Yes, you can take cash out with a credit card, but it costs more than a regular purchase
Most credit card issuers let you withdraw cash using your card at an ATM or by asking a bank teller for a cash advance. The money comes from your credit line, not a separate account. You repay it like any other credit card balance — but the fees and interest rates are steeper than they are for regular purchases, and interest starts accruing when ready with no grace period.
The catch is that a cash advance is treated differently from a purchase. Your card issuer charges an upfront fee (usually 3 to 5 percent of the amount you withdraw), charges a higher interest rate on the advance itself, and begins charging interest the day you take the money out. For most people, this makes a cash advance an expensive way to get cash unless you have no other option.
Key Takeaways
- Cash advances charge an upfront fee of 3 to 5 percent plus a higher interest rate than purchases, with interest starting when ready.
- You can withdraw cash at any ATM using your credit card PIN, or ask a bank teller for a cash advance at a branch.
- The amount you can withdraw is limited by your cash advance limit, which is usually lower than your total credit limit.
- Interest on a cash advance accrues daily and is not covered by a grace period, even if you pay your full statement balance on time.
- Alternatives like debit cards, bank transfers, or personal loans are usually cheaper if you need cash urgently.
How to withdraw cash at an ATM with your credit card
Insert your credit card into any ATM that displays your card's logo (Visa, Mastercard, American Express, or Discover). Enter your credit card PIN — this is different from your debit card PIN and is set up when you open the account or can be requested from your issuer. Select "Withdrawal" or "Cash Advance," enter the amount, and confirm the transaction.
The ATM will show you the fee before you complete the withdrawal. This fee is charged by the ATM operator (often $2 to $5) on top of the cash advance fee your card issuer charges. Some credit card issuers reimburse ATM fees, so check your cardholder agreement or call your issuer to see if yours does.
The cash is deposited into your account when ready, and the balance appears on your next statement as a cash advance. You will not see this transaction in your regular checking or savings account — it is a charge against your credit line.
Getting a cash advance from a bank teller
Walk into any bank branch that accepts your card type and ask the teller for a cash advance. You will need to show your credit card and a photo ID. The teller will process the transaction and hand you cash on the spot. This method avoids the ATM operator fee but still includes your card issuer's cash advance fee and interest.
Some banks charge an additional fee for processing a cash advance at the teller window, so ask before you request the advance. The transaction posts to your credit card account the same day, and you will see it on your next statement.
Understanding cash advance fees and interest rates
Your card issuer charges a cash advance fee upfront, usually 3 to 5 percent of the amount withdrawn. On a $500 advance, that is $15 to $25 added to your balance when ready. This fee is separate from the interest rate.
The interest rate on a cash advance is higher than the rate on purchases. While a purchase might carry an APR of 15 to 20 percent, a cash advance on the same card might be 25 to 30 percent. The rate varies by card issuer and your creditworthiness, so check your cardholder agreement or call your issuer for the exact rate on your card.
Interest on a cash advance begins accruing the day you withdraw the money. Unlike purchases, which have a grace period (usually 21 to 25 days before interest kicks in), cash advances have no grace period. If you withdraw $500 on the 1st of the month and pay it back on the 15th, you still owe interest for all 15 days.
What your cash advance limit is and how it works
Your cash advance limit is separate from your credit limit. If your credit limit is $5,000, your cash advance limit might be $1,500 or $2,000. This limit is set by your card issuer and is usually lower than your total credit limit. You can find your cash advance limit in your cardholder agreement, on your statement, or by calling your issuer.
When you withdraw cash, that amount counts against both your cash advance limit and your overall credit limit. If you have a $2,000 cash advance limit and withdraw $1,500, you can only withdraw $500 more before you hit your limit. The remaining $3,000 of your $5,000 credit limit is still available for purchases.
Some card issuers let you request a higher cash advance limit, but this does not change the fees or interest rate — it only increases the amount you can withdraw at one time.
How cash advances affect your credit and statement balance
A cash advance counts as a balance on your credit card and affects your credit utilization ratio — the percentage of your available credit that you are using. If you have a $5,000 limit and withdraw $1,500 in cash, your utilization jumps to 30 percent. High utilization can lower your credit score, even if you pay the advance back quickly.
The cash advance appears on your statement as a separate line item from your purchases. Your minimum payment covers all balances (purchases and cash advances), but if you only pay the minimum, the cash advance balance will accrue interest at the higher rate. To avoid interest charges, you need to pay off the entire cash advance balance before your statement due date.
If you carry a balance on both purchases and a cash advance, your card issuer applies your payment to the purchase first (the lower-interest balance) and the cash advance second. This means 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.
Cheaper alternatives to a credit card cash advance
If you need cash urgently, consider these options before using a cash advance. A debit card withdrawal from your own bank account costs nothing and is when ready. A peer-to-peer transfer (Venmo, PayPal, or your bank's transfer service) is free or low-cost and takes a few minutes to a few hours. A personal loan from a bank or credit union usually has a lower interest rate than a cash advance, though it takes longer to process.
If you are short on cash temporarily, ask your employer about an advance on your paycheck, or ask a friend or family member for a short-term loan. A credit card cash advance should be a last resort because the cost adds up quickly — a $500 advance at 5 percent fee plus 28 percent APR costs $25 upfront and roughly $11.67 in interest per month if you carry the balance.
Frequently Asked Questions
What is the difference between a cash advance and a balance transfer?
A cash advance gives you physical cash from your credit line and charges a higher interest rate with no grace period. A balance transfer moves debt from one card to another and usually has a lower introductory rate (sometimes 0 percent for 6 to 12 months). Balance transfers are for moving existing debt; cash advances are for getting cash.
Can I use a credit card cash advance to pay off another credit card?
Technically yes, but it is expensive. The cash advance fee and high interest rate make this a costly way to move debt. A balance transfer to a card with a 0 percent introductory rate is cheaper if you may have access to. If you cannot transfer, paying the original card directly from your bank account is free.
Does a cash advance show up on my credit report?
The cash advance itself does not show separately on your credit report, but the balance counts toward your credit utilization and appears on your credit card statement. If you carry the balance and miss a payment, that missed payment shows on your report and damages your score.
What happens if I cannot pay back a cash advance?
The balance stays on your credit card and accrues interest at the higher cash advance rate. If you miss payments, late fees are added, your interest rate may increase further, and the missed payments are reported to the credit bureaus. Contact your card issuer as soon as you know you cannot pay to discuss a payment plan.
Can I get a cash advance on a secured credit card?
Yes, most secured cards allow cash advances, though the cash advance limit is usually lower than on unsecured cards. The fees and interest rates are the same. Check your cardholder agreement or call your issuer to confirm your cash advance limit and rate.