Yes, you can get cash from a credit card, but it is not the same as using the card to buy something
Getting cash from a credit card is called a cash advance. You take money out of your credit line at an ATM, bank, or through a check the card issuer sends you. The money goes into your bank account or your pocket as actual cash, not a purchase credit.
The catch is that cash advances cost more than regular purchases. You pay an upfront fee (usually 3 to 5 percent of the amount you withdraw), a higher interest rate than your purchase rate, and interest starts accruing immediately — there is no grace period like there is for purchases. Because of these costs, cash advances should be a last resort, not a routine way to get money.
Key Takeaways
- Cash advances charge a fee of 3 to 5 percent upfront, plus a higher interest rate that starts immediately with no grace period.
- You can withdraw cash at an ATM using your credit card PIN, at a bank teller, or through a convenience check mailed by your card issuer.
- Your credit card company sets a cash advance limit that may be lower than your total credit limit.
- The interest you pay on a cash advance counts as a transaction on your credit report and affects how much of your credit line you have used.
How to get cash from your credit card
The most common method is to use an ATM. Insert your credit card, enter your PIN, and withdraw cash up to your cash advance limit. Most ATMs that accept credit cards will process this, though some may charge an additional ATM operator fee on top of your card issuer's fee.
You can also visit a bank branch — yours or any bank — and ask a teller for a cash advance. Bring your credit card and a photo ID. The teller will process the transaction and give you cash. This method avoids ATM fees but may take longer than an ATM withdrawal.
Some card issuers mail convenience checks to cardholders. These checks draw from your credit line and work like a cash advance. You write the check to yourself, deposit it in your bank account, and withdraw the cash. Not all cards offer this option, and you will need to request the checks from your issuer if they do.
What fees and interest rates apply
The cash advance fee is charged upfront and is usually 3 to 5 percent of the amount you withdraw. If you withdraw $500, you might pay $15 to $25 just to get the cash. This fee is added to your balance immediately.
The cash advance interest rate is typically higher than your purchase rate — sometimes 2 to 5 percentage points higher. If your purchase rate is 18 percent, your cash advance rate might be 23 percent. This rate applies to the full amount you withdrew, and interest starts accruing the day you withdraw the cash. Unlike purchases, there is no grace period.
Some ATMs charge an additional operator fee of $2 to $5 on top of your card issuer's fee. This is separate from the cash advance fee and goes to the ATM owner, not your card issuer. You will usually see this fee on the ATM screen before you complete the withdrawal, so you can cancel if you choose.
Your cash advance limit versus your credit limit
Your card issuer sets a separate cash advance limit that is often lower than your total credit limit. If your credit limit is $5,000, your cash advance limit might be $1,500 or $2,000. This limit is set by the issuer based on your creditworthiness and account history, and you cannot change it yourself.
You can contact your card issuer to ask what your cash advance limit is. Some issuers list it in your online account or on your statement. If you try to withdraw more than your limit, the ATM or teller will decline the transaction.
Money you withdraw as a cash advance counts against your total credit limit. If you have a $5,000 limit and withdraw $500 in cash, you now have $4,500 in available credit left for purchases and other cash advances combined.
How a cash advance affects your credit and your balance
A cash advance shows up on your credit report as a transaction on your account. It does not hurt your credit score directly, but it increases your credit utilization — the percentage of your available credit you are using. If you use a large cash advance, your utilization goes up, which can lower your credit score slightly.
The cash advance balance is separate from your purchase balance on your statement, but both are part of your total debt to the card issuer. When you make a payment, most card issuers apply it to the balance with the lowest interest rate first (usually purchases), which means your cash advance balance may sit and accrue interest for longer.
Some card issuers let you specify where your payment goes, so you can direct money toward the cash advance to pay it off faster. Check your account settings or call your issuer to see if this option is available.
When a cash advance makes sense and when it does not
A cash advance is rarely the best option for getting money. The fees and interest are steep, and the interest starts immediately. However, there are rare situations where it might be the only option available: if you need cash urgently and have no other way to get it, and you can pay back the cash advance within a few days or weeks before interest becomes a major cost.
Do not use a cash advance for everyday expenses or to fund a purchase you could make with the card itself. The interest rate on a purchase is lower, and you get a grace period before interest starts. If you need cash for an emergency, a personal loan, a line of credit, or a short-term loan from a credit union will almost always be cheaper.
If you are considering a cash advance because you cannot afford your bills, look into other options first: payment plans with creditors, nonprofit credit counseling, or local emergency assistance programs. These routes do not add debt or interest charges.
Frequently Asked Questions
Can I use a credit card to withdraw cash at any ATM?
Most ATMs that accept credit cards will process a cash advance, but not all ATMs accept credit cards — some only accept debit cards. Look for an ATM at your card issuer's bank or a large national network like Allpoint or MoneyPass, which accept most credit cards. Smaller ATMs at convenience stores or bars may decline your credit card.
What is the difference between a cash advance and a balance transfer?
A cash advance gives you cash in hand and charges a fee plus a high interest rate. A balance transfer moves debt from one card to another and may have a lower introductory rate. Cash advances are for getting money; balance transfers are for moving existing debt. Both cost money, but they serve different purposes.
Will a cash advance hurt my credit score?
A cash advance itself does not damage your credit, but it increases your credit utilization, which can lower your score slightly. The bigger risk is if you carry the balance and miss payments — missed payments hurt your score far more than the utilization increase.
Can I pay off a cash advance early without a penalty?
Yes. Most card issuers do not charge a penalty for paying off a cash advance early. The sooner you pay it back, the less interest you will owe. Pay as much as you can as soon as you can to minimize the total cost.
What happens if I cannot pay back the cash advance?
If you do not pay, the balance will accrue interest and may be reported to credit bureaus as a late payment, which damages your credit score. The debt will remain on your account and may be sent to a collection agency if it goes unpaid long enough. Contact your card issuer immediately if you are struggling to pay.