Yes, you can take cash from a credit card, but it costs more than a regular purchase
You can withdraw cash directly from your credit card account at an ATM or by asking a bank teller for a cash advance. The money appears in your bank account or as cash in your hand within minutes. But unlike a purchase, a cash advance charges you a fee upfront — usually 3 to 5 percent of the amount — and starts charging interest when ready, with no grace period. Most credit cards charge a higher interest rate on cash advances than on purchases.
The process is straightforward, but the cost makes it an expensive way to get cash. You should only use it if you have no other option, and you should plan to pay it back as quickly as possible.
Key Takeaways
- A cash advance charges a fee (typically 3 to 5 percent) at the moment you withdraw, plus a higher interest rate than regular purchases, with no grace period.
- You can get a cash advance at any ATM using your credit card PIN, or by visiting a bank branch and asking a teller.
- Interest on a cash advance starts accruing when ready, even if you normally have a grace period on purchases.
- Your credit card statement will show the cash advance as a separate line item from purchases, with its own interest rate and fee.
- Paying off a cash advance should be your priority because the interest rate is usually 5 to 10 percentage points higher than your purchase rate.
How to withdraw 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 four-digit code you use for debit transactions). Select "Cash Advance" or "Withdraw Cash" from the menu. Enter the amount you want to withdraw. The ATM will show you the fee before you confirm. Take your cash and card.
The entire transaction takes about two minutes. The money is yours to use when ready. Your credit card issuer will charge the fee to your account right away, and interest will begin accruing on the full amount the same day.
How to get a cash advance at a bank branch
Walk into any bank branch that issues your credit card — or any branch of your card issuer if it is a national bank. Tell the teller you want a cash advance on your credit card. Provide your card and a photo ID. The teller will ask how much cash you need and will process the transaction at the counter.
This method is useful if you need a large amount of cash or if you are uncomfortable using an ATM. The fee and interest rate are identical to an ATM withdrawal. Some banks may ask you to sign a slip, but most transactions are complete within five minutes.
What fees and interest rates you will pay
Every credit card charges a cash advance fee, shown as a percentage of the amount you withdraw. This fee is typically 3 to 5 percent, though some cards charge a flat fee (for example, $10 minimum) if the percentage would be smaller. A $500 cash advance at 4 percent costs $20 in fees alone.
The cash advance interest rate is almost always higher than your purchase rate. If your purchase APR is 18 percent, your cash advance APR might be 24 or 25 percent. This rate applies to the full amount you withdrew, starting the day you took the cash. Unlike purchases, there is no grace period — interest begins accruing when ready, even if you pay the balance in full when your statement arrives.
Interest is calculated daily and added to your balance. If you withdraw $500 at a 24 percent APR, you will owe roughly $10 in interest after one month if you make no payments.
How cash advances appear on your statement
Your credit card statement will list the cash advance as a separate transaction from your purchases. It will show the date, the amount withdrawn, the fee charged, and the interest rate applied. The cash advance balance is tracked separately from your purchase balance, and the higher interest rate applies only to the cash advance portion.
If you make a payment to your credit card, the payment is typically applied to the lowest-interest balance first — meaning your purchases get paid down before your cash advance does. This is why paying off a cash advance quickly is important: if you do not target it directly, it can sit on your account accruing high interest while you pay down cheaper debt.
When a cash advance makes sense
A cash advance is useful only in specific situations. If you need cash for an emergency and have no other way to get it — no savings, no access to a debit card, no friends or family to borrow from — a cash advance is better than missing a critical payment or going without necessary funds. The fee and interest are steep, but they are a one-time cost plus ongoing interest, not a missed payment that damages your credit.
A cash advance is not a good choice for everyday cash needs, for paying bills (most billers do not accept cash anyway), or for any situation where you could use a debit card, borrow from someone, or wait until you can visit your bank. It is also not a good choice if you already carry a high balance on the card, because the additional debt will make it harder to pay down.
Alternatives to a cash advance
Before you take a cash advance, consider these options. If you have a debit card linked to a checking account, use that to withdraw cash at your bank's ATM for free. If you need cash at a store, ask the cashier for cash back when you make a purchase — this is free and when ready. If you need a short-term loan, a personal loan from a bank or credit union usually charges less interest than a credit card cash advance, though it takes a few days to process.
If you are in a true emergency and have no other option, a cash advance is faster than a personal loan. But if you have a few days, a personal loan is cheaper. Some employers offer paycheck advances or emergency loans to employees; if that is an option for you, it is usually interest-free or very low-cost.
Frequently Asked Questions
What is the difference between a cash advance and a regular purchase?
A purchase is charged to your credit card and you have a grace period (usually 21 days) before interest starts. A cash advance charges a fee when ready and starts charging interest the same day, with no grace period. The interest rate on a cash advance is also higher — typically 5 to 10 percentage points above your purchase rate.
Can I use a credit card cash advance to pay a bill?
Technically yes, but most billers do not accept cash. You would have to withdraw the cash and then deposit it into your bank account or use it to pay in person. This adds steps and delays. It is simpler to pay the bill directly from your checking account or to ask the biller if they accept credit card payments.
Does a cash advance hurt my credit score?
A cash advance itself does not hurt your score, but it increases your credit utilization (the percentage of your available credit you are using). If you withdraw a large amount, your utilization goes up, which can lower your score slightly. Paying it off quickly brings your utilization back down and minimizes the impact.
What happens if I do not pay back a cash advance?
Interest will continue to accrue at the higher cash advance rate, and the balance will grow. If you miss payments, your credit score will drop and the card issuer may increase your interest rate further or close your account. The debt can also be sent to a collection agency if it goes unpaid for several months.
Can I get a cash advance from every credit card?
Most credit cards allow cash advances, but some do not — particularly secured cards or cards designed for people rebuilding credit. Check your card's terms or call the issuer to confirm. Even if your card allows cash advances, there is usually a limit on how much you can withdraw, which may be lower than your total credit limit.