Yes, you can pull cash from a credit card, but it costs more than a regular purchase
You can withdraw cash from a credit card at an ATM, bank teller, or through a cash advance at a store. The transaction is called a cash advance. Unlike swiping your card to buy something, a cash advance charges you fees upfront and starts charging interest when ready — there is no grace period like there is for purchases.
The cost difference matters. A purchase might have 0% interest for 21 days. A cash advance typically starts charging interest the same day you take it out, at a higher rate than purchases. You will also pay a fee — usually 3% to 5% of the amount you withdraw, with a minimum of $5 to $10.
Most people use cash advances only when they have no other option, because the fees and interest add up fast. If you need cash, it is almost always cheaper to use your debit card, withdraw from your own bank account, or borrow from someone you know.
Key Takeaways
- Cash advances charge a fee (usually 3% to 5% of the amount) and start accruing interest when ready, with no grace period.
- You can get a cash advance at an ATM, bank branch, or by asking a store cashier, but the interest rate is typically higher than your purchase rate.
- The total cost of a cash advance can be 10% or more of the amount withdrawn when you add the fee and a few weeks of interest.
- Your credit card company sets a cash advance limit, which may be lower than your overall credit limit.
Where to get cash from your credit card
An ATM is the fastest option. Insert your card, enter your PIN, select "cash advance" or "withdraw cash" (the exact wording varies by ATM), and choose your amount. The ATM will show you the fee before you confirm. Most ATMs let you withdraw up to your cash advance limit in a single transaction.
A bank branch is another route. Walk in with your card and ID, tell the teller you want a cash advance, and they will process it at the counter. This method works even if the bank is not your own — you can get a cash advance from any bank that accepts your card type (Visa, Mastercard, American Express, Discover).
Some stores offer cash advances over the counter. Ask a cashier if they can run a cash advance on your credit card. Not all retailers do this, and those that do may charge an additional fee on top of your card issuer's fee.
What fees and interest you will pay
The cash advance fee is charged when ready and appears on your statement. It is usually 3% to 5% of the amount you withdraw. If you take out $500, expect to pay $15 to $25 just for the transaction. Some cards have a flat minimum fee ($5 or $10) if the percentage would be smaller.
The interest rate for cash advances is separate from your purchase rate and is almost always higher. Where a purchase might be 18% APR, a cash advance could be 24% or 28% APR. Interest starts accruing the day you withdraw the cash — there is no 21-day grace period like purchases often have.
If you withdraw $500 at 5% fee and 25% APR, you pay $25 in fees plus roughly $10 in interest for the first month. That is $35 in costs for borrowing $500 for 30 days. Paying it back as soon as possible is the only way to keep the total cost down.
Your cash advance limit versus your credit limit
Your credit card company sets a separate cash advance limit, which is often lower than your overall credit limit. If your credit limit is $5,000, your cash advance limit might be $1,500 or $2,000. This limit is set by the card issuer based on your creditworthiness and account history.
You can call the customer service number on the back of your card to ask what your cash advance limit is. Some card issuers let you increase it through your online account or by calling, though this is not may provide. A cash advance counts against both your cash advance limit and your overall credit limit.
How a cash advance affects your credit score
A cash advance itself does not show up as a separate item on your credit report. However, it increases 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%. High utilization can lower your credit score temporarily.
The bigger impact comes if you do not pay the balance back quickly. Cash advances accrue interest fast, and if the balance sits unpaid, it will eventually show as a late payment on your credit report, which damages your score for years. Paying off a cash advance within a month or two keeps the damage minimal.
When a cash advance makes sense
A cash advance is worth considering only in specific situations. If you need cash for an emergency and have no other way to get it — no debit card access, no ATM, no friends or family to borrow from — then paying 3% to 5% upfront plus interest is better than the alternative (missing a payment, overdrafting, or going without).
It also makes sense if you are paying off the balance within days. If you take out $200 on a Monday and pay it back on Friday, the interest charge will be less than $1, and you will only pay the upfront fee. That is a reasonable cost for temporary access to cash.
A cash advance does not make sense if you are already carrying a balance on your card or if you cannot pay it back within a few weeks. The interest will compound, and you will end up paying far more than the original amount you withdrew.
Alternatives to a credit card cash advance
If you need cash, explore these options first. A debit card withdrawal from your own bank account costs nothing and is when ready. A personal loan from a bank or credit union typically has a lower interest rate than a cash advance, though it takes a few days to fund. A payday loan is fast but often more expensive than a cash advance, so it is a last resort.
Asking friends or family to lend you money costs nothing and has no interest. A line of credit from your bank, if you have one, usually has a lower rate than a cash advance. Even a balance transfer to a 0% promotional card (if you have access to one) is cheaper than a cash advance, though you will still pay a transfer fee.
Frequently Asked Questions
Can I use a credit card cash advance to pay another bill?
Yes, you can use the cash for any purpose. However, because of the high fees and interest, using a cash advance to pay another debt is usually not the best choice. If you are short on cash for bills, contact your creditors to ask about payment plans or hardship programs instead.
What happens if I do not pay back a cash advance?
The unpaid balance will accrue interest at your cash advance rate (usually 24% to 28% APR) and will be reported to credit bureaus if it stays unpaid for 30 days or more. This will lower your credit score and may result in late fees and collection attempts.
Is there a way to avoid the cash advance fee?
No. Every credit card charges a cash advance fee — it is built into the product. Some cards have lower fees (2% to 3%) than others (4% to 5%), so comparing cards before you open one can help, but the fee itself cannot be waived.
Can I get a cash advance from a credit card I just opened?
Usually yes, but some card issuers set a cash advance limit of $0 for new accounts and increase it after a few months of on-time payments. Check your welcome materials or call customer service to find out what your limit is.
Does taking a cash advance hurt my credit score when ready?
Not when ready, but it can lower your score within a few days because it increases your credit utilization. The score impact is usually small and temporary if you pay the balance back quickly. Late payments or unpaid balances cause much larger, longer-lasting damage.