Yes, you can get cash from a credit card, but it costs more than a purchase

You can withdraw cash using your credit card at an ATM, through a bank teller, or sometimes at a store checkout. The card issuer treats this as a cash advance — a separate transaction from a purchase. Cash advances charge a fee (usually 3 to 5 percent of the amount) plus a higher interest rate than regular purchases, and interest starts accruing immediately with no grace period.

Because the costs are steep, a cash advance should be a last resort, not a routine way to get spending money. If you need cash regularly, a debit card or ATM withdrawal from your bank account costs nothing. If you need emergency cash and have no other option, a cash advance may be faster than a personal loan, but you will pay for that speed.

Key Takeaways

  • Cash advances charge a separate fee (typically 3 to 5 percent) on top of a higher interest rate than purchases, with no grace period before interest starts.
  • You can get a cash advance at an ATM using your PIN, at a bank teller with your card and ID, or sometimes at a store customer service desk.
  • Your credit card statement will show the cash advance separately from purchases, and the balance may have its own interest rate and payment terms.
  • Most credit cards have a limit on how much you can withdraw as a cash advance, which is often lower than your overall credit limit.

Where and how to get cash from your credit card

The simplest method is an ATM. Insert your credit card, enter your PIN, select "cash advance" or "withdrawal," and choose the amount. The ATM will dispense cash immediately and charge your credit card account. You can do this at ATMs owned by your card issuer or at third-party ATMs, though third-party ATMs may charge an additional surcharge (usually $2 to $3) on top of the cash advance fee.

You can also visit a bank branch in person. Bring your credit card and a photo ID, and ask the teller for a cash advance. The teller will process it on the spot. Some retail stores offer cash advances at the customer service desk or checkout, though this is less common than it once was and depends on the store's policy and your card issuer's agreement with that retailer.

Fees and interest rates for cash advances

A cash advance fee is charged at the time you withdraw the money. This fee is typically 3 to 5 percent of the amount withdrawn, with a minimum fee (often $5 to $10). If you withdraw $300, you might pay $9 to $15 in fees alone. This fee appears on your credit card statement as a separate charge.

The interest rate on a cash advance is almost always higher than the rate on purchases. While a purchase might carry an APR of 15 to 20 percent, a cash advance APR is often 20 to 30 percent or higher. Critically, interest begins accruing immediately — there is no grace period like there is for purchases. If you carry the balance for even a few days, you will owe interest.

The math adds up quickly. A $500 cash advance at a 4 percent fee ($20) and 25 percent APR costs you $20 upfront plus roughly $10 in interest for each month you carry the balance. If you repay it in a week, you will owe about $27 total. If you carry it for three months, you will owe roughly $57.

Cash advance limits and how they work

Your credit card issuer sets a cash advance limit separate from your overall credit limit. This limit 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 exceed this limit, even if you have unused credit available.

When you take a cash advance, it counts against both your cash advance limit and your overall credit limit. The amount you withdraw reduces the credit available for future purchases. The cash advance balance also appears separately on your statement, and some issuers apply payments to the lowest-interest balance first, meaning your cash advance may take longer to pay off if you also carry a purchase balance.

Alternatives that cost less

If you need cash and have a bank account, withdraw from your own account using your debit card or visit your bank's ATM — this costs nothing. If you need more cash than you have on hand and cannot wait, a personal loan from a bank or credit union typically charges 6 to 36 percent APR with no upfront fee, making it cheaper than a cash advance if you need to borrow for more than a few weeks.

A balance transfer to a card with a 0 percent introductory APR can be cheaper if you need to carry a balance, though balance transfers also charge a fee (usually 3 to 5 percent) and do not give you cash — they move debt between cards. If you have a 401(k) or similar retirement account, some plans allow loans against your balance at a lower rate, though this has tax consequences if you do not repay on time.

How a cash advance affects your credit score

Taking a cash advance does not directly damage your credit score, but it can harm your score indirectly. A cash advance increases your credit utilization — the percentage of your available credit you are using. If you have a $5,000 limit and take a $1,000 cash advance, your utilization jumps to 20 percent. High utilization (above 30 percent) can lower your score.

If you carry the cash advance balance and miss a payment, that missed payment will be reported to the credit bureaus and will hurt your score. Paying the cash advance on time and in full has no negative effect on your score beyond the temporary utilization bump.

What happens if you cannot repay a cash advance

If you do not repay a cash advance, the balance accrues interest at the higher cash advance rate and may eventually be reported as a late payment. After 30 days past due, the issuer may report it to the credit bureaus. After 180 days past due, the account may be charged off — closed by the issuer and sold to a debt collector.

Contact your card issuer as soon as you know you cannot repay on time. Some issuers offer hardship programs that lower your interest rate or allow you to pause payments temporarily. This is not a may provide, but asking is free and may prevent the account from being reported as late.

Frequently Asked Questions

Can I use a credit card to withdraw cash at any ATM?

You can use most ATMs, but third-party ATMs (not owned by your card issuer) often charge an additional surcharge of $2 to $3 on top of the cash advance fee. ATMs owned by your issuer typically do not charge this extra fee. Check your card issuer's website or app to find fee-free ATMs near you.

What is the difference between a cash advance and a balance transfer?

A cash advance gives you physical cash and charges a fee plus a high interest rate. A balance transfer moves debt from one card to another and also charges a fee, but may offer a lower introductory rate. Neither gives you cash in hand — a balance transfer just moves existing debt.

Will taking a cash advance hurt my credit score?

It will not directly hurt your score, but it increases your credit utilization, which can lower your score slightly. If you carry the balance and make payments on time, the effect is temporary. Missing a payment will cause real damage.

Can I get a cash advance if I have a low credit limit?

Yes. Your cash advance limit is set by your issuer and is usually lower than your overall credit limit. You can take a cash advance up to that limit regardless of how high your total credit limit is.

Is there a way to avoid the cash advance fee?

No. The fee is charged by your card issuer and cannot be waived. The only way to avoid it is to not take a cash advance. Using a debit card or personal loan are the main alternatives.