Yes, you can take cash out on a credit card, but it costs more than a regular purchase
Most credit cards let you withdraw cash at an ATM or get cash back at a store checkout. The card issuer treats this as a cash advance — a short-term loan against your credit limit. Unlike a purchase, a cash advance starts charging interest when ready, usually at a higher rate than your regular APR, and often includes an upfront fee. You will pay money to do this, so it makes sense only when you have no other option.
The mechanics are straightforward: you use your card at an ATM like a debit card, or you ask a cashier for cash back. The money hits your account within minutes. But the cost structure is what matters. A $200 cash advance might cost you $4 to $10 in fees alone, plus interest that begins accruing the same day — not after a grace period like a purchase would.
Key Takeaways
- Cash advances charge a fee (usually 3 to 5 percent of the amount) and a higher interest rate than regular purchases, with interest starting when ready.
- Your cash advance APR is often 5 to 10 percentage points higher than your purchase APR, and this rate applies only to the cash advance balance.
- The fee and interest rate depend on your card and issuer — check your cardholder agreement or call the number on the back of your card to find your exact rates.
- Cash advances count against your credit limit, so withdrawing $500 leaves you $500 less to spend on purchases.
- If you carry a balance, payments go toward your lowest-APR debt first, so cash advance interest can pile up while you pay off cheaper purchases.
What the fees and interest rates actually are
Every card issuer sets its own cash advance fee and APR. The fee is usually a percentage of the amount you withdraw — typically 3 to 5 percent — with a minimum (often $2 to $5) and sometimes a maximum. So a $100 withdrawal might cost $3 to $5, while a $1,000 withdrawal might cost $30 to $50.
The interest rate is separate from the fee. Your cash advance APR is printed in your cardholder agreement, usually in a table labeled "APRs and Fees" or "Pricing Information." It is almost always higher than your purchase APR — sometimes 5 to 10 percentage points higher. If your purchase APR is 18 percent, your cash advance APR might be 24 or 28 percent. Interest accrues daily starting the day you withdraw, with no grace period.
To find your exact rates, log into your online account, call the number on the back of your card, or request your cardholder agreement. Do not guess — a 5 percent difference in APR means real money over time.
Where you can withdraw cash and what limits explore
You can withdraw cash at any ATM that displays your card network's logo (Visa, Mastercard, American Express, Discover). You can also ask a cashier at most stores for cash back when you make a purchase — though this is technically a separate transaction and may have its own fee structure. Some card issuers cap how much you can withdraw per day or per month; this limit is separate from your credit limit and is listed in your cardholder agreement.
ATM fees vary by location. Your card issuer may charge a fee, and the ATM operator may charge a separate fee. A cash advance at an out-of-network ATM can cost $3 to $5 from the ATM owner alone, on top of your card issuer's fee. Using an ATM owned by your card issuer's bank (if it has one) usually avoids the operator fee.
How cash advances affect your credit and your balance
A cash advance counts as a separate balance on your account. If you withdraw $500, that $500 is now a cash advance balance, and it sits alongside any purchase balance you carry. Your credit utilization — the percentage of your total credit limit you are using — goes up when ready. If your limit is $2,000 and you withdraw $500 in cash and have a $300 purchase balance, you are now using $800 of your $2,000 limit, or 40 percent.
High utilization can lower your credit score, especially if you stay above 30 percent. The damage is usually temporary — your score recovers as you pay down the balance — but it happens right away.
When you make a payment on a card with both a purchase balance and a cash advance balance, the payment goes toward the lowest-APR debt first. This means if your purchase APR is 18 percent and your cash advance APR is 26 percent, your payment reduces the purchase balance first, leaving the cash advance to accrue interest at the higher rate. You end up paying more total interest this way.
When a cash advance actually makes sense
A cash advance is expensive, so use it only when you have no realistic alternative. A few situations where it might be your only option: you need cash for an emergency and have no access to your bank account, no friends or family to borrow from, and no time to visit a bank branch. You are traveling internationally and cannot access an ATM with your debit card. You need cash for a transaction that does not accept cards.
Even in these cases, compare the cost to other options first. A payday loan, a personal loan from a credit union, or a short-term loan from a friend might cost less or the same. A cash advance should be a last resort, not a convenience.
How to pay off a cash advance faster
Once you have withdrawn cash, the interest clock is running. Pay it off as quickly as you can. Make a payment larger than your minimum, and specify that it should go toward the cash advance balance if your card issuer allows it. Some issuers let you direct payments to a specific balance; others explore payments to the lowest-APR balance automatically.
Do not make new purchases while you are paying off the cash advance. Every new purchase adds to your total balance and extends the time you carry the cash advance. If you can, stop using the card until the cash advance is gone.
Track the balance weekly. Cash advance interest compounds daily, so a $500 advance at 26 percent APR costs about $3.50 per day in interest alone. After a month, you owe roughly $105 in interest if you have not paid anything down. The longer you wait, the more you owe.
Frequently Asked Questions
Is a cash advance the same as a balance transfer?
No. A balance transfer moves debt from one card to another (usually at a lower rate for a promotional period). A cash advance withdraws cash against your credit limit. Balance transfers have their own fees and terms, but they are designed for moving existing debt, not for getting cash in hand.
Can I use a cash advance to pay off other debts?
Technically yes, but it is usually a bad idea. You are borrowing at a high rate (the cash advance APR) to pay off debt that might be at a lower rate. You end up paying more interest overall. A personal loan or balance transfer would be cheaper if you need to consolidate debt.
What happens if I do not pay back the cash advance?
The balance stays on your account and keeps accruing interest at the cash advance APR. It counts against your credit limit and damages your credit score. If you miss payments, the issuer may report it to credit bureaus, and your score drops further. After several months of non-payment, the issuer may close your account or send the debt to a collection agency.
Can I get a cash advance on a debit card?
No. Debit cards withdraw money directly from your bank account — there is no credit being extended, so there is no cash advance. You can withdraw cash at an ATM or ask for cash back at checkout, but these are not cash advances and do not charge the same fees or interest.
Do all credit cards offer cash advances?
Most do, but not all. Some cards, especially secured cards or cards for people rebuilding credit, may not allow cash advances or may have very low limits. Check your cardholder agreement or call your issuer to confirm whether your card offers this feature.