Yes, you can get cash with 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 card issuer treats it as a loan against your credit limit, not a purchase. You pay interest on the amount when ready — there is no grace period like there is for regular purchases — and you usually pay an upfront fee as well.
The total cost makes cash advances expensive. A typical cash advance fee runs 3 to 5 percent of the amount withdrawn, charged right away. Interest rates on cash advances are often higher than the rate on regular purchases, sometimes 2 to 3 percentage points above your standard APR. If you withdraw $300 at a 5 percent fee plus 25 percent APR, you are paying $15 upfront and then roughly $6.25 per month in interest before you pay down the balance.
Most people use cash advances only when they have no other option — a medical bill due in cash, a vendor who will not take cards, an emergency when their debit card is not available. If you are considering one, compare the cost to alternatives like a personal loan, a payday loan (if your state allows them), or borrowing from family.
Key Takeaways
- Cash advances charge an upfront fee of 3 to 5 percent plus a higher interest rate than regular purchases, with no grace period.
- You can withdraw cash at an ATM, a bank branch, or sometimes a convenience store, depending on your card and the network.
- Interest starts accruing the day you withdraw the money, so the longer you carry the balance, the more you pay.
- A personal loan, credit union loan, or even a payday loan may cost less than a cash advance if you need money quickly.
Where and how to withdraw cash with your credit card
The most common method is an ATM withdrawal. You insert your credit card into any ATM that displays your card network's logo (Visa, Mastercard, American Express, or Discover), enter your PIN, and select "cash advance" or "withdrawal." The ATM dispenses the cash and charges your credit card account.
You can also visit a bank branch in person. Walk in with your credit card and ask the teller for a cash advance. They will verify your identity, process the transaction, and hand you cash. Some banks charge an additional fee for over-the-counter cash advances on top of the card issuer's fee.
A few credit cards work at convenience stores or grocery stores that offer cash-back services, though this is less common with credit cards than with debit cards. Check your card's terms or call the issuer to see if cash-back is available at retailers you use.
The amount you can withdraw is limited by your available credit and sometimes by a separate cash advance limit set by your card issuer. That limit is often lower than your total credit limit — for example, you might have a $5,000 credit limit but only a $1,000 cash advance limit. Check your card's terms or log into your account online to find your cash advance limit.
Fees and interest rates for cash advances
Every cash advance comes with at least two costs. The cash advance fee is a percentage of the amount you withdraw, typically 3 to 5 percent, charged when ready when you take the money. A $300 withdrawal at 4 percent costs $12 in fees alone.
The second cost is interest. Unlike a purchase, which may have a grace period of 20 to 25 days before interest starts, cash advance interest begins accruing the day you withdraw the money. The APR on cash advances is usually higher than your purchase APR — sometimes significantly higher. If your purchase rate is 18 percent and your cash advance rate is 22 percent, that 4 percentage point difference adds up quickly on a balance you carry for weeks or months.
Some cards charge a flat fee instead of a percentage — for example, $5 or $10 per advance, regardless of the amount. Read your card's terms to see which structure applies to you. A flat fee is better if you are withdrawing a large amount, but a percentage fee is better for small withdrawals.
The total cost depends on how long you carry the balance. A $300 cash advance at 4 percent fee plus 22 percent APR costs $12 upfront. If you pay it back in one month, you owe roughly $5.50 in interest, for a total cost of $17.50. If you carry it for three months, the interest alone could reach $16 or more.
Why cash advances are more expensive than other borrowing options
A personal loan from a bank or credit union usually has a lower interest rate than a cash advance and no upfront fee. If you have decent credit, you might borrow $300 at 12 percent APR with no fee, costing you roughly $3 in interest per month. That is less than half the cost of a cash advance.
A credit union loan is often even cheaper, especially if you are a member. Many credit unions offer small personal loans at rates below 15 percent, and some have emergency loan programs with minimal fees.
A payday loan is faster but often more expensive than a cash advance. A typical payday loan charges $15 to $20 per $100 borrowed, due in two weeks. On a $300 loan, that is $45 to $60 in fees alone — higher than a cash advance fee but concentrated into a shorter time. Payday loans are worth considering only if you are certain you can repay in two weeks and have no other option.
Borrowing from family or friends costs nothing if they agree, though it can strain relationships. If that is not possible, a personal loan is usually your next-best option before a cash advance.
When a cash advance makes sense
A cash advance is worth considering when you need cash when ready and have no other way to get it. Examples include a vendor who accepts only cash, a medical bill due before you can transfer money from savings, or an emergency when your debit card is lost or frozen.
It also makes sense if the amount is small and you can pay it back within days. A $50 cash advance with a $2 fee that you repay in three days costs far less than a personal loan process and approval process.
A cash advance does not make sense if you are using it to fund regular spending, to pay other debts, or to cover a shortfall you expect to last weeks or months. In those cases, the interest and fees will compound, and you will end up paying significantly more than the original amount borrowed.
How to minimize the cost if you do take a cash advance
First, withdraw only what you need. Every dollar you advance costs you a percentage fee upfront, so taking $500 when you need $300 wastes money on fees you do not have to pay.
Second, repay it as fast as possible. Interest accrues daily, so every day you carry the balance costs you money. If you can repay the full amount within a week, do so. If it will take a month or longer, explore a personal loan instead.
Third, check whether your card issuer offers a lower cash advance rate or waived fees for certain situations. Some cards reduce fees for cardholders with good payment history or offer promotional periods. Call the issuer and ask — it costs nothing to inquire.
Fourth, make sure you understand your card's terms before you withdraw. Some cards have different fees for ATM withdrawals versus over-the-counter advances, or different limits depending on the method. Knowing the exact cost upfront helps you decide whether a cash advance is worth it.
Alternatives to cash advances
If you need cash but want to avoid the high cost of a cash advance, consider these options first:
- Personal loan from a bank or credit union: Lower interest rate, no upfront fee, and a fixed repayment schedule. Approval can take a few days to a week.
- Borrow against your savings: If you have money in a savings account, withdraw it instead of borrowing. You keep the interest that would have accrued, and you owe nothing.
- Ask your employer for an advance: Some employers offer paycheck advances for emergencies, with little or no fee.
- Sell something you own: Furniture, electronics, or other items can be sold online or locally for cash within days.
- Ask family or friends: A personal loan from someone you trust costs nothing if they agree to it.
Frequently Asked Questions
Does a cash advance hurt my credit score?
A cash advance itself does not hurt your score, but it does increase your credit utilization — the percentage of your available credit 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 score slightly. Paying off the advance quickly brings your utilization back down.
Can I use a credit card to withdraw cash from my own bank account?
No. A cash advance is a loan against your credit card, not access to your bank account. If you need cash from your bank account, use your debit card or visit a bank branch. A credit card can only borrow money, not withdraw money you already have.
What happens if I cannot pay back a cash advance?
The balance stays on your credit card and accrues interest each month. If you miss payments, your card issuer may charge late fees, increase your interest rate, and report the missed payment to credit bureaus, damaging your credit score. If the debt goes unpaid for months, the issuer may close your account or pursue collection.
Is there a limit to how much I can withdraw as a cash advance?
Yes. Your card issuer sets a cash advance limit, which is often lower than your total credit limit. You can find your limit in your card's terms, online account portal, or by calling the issuer. The limit may be a fixed dollar amount or a percentage of your credit limit.
Can I get a cash advance on a secured credit card?
Most secured cards allow cash advances, though the limit is usually lower than on unsecured cards. Check your card's terms or contact the issuer. The fees and interest rates are the same as on a regular credit card.