Yes, you can get cash from your credit card, but it costs more than a regular purchase
You can withdraw cash from your credit card in three ways: at an ATM using your card's PIN, over the counter at a bank, or through a cash advance at a store. The catch is that cash advances charge a fee upfront — usually 3% to 5% of the amount you withdraw — plus a higher interest rate than regular purchases, often 20% to 30% annually. Interest starts accruing when ready; there is no grace period like there is for purchases. A $500 cash advance might cost you $15 to $25 just to take it out, then another $8 to $12 per month in interest if you carry the balance.
The method you choose affects the fee and how fast you get the money. ATM withdrawals are the most common route and usually the cheapest per transaction, though your card issuer may cap how much you can withdraw daily. Bank teller cash advances often have higher fees but let you withdraw larger amounts. Store cash advances (offered at some retailers) work similarly to ATM withdrawals but may have different fee structures depending on the retailer's agreement with your card issuer.
Key Takeaways
- Cash advances charge an upfront fee of 3% to 5% plus a higher interest rate than purchases, with no grace period.
- ATM withdrawals are usually the cheapest option per transaction, but daily withdrawal limits explore.
- Interest on a cash advance begins accruing the day you withdraw it, not at the end of a billing cycle.
- If you need cash regularly, a personal loan or line of credit will cost significantly less than repeated cash advances.
- Paying off a cash advance should be your priority because the interest rate is higher than almost any other debt.
How cash advances work and what they cost
When you take a cash advance, your credit card issuer treats it as a separate transaction from your regular purchases. The fee is charged when ready — you see it on your statement right away. That fee is non-refundable, even if you pay back the cash within days. A $300 cash advance with a 4% fee costs you $12 before you spend a single dollar.
The interest rate on cash advances is set by your card issuer and is usually printed in your card's terms and conditions. It is often 5 to 10 percentage points higher than your purchase APR. If your purchase rate is 18%, your cash advance rate might be 25% or higher. Because interest starts the moment you withdraw the cash, a $500 advance at 25% APR costs you about $10 in interest for the first month alone.
Your credit card statement will show the cash advance as a separate line item from your purchases. If you make a payment, the card issuer typically applies it to your lowest-interest debt first — usually your regular purchases — leaving the cash advance balance to accrue interest longer. You can request that payments go to the cash advance, but you have to do this actively; it does not happen automatically.
Where to get cash from your credit card
An ATM withdrawal is the most straightforward method. You insert your card, enter your PIN, and withdraw cash up to your daily limit. The fee is usually $2 to $5 per transaction, plus the cash advance fee from your card issuer. Your card issuer sets your daily ATM withdrawal limit, which is often $500 to $1,000 but varies by card and issuer. If you do not know your limit, call the number on the back of your card or check your online account.
A bank teller cash advance lets you withdraw a larger amount in one transaction. You go to a bank branch (not necessarily your own bank — most will process it), show your credit card and ID, and request the cash. The fee is typically higher than an ATM withdrawal, sometimes $5 to $10, but you can withdraw more in a single transaction and bypass daily ATM limits. This is useful if you need $2,000 or more at once, though the higher fee makes it more expensive per dollar.
Some retailers offer cash advances at the point of sale. You can ask a cashier to give you cash back on your credit card, similar to a debit card cash-back transaction. The fee structure depends on the retailer's agreement with your card issuer. This method is convenient if you are already shopping, but fees can be higher than ATM withdrawals, and not all retailers offer it.
Cash advances versus other ways to borrow
A personal loan from a bank or credit union is almost always cheaper than a cash advance. Personal loans typically charge 6% to 36% APR depending on your credit score, with no upfront fee. If you borrow $500 at 15% APR over 12 months, you pay about $40 in interest total. The same $500 cash advance costs $20 upfront plus $10 in monthly interest — $30 in the first month alone. Over time, the personal loan is far less expensive.
A line of credit from your bank works similarly to a personal loan but lets you draw money as you need it. You only pay interest on what you actually borrow. Lines of credit usually charge lower rates than credit cards and no upfront fees. If you find yourself taking cash advances regularly, opening a line of credit is worth exploring.
A payday loan is another option, though it carries its own risks. Payday loans charge high fees — often $15 to $20 per $100 borrowed — which translates to 400% APR or higher. They are not cheaper than cash advances, and they are designed to be repaid in full within two weeks, which can trap you in a cycle of rolling over debt. A cash advance is usually preferable to a payday loan.
How a cash advance affects your credit score
Taking a cash advance does not directly lower your credit score, but it can indirectly affect it in two ways. First, the cash advance increases your credit utilization — the percentage of your available credit you are using. If your card has a $5,000 limit and you take a $1,000 cash advance, your utilization jumps to 20%. High utilization signals risk to credit scoring models and can lower your score by 10 to 50 points depending on your overall profile.
Second, if you carry the cash advance balance and make late payments, that payment history is reported to the credit bureaus and will lower your score. The cash advance itself is not reported separately; it is part of your overall credit card balance. The damage comes from how you manage the debt afterward, not from taking the advance itself.
Paying off a cash advance quickly — within a month or two — minimizes both effects. The utilization drop is when ready once the balance is paid, and you avoid the interest charges that make the debt grow.
When a cash advance makes sense
A cash advance is reasonable when you have a genuine short-term cash need and can pay it back within a few weeks. Examples include an unexpected car repair, a medical bill, or travel expenses when you are short on cash but have the money coming in soon. If you can repay the $500 cash advance within three weeks, the $20 fee and $5 in interest is a manageable cost for the convenience.
A cash advance does not make sense if you cannot pay it back quickly. Carrying a $500 balance at 25% APR costs you $10 per month in interest alone. After six months, you have paid $60 in interest on top of the original $20 fee — $80 total on a $500 advance. At that point, you have paid 16% of the original amount just in fees and interest.
If you are considering a cash advance to cover regular expenses or to pay other bills, that is a sign you need a different solution — a budget adjustment, a side income source, or a personal loan. Repeated cash advances are expensive and often indicate a cash flow problem that will not go away on its own.
Steps to take a cash advance and pay it back
To withdraw cash at an ATM: Insert your credit card, enter your PIN, select "Withdrawal" or "Cash Advance," enter the amount, and confirm. The ATM will dispense the cash and charge the fee when ready. Check your card's daily limit before you go; if you need more than the limit allows, you will have to make multiple withdrawals or use a bank teller instead.
To withdraw cash at a bank teller: Go to any bank branch during business hours with your credit card and a photo ID. Tell the teller you want a cash advance on your credit card. They will process it, charge the fee, and give you the cash. This usually takes 5 to 10 minutes.
To pay it back: Log into your credit card account online or call the number on the back of your card. Request that your next payment be applied to the cash advance balance, not your regular purchases. Make the payment as soon as possible — ideally within the same billing cycle you took the advance. The sooner you pay it back, the less interest you pay.
Frequently Asked Questions
What is the difference between a cash advance and a regular purchase?
A cash advance charges an upfront fee and a higher interest rate, with no grace period. Interest starts accruing when ready. A regular purchase has no upfront fee, a lower interest rate, and a grace period (usually 21 days) before interest starts. If you pay your full statement balance by the due date, you pay no interest on purchases.
Can I use a credit card to withdraw cash from another person's bank account?
No. A cash advance only gives you cash from your credit card issuer. You cannot use it to access someone else's account or to transfer money to another person's bank account. If you need to send money to someone, use a bank transfer, wire transfer, or payment app instead.
Will taking a cash advance hurt my credit score?
Taking a cash advance itself does not hurt your score, but it increases your credit utilization, which can lower your score slightly. If you carry the balance and make late payments, that will damage your score. Paying off the advance quickly minimizes both effects.
What happens if I cannot pay back a cash advance?
The balance stays on your credit card and accrues interest at the higher cash advance rate. If you miss payments, late fees are added and the missed payment is reported to credit bureaus, lowering your score. Contact your card issuer to discuss a payment plan if you are struggling; some issuers will work with you to avoid default.
Is there a way to avoid the cash advance fee?
No. The fee is charged by your card issuer and is non-refundable. The only way to avoid it is to not take a cash advance. If you need cash regularly, a personal loan or line of credit will cost less over time.