Yes, but the cost and method depend on your card and how you do it
You can get cash from a credit card in three ways: at an ATM using your PIN, over the counter at a bank or store, or by requesting a cash advance from your card issuer. Each method charges a fee — usually 3 to 5 percent of the amount, plus interest that starts accruing immediately. Unlike a purchase, there is no grace period. A $200 cash advance at 4 percent costs $8 upfront, then interest compounds daily at your card's APR until you pay it back.
The cheapest option is often a debit card withdrawal or a bank transfer from a linked account. If you need cash urgently and have no other way to get it, a credit card cash advance works, but it should be a last resort because the cost is high and the interest clock starts right away.
Key Takeaways
- Credit card cash advances charge an upfront fee (usually 3 to 5 percent) plus daily interest with no grace period, making them expensive compared to other borrowing methods.
- You can withdraw cash at an ATM using your PIN, at a bank teller window, or by requesting a cash advance directly from your card issuer.
- Interest on a cash advance begins the day you take it out, not at the end of a billing cycle like a purchase does.
- Your card's cash advance limit may be lower than your credit limit, and some cards do not allow cash advances at all.
- Paying back a cash advance does not count toward your purchase balance — you must pay both separately.
How cash advances work and what they cost
When you take a cash advance, your card issuer lends you money against your credit line. The fee is charged at the time of withdrawal and appears on your next statement. The interest rate for cash advances is often higher than the rate for purchases — sometimes 2 to 3 percentage points higher — and it accrues daily from the moment you withdraw the money.
A typical example: you withdraw $300 at an ATM. Your card charges a $12 fee (4 percent) and an APR of 24 percent on cash advances. You owe $312 immediately. If you pay it back in 30 days without making other charges, you will owe roughly $318 in interest and fees combined. If you carry the balance longer, the interest compounds and the total cost rises.
Some cards offer a lower cash advance fee for the first withdrawal in a billing cycle, or no fee at all for the first 30 days. Check your card's terms or call the number on the back to find out what your specific card charges.
Where you can withdraw cash from a credit card
At an ATM: Insert your card and enter your PIN. The machine will dispense cash and charge your card immediately. Most ATMs allow withdrawals up to your card's cash advance limit, which is often lower than your total credit limit. Some ATMs charge an additional surcharge (usually $2 to $3) on top of your card's fee.
At a bank teller: Walk into any bank branch, hand over your card, and ask for a cash advance. The teller will process it on the spot. You do not need an account at that bank. This method is slower than an ATM but gives you a chance to ask questions about fees before you proceed.
By phone or online: Call the number on the back of your card or log into your online account and request a cash advance. The issuer will deposit the money into your linked bank account, usually within one to two business days. This method avoids ATM fees but takes longer.
Cash advance limits and how they differ from credit limits
Your card issuer sets a separate cash advance limit, which is often 20 to 50 percent of your total credit limit. If your credit limit is $5,000, your cash advance limit might be $1,000 or $2,500. You cannot withdraw more than this limit, even if you have unused credit available for purchases.
The issuer determines this limit based on your credit history and account activity. You can call and ask what your cash advance limit is, or check your online account. Some cards allow you to request an increase, though the issuer may decline.
Cash advances also count against your total credit limit. If you withdraw $500 and your limit is $5,000, you now have $4,500 available for purchases and other advances combined.
Why cash advances are expensive compared to other options
A credit card cash advance is one of the most expensive ways to borrow money. The combination of an upfront fee, a higher interest rate, and no grace period means you start paying interest immediately. By contrast, a purchase on the same card might have a 21-day grace period before interest kicks in.
Cheaper alternatives include a personal loan from a bank or credit union (usually 6 to 12 percent APR), a payday loan from a licensed lender (though these are also expensive), or borrowing from a friend or family member. If you have a linked savings account, transferring money from savings costs nothing. If you have a debit card, using it to withdraw cash from your own account costs nothing at all.
A credit card cash advance makes sense only when you have no other option and need the money urgently. Even then, pay it back as quickly as possible to minimize interest.
How cash advances affect your credit and your account
Taking a cash advance does not directly hurt your credit score, but it does increase your credit utilization — the percentage of your available credit you are using. If you have a $5,000 limit and withdraw $500 in cash, your utilization jumps to 10 percent. High utilization can lower your credit score slightly, especially if you carry the balance for several months.
A cash advance also appears separately from purchases on your statement. If you pay only the minimum payment, your card issuer will apply that payment to your purchase balance first, leaving the cash advance to accrue interest. You must pay the cash advance balance in full to stop the interest from growing.
Some cards charge a higher interest rate on cash advances than on purchases, and this rate does not change even if you pay down your purchase balance. The cash advance interest is calculated independently until that balance reaches zero.
What to do if your card does not allow cash advances
Not all credit cards offer cash advances. Some cards, particularly student cards and secured cards, explicitly prohibit them. If your card does not allow cash advances, you will get a decline message at the ATM or a refusal from the bank teller.
If you need cash and your card does not support advances, your options are to use a debit card, transfer money from a savings account, ask a bank for a personal loan, or use a different credit card that does allow cash advances. Some cards marketed as "no cash advance" do this to keep fees low and interest rates competitive for purchases.
Frequently Asked Questions
Does a cash advance show up on my credit report?
The cash advance itself does not appear on your credit report, but the balance does. If you carry it for several months, it will show as an outstanding balance and may lower your credit score if your utilization is high. Once you pay it off, it stops affecting your score.
Can I use a cash advance to pay off another credit card?
Yes, you can withdraw cash and use it to pay another card's balance. However, this is expensive because you pay the cash advance fee and interest on top of the balance you are paying off. It only makes sense if the other card has a much higher interest rate and you can pay the cash advance back very quickly.
What happens if I do not pay back a cash advance?
The balance will accrue interest at your card's cash advance rate and will be reported to credit bureaus as an unpaid debt. Your credit score will drop, and the card issuer may eventually send the account to a collection agency. You could also face a lawsuit if the balance is large enough.
Is there a way to avoid the cash advance fee?
Some cards waive the fee for the first cash advance in a billing cycle, or offer a promotional period with no fee. Check your card's terms or call the issuer to ask. Otherwise, the fee is unavoidable if you want to withdraw cash.
Can I get a cash advance from a credit card I just opened?
Usually yes, but your cash advance limit may be very low — sometimes $100 to $500 — even if your credit limit is higher. New cardholders are often restricted until they build a payment history. Call the issuer to find out your specific limit.