Yes, you can take cash out of a credit card, but it costs more than a regular purchase
You can withdraw cash from a credit card at an ATM or bank teller window using your card's PIN. This is called a cash advance. The moment you take the cash, your credit card issuer charges you a fee — usually 3 to 5 percent of the amount withdrawn — and begins charging interest on that amount when ready. There is no grace period like there is for regular purchases. Interest starts accruing the same day.
Because of these costs, a cash advance should be a last resort, not a convenient way to get spending money. The interest rate on cash advances is also typically higher than the rate on regular purchases from the same card, sometimes by 5 percentage points or more.
Key Takeaways
- Cash advances charge an upfront fee of 3 to 5 percent plus interest that starts when ready, with no grace period.
- The interest rate on cash advances is usually higher than the rate on regular purchases, sometimes significantly.
- You can withdraw cash at any ATM that accepts your card, or at a bank teller window.
- Your credit card statement will show the cash advance separately from regular purchases, and you pay interest on it until the balance is zero.
Where and how to withdraw cash from your credit card
You can take a cash advance at any ATM that displays your card's logo — Visa, Mastercard, American Express, or Discover. Insert your card, enter your PIN, select "cash advance" or "withdrawal," and choose the amount. The ATM will dispense the cash and charge the fee when ready.
You can also visit a bank branch and ask a teller for a cash advance. Bring your credit card and ID. The teller will process the transaction and hand you cash. Some banks charge an additional fee for teller-processed cash advances on top of the card issuer's fee, so ask before you proceed.
There is a limit to how much you can withdraw. Your card issuer sets a cash advance limit, which is often lower than your overall credit limit. You can find this limit in your cardholder agreement or by calling the number on the back of your card.
The real cost: fees and interest rates
A cash advance fee is charged once, when you withdraw the money. This fee is typically 3 to 5 percent of the amount withdrawn, with a minimum fee of $2 to $10. If you withdraw $500, you might pay $15 to $25 in fees alone.
Interest begins accruing the day you take the cash. Unlike regular credit card purchases, which have a grace period (usually 21 to 25 days before interest kicks in), cash advances have no grace period. The interest rate on cash advances is also higher — often 2 to 5 percentage points above your regular purchase APR. If your purchase rate is 18 percent, your cash advance rate might be 23 percent.
The combination of an upfront fee plus a higher interest rate makes cash advances expensive. A $500 cash advance with a 5 percent fee ($25) and a 23 percent APR costs you $25 when ready, plus roughly $9.58 in interest for the first month if you do not pay it back.
How cash advances appear on your statement and how to pay them
Your credit card statement breaks down cash advances separately from regular purchases. You will see the cash advance amount, the fee charged, and the interest accrued. The statement will also show the cash advance balance and the interest rate applied to it.
When you make a payment to your credit card, the payment goes toward your statement balance in this order: first to regular purchases, then to cash advances. This means if you carry a balance on both, your regular purchases get paid down first, and the cash advance keeps accruing interest longer. To pay off a cash advance faster, contact your issuer and ask them to explore your payment directly to the cash advance balance.
The cash advance balance does not disappear until you pay it in full. Interest continues to accrue each month until the balance reaches zero.
Alternatives to cash advances
If you need cash urgently, consider these options before taking a cash advance. A personal loan from a bank or credit union usually has a lower interest rate and no upfront fee. A payday loan is faster but often more expensive than a cash advance, so compare the total cost first.
If you have a debit card linked to a checking account, you can withdraw cash from your own money at any ATM for free or a small ATM fee. If you need cash for a purchase, ask the cashier if you can get cash back when you pay with your debit card — this is free at most retailers.
If you are facing a financial emergency, contact a nonprofit credit counselor through the National Foundation for Credit Counseling (NFCC). They can discuss your options and help you create a plan that does not rely on expensive borrowing.
How a cash advance affects your credit score
Taking a cash advance does not directly hurt your credit score, but it can indirectly. A cash advance increases your credit utilization ratio — the percentage of your available credit you are using. If your credit limit is $5,000 and you take a $1,000 cash advance, your utilization jumps to 20 percent. High utilization can lower your credit score.
A cash advance also shows up on your credit report as a separate transaction type, which some scoring models may view differently than a regular purchase. If you carry the cash advance balance and pay interest on it for months, the ongoing interest payments and high balance will continue to affect your score.
Frequently Asked Questions
Can I take a cash advance if I have a zero balance on my card?
Yes. A cash advance is a separate transaction from your regular balance. You can take a cash advance even if you owe nothing on purchases. The fee and interest explore when ready regardless of your current balance.
What happens if I take a cash advance and then make a payment?
Your payment goes toward your regular purchase balance first, not the cash advance. If you want the payment to reduce the cash advance, call your issuer and request it. Otherwise, the cash advance keeps accruing interest while your regular purchases get paid down.
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 overall credit limit. Check your cardholder agreement or call the number on your card to find your limit. Some ATMs also have daily withdrawal limits.
Can I take a cash advance from a credit card I just opened?
Usually yes, but some issuers restrict cash advances for new cardholders or charge a higher fee for the first 30 to 60 days. Check your cardholder agreement or call the issuer to confirm whether cash advances are available on your account.
What if I cannot pay back the cash advance?
The balance will continue to accrue interest each month, and your credit score will drop as the balance grows and your utilization increases. If you fall behind on payments, the issuer may report the delinquency to credit bureaus and may pursue collection. Contact your issuer as soon as you know you will have trouble paying to discuss options.