Yes, you can get cash with a credit card, but it costs more than a regular purchase
A cash advance lets you withdraw money from an ATM or get cash from a bank teller using your credit card. The money comes from your credit limit, not from a bank account. You pay it back like any other credit card charge — but with higher fees and interest rates than regular purchases.
Most credit cards allow cash advances, but the cost varies by card and by how you get the cash. A withdrawal at an ATM typically costs 3% to 5% of the amount you take out, plus a flat fee of $2 to $5. Getting cash over the counter at a bank can cost slightly less. Interest starts accruing immediately — there is no grace period like there is for regular purchases — and the interest rate is usually 2% to 3% higher than your regular purchase rate.
Key Takeaways
- Cash advances charge a percentage fee (usually 3% to 5%) plus a flat fee, and interest starts right away with no grace period.
- The interest rate on a cash advance is typically higher than your regular purchase rate and varies by card issuer.
- You can get cash at an ATM, at a bank teller window, or sometimes through a convenience store or casino, depending on your card.
- If you need cash regularly, a debit card or a personal loan will cost you less than repeated cash advances.
Where you can withdraw cash with a credit card
An ATM is the most common way to get a cash advance. Your card issuer's ATM network usually has no fee, but using an out-of-network ATM adds another $2 to $3 charge on top of the cash advance fee. Check your card's website or app to find in-network ATMs near you.
You can also walk into a bank branch — yours or any bank — and ask the teller for a cash advance. This method sometimes has a lower fee than an ATM, though not always. Some credit card issuers also allow cash advances through convenience stores, casinos, or other merchants that have cash advance terminals, though this is less common now.
How much the fees and interest actually cost
The total cost of a cash advance depends on three things: the amount you withdraw, how long you carry the balance, and your card's specific rates.
Say you withdraw $500 with a card that charges a 4% cash advance fee and a $3 flat fee. You pay $23 upfront ($20 plus $3). If your cash advance rate is 24% annually and you pay back the $500 in one month, you owe about $10 in interest. Total cost: $33 for borrowing $500 for one month. By contrast, a regular purchase on the same card at 18% interest would cost about $7.50 in interest with no upfront fee.
The longer you carry the balance, the more interest adds up. If you take six months to pay back that same $500, interest alone reaches roughly $60, plus the original $23 fee — a total of $83.
Why cash advances are more expensive than other borrowing options
Credit card companies charge more for cash advances because they see the risk as higher. A regular purchase is tied to a merchant and a specific item; a cash advance is just money in your hand. The upfront fee also discourages people from using cash advances for small amounts.
If you need cash regularly, a debit card linked to a checking account costs nothing. If you need a larger sum and can wait a few days, a personal loan from a bank or credit union usually has a lower interest rate than a cash advance, even though you pay interest from day one. A payday loan is faster but often costs even more than a cash advance, so that is not a better option.
How a cash advance affects your credit score
A cash advance shows up on your credit report as a balance on your credit card, just like a regular purchase does. It counts toward your credit utilization — the percentage of your total credit limit you are using. If you normally use 20% of your limit and you take a $500 cash advance on a $5,000 limit, your utilization jumps to 30%, which can lower your score slightly.
The impact is temporary. Once you pay off the cash advance, your utilization drops and your score recovers. Missing a payment or carrying the balance for months will hurt your score more than the advance itself.
When a cash advance makes sense
A cash advance is worth considering only in specific situations. If you need cash for an emergency and have no other way to get it, a cash advance is faster than a personal loan. If you have a 0% introductory rate on your card and the cash advance is included in that rate, the cost is just the upfront fee — which might be acceptable for a one-time need.
Most of the time, though, there is a cheaper option. If you have a debit card, use that. If you need a larger amount, ask your bank about a personal loan or line of credit. If you are in a true emergency and have no credit, a credit union might offer a small loan at a lower rate than a cash advance.
How to minimize the cost if you do take a cash advance
If you decide a cash advance is your best option, a few steps can reduce the damage. Use an in-network ATM to avoid the extra ATM fee. Withdraw only what you need — the fee is a percentage, so a smaller amount costs less. Pay it back as fast as you can, because interest compounds daily. If your card offers a 0% promotional period, check whether cash advances are included before you withdraw.
Some cards let you transfer a balance at a lower rate; if your card offers this, it might be cheaper than a cash advance, though balance transfers also have fees. Read your card's terms or call the customer service number on the back to understand your specific rates and fees before you withdraw.
Frequently Asked Questions
Can I use a credit card to withdraw cash at any ATM?
Yes, most credit cards work at any ATM that displays your card's logo. However, out-of-network ATMs charge an extra fee on top of your card's cash advance fee. Using an ATM owned by your card issuer or a bank in their network costs less.
Does a cash advance hurt my credit score?
A cash advance can lower your score temporarily because it increases your credit utilization. The impact is usually small and goes away once you pay it off. Missing payments or carrying the balance long-term hurts your score much more.
What is the difference between a cash advance and a balance transfer?
A cash advance gives you cash from your credit limit. A balance transfer moves debt from one card to another. Both charge fees and interest, but balance transfers sometimes offer a 0% promotional rate, while cash advances rarely do.
Is there a limit to how much I can withdraw?
Yes. Your card issuer sets a cash advance limit, which is usually lower than your total credit limit. Check your card's terms or call customer service to find out your specific limit.