Yes, you can get cash from a credit card, but it costs more than a regular purchase
You can withdraw cash using your credit card at an ATM, through a bank teller, or sometimes at a store checkout. The transaction is called a cash advance. Unlike swiping your card to buy something, a cash advance charges you interest starting when ready — there is no grace period — plus a separate upfront fee. Most people use this option only when they have no other way to get cash, because the cost adds up fast.
The three costs you will pay are: a cash advance fee (usually 3 to 5 percent of the amount you withdraw), a higher interest rate than your regular purchase rate, and interest that starts accruing the day you withdraw the money. If you borrow $500 at a 5 percent fee and 25 percent annual interest, you will owe $25 in fees plus interest charges that grow every day until you pay it back.
Key Takeaways
- Cash advances charge an upfront fee (typically 3 to 5 percent) plus a higher interest rate than purchases, with interest starting when ready.
- You can get a cash advance at an ATM using your PIN, at a bank teller with your card and ID, or sometimes at a store customer service desk.
- Your credit card statement will show the cash advance separately from purchases, and you can see the exact fee and interest rate before you complete the transaction at an ATM.
- Paying back a cash advance should be your priority because the interest rate is usually 5 to 10 percentage points higher than your purchase rate.
Where and how to get cash from your credit card
The easiest method is an ATM. Insert your card, enter your PIN (the same one you use for a debit card), and select "cash advance" or "withdraw cash." The ATM will show you the fee amount before you confirm. You can withdraw up to your cash advance limit, which is usually lower than your total credit limit — often $500 to $1,000, depending on your card and credit history.
If you do not have a PIN or prefer not to use an ATM, you can visit a bank branch and ask a teller for a cash advance. Bring your credit card and a photo ID. The teller will process it the same way an ATM does, and you will see the fee before you complete the transaction.
Some stores allow cash advances at the customer service desk or checkout, though this is less common than it used to be. Call ahead to confirm your store offers this service. The process and fees are the same.
The fees and interest rates you will pay
Every credit card company sets its own cash advance fee and interest rate. The fee is usually a flat percentage — commonly 3, 4, or 5 percent of the amount you withdraw — with a minimum fee (often $3 to $10). So if you withdraw $100 with a 5 percent fee and $10 minimum, you pay $10. If you withdraw $500 with a 5 percent fee, you pay $25.
The interest rate on a cash advance is almost always higher than your purchase rate. If your card charges 18 percent on purchases, the cash advance rate might be 25 or 28 percent. Check your card's terms or call the number on the back of your card to find out your specific rates before you withdraw.
Interest starts accruing the day you withdraw the cash — there is no grace period like there is for purchases. If you carry a balance on your card, the cash advance interest is calculated separately and usually charged at the higher rate until the cash advance is paid off completely.
How a cash advance shows up on your statement and credit report
Your credit card statement will list the cash advance as a separate line item from your purchases. You will see the date, the amount, and the fee charged. The interest will appear as a separate charge on your next statement.
A cash advance does not hurt your credit score in the moment, but it does count as a balance on your card. If your cash advance pushes your total balance higher, your credit utilization ratio goes up, which can lower your score slightly. Paying it back quickly brings your utilization back down.
The cash advance itself does not appear differently on your credit report than a regular purchase — it is all part of your credit card balance. What matters to your credit is whether you pay on time and how much of your available credit you are using.
When a cash advance makes sense and when it does not
A cash advance makes sense only when you have no other option. Examples: you need cash for an emergency and have no savings, your debit card is not working, or you are traveling and cannot access your bank account. In these cases, the cost is worth it because the alternative is worse.
A cash advance does not make sense if you can use a debit card, borrow from a friend or family member, use a personal loan, or wait until you can visit your bank. All of these options cost less or nothing. If you are considering a cash advance to pay bills or cover regular expenses, that is a sign you need a different plan — a budget review, a side income source, or help from a nonprofit credit counselor.
If you are in a cycle of taking cash advances regularly, stop and talk to a nonprofit credit counselor. Many offer free sessions and can help you find a path out of high-interest debt. The National Foundation for Credit Counseling (NFCC) and the Financial Counseling Association of America (FCAA) both have counselor directories on their websites.
How to pay back a cash advance quickly
Treat a cash advance like an emergency debt. Pay it back as fast as you can, before you make other purchases on the card. Every day you carry the balance, the interest grows.
When you make a payment to your credit card, the payment goes toward your lowest-interest balance first — usually your purchases. To pay down the cash advance faster, call your card company and ask if you can direct a payment specifically to the cash advance balance. Some companies allow this; others do not. If yours does not, you will need to pay off all your purchases before the cash advance interest stops accruing.
If you have the cash to pay back the full advance within a few days, do it. If you will carry the balance for weeks or months, look for a personal loan or a 0 percent balance transfer card instead. Both usually cost less than a cash advance, even with their own fees.
Alternatives to a cash advance
A personal loan from a bank, credit union, or online lender usually charges less interest than a cash advance and gives you a fixed repayment schedule. Interest rates vary, but many personal loans charge 6 to 36 percent depending on your credit. Even at the high end, that is often lower than a cash advance rate.
A balance transfer card offers 0 percent interest for a set period (usually 6 to 21 months) if you transfer a balance from another card. You pay a balance transfer fee (typically 3 to 5 percent), but if you pay off the balance before the promotional period ends, you save money compared to a cash advance.
A credit union loan or payday alternative loan (PAL) is available through some credit unions and charges much less than a cash advance — often 7 to 18 percent interest. You must be a credit union member, but joining is usually free or very cheap.
If you need cash and have no credit options, ask family or friends, look for a local nonprofit that offers emergency information, or contact 211 (dial 2-1-1 or visit 211.org) to find local resources in your area.
Frequently Asked Questions
What is the difference between a cash advance and a regular credit card purchase?
A purchase lets you buy something and pay it back over time with a grace period before interest starts. A cash advance gives you cash when ready but charges interest from day one, plus an upfront fee. The interest rate on a cash advance is also higher — usually 5 to 10 percentage points more than your purchase rate.
Can I use a cash advance to pay off other debt?
Technically yes, but it is usually a bad idea. You are replacing one debt with a more expensive one. A personal loan or balance transfer card almost always costs less. If you are trying to consolidate debt, talk to a credit counselor before taking a cash advance.
Does taking a cash advance hurt my credit score?
Not when ready, but it can lower your score if it raises your credit utilization ratio — the percentage of your available credit you are using. Paying it back quickly brings your utilization back down and your score recovers.
What if I cannot pay back the cash advance?
The balance stays on your card and interest keeps accruing. Contact your card company and ask about a hardship program or payment plan. If you are struggling with multiple debts, a nonprofit credit counselor can help you create a plan. Do not ignore the debt — it will damage your credit and may lead to legal action.
Can I get a cash advance on a debit card?
No. Debit cards draw from money you already have in your bank account. You can withdraw cash from an ATM or a teller for free (or a small ATM fee), but that is not a cash advance — it is just accessing your own money.