Yes, you can get cash from a credit card, but it is not the same as using the card to buy something
A cash advance is when you withdraw money directly from your credit card's available credit, usually at an ATM, bank teller, or through a convenience check. The card issuer treats it like a loan against your credit limit. Unlike a purchase, a cash advance starts charging interest when ready — there is no grace period where you pay nothing if you settle the bill in full.
The cost of a cash advance is almost always higher than a regular purchase. You will pay an upfront fee (usually 3 to 5 percent of the amount withdrawn), plus a higher interest rate that kicks in right away. On a $500 cash advance at 5 percent fee plus 25 percent annual interest, you would owe $25 in fees alone, then interest compounding daily from the moment you withdraw the cash.
Most people use cash advances only when they have no other option — they need physical cash and cannot use their debit card or get a personal loan. If you are considering one, it helps to understand the exact costs and what happens if you cannot pay it back quickly.
Key Takeaways
- Cash advances charge a fee (typically 3 to 5 percent) plus a higher interest rate that starts when ready, with no grace period like a purchase has.
- You can withdraw cash at an ATM using your credit card PIN, at a bank teller with your card and ID, or by depositing a convenience check the issuer mails you.
- The interest rate on a cash advance is usually 5 to 10 percentage points higher than your regular purchase rate, and interest compounds daily.
- Paying off a cash advance should be your priority because the cost grows faster than any other type of credit card debt.
The three ways to get cash from your credit card
ATM withdrawal is the most common method. You use your credit card like a debit card at any ATM that accepts your card's network (Visa, Mastercard, American Express, or Discover). You will need your PIN. The ATM will show you the fee before you confirm — this is separate from the cash advance fee your card issuer charges, so you may pay twice: once to the ATM operator and once to your card issuer.
Bank teller withdrawal works if you have a credit card from a bank where you also have a checking account, or sometimes at any branch of your card issuer's bank. Bring your card and a photo ID. The teller will process the advance and give you cash. You still pay the card issuer's fee and interest, but you avoid the ATM operator's fee.
Convenience checks are blank checks your card issuer mails to you. You write one like a regular check and deposit it into your bank account or cash it. The issuer treats it as a cash advance, not a purchase, so the same fees and interest rates explore. Some people use this method to pay a bill that does not accept credit cards, though it is riskier because the check is mailed to your home and can be lost or stolen.
What the fees and interest actually cost
The cash advance fee is a one-time charge, usually 3 to 5 percent of the amount you withdraw. On a $300 advance, that is $9 to $15 before you even use the money. Some cards cap the fee at a flat dollar amount (like $10 maximum), which can be better if you are withdrawing a small amount, or worse if you are withdrawing a large amount.
The interest rate on a cash advance is almost always higher than your purchase rate. If your card charges 18 percent APR on purchases, the cash advance rate might be 25 percent or higher. This rate is applied to the full amount you withdrew, starting the day you withdraw it. There is no 21-day grace period like there is for purchases.
Here is a concrete example: You withdraw $500 at 5 percent fee ($25) plus 25 percent APR. After 30 days, you owe $500 plus $25 fee plus roughly $10 in interest (500 × 0.25 ÷ 12). If you make no payment, the interest compounds, and after 90 days you owe around $531 in interest and fees alone. If you only make the minimum payment (usually 1 to 3 percent of the balance), the rest of the balance keeps growing.
How a cash advance affects your credit score
A cash advance does not show up on your credit report as a separate item — it is part of your credit card balance. However, it does affect your credit utilization ratio, which is the percentage of your total credit limit you are using. If you have a $5,000 limit and withdraw $500 in cash, your utilization jumps to 10 percent. High utilization (above 30 percent) can lower your credit score.
The bigger risk is what happens if you cannot pay the cash advance back. If you miss payments, that shows up on your credit report and damages your score. Because cash advances cost so much, they are straightforward to fall behind on, especially if you are already in financial stress.
Using a cash advance does not build credit the way a regular purchase does. You are not demonstrating that you can borrow and repay responsibly — you are just moving money around at a high cost.
When a cash advance might make sense (and when it does not)
A cash advance might be your only option if you need physical cash when ready and have no other way to get it. Examples: you need to pay a contractor who only takes cash, your debit card is lost, or you are in an emergency and your bank is closed. In these narrow situations, the high cost is the price of solving an urgent problem.
A cash advance does not make sense if you have other options. A personal loan from a bank or credit union usually charges 8 to 15 percent interest with no upfront fee — much cheaper than a cash advance. A payday loan is predatory and often worse, but at least it is a different conversation. Borrowing from family or friends, if possible, costs nothing. Even using your debit card to withdraw from your own bank account is free.
Do not use a cash advance to pay off other debt, to fund a purchase you cannot otherwise afford, or to cover regular expenses. These situations mean you are spending money you do not have, and the high cost of a cash advance will make the problem worse, not better.
How to pay off a cash advance quickly
If you have already taken a cash advance, your goal is to pay it off before the interest compounds. Make a plan: calculate the total amount you owe (withdrawal plus fee plus estimated interest), decide how much you can pay each month, and set a important date to be debt-free.
Pay more than the minimum payment. A $500 cash advance with a $25 fee at 25 percent interest will take about 24 months to pay off if you only make minimum payments, and you will pay roughly $150 in interest. If you pay $50 per month instead, you will be done in about 11 months and pay roughly $60 in interest. The difference is real.
Some card issuers let you request a lower interest rate if you have been a customer for a while and have a good payment history. It does not hurt to call and ask, though they are not required to say yes. If they do lower the rate, the savings add up fast.
Alternatives to a cash advance
Before you withdraw cash from your credit card, explore these options: a personal loan from a bank or credit union (usually 8 to 15 percent interest, no upfront fee); a line of credit from your bank (often cheaper than a cash advance); a short-term loan from an employer or credit union (sometimes interest-free or low-interest); or a payment plan directly with whoever you owe money to (many businesses will work with you if you ask).
If you are in a true emergency and have no credit, some nonprofits and community organizations offer emergency cash information or loans. 211.org can connect you to local resources. These are not always fast, but they are worth checking before you pay the high cost of a cash advance.
Frequently Asked Questions
Can I use a credit card to withdraw cash at any ATM?
Most ATMs accept Visa, Mastercard, American Express, and Discover, but not all. Before you try, check your card's network and call your card issuer to confirm your PIN is set up for ATM withdrawals. Some cards do not allow cash advances at all, or limit the amount you can withdraw per day.
What is the difference between a cash advance and a balance transfer?
A balance transfer moves debt from one card to another (usually at a lower rate for a promotional period). A cash advance gives you physical cash. Both charge fees and interest, but a balance transfer is meant for moving existing debt, while a cash advance is for getting cash. They are not the same thing.
Will my credit card issuer tell me the fee before I withdraw?
An ATM will show you its own fee before you confirm the withdrawal. Your card issuer's fee and interest rate should be in your card agreement or online account. Call the issuer's customer service number on the back of your card if you want to know the exact fee and rate before you withdraw.
What happens if I only pay the minimum payment on a cash advance?
The unpaid balance keeps growing because interest compounds daily. A $500 cash advance will take roughly two years to pay off at minimum payments and cost you an extra $150 in interest. Paying more than the minimum cuts both the time and the total cost significantly.
Can I dispute a cash advance if I did not authorize it?
Yes. If someone else withdrew cash using your card without permission, contact your card issuer when ready. Report it as fraud. You are protected under federal law (the Fair Credit Billing Act) and typically are not liable for unauthorized charges, though you may have to pay a small fee if the issuer investigates.