Yes, you can take cash out of a credit card, but it costs more than a regular purchase
A cash advance lets you borrow money against your credit card's available balance and withdraw it as cash from an ATM, bank teller, or convenience store. The transaction works when ready, but you pay fees upfront and interest starts accruing right away — usually at a higher rate than your regular purchase APR.
Cash advances are not the same as using your debit card or withdrawing from a savings account. The money comes from your credit card issuer, not your bank account, and the debt appears on your credit card statement just like a purchase would.
Key Takeaways
- Cash advances charge a fee (typically 3 to 5 percent of the amount withdrawn) plus a higher interest rate than purchases, often 20 to 30 percent APR.
- Interest on a cash advance begins accruing when ready with no grace period, even if you pay your full statement balance on time.
- You can withdraw cash at an ATM using your credit card PIN, at a bank teller with your card and ID, or at some convenience stores that offer cash back.
- The amount you can withdraw is limited to your cash advance limit, which is usually lower than your total credit limit and is set by your card issuer.
Where and how to withdraw cash from your credit card
The most common method is an ATM. Insert your credit card, enter your PIN (which you may need to set up if you have not used a cash advance before), select the cash advance option, and choose your amount. The ATM will dispense the cash and charge your credit card when ready.
You can also visit a bank branch where your card is issued — bring your card and a photo ID, tell the teller you want a cash advance, and they will process it at the counter. Some convenience stores and grocery stores offer cash back on credit card transactions, though this is less common than with debit cards and varies by location.
Call your card issuer's customer service number on the back of your card if you are unsure whether your PIN is set up or what your cash advance limit is. They can confirm both before you attempt a withdrawal.
Fees and interest charges you will pay
A cash advance fee is charged at the time of withdrawal. Most card issuers charge either a flat dollar amount (typically $5 to $10) or a percentage of the amount withdrawn (typically 3 to 5 percent), whichever is greater. If you withdraw $500 at a 4 percent fee, you pay $20 when ready.
Interest accrues from the moment you withdraw the cash — there is no grace period like there is for purchases. If your card's cash advance APR is 25 percent and you withdraw $500, you owe roughly $10.42 in interest after one month if you make no payment.
Your cash advance APR is often higher than your purchase APR. Check your card's terms or call your issuer to find out both rates before you withdraw. Some cards charge 5 to 10 percentage points more for cash advances than for regular purchases.
How cash advance limits work
Your card issuer sets a separate cash advance limit that is usually much lower than your total 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 available credit remaining.
This limit is determined by your card issuer based on your credit history, income, and account activity. It is not something you choose. You can call your issuer to ask what your cash advance limit is, and some issuers allow you to request an increase, though this is not may provide.
The cash advance counts against your total available credit. If you withdraw $500 and your credit limit is $5,000, you now have $4,500 in available credit remaining for purchases and other cash advances combined.
When a cash advance makes sense
A cash advance is useful only in specific situations where you need cash when ready and have no other option. Examples include paying for an emergency repair that only accepts cash, or covering an unexpected expense when your bank account is empty and you cannot use a debit card.
It is not a good idea to use a cash advance for everyday spending, to pay bills that accept card payments, or to cover a shortfall you could address by waiting a few days for a paycheck or transfer. The fees and high interest rate make it expensive compared to other borrowing methods.
If you are considering a cash advance to cover a debt or bill, explore alternatives first: asking for a payment extension, using a personal loan, borrowing from a friend or family member, or seeking information from a nonprofit credit counselor.
How to repay a cash advance
Your cash advance appears on your credit card statement as a separate line item. You can pay it back like any other credit card balance — make a payment toward your statement balance, and the payment is applied to your debts in the order your issuer determines (usually highest-interest debt first).
To avoid additional interest, pay the full cash advance amount before your next statement closes. If you carry a balance, the interest continues to accrue daily until the balance reaches zero.
Some card issuers allow you to set up automatic payments from your bank account. Check your online account or call customer service to see if this option is available and how to set it up.
Alternatives to a credit card cash advance
If you need cash and want to avoid the high fees and interest of a cash advance, consider these options instead. A personal loan from a bank or credit union typically has a lower interest rate and no upfront fee. A payday loan (though expensive) may have lower total cost if you repay it within two weeks. Borrowing from a friend or family member costs nothing if they agree.
If you need cash for a specific purchase, ask the seller whether they accept payment plans, a personal check, or a transfer from your bank account instead of requiring cash upfront. Many service providers and retailers offer payment options that do not require you to withdraw cash.
If you are in a financial crisis and need help, contact a nonprofit credit counselor through the National Foundation for Credit Counseling (NFCC) or the Financial Counseling Association (FCA). They offer free or low-cost guidance on managing debt and finding resources.
Frequently Asked Questions
What is the difference between a cash advance and a balance transfer?
A cash advance gives you cash in hand and charges a fee plus high interest when ready. A balance transfer moves debt from one card to another and may offer a lower introductory rate for a set period. Cash advances are for getting cash; balance transfers are for moving existing debt.
Can I use a credit card cash advance to pay another credit card bill?
Technically yes, but it is a bad idea. You pay a cash advance fee and high interest on the withdrawn amount, then pay interest again on the card you are paying off. You end up paying more in fees and interest than if you straightforward paid the bill with money from your bank account or made a regular payment.
Does a cash advance hurt my credit score?
A cash advance itself does not directly hurt your score, but it increases your credit utilization (the percentage of your available credit you are using), which can lower your score slightly. Carrying a high balance and missing payments will hurt your score more significantly.
What happens if I cannot repay a cash advance?
If you do not pay, the balance carries over to your next statement with interest and late fees added. Your credit score will drop if you miss a payment, and your card issuer may increase your interest rate or close your account if the debt remains unpaid for several months.
Can I get a cash advance with a secured credit card?
Most secured cards allow cash advances, though your cash advance limit may be lower than with a standard card. Check your card's terms or call your issuer to confirm whether cash advances are available on your account.