Yes, you can take cash out of a credit card, but it costs more than a regular purchase
You can withdraw cash from a credit card at an ATM or by asking a bank teller for a cash advance. The card issuer treats this as a loan against your credit limit, not a purchase. You will pay a cash advance fee (usually 3 to 5 percent of the amount you withdraw) plus a higher interest rate than you pay on regular purchases — often 20 to 30 percent, depending on your card and issuer.
Interest on a cash advance starts accruing when ready. Unlike a purchase, which may have a grace period of 20 to 25 days before interest kicks in, a cash advance begins charging interest the day you withdraw it. This means the total cost climbs quickly if you do not pay it back fast.
Key Takeaways
- Cash advances charge a fee (3 to 5 percent) plus a higher interest rate than purchases, and interest starts when ready with no grace period.
- You can withdraw cash at any ATM using your credit card PIN, or visit a bank branch and ask a teller for a cash advance.
- Your cash advance limit is often lower than your credit limit and is set by your card issuer.
- The total cost of a cash advance grows fast, so paying it back within days rather than weeks will save you money.
- Alternatives like a personal loan, balance transfer, or borrowing from a friend or family member usually cost less.
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 a debit card. Select "Withdrawal" or "Cash Advance" from the menu. Enter the amount you want to withdraw, confirm the transaction, and take your cash and receipt.
The ATM will show you the fee before you confirm. If the fee surprises you, cancel the transaction and step away. You will not be charged if you cancel before the transaction completes.
How to get a cash advance from a bank teller
Walk into a branch of your card issuer's bank (or any bank that accepts your card) during business hours. Tell the teller you want a cash advance on your credit card. Bring your card and a photo ID. The teller will run the transaction, show you the fee, and hand you the cash.
This method works the same way as an ATM but gives you a chance to ask questions about the fee or your balance before you commit. Some people prefer it because they can see the teller's screen and confirm the numbers.
What fees and interest rates to expect
The cash advance fee is a one-time charge, usually 3 to 5 percent of the amount you withdraw. On a $500 withdrawal, that is $15 to $25 added to your balance when ready. Some cards charge a flat fee instead (for example, $10 per advance) — check your card's terms to know which applies to you.
The interest rate on a cash advance is separate from your purchase rate. If your purchase APR is 18 percent, your cash advance APR might be 25 percent or higher. This rate applies to the full amount you withdrew, starting the day you took the cash. If you carry the balance for a month, the interest alone could be $10 to $15 on that $500 advance.
Your cash advance limit is often lower than your total credit limit. If your credit limit is $5,000, your cash advance limit might be $1,500 or $2,000. Your card issuer sets this limit and you can call to ask what yours is.
How the payment works
When you make a payment on your credit card, the issuer applies it to your balance in a specific order set by law. Payments go first to the highest-interest debt, which is usually the cash advance. This means your payment reduces the cash advance balance before it touches any purchase balance you carry.
If you owe $300 in purchases at 18 percent APR and $200 in a cash advance at 25 percent APR, and you send in a $100 payment, that $100 goes toward the $200 cash advance. The $300 purchase balance keeps accruing interest at 18 percent. This is actually in your favor because the cash advance costs more.
To avoid interest altogether, pay the full cash advance balance by your next statement due date. If you cannot, pay as much as you can as soon as possible, because every day the balance sits unpaid, the interest meter is running.
When a cash advance makes sense
A cash advance is useful only in a true emergency when you need cash when ready and have no other option. Examples: your car breaks down and the mechanic takes cash only, or you need to pay a deposit for housing and the landlord will not accept a card.
In these cases, take out only what you need, not your full available limit. A $200 advance costs less than a $500 advance. Pay it back within days if possible — the difference between paying in three days and paying in three weeks is real money.
If you are considering a cash advance for everyday expenses or to cover a shortfall in your budget, that is a sign to look at your spending or talk to a financial counselor. A cash advance is expensive debt, not a solution.
Cheaper alternatives to a cash advance
A personal loan from a bank or credit union usually charges 6 to 12 percent APR with no upfront fee. If you have time to explore (usually one to three business days), this costs far less than a cash advance.
A balance transfer to a card with a 0 percent introductory APR can work if you need to move money between accounts, though you will still pay a 3 to 5 percent transfer fee. This is cheaper than a cash advance only if you pay the balance off during the 0 percent period.
Borrowing from a friend or family member costs nothing if they do not charge interest. If you do this, put the loan terms in writing (amount, repayment date, interest if any) so there is no confusion later.
If you are short on cash regularly, look at whether you can cut expenses, pick up extra work, or adjust your budget. A cash advance is a band-aid, not a fix.
Frequently Asked Questions
Does taking a cash advance hurt my credit score?
A cash advance itself does not hurt your score, but carrying a high balance does. If your cash advance pushes your total credit card balance above 30 percent of your credit limit, your score may drop. Paying it off quickly keeps this from happening.
Can I take a cash advance if I am maxed out on my credit card?
No. Your cash advance limit is part of your total credit limit. If you have used your full limit, you cannot take a cash advance. You would need to pay down your balance first.
What if I do not know my PIN?
Call your card issuer's customer service number on the back of your card and ask them to send you a PIN or reset it. This usually takes one to three business days. In the meantime, you can still get a cash advance from a bank teller using your card and ID.
Will my cash advance show up on my credit report?
No. A cash advance is part of your credit card balance and shows up as a credit card balance, not as a separate loan. It does not appear as a separate line item on your credit report.
Can I use a credit card cash advance to pay another credit card bill?
Technically yes, but it is a bad idea. You would pay a cash advance fee plus high interest to move money from one card to another. A balance transfer (moving the balance directly between cards) costs less if you need to do this.