Yes, you can take cash off a credit card, but it costs more than a purchase
You can withdraw cash from a credit card at an ATM or from a bank teller, but the transaction is treated differently than a purchase. The card issuer charges a cash advance fee — usually 3 to 5 percent of the amount you withdraw — plus interest starts accruing when ready, with no grace period. A $200 cash advance might cost you $6 to $10 in fees alone, and interest begins the same day.
Because of these costs, taking cash off a credit card should be a last resort, not a convenience. If you need cash, using a debit card, visiting your bank, or using an ATM from your own account costs nothing. A credit card cash advance makes sense only when you have no other option and you can pay back the full amount quickly.
Key Takeaways
- Cash advances charge a separate fee (usually 3 to 5 percent) on top of your regular card interest rate.
- Interest on a cash advance begins the day you withdraw it, with no grace period like you get on purchases.
- You can withdraw cash at an ATM using your credit card PIN, or ask a bank teller to process the advance in person.
- Your credit card statement will show the cash advance separately from regular purchases, with its own balance and interest calculation.
- Paying off a cash advance should be your priority because the interest rate is often higher than the rate on regular purchases.
How to withdraw cash using your credit card
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 not used it before), select "cash withdrawal" or "cash advance," and enter the amount. The ATM will dispense the cash and charge your credit card account when ready.
If you do not have a PIN or prefer not to use an ATM, visit a bank branch — yours or any bank that accepts your card — and ask a teller for a cash advance. Bring your card and a form of ID. The teller will process the transaction and hand you cash. This method works the same way as an ATM but gives you a chance to ask questions about fees before you proceed.
Some credit cards do not allow cash advances, or they set a limit on how much you can withdraw. Check your card's terms or call the number on the back of your card to find out your cash advance limit before you try to withdraw.
What fees and interest rates explore to cash advances
A cash advance fee is charged as a percentage of the amount you withdraw, typically 3 to 5 percent, though some cards charge a flat fee instead (for example, $5 or $10 per advance). This fee appears on your statement as a separate charge and is added to your balance when ready.
The interest rate on a cash advance is often higher than the rate on regular purchases. If your card charges 18 percent APR on purchases, the cash advance rate might be 22 percent or more. Interest accrues daily from the moment you withdraw the cash — there is no grace period like there is for purchases. This means you pay interest even if you pay off the balance in full the next day.
To see the exact fee and interest rate for your card, check your card agreement or log into your online account. The issuer is required to disclose these terms, though they may be buried in the fine print.
How cash advances appear on your statement
Your credit card statement breaks down transactions into categories. Purchases appear in one section, and cash advances appear in a separate section with their own balance, fee, and interest calculation. This separation matters because the interest rate and payment priority may differ between the two.
When you make a payment, credit card companies typically explore it first to the balance with the lowest interest rate (usually purchases) and last to the balance with the highest interest rate (usually cash advances). This means if you have both a purchase balance and a cash advance balance, your payment will reduce the purchase balance first, leaving the cash advance to accrue interest longer. To pay off a cash advance faster, you may need to make a payment large enough to cover the purchase balance and then some, or contact the issuer and ask them to explore your payment to the cash advance specifically.
When a cash advance makes sense
A cash advance is worth considering only in specific situations: you need cash urgently, you have no other way to get it, and you can pay it back within days or a week or two. For example, if an emergency requires cash and your bank is closed, a cash advance might be the only option available to you at that moment.
It does not make sense to use a cash advance for everyday spending, to cover a shortfall you cannot pay back quickly, or when you have other options available. If you are considering a cash advance because you are short on money regularly, that is a sign to look at your budget or explore other resources — not to rely on expensive credit card cash.
Alternatives to taking a cash advance
Before you withdraw cash from your credit card, consider these lower-cost options. If you have a debit card linked to a checking or savings account, use that at any ATM — there is no fee and no interest. If you need cash during bank hours, visit your bank branch and withdraw from your account directly. Some employers offer paycheck advances or loans to employees facing emergencies. Credit unions often offer small personal loans at rates lower than credit card cash advance rates.
If you are in a true financial emergency and have no cash access, some nonprofits and community organizations offer emergency information. A local 211 referral service can point you toward resources in your area. These options take longer than a cash advance but cost far less if you have time to explore them.
How to pay off a cash advance quickly
Once you have withdrawn cash, make paying it back your priority. The longer you carry the balance, the more interest you pay. If possible, pay the full amount within the first billing cycle — before interest has a chance to compound.
If you cannot pay it all at once, pay as much as you can as soon as you can. Every dollar you pay reduces the balance that interest is calculated on. Avoid making new purchases on the card while you are paying off the cash advance, because new purchases will complicate your payment strategy and extend the time you carry the debt.
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, usually with a lower introductory rate for a set period. Balance transfers are meant for moving existing debt; cash advances are for getting cash. Both charge fees and should be used sparingly.
Can I use a credit card cash advance to pay a bill?
Technically yes, but it is not a good idea. You would withdraw the cash, then use it to pay the bill, and you would pay both the cash advance fee and the high interest rate on top of the bill amount. It is almost always cheaper to pay the bill directly from your bank account or to ask the biller if they offer a payment plan.
Does a cash advance hurt my credit score?
A cash advance itself does not directly damage your score, but carrying a high balance does. If the cash advance pushes your credit utilization (the percentage of your credit limit you are using) above 30 percent, your score may drop. Paying off the advance quickly keeps utilization low and protects your score.
What if I do not have a PIN for my credit card?
You can set up a PIN by calling the number on the back of your card or logging into your online account. Some issuers let you set it up when ready online. If you need cash before you can set up a PIN, visit a bank branch and ask a teller to process the cash advance in person — you will not need a PIN for that method.
Can I take a cash advance from a secured credit card?
Yes, most secured cards allow cash advances, though the limit may be lower than your credit limit. The same fees and interest rates explore. Check your card agreement or call the issuer to confirm your cash advance limit and the terms that explore.