Yes, you can get cash from a credit card, but it costs more than a regular purchase
You can withdraw cash using your credit card at an ATM, through a bank teller, or by getting cash back at a store checkout. The card issuer treats this as a cash advance — a short-term loan separate from your regular credit line. The moment you take the cash, you start paying interest at a higher rate than you would on a purchase, and you may also pay an upfront fee.
The catch is that cash advances are expensive. Most card issuers charge a fee of 3 to 5 percent of the amount you withdraw, plus interest that begins accruing when ready — there is no grace period like there is for regular purchases. If you need cash, it is almost always cheaper to use a debit card, visit your bank, or borrow from someone you know than to use a credit card cash advance.
Key Takeaways
- Cash advances charge a fee (usually 3 to 5 percent) plus a higher interest rate than regular purchases, with no grace period.
- You can get a cash advance at an ATM, a bank branch, or by asking a store cashier, depending on your card and bank.
- Interest starts the day you withdraw the cash, so the longer you carry the balance, the more you pay.
- A debit card, personal loan, or credit from a friend or family member is almost always cheaper than a cash advance.
Where you can withdraw cash with a credit card
The easiest method is an ATM. Most ATMs accept credit cards, though you may pay an ATM operator fee on top of your card issuer's cash advance fee. Insert your card, enter your PIN, and select the cash advance option — do not confuse it with a regular withdrawal, which only works with debit cards.
You can also visit a bank branch in person and ask a teller for a cash advance. This method avoids the ATM operator fee, though you will still pay your card issuer's fee. Some card issuers also allow you to request a cash advance by phone or through their mobile app, though this is less common.
A third option is to ask for cash back at a store checkout when you make a purchase. This does not trigger a cash advance fee — you are straightforward asking the cashier to give you cash instead of change. However, this only works if you are buying something, and the amount is usually limited to $20 to $100 depending on the store.
The fees and interest rates you will pay
A cash advance fee is charged upfront and is typically 3 to 5 percent of the amount you withdraw. On a $500 withdrawal, that means you pay $15 to $25 just to get the cash. Some cards charge a flat fee instead — for example, $10 per advance — which is cheaper if you are withdrawing a large amount but more expensive if you are withdrawing a small amount.
The interest rate on a cash advance is higher than the rate on regular purchases. While a purchase might carry an APR of 18 percent, a cash advance might be 22 percent or higher. This rate applies from the day you withdraw the cash — there is no 21-day grace period like there is for purchases. If you withdraw $500 and pay it back in 30 days, you will owe roughly $29 in interest alone, plus the upfront fee.
If you carry the balance longer, the cost grows fast. A $500 cash advance at 22 percent APR costs about $9 per month in interest. Over a year, that is $108 in interest plus the original fee — nearly $140 total on top of the $500 you borrowed.
How a cash advance affects your credit
A cash advance does not hurt your credit score directly, but it can hurt it indirectly. When you take a cash advance, your credit utilization — the percentage of your available credit you are using — goes up. If you have a $5,000 credit limit and you take a $500 cash advance, your utilization jumps to 10 percent. Higher utilization can lower your credit score slightly.
The bigger risk is that a cash advance makes it easier to carry a balance and rack up debt. Because you are paying interest from day one, you are more likely to keep the balance for months rather than weeks. The longer you carry it, the more interest you pay, and the higher your utilization stays. This can lower your score more over time.
Cheaper ways to get cash when you need it
If you have a debit card linked to a checking account, use that instead. Debit card withdrawals at your bank's ATM are free, and withdrawals at other banks' ATMs usually cost $1 to $3 — still far cheaper than a credit card cash advance.
If you do not have a debit card or your account is empty, ask your bank or credit union about a personal loan. These loans charge interest, but the rate is usually lower than a credit card cash advance, and you pay a fixed amount each month rather than interest that compounds daily. A $500 personal loan at 12 percent APR over six months costs roughly $78 in interest — less than half what a cash advance would cost.
If you need cash urgently and have no other option, borrowing from a friend or family member is free and keeps the money in your circle. If you do borrow, put the agreement in writing — even a straightforward text message saying when you will repay it — so there is no misunderstanding later.
When a cash advance might make sense
A cash advance is rarely the right choice, but there are narrow situations where it might be the least bad option. If you have an emergency — a car repair, a medical bill, a utility shutoff — and you have no other way to pay, a cash advance is faster than a personal loan and does not require a credit check the way some loans do.
The key is to repay it as fast as possible. If you can pay back a $500 cash advance within a week, the interest cost is minimal — maybe $2 to $3. But if you carry it for a month or longer, the cost balloons. Before you take a cash advance, make a plan to repay it within days, not weeks.
How to repay a cash advance
When you make a payment on your credit card, the card issuer applies it to your lowest-interest balance first — usually regular purchases — and your highest-interest balance last — usually the cash advance. This means your cash advance sits and accrues interest while you pay off cheaper debt.
To pay off a cash advance faster, contact your card issuer and ask if you can designate a payment specifically for the cash advance. Some issuers allow this; others do not. If yours does not, your only option is to pay down the entire card balance until the cash advance is gone.
The best approach is to avoid the cash advance in the first place. If you are in a situation where you need cash urgently and have no other option, take the advance, but treat it as an emergency loan that you repay within days, not months.
Frequently Asked Questions
Can I get a cash advance if my credit card is maxed out?
No. A cash advance counts against your credit limit, just like a purchase does. If you have used your entire limit, you cannot take a cash advance unless you pay down the balance first or the issuer raises your limit.
What is the difference between a cash advance and a balance transfer?
A cash advance gives you physical cash and charges a fee plus a high interest rate. A balance transfer moves debt from one card to another and may offer a low or zero percent introductory rate. Balance transfers are cheaper if you are moving existing debt, but they do not give you cash.
Will a cash advance show up on my credit report?
No, the cash advance itself does not appear on your credit report. However, if you carry the balance and miss a payment, that missed payment will show up and damage your credit score.
Can I take a cash advance from a credit card I just opened?
Usually yes, but some issuers restrict cash advances for new cardholders. Check your card's terms or call the issuer to confirm. Even if you can take an advance, the fees and interest make it expensive, so avoid it if possible.
What happens if I cannot repay a cash advance?
The balance stays on your card and accrues interest. If you miss payments, the issuer may charge late fees, raise your interest rate, and report the missed payments to credit bureaus, which will lower your credit score. Contact your issuer as soon as you know you cannot repay to discuss options like a payment plan.