Yes, you can take money out of your credit card, but it costs more than a regular purchase
You can withdraw cash from your credit card at an ATM or bank teller window. This is called a cash advance. The money comes from your credit card's available balance, just like a purchase does. But cash advances charge fees and interest rates that are usually higher than what you pay for regular purchases, and interest starts accruing when ready — there is no grace period like there is for purchases.
Most people use cash advances only when they have no other option, because the cost adds up fast. If you need cash regularly, a debit card or bank account withdrawal is almost always cheaper.
Key Takeaways
- Cash advances charge an upfront 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 using your credit card PIN, at a bank teller, or sometimes through a convenience store or casino.
- The cash advance counts against your credit limit and appears on your credit card statement as a separate transaction.
- Your credit card company sets a cash advance limit that may be lower than your overall credit limit.
Where to withdraw cash from your credit card
The easiest place is an ATM. Insert your credit card, enter your PIN, and select the cash advance option. The ATM will show you the fee before you confirm the transaction. Most ATMs that accept your card's network (Visa, Mastercard, American Express, Discover) will work, though you may pay an extra ATM operator fee on top of your card's cash advance fee.
You can also go to a bank teller and ask for a cash advance. Bring your credit card and ID. The teller will process it the same way they would a purchase, and you will walk out with cash. Some credit card companies also allow cash advances through convenience stores, casinos, or other merchants that have point-of-sale systems, though this is less common now.
Online transfers are another option with some card issuers. You can transfer money from your credit card to your bank account through your card's mobile app or website. This counts as a cash advance and carries the same fees and interest rate, but it avoids the ATM step.
What fees and interest you will pay
A cash advance typically costs you two things: an upfront fee and a higher interest rate. The upfront fee is usually 3 to 5 percent of the amount you withdraw, though some cards charge a flat dollar amount instead. A $300 cash advance at 4 percent costs $12 in fees alone.
The interest rate on cash advances is almost always higher than the rate on purchases. While a purchase might carry an APR of 18 percent, a cash advance on the same card might be 22 or 25 percent. Unlike purchases, there is no grace period — interest starts accruing the day you take the cash advance, even if you pay it back when ready.
If you carry a balance on your card, your payment goes toward the lowest-interest debt first (usually purchases), so the cash advance balance sits there accruing interest at the higher rate. This is why cash advances are expensive even for short-term borrowing.
Your cash advance limit and how it affects your credit
Your credit card company sets a separate cash advance limit that is usually lower than your overall credit limit. If your card has a $5,000 limit, your cash advance limit might be $1,000 or $1,500. You can find your cash advance limit in your card's terms and conditions or by calling the card issuer.
A cash advance counts against both your cash advance limit and your overall credit limit. If you withdraw $500, you have $500 less available to spend on purchases. The cash advance also appears on your credit report as a separate line item on your statement, so creditors can see that you are borrowing cash rather than making purchases.
Taking a cash advance does not directly hurt your credit score, but it does increase your credit utilization (the percentage of your available credit you are using), which can lower your score slightly. Carrying a cash advance balance and paying interest on it over time will have a bigger impact on your score than the advance itself.
Alternatives to cash advances
If you need cash but want to avoid the high fees and interest, consider these options first. A debit card withdrawal from your bank account costs nothing. 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. A balance transfer to a card with a 0 percent introductory rate can be cheaper if you need to borrow money, though balance transfers also carry fees.
If you are in a true emergency and have no other way to get cash, a cash advance is better than missing a bill payment or going without. But if you are considering a cash advance for regular spending or to pay down other debt, pause and look at your budget first. The cost of repeated cash advances can trap you in a cycle of high-interest borrowing.
How to minimize cash advance costs if you must use one
If you decide to take a cash advance, keep the amount as small as possible. Every dollar you withdraw costs you the upfront fee plus interest, so withdrawing $100 instead of $300 cuts your costs significantly. Pay it back as fast as you can — the longer the balance sits, the more interest you pay.
Check whether your card issuer offers any cash advance options with lower fees. Some premium cards or cards aimed at business owners have reduced cash advance fees or waived fees for the first advance. It is worth calling your card issuer to ask before you go to the ATM.
If you are going to carry a cash advance balance, make sure you understand your card's payment hierarchy. Ask your issuer whether payments go toward the cash advance first or toward purchases first. Paying the cash advance down first will save you money on interest.
Frequently Asked Questions
Can I take a cash advance if my credit card is maxed out?
No. A cash advance uses your available credit, so you need room in your limit. If your overall limit is $5,000 and you have already spent $5,000, you cannot take a cash advance. However, if you have a separate cash advance limit that is lower than your overall limit, you might be able to take a smaller advance even if your card is nearly maxed out.
Do I need a PIN to take a cash advance?
You need a PIN to withdraw cash at an ATM. If you have never set one up, call your card issuer or use their app or website to create one before you go to the ATM. At a bank teller, you do not need a PIN — your ID and card are enough.
How long does a cash advance show up on my statement?
A cash advance appears on your statement within one to two business days, depending on your card issuer. It shows as a separate line item from your purchases, with its own fee and interest rate. The transaction is final once it posts — you cannot undo it, but you can pay it back.
What happens if I do not pay back a cash advance?
If you do not pay back a cash advance, it becomes part of your credit card balance and you continue to pay interest on it at the cash advance rate. If you miss payments, your card issuer may charge late fees and report the missed payment to credit bureaus, which will hurt your credit score.
Can I use a credit card cash advance to pay another credit card bill?
Technically yes, but it is almost never a good idea. You are paying a cash advance fee and high interest rate to borrow money that you then use to pay another card's interest and fees. You end up paying more in total costs. If you are struggling to pay multiple cards, contact a nonprofit credit counselor instead.