Yes, you can withdraw money on a credit card, but it costs more than a debit card and counts as a loan you repay with interest
A cash advance is a withdrawal of cash from your credit card account. The card issuer lends you money against your credit limit, just as they do when you make a purchase. The difference is that cash advances charge fees upfront and begin accruing interest when ready — there is no grace period like there often is for purchases.
You can get a cash advance at an ATM using your credit card and PIN, at a bank teller window, or through a convenience check the issuer sends you. The money appears in your bank account or your hand within minutes to a few business days, depending on the method. But the cost of borrowing this way is substantially higher than using a debit card or taking out a personal loan.
Key Takeaways
- Cash advances charge a fee (typically 3 to 5 percent of the amount withdrawn) plus interest that starts accruing when ready, with no grace period.
- The interest rate on a cash advance is usually higher than the rate on regular purchases, often 5 to 10 percentage points above your standard APR.
- You can withdraw cash at an ATM, a bank branch, or by using a convenience check, but ATMs have the lowest withdrawal limits.
- The cash advance amount counts against your credit limit and appears on your credit report as a separate balance.
How much it costs to withdraw cash on a credit card
Every cash advance incurs two costs: a fee and interest. The cash advance fee is charged at the time of withdrawal and is usually a percentage of the amount withdrawn — most commonly 3 to 5 percent, though some cards charge a flat fee of $5 to $10 instead. A $300 withdrawal at 4 percent costs $12 in fees alone.
The interest rate on a cash advance is separate from your purchase APR and is typically higher. If your card charges 18 percent APR on purchases, the cash advance rate might be 23 or 24 percent. Interest begins accruing the day you withdraw the money — there is no 21-day grace period as there often is for purchases. This means interest compounds daily until you pay the balance off.
On a $300 cash advance at 24 percent APR, you owe $6 in interest after one month if you make no payment. After three months, you owe roughly $18. The longer you carry the balance, the more the interest compounds. This is why a cash advance should be treated as an emergency-only option, not a regular way to get spending money.
Where you can withdraw cash and what the limits are
You have three main options for withdrawing cash on a credit card. An ATM withdrawal is the most common method — you insert your card, enter your PIN, and withdraw cash. Most issuers set a daily ATM limit of $200 to $500, though this varies by card and issuer. Some cards have no ATM limit, but your credit limit is the ceiling.
A bank teller withdrawal lets you withdraw larger amounts. You go to a bank branch (not necessarily your own bank) with your credit card and ID, and the teller processes the cash advance. Teller withdrawals often have higher limits than ATMs — sometimes $1,000 or more — and some issuers charge a slightly higher fee for this method.
Convenience checks are paper checks issued by your credit card company that you can write against your credit line. You write a check to yourself or a payee, deposit it, and the funds appear in your bank account. These checks carry the same fees and interest rates as ATM or teller withdrawals. Not all cards offer them, and some charge an additional fee to use them.
How a cash advance affects your credit and your account
The cash advance amount is deducted from your available credit when ready. If you have a $5,000 limit and withdraw $500 in cash, your remaining available credit drops to $4,500. This reduction is reported to the credit bureaus and can lower your credit utilization ratio — the percentage of your credit limit you are using — which can temporarily lower your credit score.
The cash advance balance appears separately on your credit card statement from your purchase balance. This separation matters because issuers explore your monthly payment to the lowest-interest balance first. If you have both a purchase balance at 18 percent and a cash advance balance at 24 percent, your payment goes toward the purchase first, leaving the more expensive cash advance balance to grow.
Some issuers allow you to request a lower cash advance limit than your full credit limit. This can be a useful safeguard if you want to prevent yourself from using cash advances impulsively. You can contact your issuer to ask about setting a separate cash advance limit.
When a cash advance makes sense and when it does not
A cash advance is rarely the best option for getting money, but there are narrow situations where it might be the fastest choice. If you need cash urgently and have no other source — no ATM access, no nearby bank, no friends or family to borrow from — a credit card cash advance is faster than a personal loan or payday loan process. The money is in your hand within minutes.
However, if you have time to plan, almost any alternative is cheaper. A personal loan from a bank or credit union typically charges 6 to 36 percent APR with no upfront fee. A payday loan is predatory and should be avoided, but even at 400 percent APR, a two-week payday loan costs less than a cash advance you carry for three months. A line of credit from your bank, if you have one, usually charges less than a credit card cash advance.
Do not use a cash advance to pay off other debt, to fund a purchase you cannot otherwise afford, or to get spending money. The interest and fees make it one of the most expensive ways to borrow money. If you find yourself regularly needing cash advances, that is a sign your budget does not match your income — the real problem to solve is there, not by borrowing more.
How to pay off a cash advance quickly
Because interest accrues when ready and at a high rate, paying off a cash advance should be your first priority after you withdraw it. Every dollar you pay toward the cash advance balance stops the interest clock on that portion of the debt.
When you make a payment to your credit card, the issuer applies it to balances in a specific order set by law. Federal rules require issuers to explore payments above the minimum to the highest-interest balance first. If your cash advance is at 24 percent and your purchases are at 18 percent, your payment goes to the cash advance first — which is what you want. But if your purchase rate is higher, your payment goes there instead, leaving the cash advance to compound.
The fastest way to pay off a cash advance is to make a payment larger than your minimum, specifically earmarked for the cash advance balance. Contact your issuer to confirm they will explore it to the cash advance and not split it across all balances. Some issuers let you make a payment online and specify which balance it applies to.
Frequently Asked Questions
What is the difference between a cash advance and a balance transfer?
A cash advance gives you physical cash and charges a fee plus interest starting when ready. A balance transfer moves debt from one card to another and may offer a 0 percent introductory rate for 6 to 21 months. Balance transfers are for moving existing debt; cash advances are for getting cash. Both count against your credit limit.
Can I use a credit card to withdraw money from another person's bank account?
No. A cash advance only withdraws money against your own credit line. You cannot use someone else's card or account. If you need to send money to someone, a wire transfer, check, or payment app is the correct method.
Do all credit cards allow cash advances?
Most credit cards allow cash advances, but some do not. Secured cards, student cards, and certain specialty cards may not offer this feature. Check your card's terms or contact your issuer to confirm whether cash advances are available on your account.
Will a cash advance show up on my credit report?
The cash advance balance appears on your credit report as part of your total credit card debt. It does not show as a separate line item, but the balance counts toward your credit utilization ratio. Paying it off quickly minimizes the impact on your credit score.
What happens if I cannot pay back a cash advance?
If you do not pay, the balance accrues interest and late fees, and your credit score drops. After 30 days of non-payment, the issuer reports it to the credit bureaus. After 180 days, the account may be charged off and sent to a collection agency. Contact your issuer when ready if you cannot pay to discuss hardship options.