Yes, you can get cash with a credit card, but it costs more than a regular purchase
A cash advance is a withdrawal of money from your credit card account, treated as a loan rather than a purchase. Your card issuer will charge you a fee — usually 3 to 5 percent of the amount withdrawn — plus a higher interest rate than you pay on regular purchases. Interest starts accruing when ready, with no grace period. Most people use cash advances only when they have no other option, because the cost adds up quickly.
You have three main ways to get cash: an ATM, a bank teller, or a convenience store. Each method charges the same cash advance fee and interest rate, so your choice depends on what is available to you right now.
Key Takeaways
- Cash advances charge a fee of 3 to 5 percent upfront, plus a higher interest rate than purchases, with no grace period.
- You can withdraw cash at an ATM, a bank teller window, or sometimes at a convenience store using your credit card.
- Interest begins accruing the moment you withdraw the cash, so the longer you carry the balance, the more you pay.
- Your credit card issuer sets a cash advance limit, which may be lower than your total credit limit.
- A personal loan or a debit card withdrawal will almost always cost you less than a credit card cash advance.
Getting cash at an ATM
Insert your credit card into any ATM that displays your card's logo — Visa, Mastercard, American Express, or Discover. Enter your PIN (the same one you use for debit transactions). Select "Withdrawal" or "Cash Advance" and choose your amount. The ATM will dispense the cash and print a receipt showing the transaction and any fee charged at that moment.
Some ATMs charge an additional operator fee on top of your card issuer's cash advance fee. This fee appears on the ATM screen before you confirm the withdrawal, so you can cancel if the total cost is too high. Your card issuer's fee will show up on your next statement.
Getting cash from a bank teller
Walk into any bank branch — yours or another bank — and tell the teller you want a cash advance on your credit card. Bring your card and a photo ID. The teller will process the transaction, charge your card issuer's fee, and hand you the cash. This method works the same way as an ATM but may feel more straightforward if you are uncomfortable with ATM machines or need help with the process.
Some banks charge their own fee for processing a cash advance from another bank's card. Ask before you proceed. The teller can tell you the total cost before you commit.
Getting cash at a convenience store or grocery store
Many convenience stores and grocery stores offer cash back when you use a credit card at the register. This is not technically a cash advance — it is a purchase with cash returned — so it may not trigger the same fees. However, check with your card issuer first, because some treat any cash-like transaction as a cash advance regardless of how the store processes it.
If your card issuer does treat it as a cash advance, you will pay the same fee and interest. If it treats it as a regular purchase, you may avoid the cash advance fee but will still owe interest on the amount if you do not pay your full balance by the due date.
Understanding cash advance limits and fees
Your card issuer sets a cash advance limit separate from your regular credit limit. This limit is often much lower — sometimes 20 to 30 percent of your total credit limit. You cannot withdraw more than this amount, even if you have unused credit available. You can call your card issuer or log into your online account to find your cash advance limit.
The fee structure varies by card. A typical cash advance costs 3 to 5 percent of the amount withdrawn, with a minimum fee of $5 to $10. So a $200 withdrawal might cost $6 to $10 in fees alone. Interest rates on cash advances are usually 2 to 3 percentage points higher than your regular purchase APR and begin accruing when ready — there is no interest-free period.
How interest adds up on a cash advance
Suppose you withdraw $500 with a 4 percent cash advance fee and a 25 percent APR. You pay $20 upfront in fees. If you carry the $500 balance for one month without making a payment, you owe approximately $10.42 in interest (25 percent annual rate ÷ 12 months). After three months, interest alone will have cost you roughly $31. The longer you wait to repay, the more the total cost climbs.
This is why paying back a cash advance as quickly as possible matters. Even a few weeks of delay can add hundreds of dollars in interest if the balance is large. If you have any other way to cover the expense — a personal loan, a payment plan with the creditor, or borrowing from someone you know — it will almost certainly cost less.
Alternatives that may cost less
A personal loan from a bank, credit union, or online lender typically charges 6 to 36 percent APR depending on your credit score, with no upfront fee. Even at the high end, this is often cheaper than a credit card cash advance when you factor in both the upfront fee and the higher interest rate.
A payday loan is faster to obtain but usually more expensive than a personal loan. A payment plan with the company you owe money to — a utility, medical provider, or landlord — may have no interest at all. A debit card withdrawal from your own bank account costs nothing. If you have a friend or family member who can lend you money, that is almost always the cheapest option.
Frequently Asked Questions
Does a cash advance hurt my credit score?
A cash advance itself does not appear on your credit report as a separate transaction. However, it increases your credit utilization — the percentage of your available credit you are using — which can lower your score temporarily. Paying it back quickly will bring your score back up.
Can I use a credit card cash advance to pay another credit card?
Technically yes, but it is almost never a good idea. You pay the cash advance fee and high interest rate on top of the interest you already owe on the other card. Balance transfer offers (which move debt from one card to another at a lower rate) are a better option if you need to consolidate.
What happens if I do not repay a cash advance?
The balance rolls over to the next month with interest accruing daily. If you miss payments, your card issuer may report it to credit bureaus, which damages your credit score. They may also close your account and send the debt to a collection agency.
Is there a way to avoid the cash advance fee?
No. Every credit card issuer charges a cash advance fee, and it is non-negotiable. The only way to avoid it is to not take a cash advance. Some cards advertise lower fees than others, but all of them charge something.
Can I get a cash advance with a prepaid card or secured card?
Prepaid cards typically do not offer cash advances. Secured credit cards (designed for people building credit) may offer them, but the terms vary by issuer. Check your card's terms or call the issuer to confirm whether cash advances are available on your specific card.