Yes, you can pull cash from a credit card, but it is not the same as using the card to buy something
A cash advance is a withdrawal of actual money from your credit card account, usually through an ATM, bank teller, or convenience store. The card issuer treats it as a loan against your credit limit, separate from regular purchases. You start paying interest on the cash when ready — there is no grace period like there is for purchases — and the fees are higher than what you pay for regular transactions.
The three main ways to get cash are: ATM withdrawal using your credit card PIN, a cash advance at a bank or credit union teller window, or a convenience check mailed by your card issuer that you can cash at a bank. Each method costs the same in interest and fees, but the speed and availability differ.
Key Takeaways
- Cash advances charge interest from day one with no grace period, and the interest rate is usually higher than your purchase APR.
- You pay an upfront fee — typically 3 to 5 percent of the amount withdrawn — on top of the interest charges.
- The cash counts against your available credit, so a $500 advance reduces your credit limit by $500 until you pay it back.
- Most credit cards allow cash advances up to 20 to 50 percent of your total credit limit, though some cards restrict it further.
How much a cash advance actually costs
When you take a cash advance, you pay two separate charges: a fee upfront and interest from that day forward. The upfront fee is usually between 3 and 5 percent of the amount you withdraw. On a $500 advance, that is $15 to $25 added to your balance before you even leave the ATM.
The interest rate for cash advances is almost always higher than the rate for purchases on the same card. If your purchase APR is 18 percent, your cash advance APR might be 24 or 25 percent. Interest accrues daily and compounds, so the longer you carry the balance, the faster it grows. Unlike a purchase, there is no 21-day grace period — interest starts the moment you withdraw the cash.
A concrete example: a $500 cash advance at 5 percent fee plus 24 percent APR costs you $25 upfront. If you pay it back in 30 days, you owe roughly $30 in interest, for a total cost of $55. If you carry it for 90 days, the interest alone reaches $90, and the total cost climbs to $115.
Where your cash advance limit comes from
Your card issuer sets a separate cash advance limit, which is usually lower than your total credit limit. This limit is often 20 to 50 percent of your credit limit, but it varies by card and issuer. A card with a $5,000 credit limit might allow only a $1,000 cash advance, for example.
You can call your card issuer to ask what your cash advance limit is — it is usually printed in your cardholder agreement or online account dashboard. Some issuers let you request an increase, though there is no may provide they will grant it. The cash advance limit is set independently from your purchase limit, so maxing out one does not automatically affect the other.
How cash advances affect your credit score
A cash advance does not hurt your credit score in the moment of withdrawal, but it can damage your score over time if it raises your credit utilization ratio. Your utilization is the percentage of your available credit you are using. If you have a $5,000 limit and a $500 cash advance, your utilization jumps to 10 percent. If you also carry purchase balances, the total utilization climbs higher, and high utilization signals risk to credit scoring models.
The bigger risk is missing a payment. Cash advances are part of your credit card balance, so if you do not pay the full statement balance by the due date, the missed payment appears on your credit report and damages your score. The interest charges also make the balance grow faster, making it easier to fall behind.
When a cash advance makes sense and when it does not
A cash advance is expensive and should be a last resort, not a regular money source. It makes sense only in a genuine emergency when you need cash and have no other option — a car repair you must pay in cash, a medical bill, or an urgent expense where the alternative is worse. Even then, you should have a plan to pay it back within 30 days to minimize interest.
A cash advance does not make sense for everyday spending, building an emergency fund, or covering a shortfall you could address another way. If you need cash regularly, a debit card, a personal loan from a bank or credit union, or a line of credit will cost far less. If you are considering a cash advance to pay another debt, a balance transfer card or debt consolidation loan is usually cheaper.
Alternatives that cost less than a cash advance
If you need cash but want to avoid the high fees and interest, several options are cheaper. A balance transfer to a card with a 0 percent introductory APR can move debt at a lower cost, though balance transfers also charge a fee (usually 3 to 5 percent). A personal loan from a bank or credit union typically charges 6 to 36 percent APR depending on your credit, which is often lower than a cash advance rate. A line of credit from your bank, if you have one, usually costs less than a credit card cash advance.
If you need a small amount of cash for a specific purchase, ask whether the merchant accepts a credit card instead. If you need cash for an emergency and have no credit available, contact a local nonprofit credit counselor — many offer emergency information or can help you find lower-cost borrowing options. The National Foundation for Credit Counseling (NFCC) has a directory of accredited counselors by state.
How to repay a cash advance quickly
Once you take a cash advance, the interest clock is running. Your card issuer applies your payments to balances in a specific order set by law: first to the lowest-interest balance, then to higher-interest balances. This means if you have both purchases and a cash advance, your payment goes to the purchase first, and the cash advance keeps accruing interest.
To pay off a cash advance fastest, call your card issuer and ask how to direct a payment specifically to the cash advance balance. Some issuers allow you to specify which balance a payment covers; others do not. If your issuer does not allow it, your only option is to pay down the entire card balance, which means paying off purchases first before the cash advance interest stops growing.
Frequently Asked Questions
Can I use a credit card cash advance to pay another credit card bill?
Technically yes, but it is a bad idea. You are borrowing at 24 to 25 percent interest with a 3 to 5 percent upfront fee to pay a bill that might be at 18 percent. You are paying more to move the debt, not less. A balance transfer or personal loan will cost less if you need to move debt between cards.
What happens if I do not pay back a cash advance?
The balance stays on your credit card and accrues interest every day. If you miss the payment due date, the missed payment reports to the credit bureaus and damages your credit score. Your card issuer may also charge a late fee and raise your interest rate. The debt does not go away and can eventually be sent to a collection agency.
Is there a way to get cash from a credit card without paying a fee?
No. Every cash advance method — ATM, bank teller, or convenience check — charges both an upfront fee and interest. Some cards marketed to people with poor credit offer fee-free cash advances, but these are rare and usually come with higher interest rates to compensate. Read your cardholder agreement to confirm the exact fees before you withdraw.
Can I take a cash advance on a rewards credit card?
Yes, but you do not earn rewards on the cash advance. Rewards are typically earned only on purchases, not on cash advances or balance transfers. You pay the full fee and interest with no reward benefit, making the cash advance even more expensive than it appears.