Yes, you can take money 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. This is called a cash advance. The money goes into your bank account or your hand when ready, but the card issuer charges you a fee upfront and starts charging interest right away — usually at a higher rate than your regular purchase APR.
Cash advances are not the same as using your debit card or getting cash back at a store. With a credit card cash advance, you are borrowing money and paying for that privilege. Most people use them only when they have no other option, because the cost adds up fast.
Key Takeaways
- A cash advance charges a fee (usually 3 to 5 percent of the amount) plus a higher interest rate than purchases, with interest starting when ready.
- You can get a cash advance at an ATM, bank branch, or by asking a teller for a cash advance over the counter.
- Your credit card statement will show the cash advance separately from purchases, and the two may have different interest rates and payment terms.
- The amount you can withdraw is limited by your cash advance limit, which is usually lower than your credit limit and set by your card issuer.
Where to get a cash advance from your credit card
The easiest place is an ATM that displays your card's logo — Visa, Mastercard, American Express, or Discover. Insert your card, enter your PIN, select "cash advance" or "withdraw cash," and choose your amount. The ATM will show you the fee before you confirm.
You can also walk into any bank branch and ask a teller for a cash advance. Bring your credit card and ID. The teller will process it the same way an ATM does, and you will walk out with cash. Some credit unions and smaller banks may decline if you are not a customer, so call ahead if you are unsure.
A third option is to use a convenience check if your card issuer sent you one. You write the check to yourself, deposit it in your bank account, and the card treats it as a cash advance. This method takes a few days for the check to clear, so it is slower than an ATM.
Fees and interest rates for cash advances
Your card issuer charges a cash advance fee at the time you withdraw. This is usually 3 to 5 percent of the amount you take out, with a minimum fee (often $5 to $10). If you withdraw $500, you might pay $15 to $25 in fees alone.
Interest starts accruing when ready — there is no grace period like there is for purchases. Your cash advance APR is typically 5 to 10 percentage points higher than your purchase APR. If your purchase rate is 18 percent, your cash advance rate might be 24 or 25 percent. Check your card's terms or call the issuer to find out your specific rates.
When you make a payment, the card issuer applies it to your lowest-interest balance first. That means if you have both purchases and a cash advance, your payment goes toward the purchase balance, and the cash advance keeps accruing interest at the higher rate. This is why cash advances are expensive: the interest compounds while your payments chip away at something else.
Your cash advance limit versus your credit limit
Your cash advance limit is separate from your regular credit limit and is usually much lower. If your credit limit is $5,000, your cash advance limit might be $500 or $1,000. The card issuer sets this limit based on your creditworthiness and account history.
You can find your cash advance limit on your card's terms and conditions, in your online account portal, or by calling the card issuer. If you try to withdraw more than your limit, the ATM will decline the transaction. Some issuers allow you to request a higher cash advance limit, but this is not common.
How a cash advance appears on your statement
Your credit card statement breaks down your balance into categories: purchases, cash advances, balance transfers, and promotional offers. Each category has its own balance, interest rate, and minimum payment calculation. The cash advance fee appears as a separate charge.
When you log into your online account, you will see the cash advance listed separately from your purchases. This matters because the two balances may have different due dates or payment terms depending on your card's rules. Always check your statement to confirm the cash advance posted correctly and the fee is what you expected.
Alternatives to a credit card cash advance
If you need cash urgently, consider these options first. A personal loan from a bank or credit union usually has a lower interest rate than a cash advance and no upfront fee. The approval process takes a few days, but the total cost is much less if you can wait.
Asking friends or family for a short-term loan costs nothing and avoids interest entirely. If you have a 401(k) or similar retirement account, some plans allow you to borrow against your balance at a low rate. A payday loan is another option, though the fees and rates are often as bad as or worse than a cash advance.
If you have a debit card linked to a bank account with money in it, use that instead. Getting cash back at a grocery store or gas station when you make a purchase costs nothing. These alternatives all cost less than a credit card cash advance.
What happens if you cannot pay back a cash advance
If you do not pay the cash advance balance in full, interest keeps accruing at your cash advance APR. The unpaid balance rolls into the next month and the next, and the interest compounds. After a few months, the interest alone can exceed the original amount you withdrew.
If you miss payments, the card issuer may report the delinquency to the credit bureaus, which damages your credit score. After 30 days late, the issuer may charge a late fee. After 60 days, they may increase your APR. After 180 days, they may charge off the account and sell the debt to a collection agency.
If you are struggling to pay back a cash advance, contact your card issuer and ask about a hardship program or payment plan. Some issuers will lower your interest rate or waive fees if you are willing to commit to a fixed monthly payment. This is better than letting the debt grow.
Frequently Asked Questions
Does taking a cash advance hurt my credit score?
A single cash advance does not hurt your score directly. However, it increases your overall credit card balance, which raises your credit utilization ratio — the amount you owe divided by your total credit limit. A higher utilization ratio can lower your score. If you miss payments on the cash advance, that will definitely hurt your score.
Can I get a cash advance from a credit card I do not have in my wallet?
No. You need the physical card or the card number, expiration date, and CVV to process a cash advance. You cannot call the issuer and ask them to deposit cash into your bank account. You must go to an ATM or bank teller in person with the card.
What is the difference between a cash advance and a balance transfer?
A cash advance gives you physical cash and charges a higher interest rate when ready. A balance transfer moves debt from one card to another and may offer a lower introductory rate for a set period. Balance transfers are for moving existing debt; cash advances are for getting new cash.
Can I use a credit card cash advance to pay another credit card bill?
Technically yes, but it is a bad idea. You would pay a cash advance fee on top of your regular interest, then pay interest on the new card as well. You end up paying fees and interest twice. If you are juggling multiple cards, contact the issuers about hardship programs or debt consolidation instead.
Is there a limit to how many cash advances I can take?
You can take as many cash advances as you want up to your cash advance limit. However, each one charges a fee and starts accruing interest when ready. Taking multiple cash advances in a short time will raise your balance and interest charges quickly. Your card issuer may also flag frequent cash advances as suspicious activity.