Yes, you can take money out with a credit card, but it is not the same as using a debit card
A cash advance is a withdrawal of cash from your credit card account. You can get one at an ATM using your credit card and PIN, at a bank teller window, or through a cash advance service like MoneyGram or Western Union. The money comes from your credit line, not a separate account, which means you are borrowing it at a rate and cost structure different from regular purchases.
The key difference: a cash advance starts charging interest when ready — there is no grace period like there is for purchases. You also pay an upfront fee, usually 3 to 5 percent of the amount withdrawn. These costs add up fast, which is why cash advances are expensive compared to other ways of getting cash.
Key Takeaways
- Cash advances charge interest from day one with no grace period, and most cards charge a fee of 3 to 5 percent of the amount you withdraw.
- The interest rate on a cash advance is typically higher than the rate on purchases — sometimes 5 to 10 percentage points higher.
- You can withdraw cash at an ATM, bank branch, or through services like MoneyGram, but each method has different fees and limits.
- Your credit card issuer sets a separate cash advance limit, which may be lower than your overall credit limit.
- Cash advances report to credit bureaus as debt and can lower your credit score if they push your overall credit usage higher.
How much a cash advance actually costs
The cost of a cash advance has three parts: the upfront fee, the interest rate, and the daily interest charge. If you withdraw $500, you might pay $15 to $25 in fees alone (3 to 5 percent). Then interest starts accruing when ready at a rate that varies by card — commonly 20 to 25 percent annually, sometimes higher.
The math: a $500 advance at 25 percent annual interest costs about $3.42 per day in interest. If you pay it back in 30 days, you pay roughly $102 in interest plus the initial $15 to $25 fee — a total cost of $117 to $127 on a $500 withdrawal. That is 23 to 25 percent of the amount borrowed, in one month alone.
Compare this to a personal loan from a bank or credit union, which typically charges 8 to 15 percent annually with no upfront fee. A $500 personal loan at 12 percent costs about $5 in interest over 30 days. The cash advance is roughly 20 times more expensive.
Where you can withdraw cash and what each option costs
You have three main ways to get cash from a credit card, and each has different fees and limits.
| Method | Where | Typical Fee | Speed |
|---|---|---|---|
| ATM withdrawal | Any ATM that accepts your card | 3–5% of amount plus ATM operator fee ($2–$3) | when ready |
| Bank teller | Your card issuer's branch or other banks | 3–5% of amount | when ready |
| Cash advance service | MoneyGram, Western Union, check-cashing stores | 3–5% of amount plus service fee ($2–$5) | when ready |
ATM withdrawals often charge two fees: one from your card issuer (the cash advance fee) and one from the ATM operator. If you use an out-of-network ATM, the operator fee can be $3 or more. Bank tellers usually charge only the card issuer's fee, making them the cheapest option if your bank has a branch nearby.
Cash advance limits and how they work
Your credit card issuer sets a separate cash advance limit, which is often lower than your overall credit limit. If your credit limit is $5,000, your cash advance limit might be $1,000 or $1,500. You cannot withdraw more than this limit, even if you have unused credit available.
The cash advance limit is set when your account opens and is based on your credit history and income. You can contact your card issuer to request an increase, but they may deny it or increase it only slightly. Some cards do not offer cash advances at all — business cards and certain rewards cards sometimes exclude this feature.
The amount you withdraw counts against both your cash advance limit and your overall credit limit. If you take a $500 advance on a $5,000 limit, you have $4,500 in available credit left, not $5,000.
How cash advances affect your credit score
A cash advance itself does not directly damage your credit score, but it can lower your score indirectly. Your credit utilization ratio — the percentage of your available credit you are using — is a major factor in your score. A $500 cash advance on a $5,000 limit raises your utilization from 0 percent to 10 percent, which can lower your score by a few points.
The damage is usually small if your utilization stays below 30 percent. But if you are already using a lot of credit, a cash advance can push you over that threshold and cause a bigger drop. The effect is temporary — your score recovers as you pay down the balance.
Late payments on a cash advance hurt your score much more than the advance itself. Cash advances are treated like any other credit card debt: if you miss a payment, it reports to the credit bureaus and can lower your score by 100 points or more.
When a cash advance makes sense and when it does not
A cash advance is rarely the best option, but there are narrow situations where it might be your only choice. If you need cash when ready and have no other source — no ATM access, no friends or family to borrow from, no time to visit a bank — a cash advance is faster than a personal loan or payday loan process.
It also makes sense if the amount is very small and you can pay it back within days. A $50 advance with a $2 fee and paid back in three days costs less than a payday loan or overdraft fee. But for any amount over $100 or any repayment period over a week, other options are cheaper.
Do not use a cash advance to pay bills, cover everyday expenses, or fund a purchase you could make with the card itself. If you are considering a cash advance, first explore: borrowing from a friend or family member, a personal loan from a bank or credit union, a payday loan (if the amount is small and repayment is certain), or asking a creditor for a payment extension.
How to pay back a cash advance quickly
Interest on a cash advance starts the day you withdraw it, so the longer you carry the balance, the more you pay. Your credit card statement will show the cash advance separately from purchases, and your card issuer may require you to pay purchases in full before the cash advance balance is considered paid.
Some cards explore your payment to the lowest-interest debt first (usually purchases), leaving the cash advance to accrue interest longer. Check your card's payment terms or call the issuer to confirm how payments are applied. If possible, make a separate payment specifically for the cash advance to may support it is paid down first.
If you cannot pay the full amount when ready, pay as much as you can as soon as possible. Every day the balance sits, interest compounds. Paying $250 of a $500 advance after one week saves you roughly $50 in interest compared to waiting a month.
Frequently Asked Questions
Can I use a credit card to withdraw cash at any ATM?
Most credit cards work at ATMs that display your card network's logo (Visa, Mastercard, American Express, Discover). However, not all cards offer cash advances — some business cards and certain rewards cards exclude this feature. Check your card's terms or call your issuer to confirm your card supports cash advances before you try.
What is the difference between a cash advance and a balance transfer?
A cash advance is money you withdraw in cash; a balance transfer moves debt from one card to another. Cash advances charge interest when ready and cost 3 to 5 percent upfront. Balance transfers often have a 0 percent introductory rate for 6 to 21 months but charge 3 to 5 percent to transfer the balance. Balance transfers are cheaper if you need to move existing debt; cash advances are for getting physical cash.
Will a cash advance show up on my credit report?
The cash advance itself does not appear as a separate line item on your credit report, but the balance counts toward your overall credit card debt and utilization ratio. If you miss payments on the cash advance, that missed payment reports to the bureaus and damages your score. Regular on-time payments do not appear separately — only the total card balance matters.
Can I get a cash advance if my credit is bad?
Your cash advance limit is set based on your creditworthiness when the account opens. If your credit has declined since then, you still have the limit that was assigned to you. However, if you are explore for a new card with bad credit, the issuer may set a very low cash advance limit or exclude cash advances entirely. Secured credit cards sometimes do not offer cash advances at all.
Is there a way to avoid the cash advance fee?
No — the fee is built into every cash advance and cannot be waived. Some cards offer slightly lower fees (2 to 3 percent instead of 5 percent), but all cards charge something. The only way to avoid the fee is to not take a cash advance. If you need cash, using a debit card, visiting an ATM with your bank account, or borrowing from another source costs nothing.