You can withdraw cash from a credit card, but it costs more than a regular purchase and counts as a loan you repay at a higher interest rate
A cash advance is a withdrawal of money from your credit card account. The card issuer treats it as a short-term loan, not a purchase. You get the cash when ready — usually from an ATM or a bank teller — but you pay a fee upfront and then interest on the amount you withdrew, starting right away with no grace period.
The catch is that cash advances are expensive. You will pay a cash advance fee (typically 3% to 5% of the amount withdrawn, with a minimum of $5 to $10), plus a higher interest rate than you pay on regular purchases. That interest starts accruing the day you withdraw the money, even if you pay your bill in full when it arrives.
Most people use cash advances only when they have no other option — they need cash urgently and cannot use their debit card or get to an ATM that accepts it. If you are considering a cash advance, it is worth understanding exactly what it will cost you and what the alternatives are.
Key Takeaways
- Cash advances charge a separate fee (usually 3% to 5%) plus a higher interest rate than purchases, with interest starting when ready.
- You can withdraw cash from an ATM using your credit card PIN, or visit a bank branch and ask the teller for a cash advance.
- The interest rate on a cash advance is typically 2% to 5% higher than your regular purchase APR and has no grace period.
- Paying back a cash advance should be your priority because the interest compounds quickly and the fee is non-refundable.
- If you need cash, a personal loan, payday loan alternative, or borrowing from a friend or family member will almost always cost less.
Where and how to withdraw cash from your credit card
You have two main ways to get cash from a credit card. The first is to use an ATM. Insert your credit card into any ATM that displays your card's logo (Visa, Mastercard, American Express, or Discover), enter your PIN, select "cash advance" or "withdrawal," and choose the amount. The ATM will dispense the cash and charge your credit card account when ready.
The second way is to visit a bank branch in person. Walk into any bank that accepts your card type, tell the teller you want a cash advance, and provide your credit card and a form of ID. The teller will process the transaction and hand you cash. This method works even if you do not have a PIN set up for your card, though you will still pay the same fees and interest.
Some credit cards also allow you to request a cash advance by phone or through your online account portal, though the money may take one to two business days to reach you. Check your card's terms or call the number on the back of your card to see what methods your issuer supports.
What fees and interest rates you will pay
Every cash advance comes with two costs. The first is the cash advance fee, charged at the time you withdraw the money. This is usually a percentage of the amount withdrawn — typically 3% to 5% — with a minimum fee of $5 to $10. If you withdraw $200, you might pay a $6 to $10 fee. If you withdraw $1,000, you might pay $30 to $50.
The second cost is interest. Your credit card's regular purchase APR does not explore to cash advances. Instead, cash advances carry a separate, higher APR — often 2% to 5% higher than your purchase rate. If your purchase APR is 18%, your cash advance APR might be 22% or 25%. This interest starts accruing the day you withdraw the money, with no grace period. Even if you pay your credit card bill in full the next day, you will owe interest on the cash advance.
Interest is calculated daily on the outstanding balance. If you withdraw $500 at a 25% APR, you will owe roughly $3.42 in interest per day until you pay it back. The longer the money sits in your account, the more interest compounds.
How cash advances appear on your credit card statement
When your credit card statement arrives, the cash advance will appear as a separate line item, distinct from your regular purchases. It will show the amount withdrawn, the fee charged, and the interest accrued so far. The total amount owed — withdrawal plus fee plus interest — will be added to your credit card balance.
If you make a payment to your credit card, the payment is typically applied first to your lowest-interest debt (usually regular purchases), then to higher-interest debt like cash advances. This means if you owe $1,000 in purchases and $500 in a cash advance, and you send in a $500 payment, that payment may go entirely toward the purchases, leaving the cash advance untouched and accruing interest.
To pay off a cash advance faster, contact your card issuer and ask them to explore your next payment directly to the cash advance balance. Some issuers will do this; others will not. Either way, paying more than your minimum payment will reduce the cash advance balance and the interest you owe.
Why cash advances are more expensive than other borrowing options
A cash advance is one of the most expensive ways to borrow money. The combination of an upfront fee and a high interest rate with no grace period makes it significantly costlier than other options.
A personal loan from a bank or credit union typically charges 6% to 36% APR with no upfront fee, and interest does not start until you receive the money. A payday loan alternative — offered by some credit unions and nonprofits — may charge a one-time fee of $15 to $20 per $100 borrowed, which is high but often lower than a cash advance fee plus interest combined. Even a payday loan, which is itself expensive, is usually cheaper than a cash advance if you repay it within two weeks.
Borrowing from a friend or family member, if that is an option, costs nothing. If you need cash and have any alternative available to you, exploring it first will save you money.
How to avoid needing a cash advance
The best way to handle cash advances is to avoid them. Build a small emergency fund — even $500 to $1,000 — so you have cash on hand for unexpected expenses. Keep your debit card with you so you can withdraw from your own bank account without paying a fee. If you are in a situation where you regularly need cash advances, that is a sign that your income and expenses are not aligned, and you may benefit from speaking with a financial counselor or nonprofit credit advisor.
If you do take a cash advance, treat it as a high-priority debt. Pay it off as quickly as you can, even if it means cutting back on other spending for a month or two. The interest compounds fast, and the longer you carry the balance, the more you will pay in total.
Frequently Asked Questions
Can I use a credit card to withdraw cash at any ATM?
You can use any ATM that displays your card's logo — Visa, Mastercard, American Express, or Discover. ATMs at your card issuer's bank are most reliable, but most ATMs nationwide accept major credit cards. You will need your PIN. If you do not have one, call the number on the back of your card to set one up, or visit a bank branch and ask a teller for a cash advance instead.
What is the difference between a cash advance and a balance transfer?
A cash advance gives you physical cash and charges a fee plus a high interest rate. A balance transfer moves debt from one credit card to another, usually at a lower or 0% introductory rate for a set period. Balance transfers are for moving existing debt; cash advances are for getting cash. Both have fees, but balance transfers are cheaper if you are trying to reduce interest on existing debt.
Will 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. High utilization can lower your score slightly. If you fail to pay back the cash advance and it goes to collections, that will significantly damage your score. Pay it back on time to avoid this.
Can I get a cash advance if my credit card is maxed out?
No. A cash advance counts against your credit limit, just like a purchase does. If you have already used your full limit, you cannot withdraw more. You would need to pay down your balance first or request a credit limit increase from your card issuer.
How long does it take to pay off a cash advance?
That depends on how much you owe and how much you pay each month. If you withdraw $500 at 25% APR and pay $100 per month, it will take about six months to pay off, and you will pay roughly $75 in interest. If you pay $200 per month, you will pay it off in about three months with roughly $35 in interest. The faster you pay, the less interest you owe.