Yes, you can get cash from a credit card, but it costs more than a purchase
You can withdraw cash using your credit card at an ATM, through a bank teller, or sometimes at a store checkout. The cash comes from your credit card's available balance, not from a separate account. But unlike a purchase, a cash withdrawal charges you a cash advance fee (usually 3 to 5 percent of the amount) plus a higher interest rate that starts accruing when ready — there is no grace period like there is for purchases.
If you need cash and have a credit card, this is a real option. But the cost adds up fast, and there are usually cheaper ways to get money. Understanding how cash advances work helps you decide whether this is the right move for your situation.
Key Takeaways
- A cash advance charges a fee (typically 3 to 5 percent) plus a higher interest rate that starts right away, with no grace period.
- The interest rate for cash advances is usually 2 to 3 percentage points higher than your purchase APR and varies by card and issuer.
- A $300 cash advance at 5 percent fee plus 25 percent APR costs you $15 upfront and roughly $6.25 in interest per month if you carry the balance.
- Alternatives like a personal loan, payday loan, or borrowing from family may cost less depending on your credit and the amount you need.
Where you can withdraw cash and how the process works
Most credit card issuers let you withdraw cash at any ATM that displays your card's logo (Visa, Mastercard, American Express, or Discover). You insert your card, enter your PIN, and withdraw up to your cash advance limit — which is usually lower than your credit limit and is set by your issuer.
You can also get a cash advance by visiting a bank branch and asking a teller to withdraw cash against your credit card. Some grocery stores and pharmacies offer cash back at checkout, though this is technically a debit card feature and may not work with credit cards at all locations. Check with your card issuer or the store before you try.
The cash hits your account when ready, but the fee and interest charges appear on your next statement. Your issuer will tell you the exact cash advance limit and fee when you open the account, and you can usually find both in your cardholder agreement or by logging into your online account.
The fees and interest rates that make cash advances expensive
A cash advance fee is charged once, at the time of withdrawal. This fee is usually 3 to 5 percent of the amount withdrawn, with a minimum fee of $2 to $10. So a $300 withdrawal costs $9 to $15 in fees alone. Some cards charge a flat percentage; others charge a percentage with a minimum. Check your cardholder agreement or call your issuer to find out which applies to your card.
The interest rate is where the real cost lives. Most cards charge a higher APR for cash advances than for purchases — often 2 to 3 percentage points higher. If your purchase APR is 18 percent, your cash advance APR might be 21 or 25 percent. Unlike a purchase, interest starts accruing the day you withdraw the cash. There is no grace period, even if you pay the balance in full by your statement due date.
If you withdraw $300 at a 5 percent fee ($15) and 25 percent APR, you owe $315 when ready. If you carry that balance for one month without paying, you owe roughly $6.25 in interest on top of the $315. Over six months, the interest alone could exceed $45.
How a cash advance affects your credit score and available credit
A cash advance reduces your available credit the same way a purchase does. If your credit limit is $2,000 and you withdraw $300 in cash, your available credit drops to $1,700. This affects your credit utilization ratio — the percentage of your total credit limit you are using. A higher utilization ratio can lower your credit score, especially if you push above 30 percent.
The cash advance itself does not appear separately on your credit report. Your issuer reports the total balance you owe on the card, which now includes the cash advance. If you pay the cash advance off quickly, the impact on your score is temporary. If you carry the balance for months, the high utilization and the interest charges can hurt your score and cost you real money.
Alternatives that may cost less than a cash advance
A personal loan from a bank or credit union often charges a lower interest rate than a cash advance, especially if you have decent credit. Personal loans also have a fixed repayment schedule, so you know exactly when the debt ends. The downside is that approval takes a few days, not minutes.
A payday loan is fast but expensive — the fee is usually $15 to $20 per $100 borrowed, which works out to an APR of 400 percent or higher. Use this only if you need cash for a true emergency and can repay it within two weeks.
Borrowing from family or friends costs nothing if they do not charge interest, but it can strain relationships if repayment is unclear. If you do borrow from someone you know, put the terms in writing: the amount, the repayment date, and whether interest applies.
A balance transfer to a card with a 0 percent introductory APR is not the same as a cash advance — it moves debt from one card to another, not cash from a card to your pocket. But if you need cash and have another card with a 0 percent offer, you could use that card for a purchase instead of taking a cash advance on your current card.
How to repay a cash advance and minimize the damage
Pay the cash advance balance as fast as you can. Interest accrues daily, so every day you carry the balance costs you money. If you have other credit card balances, your payment goes to the lowest-interest debt first (usually purchases), so the cash advance keeps accruing interest while you pay off other things. Ask your issuer whether you can direct a payment specifically to the cash advance balance.
Do not take another cash advance to pay off the first one. This is a debt trap — you will pay fees and interest on both withdrawals, and the balance will grow faster than you can pay it down.
If you cannot pay the full balance quickly, a personal loan or a balance transfer to a lower-rate card might save you money in the long run. Do the math: compare the total interest you would pay on the cash advance over six months against the cost of a personal loan or balance transfer fee.
When a cash advance makes sense and when it does not
A cash advance makes sense if you need cash for a true emergency — a car repair, a medical bill, or an urgent expense — and you can pay it back within a month or two. The fee and interest are painful but manageable if the balance is small and you clear it quickly.
A cash advance does not make sense if you are using it to fund regular expenses, pay bills you cannot afford, or cover a shortfall in your budget. If you are regularly short on cash, a cash advance is a band-aid that makes the underlying problem worse. In that case, look at your budget, cut expenses, or find additional income before you borrow.
It also does not make sense if you have other borrowing options available. If you have a personal loan offer, a credit union membership, or family who can lend you money, compare the total cost of each option before you withdraw cash from your card.
Frequently Asked Questions
What is the difference between a cash advance and a purchase on a credit card?
A purchase is a transaction with a merchant; a cash advance is cash you withdraw for yourself. Purchases have a grace period (usually 21 to 25 days) before interest starts. Cash advances charge a fee and interest from day one, with no grace period. The interest rate is also higher for cash advances.
Can I use my credit card PIN at any ATM?
Yes, you can use your card at any ATM that displays your card's logo. But not all ATMs are the same — some charge an out-of-network fee on top of your card issuer's cash advance fee. Using an ATM owned by your card issuer's bank usually avoids this extra charge.
What happens if I cannot pay back the cash advance?
The balance stays on your credit card and accrues interest at your cash advance APR. If you miss payments, your issuer may charge late fees and report the missed payment to the credit bureaus, which will lower your credit score. If the debt goes unpaid for months, your issuer may close the account or send it to a collection agency.
Does a cash advance show up differently on my credit report?
No. Your credit report shows only the total balance you owe on the card. The cash advance is part of that balance but is not listed separately. However, if you carry the balance for a long time, the high utilization and missed payments will show up and hurt your score.
Can I get a cash advance if my credit is bad?
Yes. If you have an open credit card account, you can withdraw cash up to your cash advance limit regardless of your credit score. The limit is set by your issuer and may be lower than your purchase limit, but it exists. You will still pay the fee and interest.