Yes, you can get cash from a credit card, but it is not the same as using a debit card
You can withdraw cash from a credit card at an ATM, through a bank teller, or sometimes at a store checkout. The transaction is called a cash advance. The card issuer treats it differently from a regular purchase — you start paying interest when ready, usually at a higher rate than your standard APR, and you may owe an upfront fee.
The mechanics are straightforward: insert your card at an ATM, enter your PIN, and request the amount. But the cost structure is what matters. A cash advance from a credit card is one of the most expensive ways to borrow money, which is why it should be a last resort, not a convenience.
Key Takeaways
- Cash advances charge interest from day one with no grace period, unlike regular credit card purchases which may have 20+ days before interest starts.
- The interest rate on a cash advance is typically 2 to 5 percentage points higher than your regular purchase APR, and varies by card issuer and your creditworthiness.
- You will also pay an upfront fee — usually 3 to 5 percent of the amount withdrawn, with a minimum fee of $5 to $10.
- ATMs, bank tellers, and some retailers all offer cash advances, but the fee structure is the same regardless of where you withdraw.
- If you need cash, a personal loan, a payday loan from a credit union, or a cash-out refinance on a mortgage will almost always cost less than a credit card cash advance.
How the fees and interest work on a cash advance
When you take a cash advance, you pay two costs when ready: a transaction fee and interest that begins accruing right away. The transaction fee is typically 3 to 5 percent of the amount you withdraw. If you withdraw $500, you might pay $15 to $25 just to get the cash. That fee appears on your next statement.
Interest starts the moment you withdraw the cash — there is no grace period like there is on regular purchases. If your regular purchase APR is 18 percent, your cash advance APR might be 23 or 24 percent. The issuer calculates daily interest on the full amount until you pay it back. On a $500 advance at 24 percent APR, you owe roughly $10 in interest per month if you make no payments.
The total cost depends on how long you carry the balance. A $500 cash advance with a $15 fee and 24 percent APR costs you about $25 in the first month alone if you pay nothing. If you carry it for six months, you could owe $90 or more in interest and fees combined — nearly 18 percent of the original amount.
Where you can withdraw cash from a credit card
You have three main options: ATMs, bank tellers, and some retail stores. At an ATM, you insert your card, enter your PIN, and select "cash advance" or "cash withdrawal" — not "balance transfer." The ATM will show you the fee before you confirm, though this is the card issuer's fee, not the ATM operator's fee. Some ATM operators charge an additional surcharge of $2 to $3 on top of your card issuer's fee.
At a bank teller, you can request a cash advance in person. The teller will process it the same way an ATM does, and you will pay the same fees. Some banks waive the fee if you are a customer, though this is rare and varies by institution.
A few retailers, including some grocery stores and pharmacies, offer cash advances at checkout. You typically need a PIN and the store's system must support credit card cash advances. The store may charge its own fee on top of your card issuer's fee. Always ask the total cost before you proceed.
Why cash advances are more expensive than other borrowing options
A credit card cash advance is expensive because the issuer sees it as riskier than a regular purchase. You are borrowing unsecured money with no collateral, and the issuer charges accordingly. But other borrowing options exist that cost significantly less.
A personal loan from a bank or credit union typically charges 6 to 36 percent APR depending on your credit score and the lender. Even at the high end, a personal loan APR is usually lower than a cash advance APR, and you pay no upfront fee. A $500 personal loan at 24 percent APR costs roughly $5 per month in interest — half the cost of a cash advance at the same rate, because there is no transaction fee.
A credit union payday loan is capped by federal law at 28 percent APR and charges a maximum fee of $20. If you belong to a credit union, this is almost always cheaper than a credit card cash advance. A payday loan from a storefront lender is more expensive — often 400 percent APR or higher — but still worth comparing if you are considering a cash advance.
If you own a home, a cash-out refinance or a home equity line of credit (HELOC) charges interest rates tied to the prime rate, typically 7 to 10 percent. This is substantially cheaper than a cash advance, though it takes longer to set up and carries the risk of losing your home if you cannot repay.
How a cash advance affects your credit score
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 you take a $500 cash advance, your utilization jumps to 10 percent. High utilization can lower your score by a few points.
The bigger risk is that a cash advance makes it harder to pay off your balance. Because interest starts when ready and the APR is high, the balance grows quickly. If you cannot pay it off within a month or two, you may fall behind on other payments, which will damage your score far more than the cash advance itself.
When a cash advance might make sense
A cash advance is rarely the right choice, but there are narrow situations where it might be your only option. If you need cash when ready and have no other way to get it — no access to a personal loan, no credit union membership, no family to borrow from — a cash advance is faster than waiting for a loan to be processed.
If you can pay back the cash advance within a week or two, the interest cost stays low. A $500 advance paid back in one week costs roughly $2 in interest, plus the transaction fee. That is still expensive, but it is not catastrophic.
In a genuine emergency — a car repair you need to drive to work, a medical expense, an urgent travel cost — a cash advance might be the fastest way to get the money. But before you use it, call your card issuer and ask if they offer a lower-cost option, such as a personal loan product or a balance transfer with a lower rate.
How to avoid needing a cash advance
The best strategy is to build a small emergency fund so you do not have to borrow at all. Even $500 to $1,000 set aside in a savings account prevents you from reaching for a cash advance when something unexpected happens. Automate a small weekly transfer — even $10 or $20 — and you will build a cushion over time.
If you do not have an emergency fund yet, prioritize it over paying down credit card debt. A $500 emergency fund prevents you from taking on new high-interest debt when something breaks. Once you have that cushion, then focus on paying down existing balances.
If you are in a situation where you regularly need cash advances, that is a sign your income and expenses are out of balance. Consider talking to a credit counselor — many nonprofits offer free sessions — to work through a budget and identify where the gap is. A counselor can also help you find lower-cost borrowing options if you do need to borrow.
Frequently Asked Questions
What is the difference between a cash advance and a balance transfer?
A balance transfer moves debt from one card to another, usually at a lower introductory rate. A cash advance withdraws actual cash and charges a higher APR from day one. Never confuse the two at an ATM — selecting "balance transfer" will not give you cash, and selecting "cash advance" will not move debt between cards.
Can I use a credit card cash advance to pay another bill?
Yes, you can withdraw cash and use it for anything. But because the interest rate is so high, paying a bill with a cash advance is expensive. If the bill is from a creditor, call them first and ask about a payment plan — most will work with you rather than have you take on high-interest debt.
Do all credit cards allow cash advances?
Most credit cards do, but some do not. Secured cards and certain student cards may not offer cash advances. Check your card's terms or call the issuer to confirm. If your card does not offer cash advances, you cannot force it to — you will need to use a different card or a different borrowing method.
Will taking a cash advance hurt my credit score?
Not directly, but it increases your credit utilization, which can lower your score slightly. The real damage comes if you cannot pay it back and your balance grows or you miss a payment. Keeping the cash advance small and paying it back quickly minimizes the impact.
What if I cannot pay back the cash advance?
The balance stays on your card and interest keeps accruing. If you miss payments, your score drops and the issuer may raise your APR even higher. Contact your card issuer when ready if you are struggling — some offer hardship programs that lower your rate or pause interest temporarily while you work out a repayment plan.