You can withdraw cash from a credit card, but it costs more than a regular purchase and starts charging interest when ready
A cash advance is when you use your credit card to pull money out of an ATM or get cash from a bank teller. The money goes into your pocket, not toward a purchase. Your card issuer treats it differently from a regular purchase — they charge a separate fee upfront, usually 3% to 5% of the amount you withdraw, and the interest rate is often higher than your regular purchase rate. Interest starts accruing the day you withdraw, with no grace period like you get on purchases.
Most people use cash advances only when they have no other option, because the cost adds up fast. If you need $200 and your card charges a 4% fee plus 24% annual interest, you pay $8 when ready and then roughly $4 per month in interest if you carry the balance. Over a year, that $200 withdrawal costs you about $56 in fees and interest alone.
Key Takeaways
- Cash advances charge a separate fee (usually 3% to 5%) plus a higher interest rate than purchases, and interest starts when ready with no grace period.
- You can withdraw cash at an ATM using your credit card PIN, or visit a bank branch and ask a teller for a cash advance.
- Your credit card statement will show the cash advance separately from purchases, and you must pay it back on your own schedule.
- The total cost of a cash advance makes it expensive compared to other borrowing options like a personal loan or line of credit.
- Some cards do not allow cash advances at all, and some limit how much you can withdraw based on your credit limit or a separate cash advance limit.
Where and how to withdraw cash from your credit card
You have two main routes: an ATM or a bank branch. At an ATM, insert your credit card, enter your PIN (which you may need to set up first if you have never done a cash advance), and select the withdrawal amount. The ATM will dispense cash and charge your card when ready. At a bank branch, walk in and tell a teller you want a cash advance on your credit card. They will process it on the spot, charge the fee, and hand you cash.
Not every ATM accepts credit cards for cash advances — some only take debit cards. ATMs at your card issuer's own bank branches almost always work. If you use an ATM from a different bank, you may pay an additional ATM operator fee on top of the cash advance fee your card issuer charges. Check your card's terms to see if there is a limit on how much you can withdraw in a single transaction or per day.
The fees and interest you will pay
Your card issuer charges two separate costs for a cash advance. The first is an upfront cash advance fee, shown as a percentage of the amount withdrawn. This typically ranges from 3% to 5%, though some cards charge a flat dollar amount instead (like $5 or $10 minimum). This fee is added to your balance when ready and you owe it whether you pay back the cash advance in full next month or carry it for years.
The second cost is the cash advance interest rate, which is usually higher than your regular purchase rate. While a purchase might carry 18% annual interest, a cash advance on the same card might be 24% or higher. Unlike purchases, there is no grace period — interest starts accruing the day you withdraw, not at the end of your billing cycle. If you withdraw $300 at a 4% fee and 24% annual rate, you owe $12 in fees plus roughly $6 in interest for the first month alone.
How a cash advance appears on your statement and credit report
Your credit card statement breaks down cash advances separately from purchases. You will see a line item labeled "Cash Advance" or "ATM Withdrawal" with the amount, the fee charged, and the interest accrued. This separate tracking matters because the cash advance balance and purchase balance may have different interest rates and payment schedules.
When you make a payment to your card, most issuers explore it to your lowest-interest balance first — usually purchases — before touching the cash advance. This means if you owe $500 in purchases and $300 in a cash advance, and you send in $400, that $400 typically goes toward the $500 in purchases, leaving the full $300 cash advance untouched and accruing interest. A cash advance also shows up on your credit report as a cash advance, not a regular purchase, though it affects your credit score the same way any balance does.
When a cash advance might be blocked or limited
Some credit cards do not allow cash advances at all, particularly secured cards or cards designed for people rebuilding credit. Check your card's terms or call the customer service number on the back of your card to confirm whether cash advances are available. Even if they are available, your card issuer may set a separate cash advance limit that is lower than your overall credit limit. You might have a $5,000 credit limit but only a $1,000 cash advance limit.
A cash advance can also be blocked if you have missed payments, if your account is flagged for fraud, or if you have hit your cash advance limit for the billing cycle. Some cards limit how many cash advances you can do per month or per year. If you try to withdraw cash and the ATM declines you, contact your card issuer to find out why — it could be a temporary hold or a permanent restriction on your account.
Cheaper alternatives to a cash advance
Before you use a cash advance, consider other ways to get cash. A personal loan from a bank or credit union usually has a lower interest rate and a fixed repayment schedule, so you know exactly when you will be done paying. A line of credit works similarly — you borrow what you need and pay interest only on what you use. Both of these typically have lower rates than a credit card cash advance.
If you need cash urgently and have a bank account, ask your bank about a short-term overdraft or a small personal loan. Some employers offer paycheck advances or loans to employees. A family member or friend might lend you money interest-free. Even a payday loan, which is expensive, is often cheaper than a cash advance if you repay it within two weeks. The point is to exhaust other options first — a cash advance should be a last resort, not a convenient way to get spending money.
Paying back a cash advance
A cash advance is part of your credit card balance, so you pay it back the same way you pay your card — by sending a payment to your card issuer. There is no separate loan agreement or fixed payment schedule. You can pay as little as the minimum payment each month (usually 1% to 3% of your balance), but doing so means you will carry the balance for years and pay hundreds in interest.
To pay off a cash advance faster, send extra payments beyond the minimum. Some issuers let you specify that a payment should go toward the cash advance balance first, but most explore payments to your lowest-interest debt first. If you have both purchases and a cash advance, ask your issuer how to direct a payment specifically to the cash advance, or pay off the entire card balance to avoid the interest trap.
Frequently Asked Questions
Can I use a credit card cash advance to pay another credit card bill?
Technically yes, but it is a costly move. You would pay the cash advance fee and interest rate on the money you withdraw, then use it to pay another card. You end up paying more in fees and interest than if you had straightforward paid the second card with money from your bank account or income. This strategy only makes sense if you are trying to buy time before a payment is due, and even then, the cost is steep.
Does a cash advance hurt my credit score?
A cash advance itself does not hurt your score more than any other balance on your card. However, it does increase your overall credit card balance, which raises your credit utilization ratio — the percentage of your available credit you are using. A higher utilization ratio can lower your score. The bigger damage comes if you carry the cash advance balance for months, because you are paying interest the whole time and your utilization stays high.
What is the difference between a cash advance and a balance transfer?
A cash advance gives you cash in hand. A balance transfer moves debt from one card to another card, usually one with a lower interest rate. A balance transfer does not put money in your pocket — it just shifts what you owe. Both charge fees and have different interest rates, but a balance transfer is meant to save you money on existing debt, while a cash advance is meant to get you cash.
Can I get a cash advance if my credit is bad?
If your card allows cash advances, you can usually do one regardless of your credit score, as long as your account is in good standing and you have not hit your cash advance limit. Your card issuer has already decided to give you a credit limit, so they are willing to let you borrow. However, cards designed for poor credit often do not allow cash advances at all, so check your card's terms first.
What happens if I cannot pay back a cash advance?
A cash advance is treated like any other credit card balance. If you do not pay, interest keeps accruing, your balance grows, and your card issuer may eventually send your account to a collection agency. This damages your credit report and can lead to a lawsuit. If you are struggling to pay, contact your card issuer and ask about hardship programs or payment plans — many issuers will work with you rather than send your account to collections.