Yes, you can take cash from a credit card, but it costs more than a purchase
You can withdraw cash from a credit card at an ATM or by asking a bank teller for a cash advance. The card issuer treats this like a loan: they give you cash when ready, and you pay interest on it starting right away — not after a grace period like you would with a purchase. Most cards also charge a flat fee, usually 3% to 5% of the amount you withdraw.
The math works against you quickly. If you take out $500 at a 3% fee plus 24% annual interest, you are paying $15 upfront and roughly $10 per month in interest alone. That $500 becomes $525 before you have even made a payment. For that reason, a cash advance should be a last resort, not a convenience.
Key Takeaways
- Cash advances charge a fee (usually 3% to 5%) and start accruing interest when ready with no grace period.
- The interest rate on a cash advance is often higher than the rate on purchases, sometimes by 5 percentage points or more.
- You can take a cash advance at an ATM using your PIN, at a bank teller, or sometimes through a convenience check from your card issuer.
- Payments toward a cash advance go to the lowest-interest debt first, so the advance may take months to pay off even if you are making payments.
How to actually get the cash
The simplest method is to go to an ATM that accepts your card. Insert your credit card, enter your PIN (which you may need to set up if you have not used it before), and withdraw up to your cash advance limit. That limit is usually lower than your credit limit — often 20% to 50% of it — and your card issuer sets it separately.
You can also visit a bank branch and ask a teller for a cash advance. Bring your card and a photo ID. The teller will process it the same way an ATM does, and you walk out with cash. Some card issuers also send convenience checks in the mail that you can write like a regular check to yourself and deposit, though this method is less common now.
The fee and interest start the moment you receive the cash. There is no waiting period. If you withdraw $300 on a Monday, the fee appears on your statement within days, and interest begins accruing when ready.
The fees and interest rates you will see
Every card issuer sets its own cash advance fee and interest rate. The fee is usually a percentage of the amount withdrawn — typically 3%, 4%, or 5% — with a minimum (often $5 to $10) and sometimes a maximum. So a $100 advance might cost $5 (the minimum), while a $1,000 advance costs $50 (5%).
The interest rate on a cash advance is separate from your purchase rate. It is almost always higher. If your card charges 18% on purchases, the cash advance rate might be 24% or 26%. This higher rate applies only to the cash advance balance, not to purchases you make later.
Interest accrues daily, starting the day you take the advance. Unlike a purchase, there is no grace period — you do not get 21 days interest-free. If you carry the balance for a month, you will owe roughly one-twelfth of the annual rate in interest alone, plus the upfront fee.
Why your payment might not go where you think
When you make a payment on a credit card that has both a purchase balance and a cash advance balance, the payment goes to the debt with the highest interest rate first. Since the cash advance rate is higher, your payment reduces the cash advance first. This sounds right, but it creates a trap: your purchase balance keeps accruing interest at its own rate while you are paying down the advance.
If you owe $500 on purchases at 18% and $300 on a cash advance at 24%, and you pay $200, that $200 reduces the advance to $100. Your $500 purchase balance stays at $500 and keeps accruing interest. You end up paying more total interest because the purchase balance sits longer.
The only way around this is to pay more than the minimum — enough to cover the advance, the purchase balance, and the interest on both. If you cannot do that, a cash advance will cost you significantly more than a purchase would have.
When a cash advance might make sense
A cash advance is rarely the right choice, but there are narrow situations where it is better than the alternative. If you need cash urgently and the only other option is a payday loan (which charges 400% annual interest or more), a credit card cash advance is cheaper. If you have a 0% introductory rate on your card and that rate applies to cash advances, the advance costs only the upfront fee, which is still cheaper than most other short-term borrowing.
Most of the time, though, you have better options. A personal loan from a bank or credit union charges less interest and has a fixed payment schedule. Borrowing from family or friends costs nothing. Even a small-dollar loan from a credit union is usually cheaper than a cash advance. Before you use your card, ask yourself whether you could wait a few days for a loan process or whether you could reduce what you are trying to borrow.
How a cash advance affects your credit score
Taking a cash advance does not directly hurt your credit score the way a missed payment does. However, it increases your credit utilization — the percentage of your available credit you are using. If your credit limit is $5,000 and you take a $1,000 advance, your utilization jumps to 20% (or higher if you have other balances). High utilization can lower your score by 10 to 50 points, depending on your current score and how much you are using.
The damage is temporary. Once you pay off the advance, your utilization drops and your score recovers. But while you are carrying the balance, the score hit makes it harder to get approved for new credit at good rates.
Alternatives to a cash advance
If you need cash and do not want to pay credit card rates, consider these options first. A personal loan from a bank, credit union, or online lender typically charges 6% to 36% interest — lower than most cash advance rates — and gives you a fixed payment schedule so you know exactly when you will be done paying. A credit union loan is often cheaper if you are a member, and some credit unions offer small loans specifically for people with limited credit history.
If you have a 401(k) or similar retirement account, you may be able to borrow from it at a low rate, though this carries risks if you leave your job. A home equity line of credit (if you own a home) usually charges less than a credit card but takes longer to set up. Asking family or friends for a loan costs nothing and can be faster than any formal borrowing, though it carries its own risks.
If you are in a genuine emergency and have no other options, a cash advance is better than not eating or paying rent. But treat it as a temporary measure, not a solution. Make a plan to pay it off within one or two months, and explore other borrowing options for the future.
Frequently Asked Questions
What is the difference between a cash advance and a balance transfer?
A cash advance gives you physical cash and charges a fee plus a high interest rate. A balance transfer moves debt from one card to another and may have a lower rate or even a 0% introductory period. Balance transfers are for moving existing debt; cash advances are for getting cash. Both charge fees, but the fee structure and interest rates are different.
Can I use a credit card to withdraw cash from my own bank account?
No. Withdrawing cash from your own account using a debit card is free. Using a credit card to get cash is always a cash advance, which charges a fee and interest. If you need cash from your account, use your debit card or visit your bank in person.
Will taking a cash advance hurt my credit score?
It can lower your score temporarily by increasing your credit utilization. The damage is usually 10 to 50 points and recovers once you pay off the balance. A missed payment on the advance would hurt much more — 100 points or more — so making payments on time is critical.
What happens if I cannot pay back a cash advance?
The balance stays on your card and keeps accruing interest. If you miss payments, your score drops, the card issuer may freeze your account, and they may pursue collection. Contact your card issuer as soon as you know you cannot pay; some offer hardship programs that lower your interest rate or pause payments temporarily.
Is there a limit to how much I can withdraw?
Yes. Your card issuer sets a cash advance limit, which is usually lower than your credit limit. You can find this limit in your card agreement or by calling the issuer. The limit may be 20% to 50% of your credit limit, or a fixed dollar amount like $500 or $1,000.