Yes, but it costs more than you might expect
You can withdraw cash from a credit card at an ATM or bank teller window, but the transaction is not the same as a regular purchase. Credit card companies treat cash withdrawals as a separate type of transaction called a cash advance, and they charge you fees and interest that start immediately — not after a grace period like regular purchases do.
The cost depends on your card's terms, but most cards charge a cash advance fee (usually 3 to 5 percent of the amount withdrawn) plus a higher interest rate than your regular purchase APR. If you withdraw $500, you might pay $15 to $25 just to get the cash, then pay interest on that $500 from day one.
Key Takeaways
- Cash advances charge a separate fee (typically 3 to 5 percent) plus a higher interest rate that starts accruing immediately, with no grace period.
- You can get a cash advance at an ATM using your credit card PIN, at a bank teller, or through a cash advance check if your card issuer sends one.
- Most credit cards have a cash advance limit that is lower than your overall credit limit, and it counts toward your total available credit.
- The interest rate on cash advances is usually 2 to 5 percentage points higher than your regular purchase APR and applies from the withdrawal date forward.
- If you need cash urgently, a personal loan, payday loan, or borrowing from family may cost less than a credit card cash advance.
How to get cash from your credit card
The most common method is to use an ATM. Insert your credit card, enter your PIN (which you may need to set up if you have not used it before), and withdraw the amount you need. The ATM will show you the fee before you confirm the transaction.
You can also visit a bank branch and ask a teller for a cash advance. Bring your credit card and a form of ID. The teller will process the withdrawal and give you cash on the spot. Some card issuers also send cash advance checks in the mail — these work like regular checks but draw from your credit line instead of a bank account.
Not all ATMs accept credit cards for cash advances. Bank ATMs are more likely to than convenience store machines. If you are unsure, call your card issuer's customer service number (on the back of your card) and ask which ATMs accept your card.
What fees and interest rates apply
Your card's terms document lists the cash advance fee and the cash advance APR. The fee is usually a flat percentage — often 3, 4, or 5 percent of the amount withdrawn — with a minimum dollar amount (for example, $5 minimum). So a $100 withdrawal might cost $5, but a $50 withdrawal might also cost $5.
The interest rate on cash advances is separate from your purchase APR and is almost always higher. If your purchase APR is 18 percent, your cash advance APR might be 23 or 24 percent. Interest starts accruing the day you withdraw the cash — there is no grace period like there is for purchases. This means you pay interest even if you pay off the balance in full at the end of the month.
Interest compounds daily, so the longer you carry the balance, the more you owe. A $500 cash advance at 24 percent APR costs about $10 in interest after one month if you make no payments.
Cash advance limits and how they affect your credit
Most credit cards set a separate cash advance limit that is lower than your overall credit limit. Your card might have a $5,000 credit limit but only a $1,500 cash advance limit. You can request a higher cash advance limit by calling your card issuer, but they may deny the request or conduct a hard inquiry on your credit report.
The amount you withdraw counts toward your total available credit. If you have a $5,000 limit and withdraw $500 in cash, you have $4,500 left to spend on purchases. This can hurt your credit score if it raises your credit utilization ratio — the percentage of your available credit you are using. High utilization signals financial stress to lenders.
A cash advance also appears on your credit report as a separate line item, which some lenders view as a sign of financial difficulty. If you are planning to apply for a mortgage or car loan soon, a recent cash advance might lower your approval odds or raise the interest rate you are offered.
Cheaper alternatives to a credit card cash advance
If you need cash urgently, compare the cost of a cash advance to other options. A personal loan from a bank or credit union usually has a lower interest rate and no cash advance fee, though approval takes a few days. A payday loan has high interest but may cost less than a cash advance if you repay it within two weeks. Borrowing from family or friends costs nothing if they agree to it.
If you have a savings account, withdrawing from savings costs nothing and does not affect your credit. If you have a debit card, using it at an ATM is free. Some employers offer paycheck advances or emergency loans to employees — ask your HR department whether this is an option.
If you are facing a one-time expense you cannot cover, look into whether a 0 percent balance transfer card might help. These cards offer a promotional period (usually 6 to 21 months) with no interest on transferred balances, though they charge a balance transfer fee (typically 3 to 5 percent). This works only if you have time to apply and be approved before you need the cash.
What happens if you cannot pay back a cash advance
If you do not pay back the cash advance, the interest keeps accruing and the balance grows. Your card issuer may raise your interest rate if you miss a payment, and the debt will appear on your credit report as delinquent after 30 days. This damages your credit score and makes it harder to borrow money in the future.
After 180 days of non-payment, the card issuer may close your account and send the debt to a collection agency. A collector can sue you for the debt, and if they win, they can garnish your wages or place a lien on your property (depending on your state's laws). The debt can remain on your credit report for up to seven years.
If you are struggling to pay back a cash advance, contact your card issuer and ask about hardship programs. Some issuers offer lower interest rates or payment plans for customers in financial difficulty. This is not a formal process and depends on the issuer's policies, but it is worth asking before the debt becomes delinquent.
Frequently Asked Questions
Does a cash advance hurt my credit score?
A cash advance can hurt your score in two ways: it raises your credit utilization ratio (the percentage of your credit limit you are using), and it signals financial stress to credit scoring models. The impact is usually temporary if you pay off the balance quickly, but it can lower your score by 10 to 50 points in the short term.
Can I use a credit card cash advance to pay another credit card bill?
Technically yes, but it is a bad idea. You would pay a cash advance fee and interest rate on the withdrawn cash, then use that cash to pay another card's balance. You end up paying more in fees and interest than if you had just transferred the balance directly using a balance transfer check or online transfer.
What is the difference between a cash advance and a balance transfer?
A cash advance withdraws cash from your credit line and charges a cash advance fee plus a high interest rate. A balance transfer moves debt from one card to another and usually charges a lower fee with a promotional 0 percent interest period. Balance transfers are meant for moving existing debt; cash advances are for getting cash.
Can I get a cash advance if my credit is bad?
Yes. A cash advance does not require a new credit check — you are drawing from a credit line you already have. However, your card issuer may have lowered your cash advance limit if your credit score dropped, so you might not be able to withdraw as much as you could before.
How long does a cash advance take to show up on my statement?
A cash advance usually appears on your statement within one to three business days. Interest starts accruing immediately, even if the transaction has not posted yet. If you withdraw cash on a Friday, you will owe interest on it by Monday, even if it does not show on your statement until the following week.