You can pull cash from a credit card, but it costs more than a regular purchase
Yes, you can withdraw cash using your credit card at an ATM or from a bank teller. This is called a cash advance. The money comes from your credit line, not from a separate account. But a cash advance is not the same as swiping your card at a store — the fees and interest rates are steeper, and interest starts accruing when ready instead of after a grace period.
Most people use cash advances only when they have no other option, because the cost adds up fast. If you need cash regularly, a debit card or a trip to your bank is almost always cheaper.
Key Takeaways
- Cash advances charge an upfront fee (usually 3 to 5 percent of the amount) plus a higher interest rate than regular purchases, with no grace period.
- Interest on a cash advance starts accruing the day you withdraw it, even if you pay the full balance when your statement arrives.
- You can get a cash advance at any ATM that accepts your card, at a bank teller, or sometimes through a convenience store or casino.
- The total cost of a $300 cash advance can easily reach $30 to $50 in fees and interest within the first month.
How much a cash advance actually costs
A cash advance charges you two things: a cash advance fee and cash advance interest. The fee is a percentage of the amount you withdraw, typically 3 to 5 percent. So a $300 withdrawal costs $9 to $15 just in fees. Some cards cap the fee at a flat dollar amount (like $10 maximum), but most do not.
The interest rate on a cash advance is separate from your regular purchase rate and is almost always higher. Where a regular purchase might carry 18 percent APR, a cash advance might be 25 or 28 percent. That interest starts the moment you withdraw the cash — there is no grace period like there is for purchases. If you withdraw $300 on the first day of your billing cycle, you are paying interest on that $300 for the entire month, even if you pay it back in full when your statement arrives.
Over one month, a $300 cash advance at 25 percent APR costs roughly $6 in interest, plus the $9 to $15 fee. That is $15 to $21 in one month alone. If you carry the balance longer, the cost compounds.
Where you can withdraw cash from your credit card
You have several options for getting cash. An ATM is the most common — any machine that displays your card's logo (Visa, Mastercard, American Express) will accept it. You insert your card, enter your PIN, and withdraw up to your cash advance limit, which is usually lower than your total credit limit.
A bank teller can also process a cash advance if you visit a branch in person. You hand over your card and request the amount. This method is slower but sometimes useful if you need a large amount or if you want to ask questions about the fee before you proceed.
Some convenience stores, casinos, and other merchants offer cash advances at the register, though this is less common than it used to be. You typically pay an additional merchant fee on top of your card's cash advance fee, making this option the most expensive.
Your cash advance limit is separate from your credit limit
Your card issuer sets a cash advance limit that is usually much lower than your total credit limit. If your credit limit is $5,000, your cash advance limit might be $1,500 or $2,000. This limit protects the card company because cash advances are riskier for them — they have less recourse if you do not pay.
You can find your cash advance limit in your cardholder agreement, on your online account dashboard, or by calling the customer service number on the back of your card. If you need to withdraw more than your limit allows, you cannot — the ATM will straightforward decline the transaction.
Why a cash advance is usually a bad idea
The cost is the main reason. A $300 cash advance can cost $20 to $30 in the first month alone. If you need cash regularly, that adds up to hundreds of dollars a year in fees and interest.
A cash advance also counts against your credit utilization — the percentage of your available credit you are using. If you have a $5,000 limit and you take a $1,000 cash advance, your utilization jumps to 20 percent just from that one withdrawal. High utilization can lower your credit score, even if you pay the balance in full.
Finally, cash advances do not earn rewards or cash back the way purchases do. If your card offers 2 percent cash back on all purchases, you get nothing on a cash advance. You are paying extra fees and interest while earning zero rewards.
Cheaper ways to get cash when you need it
A debit card withdrawal from your own bank account costs nothing and earns no interest. If you have a checking account, this is always the first option.
A personal loan from a bank or credit union often charges less interest than a credit card cash advance, especially if you have decent credit. The interest rate is fixed upfront, and you know exactly what you will pay. The downside is that a loan takes a few days to fund, so it does not work for when ready cash needs.
A balance transfer to a different card might make sense if you already owe money on a high-interest card. Some cards offer 0 percent introductory rates on balance transfers for 6 to 12 months. This does not get you cash, but it can lower the cost of debt you already have.
If you are in a genuine emergency and have no other options, a cash advance is better than missing a bill payment or going without. But it should be a last resort, not a habit.
Frequently Asked Questions
Can I use a credit card cash advance to pay another credit card bill?
Technically yes, but it is a costly way to move money around. You pay the cash advance fee and interest on the withdrawal, then you are just transferring that debt to another card. A balance transfer (if your new card offers one) or a personal loan would be much cheaper.
Does a cash advance show up differently on my credit report?
It shows up as part of your credit card balance and counts toward your utilization. The credit bureaus do not distinguish between a cash advance and a regular purchase on your report, but the higher interest rate and fees mean the debt grows faster.
What happens if I cannot pay back a cash advance?
It works like any other credit card debt. The balance carries over to the next month, interest keeps accruing, and if you miss payments, your credit score drops and the card issuer may pursue collection. The cash advance interest rate is usually higher than your purchase rate, so the debt grows faster.
Can I get a cash advance from a credit card I just opened?
Usually yes, as long as the card is activated and you have received your PIN. Some issuers may restrict cash advances for new accounts, but most allow them when ready. Check your cardholder agreement or call customer service to confirm.
Is there a limit to how many cash advances I can take?
You can take as many as you want up to your cash advance limit. However, each one charges a fee and starts accruing interest, so taking multiple advances in a short time can get expensive very quickly. Your card issuer may also flag frequent cash advances as suspicious activity.