Yes, you can get a cash advance on a credit card, but it costs significantly more than a regular purchase
A cash advance is when you borrow money directly from your credit card issuer using an ATM, bank teller, or convenience check. The money goes into your bank account or your hand as cash, not toward a purchase. Your card issuer treats it as a loan against your credit limit, separate from your regular purchases.
The catch is when ready: cash advances charge higher interest rates than purchases, start accruing interest the same day you withdraw the money (no grace period), and often include an upfront fee. For most people, a cash advance should be a last resort, not a routine way to get cash.
Key Takeaways
- Cash advances charge a separate, higher interest rate than purchases — typically 3% to 5% higher — and interest starts accruing when ready with no grace period.
- You pay an upfront fee of 3% to 5% of the amount withdrawn, charged to your card balance on the day you take the advance.
- The cash advance amount counts against your credit limit, so borrowing $500 reduces the credit available for purchases by $500.
- You can withdraw cash at ATMs using your PIN, at bank tellers with your card and ID, or by cashing convenience checks your issuer mails you.
How the fees and interest work
When you take a cash advance, you pay two separate costs when ready. The cash advance fee is a percentage of the amount you withdraw — usually 3% to 5% — charged to your card balance the same day. On a $500 advance, that is $15 to $25 added to what you owe before you even spend the cash.
The interest rate on a cash advance is higher than your purchase rate. If your card charges 18% APR on purchases, the cash advance rate might be 21% or 23%. This rate applies to the full amount from day one — there is no grace period like there is for purchases. If you carry the balance for a month, you pay roughly 1.75% to 1.92% in interest on top of the fee you already paid.
The total cost adds up fast. A $500 cash advance at 4% fee plus 22% APR costs you $20 in fees plus roughly $9 in interest if you pay it back in a month. That is $29 on a $500 loan — an effective annual rate of about 70% if you only borrowed for that month.
Where and how to get a cash advance
You have three main ways to access a cash advance. The easiest is an ATM: insert your card, enter your PIN, and withdraw cash up to your daily limit (often $500 to $1,000, set by your issuer). The fee and interest start accruing when ready.
You can also visit a bank teller at any bank, not just your card issuer's bank. Bring your card and a photo ID. The teller withdraws the cash and processes the advance the same way an ATM does. Some banks charge an additional fee for this service on top of your card issuer's fee.
Your card issuer may also mail you convenience checks — blank checks drawn against your credit line. You write one to yourself or to a payee, deposit it like a regular check, and the amount becomes a cash advance. These checks often carry the same fees and rates as ATM withdrawals.
How a cash advance affects your credit and available credit
The cash advance amount counts directly against your credit limit. If your limit is $5,000 and you withdraw $500, your available credit drops to $4,500. You can still use the card for purchases, but only up to the remaining $4,500.
A cash advance also affects your credit utilization ratio — the percentage of your total credit limit you are using. Borrowing $500 on a $5,000 limit raises your utilization from 0% to 10%. Credit scoring models penalize high utilization, so a cash advance can lower your credit score even before you miss a payment. The effect is temporary and reverses as you pay down the balance.
The advance itself does not appear as a separate line item on your credit report. Your issuer reports the total balance on the card, which now includes both the cash advance and any purchases. Lenders see only the total debt, not the breakdown.
When a cash advance makes sense (and when it does not)
A cash advance is rarely the right choice, but there are narrow situations where it might be the least bad option. If you need cash for an emergency and have no other way to get it — no savings, no friends or family to borrow from, no personal loan available — a short-term cash advance is cheaper than a payday loan or title loan. The key is paying it back as fast as possible to minimize interest.
A cash advance does not make sense if you are using it for everyday spending because you are out of cash. That is a sign your budget is not matching your income, and borrowing at 22% APR will make the problem worse. It also does not make sense if you are considering it to pay off other debt — the interest rate is too high, and you are just moving the problem around.
Before you take a cash advance, ask yourself: Can I pay this back within one or two months? If the answer is no, find a different solution. A personal loan, a payment plan with a creditor, or a conversation with a nonprofit credit counselor will cost you less in the long run.
Alternatives to a cash advance
If you need cash but want to avoid the high fees and interest, consider these options first. A personal loan from a bank or credit union typically charges 6% to 36% APR depending on your credit score — lower than a cash advance and with no upfront fee. The loan is also structured as a fixed payment over a set period, so you know exactly what you owe.
A balance transfer to a card with a 0% introductory rate can help if you are trying to move existing debt, though this does not give you cash. Some cards offer 0% for 6 to 21 months on transferred balances, which saves you interest if you can pay down the balance during that window.
If you have a savings account, withdrawing from savings avoids debt entirely — you lose the interest your savings would have earned, but you avoid the cash advance fee and high interest rate. If you have a 401(k) or similar retirement account, some plans allow loans against your balance at a lower rate than a cash advance, though this has tax consequences if you do not repay it.
How to pay back a cash advance
Your credit card statement will show the cash advance as a separate balance from your purchases. When you make a payment, most issuers explore it to the lowest-interest debt first — usually your purchases — and leave the cash advance balance to accrue interest. This means you need to pay extra to bring down the cash advance specifically.
The fastest way to minimize cost is to treat the cash advance as your top priority. If you owe $500 in cash advance and $200 in purchases, and you have $400 to pay, put all $400 toward the cash advance, not split between the two. Check your statement to confirm how your issuer applies payments, because the rules vary.
If you cannot pay the full amount back quickly, stop using the card for new purchases until the cash advance is gone. Every new purchase resets the payment priority and keeps the cash advance balance accruing interest longer.
Frequently Asked Questions
Is there a limit to how much I can withdraw as a cash advance?
Yes. Your issuer sets a cash advance limit, which is usually lower than your total credit limit — often 20% to 50% of your credit limit. You can find your limit in your card agreement or by calling the issuer. ATMs also have daily withdrawal limits, typically $500 to $1,000, separate from your card's advance limit.
Can I use a cash advance to pay off a loan or credit card?
Technically yes, but it is usually a bad idea. You are borrowing at 22% or higher to pay off debt that might be at a lower rate. The exception is if you are consolidating multiple high-interest debts into one lower-rate personal loan — but that loan should not come from a cash advance.
What happens if I do not pay back the cash advance?
The balance stays on your card and accrues interest every month. If you miss payments, your issuer reports it to credit bureaus, your credit score drops, and the issuer may freeze your card or close your account. After 180 days of missed payments, the issuer may charge off the debt and sell it to a collection agency.
Can I get a cash advance from a debit card?
No. Debit cards withdraw money directly from your bank account — there is no borrowing involved. You can withdraw cash at an ATM or teller using your debit card, but it is not a cash advance and carries no fee or interest.
Does taking a cash advance hurt my credit score?
Yes, in two ways. First, it increases your credit utilization ratio, which can lower your score temporarily. Second, if you carry the balance and make late payments, the missed payments damage your score more severely. The utilization effect reverses once you pay off the advance.