Yes, you can take cash out with a credit card, but it costs more than a regular purchase
A cash advance lets you withdraw money from an ATM or get cash back at a store using your credit card. The card issuer treats it as a loan against your credit limit, not a purchase. You will pay a fee upfront (usually 3 to 5 percent of the amount), and interest starts accruing when ready — there is no grace period like there is for regular purchases. Most people use cash advances only when they have no other option, because the cost adds up fast.
The process itself is straightforward: find an ATM that accepts your card, enter your PIN, and withdraw the amount you need. At a store, ask the cashier for cash back and hand over your card. The money appears in your account right away, but the debt appears on your credit card bill at the end of the month.
Key Takeaways
- Cash advances charge a fee (typically 3 to 5 percent) plus interest that starts when ready, with no grace period.
- You can get cash at an ATM using your credit card and PIN, or ask for cash back at a store checkout.
- The interest rate on a cash advance is usually higher than the rate on regular purchases from the same card.
- Your credit limit covers both purchases and cash advances, so withdrawing cash reduces what you can spend elsewhere.
How much does a cash advance cost
The cost has two parts: the upfront fee and the interest. The fee is usually a flat percentage of the amount you withdraw — most cards charge between 3 and 5 percent. So if you take out $500, you might pay $15 to $25 just to get the cash. Some cards set a minimum fee (like $5) even if the percentage would be less.
Interest starts the day you withdraw the money. Unlike a purchase, which may have a 21-day grace period before interest kicks in, a cash advance charges interest from day one. The interest rate is often 2 to 3 percentage points higher than your regular purchase APR. If your purchase rate is 18 percent, your cash advance rate might be 21 percent. Over a month, that adds up quickly.
Example: You withdraw $500 with a 4 percent fee and 21 percent APR. You pay $20 upfront. If you pay it back in 30 days, you owe roughly $28.50 in interest, for a total cost of $48.50. If you carry the balance for three months, the interest alone exceeds $26.
Where you can get a cash advance
ATMs are the most common route. Any ATM that displays your card's logo (Visa, Mastercard, American Express, Discover) will let you withdraw cash if you know your PIN. You can use ATMs at your card issuer's bank, at other banks, or at independent ATM networks. Out-of-network ATMs may charge an additional fee on top of the card issuer's cash advance fee — sometimes $2 to $3 per transaction.
You can also get cash back at a store checkout. Walk up to the register, make a small purchase or ask directly, and request cash back. The cashier will process it through the card network, and you will walk away with bills. This route usually has no extra ATM fee, only the card issuer's cash advance fee and interest.
Some credit card issuers let you request a cash advance by phone or through their mobile app, and the money lands in your bank account within one to two business days. This method avoids ATM fees but still charges the cash advance fee and interest.
The difference between a cash advance and a balance transfer
A balance transfer moves debt from one card to another, while a cash advance pulls money out as cash. They are different transactions with different costs. A balance transfer usually has a fee (2 to 5 percent) but may come with a 0 percent introductory interest rate for 6 to 21 months. A cash advance has a fee plus interest that starts right away, with no promotional period.
If you need cash, a cash advance is your only option — a balance transfer does not give you physical money. If you are trying to move existing debt to a lower-rate card, a balance transfer is usually cheaper. If you are trying to borrow money against your credit limit, a cash advance is what you are doing, and you should know upfront that it will cost more than a purchase.
How a cash advance affects your credit score
Taking a cash advance does not hurt your credit score directly. However, it does increase your credit utilization — the percentage of your available credit that you are using. If you have a $5,000 limit and you 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 are already using a lot of your other cards.
The bigger risk is missing a payment. If you cannot pay back the cash advance by the due date, the missed payment will show up on your credit report and damage your score. Because cash advances are expensive, many people struggle to pay them back quickly, which is why they can become a credit problem over time.
Alternatives to a cash advance
Before you use a cash advance, consider whether you actually need physical cash. Many transactions that once required cash — paying a contractor, splitting a bill, paying a babysitter — can now happen through Venmo, PayPal, bank transfers, or a debit card. If you can avoid the cash advance altogether, you save the fee and the interest.
If you need cash for an emergency, a personal loan from a bank or credit union is usually cheaper. Interest rates on personal loans are typically lower than cash advance rates, and there is no upfront fee. You will need to may have access to and wait a few days for the money, but the savings are real if you are borrowing more than a few hundred dollars.
A cash advance from your bank (if you have a checking account there) is sometimes free or cheaper than a credit card cash advance. Call your bank and ask whether they offer this option. Some banks will let you withdraw cash against a line of credit at a lower rate than a credit card issuer charges.
How to repay a cash advance
A cash advance appears on your credit card bill as a separate line item from your regular purchases. You can pay it back in full, make a minimum payment, or pay something in between — just like a purchase. However, the interest clock is running from day one, so the longer you carry the balance, the more you pay.
Most card issuers explore your payment to the lowest-interest debt first, which means your payment goes toward regular purchases before it touches the cash advance. If you want to pay down the cash advance specifically, call your issuer and ask them to explore your next payment to that line item. Some issuers let you do this through their app or website.
The fastest way to stop the interest is to pay the full amount as soon as possible. If you took a $500 cash advance, aim to pay back $500 plus the fee within a week or two, before the interest compounds. The longer you wait, the more the debt grows.
Frequently Asked Questions
Do I need a PIN to get a cash advance?
Yes, at an ATM you will need your PIN. If you do not have one, contact your card issuer and request a PIN before you go to the ATM. At a store, you may not need a PIN — the cashier will process it like a regular card transaction. Ask the store whether they require a PIN for cash back.
Can I get a cash advance if my card is maxed out?
No. Your credit limit covers both purchases and cash advances combined. If you have already spent your full limit, you cannot withdraw cash. You would need to pay down your balance first or request a higher credit limit from your issuer.
What happens if I cannot pay back the cash advance?
The balance stays on your credit card and continues to accrue interest. If you miss the payment important date, it will be reported to the credit bureaus and damage your credit score. Your issuer may also charge a late fee. Contact them as soon as you know you will miss a payment — many issuers offer hardship programs or payment plans.
Is there a limit to how much I can withdraw?
Yes. Your issuer sets a cash advance limit, which is usually lower than your total credit limit. It might be 20 to 50 percent of your available credit. You can call your issuer to find out your specific limit, or check your account online.
Can I use a credit card cash advance to pay off another credit card?
Technically yes, but it is expensive and not recommended. You would pay the cash advance fee plus interest on the cash, then use that cash to pay another card. A balance transfer is cheaper if you are trying to move debt between cards, because the fee is usually lower and you may get an introductory 0 percent rate.