Yes, you can take cash out with a credit card, but it works differently than a debit card and costs more
A cash advance is a withdrawal of cash from your credit card account, usually at an ATM or bank teller window. The money comes from your available credit, not from a bank account. Unlike a regular purchase, a cash advance charges you fees upfront and starts charging interest when ready — there is no grace period like you get on regular purchases.
Most credit card issuers allow cash advances, but the amount you can withdraw is usually limited to a percentage of your credit limit, often 20 to 50 percent. You find out your specific cash advance limit by calling the number on the back of your card or logging into your online account.
Key Takeaways
- Cash advances charge a fee (usually 3 to 5 percent of the amount withdrawn) plus interest that starts accruing when ready, with no grace period.
- Your cash advance limit is typically lower than your overall credit limit and is set by your card issuer.
- Interest rates on cash advances are usually higher than rates on regular purchases, often several percentage points above your standard APR.
- Withdrawing $300 in cash might cost you $10 to $15 in fees alone, plus interest charges that begin the same day.
Where you can withdraw cash with a credit card
You can get a cash advance at an ATM that displays your card's logo (Visa, Mastercard, American Express, or Discover). You can also walk into a bank branch — even one where you do not have an account — and ask the teller for a cash advance on your credit card. Some credit card issuers also allow you to request a check drawn against your credit line, which you can deposit or cash.
ATMs are the fastest option but may charge an additional ATM operator fee on top of your card issuer's cash advance fee. Bank tellers usually do not charge an extra fee beyond what your card issuer charges, and you can ask them to confirm the total cost before they process it.
The fees and interest you will pay
A cash advance typically costs you two separate charges. The first is an upfront cash advance fee, which is a percentage of the amount you withdraw — usually 3 to 5 percent, though some cards charge a flat fee like $5 or $10 if that is higher. A $300 withdrawal might cost $9 to $15 in fees alone.
The second charge is interest, which starts accruing the day you withdraw the cash. Unlike a regular purchase, there is no interest-free period. If your card charges 20 percent APR on purchases, the cash advance rate might be 25 or 28 percent APR. Interest compounds daily, so the longer you carry the balance, the more you owe. A $300 cash advance at 25 percent APR costs roughly $6.25 per month in interest if you make no payment.
Some cards charge different interest rates for cash advances than for purchases. Check your card's terms or call your issuer to find out your specific cash advance APR and fee structure.
How a cash advance affects your credit score
Taking a cash advance does not directly damage your credit score the way a missed payment does. However, it does increase your credit utilization — the percentage of your available credit you are using. If you have a $5,000 credit limit and take a $1,000 cash advance, your utilization jumps to 20 percent. High utilization can lower your score by a few points, especially if you already carry other balances.
The bigger risk is that a cash advance makes it harder to pay down your balance quickly. Because interest starts when ready and the rate is often higher than your purchase rate, the cash advance balance grows faster than a regular purchase balance would. This keeps your utilization high for longer, which keeps your score suppressed.
When a cash advance makes sense (and when it does not)
A cash advance is expensive and should be a last resort, not a regular habit. It makes sense only in specific situations: you need cash urgently, you have no other way to get it, and you can pay it back within a few days or weeks. For example, if you need $200 for an emergency car repair and your only option is a cash advance or a payday loan, the cash advance might be cheaper depending on the terms.
A cash advance does not make sense if you are already carrying a balance on your card, if you cannot pay it back quickly, or if you have other options available. Taking a cash advance to pay another bill, to fund a purchase you cannot afford, or to cover regular expenses is a sign that your spending is outpacing your income — and a cash advance will only make that problem worse.
Alternatives to a credit card cash advance
Before you take a cash advance, consider these options. If you need cash for an emergency, a personal loan from a bank or credit union often charges less interest than a cash advance and gives you a fixed repayment schedule. If you have a savings account, withdrawing from savings costs nothing and does not create debt.
If you need cash for a specific purchase, ask the seller whether they accept card payments instead — you will avoid the cash advance fee and interest entirely. If you need cash for a bill, many billers now accept card payments online or by phone at no extra cost. A payment plan with a creditor or utility company is often cheaper than a cash advance.
If you do not have access to any of these options and a cash advance is truly your only choice, pay it back as fast as you can. Every day you carry the balance, interest is accruing at a rate higher than your regular purchases.
How to minimize the cost if you do take a cash advance
If you have decided a cash advance is necessary, take these steps to keep the cost as low as possible. First, withdraw only the amount you actually need — every dollar you do not withdraw saves you fees and interest. Second, withdraw from a bank teller rather than an ATM if possible, to avoid the extra ATM operator fee. Third, pay it back when ready — even a few days of interest adds up.
When you make a payment on your credit card, ask your issuer how the payment is applied. Some cards explore payments to your lowest-interest balance first (usually regular purchases), which means your cash advance balance keeps growing. Request that your payment be applied to the cash advance balance first, or pay enough to clear the cash advance entirely before you carry any other balance.
Frequently Asked Questions
What is the difference between a cash advance and a balance transfer?
A cash advance gives you physical cash and charges a fee plus interest starting when ready. A balance transfer moves debt from one card to another and may offer a low or zero interest rate for a promotional period. Balance transfers are designed for moving existing debt; cash advances are for getting cash. Both charge fees, but the fee structure and interest rates are different.
Can I take a cash advance if I have a low credit limit?
Yes. Your cash advance limit is usually a percentage of your credit limit, so even a $500 credit limit might allow a $100 to $250 cash advance. Call your card issuer to find out your specific limit. A low credit limit does not prevent you from taking a cash advance, but it does limit how much you can withdraw.
Does taking a cash advance hurt my credit score?
Not directly, but it can lower your score indirectly by increasing your credit utilization. The bigger risk is that high interest rates and when ready interest charges make the balance harder to pay off, keeping your utilization high for longer. If you pay it back within a few days, the impact is minimal.
What happens if I cannot pay back a cash advance?
The balance stays on your card and interest keeps accruing. If you miss payments, your card issuer will charge late fees and may report the missed payment to credit bureaus, which damages your score. The debt does not go away — it grows. Contact your card issuer when ready if you cannot pay to discuss options like a payment plan.
Can I use a credit card cash advance to pay another credit card bill?
Technically yes, but it is a costly strategy. You are paying a cash advance fee and high interest to get cash, then using that cash to pay another card. You end up paying more in fees and interest than if you had just paid the other card directly. This is a sign that you need to reduce your overall spending or seek help with debt management.