Yes, you can get cash from your credit card, but it is not the same as using it to buy something
A cash advance is when you withdraw money directly from your credit card's available balance, usually at an ATM, bank teller, or through a convenience check. The money goes into your pocket or bank account as actual cash — not a purchase you can return or dispute.
The catch: cash advances charge you fees and interest rates that are almost always higher than what you pay for regular purchases. Most cards charge a flat fee (often $5 to $10) plus a percentage of the amount (usually 3 to 5 percent). The interest rate on cash advances is typically 2 to 3 percentage points higher than your purchase rate, and it starts accruing when ready — there is no grace period like there is for regular charges.
If you need cash urgently, a cash advance might be your only option. But if you have other choices, they are usually cheaper.
Key Takeaways
- Cash advances charge a separate fee (usually 3 to 5 percent of the amount) plus a higher interest rate than purchases, with no grace period.
- You can get a cash advance at an ATM using your PIN, at a bank teller with your card and ID, or by depositing a convenience check.
- The interest starts the day you withdraw the money, so carrying a balance on a cash advance costs significantly more than carrying a purchase balance.
- Personal loans, payday loans, and borrowing from friends or family are often cheaper alternatives, depending on your credit and timeline.
- Your credit card statement will show cash advances separately from purchases, and they count toward your credit utilization ratio.
Three ways to actually get the cash
The method depends on where you are and what your card issuer allows. Check your card's website or call the number on the back to confirm your card supports cash advances before you try.
ATM withdrawal: Insert your card into an ATM that accepts your card network (Visa, Mastercard, American Express, Discover). Enter your PIN and select "cash advance" or "withdraw cash." The ATM will show you the fee and ask you to confirm. You will get cash when ready, but the fee appears on your next statement. Most ATMs limit how much you can withdraw in a single transaction — often $500 to $1,000 — and daily limits may explore.
Bank teller: Walk into any bank branch (yours or another bank) with your credit card and a photo ID. Tell the teller you want a cash advance. They will process it like a withdrawal and hand you cash. This method works even if you do not have a PIN set up, and you can sometimes withdraw larger amounts than an ATM allows. The fee still applies.
Convenience checks: Your card issuer may send you blank checks tied to your credit card account. You write one like a regular check, deposit it into your bank account, and the amount becomes a cash advance on your card. This is slower than an ATM (it takes a few days to clear) but useful if you need to move money into your checking account without visiting an ATM.
What the fees and interest actually cost you
The math matters because cash advances are expensive. Say you withdraw $500 at an ATM. Your card charges a 5 percent cash advance fee ($25) and a 25 percent annual interest rate on cash advances (compared to 18 percent on purchases). If you pay back the $525 over three months without making any other charges, you will pay roughly $32 in interest — bringing your total cost to $57 for borrowing $500.
That same $500 as a purchase at 18 percent interest would cost you about $23 in interest over three months. The difference is $34 — not huge in this example, but it adds up if you are regularly taking cash advances or carrying the balance longer.
The worst scenario is carrying a cash advance balance while also making new purchases. Your payment goes toward the lowest-interest debt first (usually purchases), so the cash advance sits there accruing interest at the higher rate while you pay down the cheaper debt. This can trap you in a cycle where the cash advance never shrinks.
How a cash advance affects your credit and account
A cash advance counts toward your credit utilization ratio — the percentage of your total credit limit you are using. If you have a $5,000 limit and take a $1,000 cash advance, your utilization jumps to 20 percent. High utilization can lower your credit score, even if you pay it back quickly.
The cash advance also appears separately on your statement from regular purchases. This does not hurt you directly, but it makes it easier to see how much you are borrowing and at what rate. Some card issuers set a separate limit for cash advances — you might have a $5,000 purchase limit but only a $1,000 cash advance limit on the same card.
Unlike a purchase dispute, you cannot dispute a cash advance you authorized. Once the money is in your account, it is yours to repay. This is why it is important to only take a cash advance if you genuinely need the cash and have a plan to pay it back.
Cheaper alternatives to consider first
Before you take a cash advance, explore these options:
Personal loan: If you have decent credit, a personal loan from a bank or online lender often charges 8 to 15 percent interest — lower than most cash advance rates. The loan is fixed-term (you know exactly when it ends) and the fee is built in, so there are no surprises. The downside is the process takes a few days, so this does not work if you need cash today.
Borrow from a friend or family member: This is free if they agree to it, but it risks the relationship if you cannot repay. If you do borrow, put the terms in writing — how much, when you will repay, and whether there is interest. This protects both of you.
Paycheck advance from your employer: Some employers offer advances on your next paycheck at no cost. Ask your HR or payroll department if this is an option. It is the cheapest route if available.
Payday loan: These are short-term loans (usually two weeks) with very high interest rates (often 400 percent APR or higher). They are worse than cash advances in almost every way and should be a last resort. The only advantage is speed — you can get the money the same day.
When a cash advance might actually make sense
Cash advances are expensive, but there are rare situations where they are the right choice:
You have an emergency and no other way to get cash quickly. Your car breaks down, you need to pay a medical bill, or you have an unexpected expense and your bank is closed. A cash advance gets you money in minutes, whereas a personal loan takes days and a payday loan has worse terms.
You are paying off debt and a cash advance is cheaper than your other options. If you have a 30 percent interest rate on a credit card and a 25 percent rate on a cash advance from another card, the cash advance is technically cheaper — though the better move is to pay down the 30 percent debt first.
You need cash for a specific reason your card will not cover. Some merchants do not take cards (small vendors, some landlords, certain services). A cash advance is the fastest way to get the money without a trip to your bank.
In all these cases, the key is to repay the cash advance as fast as possible. Every day you carry the balance, the interest compounds.
How to minimize the damage if you do take a cash advance
If you have decided a cash advance is necessary, these steps reduce the cost:
Pay it back when ready. The interest starts the day you withdraw the money, so every day you carry the balance costs you. If you can repay it within a week, do it. If you can repay it within a month, the cost is manageable. Anything longer and you are paying significantly more than you borrowed.
Do not make new purchases on the same card while you have a cash advance balance. Your payment will go toward the purchase first (the lower-interest debt), leaving the cash advance to accrue interest. If you need to use the card, use a different one.
Withdraw only what you need. The fee is a percentage, so a $100 advance costs less than a $500 advance. If you can get by with less cash, do it.
Check whether your card issuer offers a lower cash advance rate for certain types of withdrawals. Some cards charge less for ATM withdrawals than for convenience checks, or vice versa. A few percentage points of difference adds up if you are carrying the balance.
Frequently Asked Questions
Does taking a cash advance hurt my credit score?
It can, because the cash advance counts toward your credit utilization ratio. If you max out your card with a cash advance, your score may drop. The impact is usually temporary — once you repay the advance, your utilization drops and your score recovers. However, if you carry the balance for months, the ongoing interest and high utilization will keep your score lower.
Can I take a cash advance from a credit card I just opened?
Usually yes, but some new cards have restrictions on cash advances for the first 30 to 60 days. Check your card agreement or call the issuer to confirm. Even if you can take a cash advance when ready, the fee and interest rate are the same as for any other cardholder.
What is the difference between a cash advance and a balance transfer?
A balance transfer moves debt from one card to another (usually at a lower rate for a promotional period). A cash advance gives you actual cash. Balance transfers are for paying off other debts; cash advances are for getting spending money. Both charge fees and have higher interest rates than regular purchases.
Will my bank account show a cash advance as a withdrawal or a charge?
If you use an ATM, the money appears in your account as a withdrawal (it goes in when ready). If you use a convenience check, it appears as a deposit (the check clears in a few days). Either way, the amount shows up on your credit card statement as a cash advance, not a purchase.
Can I take a cash advance if I am already carrying a balance?
Yes, but it is usually a bad idea. Your payment will go toward the lowest-interest debt first, so the cash advance (which has the highest rate) will sit there accruing interest while you pay down cheaper debt. If you must take a cash advance while carrying a balance, make extra payments specifically toward the cash advance to pay it off faster.