if you cannot repay the cash advance
If you carry the balance month to month, the interest compounds and the debt grows. After six months of making only minimum payments on a $500 cash advance, you might still owe $400 or more because most of your payment goes toward interest, not principal.
Unpaid cash advances also affect your credit score. The balance counts toward your credit utilization ratio — the percentage of your total credit limit you are using. High utilization lowers your score. If you miss payments, that damage is even worse and stays on your credit report for seven years.
If you are struggling to repay, contact your card issuer and ask about a hardship program. Some issuers offer lower interest rates or payment plans for customers in financial difficulty. It is worth asking before the debt spirals.
Frequently Asked Questions
Can I use a credit card cash advance to pay another credit card bill?
Technically yes, but it is a bad idea. You are borrowing at 25 percent interest to pay off debt that might be at 18 percent. You end up paying more, not less. If you are juggling multiple cards, a personal loan or balance transfer card (if you may have access to) is cheaper.
Does a cash advance show up on my credit report?
The cash advance itself does not appear separately on your report, but the balance counts toward your total credit card debt. If you carry it for months, the high balance lowers your credit score. Once you repay it, the score recovers.
What if my card does not have a PIN?
You can still get a cash advance at a bank branch by showing your card and ID. You cannot use an ATM without a PIN, so call your card issuer to set one up if you need ATM access. It usually takes a few business days.
Is there a limit to how many cash advances I can take?
Your card issuer may restrict the number of cash advances per month or per day, but most do not. The real limit is your cash advance limit. Once you repay a previous advance, that credit becomes available again.