Yes, you can get cash from a credit card, but it costs more than a regular purchase
You can withdraw cash using a 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 short-term loan separate from your regular credit line. Cash advances start charging interest immediately, usually at a higher rate than purchases, and they often include an upfront fee. You will pay money to get the cash, and you will pay more money every day you hold it.
The cost difference matters. A purchase on your card might charge 18% annual interest if you carry a balance. A cash advance on the same card might charge 24% annual interest, plus a fee of 3% to 5% of the amount you withdraw. If you take out $500, you might pay $15 to $25 just to get it, then another $10 per month in interest if you do not pay it back immediately.
Key Takeaways
- Cash advances charge a separate, usually higher interest rate than purchases, starting from the day you withdraw the money.
- Most cards charge an upfront fee of 3% to 5% of the cash amount, on top of the interest you will owe.
- You can get cash at an ATM using your credit card's PIN, at a bank teller with your card and ID, or sometimes at a store with a cash-back request.
- The interest rate and fees for cash advances vary by card and issuer, so check your cardholder agreement or call the number on the back of your card to learn your specific costs.
- Paying back a cash advance as quickly as possible is the only way to reduce what you owe, because interest accrues daily and does not pause.
Where you can withdraw cash with a credit card
An ATM is the most common way. Insert your credit card, enter your PIN, and select the cash advance option. Not all ATMs accept credit cards — most are set up for debit cards only — so look for one at a bank branch or a location that clearly displays credit card logos. Some ATMs charge an additional fee just for using them, which stacks on top of your card's cash advance fee.
A bank teller can also process a cash advance. Walk into any branch of your card issuer's bank (or sometimes a partner bank) with your card and a photo ID, and ask for a cash advance. This method avoids ATM fees but requires you to go during business hours and may involve a short wait.
A few retailers offer cash back at checkout, though this is less common with credit cards than with debit cards. Ask the cashier whether they can process a credit card cash advance; many will not. If they do, you will still pay the card's cash advance fee, but you avoid the ATM fee.
The fees and interest rates you will pay
Every credit card issuer sets its own cash advance fee and interest rate. The fee is usually a percentage of the amount you withdraw — typically 3%, 4%, or 5% — with a minimum dollar amount (often $5 or $10). So a $100 cash advance might cost $5 in fees, and a $500 advance might cost $25.
The interest rate for cash advances is separate from your purchase rate. If your card charges 18% on purchases, it might charge 22% or 25% on cash advances. Some cards charge the same rate for both; check your cardholder agreement or the back of your card for the specific rates. The interest starts accruing immediately — there is no grace period like there sometimes is for purchases.
Interest compounds daily. If you owe $500 at 24% annual interest, you will owe roughly $3.29 in interest after one day, $6.58 after two days, and so on. The longer you hold the cash, the more you owe. Paying it back within a few days costs far less than holding it for a month.
How cash advances affect your credit and your available credit
A cash advance counts against your credit limit, just like a purchase does. If your card has a $5,000 limit and you take a $500 cash advance, you have $4,500 left to spend. The cash advance also appears on your credit report as a balance owed, which can lower your credit score if it raises your overall credit utilization (the percentage of your available credit you are using).
The payment you make goes toward the cash advance separately from purchases. If you owe $300 on purchases and $500 on a cash advance, and you make a $400 payment, the card issuer applies that payment according to its own rules — often to the purchase first, sometimes to the cash advance first. Check your statement to see where your payment went. To pay off the cash advance fastest, call the issuer and ask how to direct a payment specifically to the cash advance balance.
Why a cash advance is usually not the best option
The cost of a cash advance makes it an expensive way to get cash. A $500 cash advance at 5% fee plus 24% interest costs you $25 upfront and then roughly $10 per month if you carry the balance. Over six months, you could owe $85 just in fees and interest — a 17% cost on top of the original $500.
Other options often cost less. A personal loan from a bank or credit union typically charges 8% to 15% interest with no upfront fee. A payday loan is expensive but sometimes cheaper than a cash advance if you pay it back within two weeks. Borrowing from a friend or family member costs nothing. Even using a debit card to withdraw from your own bank account costs nothing, if you have the money available.
A cash advance makes sense only if you need cash urgently, have no other source, and can pay it back within days. If you are considering a cash advance to cover a regular expense or to hold for weeks, explore other options first.
How to find your card's cash advance terms
Your cardholder agreement lists the cash advance fee and interest rate. This document came with your card when you opened the account, or you can request it by calling the number on the back of your card. Many issuers also post this information online in your account dashboard or on their website.
The agreement will show your "cash advance APR" (annual percentage rate) and your "cash advance fee" as a percentage or a flat amount. If the terms are not clear, call the issuer's customer service line and ask: "What is my cash advance fee and my cash advance interest rate?" Write down the answer so you know the cost before you withdraw.
Some cards offer a promotional period with no cash advance fee or a lower rate for new cardholders. Check whether your card has this offer; if it does, the promotion period and terms will be in your agreement or on your account page.
Frequently Asked Questions
Does a cash advance show up on my credit report?
Yes. The cash advance balance appears on your credit report as an outstanding balance, which can lower your credit score if it increases your credit utilization. Once you pay it off, the balance drops to zero, but the account history remains on your report.
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 on the first card, then use that cash to pay the second card. You end up paying more in fees and interest than if you had just transferred the balance between cards or paid the second card from another source. Balance transfer offers (if your card has one) are usually cheaper.
What happens if I do not pay back a cash advance?
The balance stays on your card, interest keeps accruing daily, and your credit score continues to drop as the balance grows. If you do not pay for several months, the card issuer may close your account, report you to a credit bureau, or send your debt to a collection agency. This can damage your credit for years.
Is there a limit to how much cash I can advance?
Yes. Most card issuers set a cash advance limit that is lower than your total credit limit — often 20% to 50% of your credit line. So if your card limit is $5,000, your cash advance limit might be $1,000 or $2,500. Your cardholder agreement or account page will show your specific limit.
Can I get a cash advance from a credit card I just opened?
Usually yes, but some issuers restrict cash advances for new accounts or charge a higher fee for the first 30 to 60 days. Check your agreement or call the issuer to confirm whether cash advances are available on your account and at what cost.