Yes, you can pull cash from a credit card, but it costs more than a purchase and starts charging interest when ready
A cash advance is a withdrawal of money from your credit card account, usually at an ATM or bank teller. Unlike a purchase, which goes on your card and gets added to your balance, a cash advance gives you physical dollars or a bank transfer right away. The catch: you pay a fee upfront (usually 3 to 5 percent of the amount), and interest starts accruing the same day — there is no grace period like there is for purchases.
Most people use cash advances when they need when ready cash and have no other option. A few situations where this happens: paying a contractor who only takes cash, covering an emergency expense when your debit account is empty, or getting money out on a weekend when banks are closed. But because the cost is steep, it should be a last resort, not a habit.
Key Takeaways
- Cash advances charge a fee (typically 3 to 5 percent) plus a higher interest rate than purchases, and interest starts the day you withdraw the money.
- You can get a cash advance at an ATM using your credit card PIN, at a bank teller, or sometimes through a balance transfer check sent by your card issuer.
- Your credit card company sets a cash advance limit, which is often lower than your overall credit limit and is listed in your card agreement.
- A cash advance shows up on your credit report as a cash advance, not a purchase, and paying it off should be your first priority because of the high interest rate.
How to actually get the cash
The most common way is to use an ATM. Insert your credit card, enter your PIN (which you may need to set up if you have never done a cash advance before), and withdraw the amount you need. The ATM will show you the fee and the amount that will be charged to your card, and you can cancel if you change your mind.
You can also walk into a bank branch — yours or any bank — and ask the teller for a cash advance on your credit card. Bring your card and ID. The teller will process it the same way an ATM does, and you will walk out with cash. This method works on weekends and evenings if the branch is open.
A third option is a balance transfer check. Your card issuer may send you checks that draw directly from your credit line. You write a check to yourself or to someone else, deposit it, and the amount becomes a cash advance on your card. This is less common now, but some issuers still offer it. Check your card's terms or call the number on the back to see if you have this option.
What the fees and interest actually look like
When you take a cash advance, you pay two things: a one-time fee and ongoing interest. The fee is usually 3 to 5 percent of the amount withdrawn — so a $500 advance costs $15 to $25 right away. Some cards charge a flat fee instead (like $10), which is better if you are withdrawing a small amount.
The interest rate on a cash advance is almost always higher than the rate on purchases. While a purchase might carry a 15 percent APR, a cash advance might be 20 or 25 percent. And unlike purchases, there is no grace period — interest starts accruing the day you withdraw the money, even if you pay it back when ready.
Here is a concrete example: you withdraw $500 at a 4 percent fee and 22 percent APR. You pay $20 in fees when ready. If you pay back the $500 in one month, you owe about $9 in interest. Total cost: $29. If you carry the balance for three months, interest alone is roughly $27. The longer you carry it, the more you lose.
Your cash advance limit is separate from your credit limit
Your card issuer sets a cash advance limit that is usually much lower than your overall credit limit. If your credit limit is $5,000, your cash advance limit might be $1,000 or $1,500. This limit is set by the card company based on your credit history and account activity, and you cannot change it yourself.
You can find your cash advance limit in your card agreement, on your online account dashboard, or by calling the number on the back of your card. If you try to withdraw more than your limit, the ATM or teller will decline the transaction. If you need a higher limit, you can call and ask, but the issuer is not required to increase it.
How a cash advance affects your credit and your balance
A cash advance shows up separately on your credit report and your monthly statement — it is not mixed in with your purchases. This matters because credit scoring models sometimes treat cash advances differently than purchases. A large cash advance can signal financial stress to lenders, which may lower your credit score slightly.
The cash advance also counts toward your overall credit utilization, which is the percentage of your total credit limit that you are using. If you have a $5,000 limit and you take a $1,000 cash advance, your utilization jumps to 20 percent. High utilization can hurt your score, so paying off the cash advance quickly is important for both your wallet and your credit.
On your statement, the cash advance balance is usually listed separately from your purchase balance. Many card issuers explore your monthly payment to purchases first, then to cash advances. This means if you carry both, your cash advance sits there accruing the higher interest rate while you pay down the purchase. To avoid this, pay the cash advance off before making any other charges.
When a cash advance makes sense and when it does not
A cash advance makes sense only when you have no other way to get cash and the amount is small. Examples: you need $100 in cash for a contractor and your bank is closed, or you are traveling and your debit card does not work. In these cases, the fee and a few days of interest are worth the convenience.
A cash advance does not make sense if you are using it to cover regular expenses, to pay off other debts, or because you are out of money. If you are regularly taking cash advances, that is a sign you are spending more than you earn, and the high interest rate will make the problem worse. Instead, look at your budget, cut expenses, or talk to a credit counselor about a debt plan.
If you need cash regularly, a better option is a personal loan from a bank or credit union, which usually has a lower interest rate and a fixed repayment schedule. If you are in a financial crisis, contact a nonprofit credit counselor (search for one through the National Foundation for Credit Counseling) to explore options that do not involve high-interest borrowing.
Paying off a cash advance quickly
Once you have taken a cash advance, your goal should be to pay it off as fast as possible. The interest rate is too high to carry the balance. If you took a $500 advance and can pay it back within a week or two, do that. The fee is already paid, so the only thing you are fighting is interest.
When you make a payment on your card, check your statement to see where the payment goes. Some issuers let you direct a payment to the cash advance specifically. If yours does, do that. If not, call and ask whether your payment will go to the cash advance or the purchase balance first. Then pay enough to clear the cash advance before you make any new charges.
Frequently Asked Questions
Can I use a credit card cash advance to pay off another credit card?
Technically yes, but it is a bad idea. You are borrowing at the cash advance rate (usually 20 to 25 percent) to pay off a balance that might be at 15 percent. You are also paying a fee upfront. A balance transfer (moving the balance to a card with a 0 percent intro rate) or a personal loan would cost far less.
What happens if I do not pay back a cash advance?
The balance stays on your card and keeps accruing interest at the higher rate. If you do not pay your bill, the issuer will report the missed payment to the credit bureaus, which will damage your credit score. Eventually, the issuer may close your account or send the debt to a collection agency.
Is there a way to get cash from a credit card without a fee?
Not really. Every cash advance method — ATM, teller, or balance transfer check — charges a fee. Some cards offer slightly lower fees (2 percent instead of 5 percent), so if you know you will need cash advances, comparing cards beforehand can save money. But the fee itself is unavoidable.
Can I take a cash advance on a secured credit card?
Yes, most secured cards allow cash advances, though the limit is usually very low. Secured cards are designed to rebuild credit, so the issuer may restrict cash advances to prevent you from going into debt. Check your card agreement or call to confirm whether cash advances are available on your account.
Does a cash advance hurt my credit score?
It can, slightly. The advance itself does not hurt your score, but it increases your credit utilization (the percentage of your limit you are using), which can lower your score a few points. Paying it off quickly brings your utilization back down and limits the damage.