Yes, you can pull cash from a credit card, but it costs more than a purchase
You can withdraw cash from a credit card at an ATM, bank teller, or through a cash advance at a store. The card issuer treats this as a cash advance — a separate transaction from a purchase. The moment you pull the cash, interest starts accruing at a higher rate than your purchase APR, and you pay an upfront fee. Most people pay 3 to 5 percent of the amount withdrawn, plus interest that begins immediately with no grace period.
The cost makes cash advances expensive compared to other borrowing. A $500 cash advance at 5 percent costs $25 upfront, then interest compounds daily until you pay it back. If your card's cash advance APR is 24 percent and you take six months to repay, you will pay roughly $40 in interest on top of the $25 fee. That is $65 total on a $500 withdrawal — more than 13 percent of what you borrowed.
Key Takeaways
- Cash advances charge a fee (usually 3 to 5 percent) plus a higher interest rate than purchases, with no grace period.
- Interest on a cash advance starts the day you withdraw it, not at the end of a billing cycle like a purchase.
- Your credit card statement will show the cash advance separately from purchases, and payments go toward the lowest-APR balance first.
- ATM withdrawals, bank teller withdrawals, and store cash advances all count as cash advances and carry the same fees and rates.
Where you can withdraw cash and what each method costs
An ATM is the fastest way to pull cash. Insert your card, enter your PIN, and withdraw up to your cash advance limit — which is often lower than your credit limit. The ATM charges a fee (usually $2 to $5 from an out-of-network machine), and your card issuer charges its own cash advance fee on top. You pay both.
A bank teller can also process a cash advance if you visit a branch in person. You hand over your card and ask for a cash advance. The bank charges the same cash advance fee as an ATM, but you avoid the ATM operator fee. This method is slower but costs slightly less if you use an out-of-network ATM.
Some retailers — grocery stores, pharmacies, convenience stores — let you request cash back when you use your credit card at checkout. This is technically a cash advance, not a debit transaction, so the same fees apply. The advantage is no ATM fee, only the card issuer's cash advance fee.
How interest and fees work on a cash advance
The cash advance fee is charged immediately and appears on your statement. It is a flat percentage of the amount withdrawn, typically 3 to 5 percent. A $300 withdrawal at 4 percent costs $12 in fees alone, added to your balance right away.
Interest begins accruing the same day you withdraw the cash. Unlike a purchase, which has a grace period (usually 21 to 25 days before interest kicks in), a cash advance has no grace period. If your cash advance APR is 25 percent, you are paying roughly 0.07 percent per day on the amount owed. After 30 days on a $300 advance, you owe about $6.30 in interest, plus the $12 fee.
When you make a payment, credit card companies apply it to the lowest-APR balance first. If you have a purchase at 18 percent APR and a cash advance at 25 percent APR, your payment goes toward the purchase first. This means the cash advance sits and accrues interest longer, making it even more expensive.
Your cash advance limit versus your credit limit
Your cash advance limit is separate from your credit limit and is usually much lower. If your credit limit is $5,000, your cash advance limit might be $1,000 or $1,500. The card issuer sets this limit based on your creditworthiness and account history.
You can contact your card issuer to ask what your cash advance limit is before you try to withdraw. Some issuers let you request an increase, but many do not. If you try to withdraw more than your limit, the ATM will decline the transaction.
When a cash advance makes sense and when it does not
A cash advance is rarely the cheapest way to borrow. A personal loan from a bank or credit union typically charges 6 to 36 percent APR with no upfront fee. A payday loan charges a flat fee but is meant for very short-term borrowing. Even a cash advance from a different card with a lower APR is usually cheaper than paying both a fee and high interest on your current card.
A cash advance might make sense only if you need cash immediately and have no other option — for example, if an ATM is down and you need to pay for something in cash right now. Even then, pay it back as fast as you can. The longer the balance sits, the more interest compounds.
If you are considering a cash advance to cover an emergency expense, explore other options first: asking for a payment plan from the creditor, borrowing from a friend or family member, or checking whether you may have access to for a personal loan or line of credit with a lower rate.
How a cash advance affects your credit score
A cash advance does not directly hurt your credit score the way a missed payment does. However, it increases your credit utilization — the percentage of your available credit you are using. If you have a $5,000 credit limit and a $1,000 cash advance, your utilization jumps to 20 percent. High utilization can lower your score slightly.
The bigger risk is that a cash advance can trap you in a cycle of debt. Because interest accrues immediately and the balance is hard to pay down (since payments go to lower-APR balances first), many people end up carrying the cash advance balance for months. Missed payments on that balance will damage your score.
Frequently Asked Questions
Can I use a cash advance to pay another credit card bill?
Technically yes, but it is a bad idea. You are borrowing at a high rate with an upfront fee to pay off another card. You end up paying more in fees and interest than if you had just paid the original card slowly. If you are juggling multiple card balances, a balance transfer or personal loan is usually cheaper.
What happens if I do not pay back the cash advance?
The balance stays on your card and accrues interest daily. After 30 days, the missed payment appears on your credit report and damages your score. After 180 days, the card issuer may close your account and send the debt to a collection agency. You will owe the original amount plus all accrued interest and fees.
Is there a difference between a cash advance and a balance transfer?
Yes. A balance transfer moves debt from one card to another, usually at a lower rate for an introductory period. A cash advance withdraws cash from your card and charges a higher rate immediately. A balance transfer is for moving existing debt; a cash advance is for getting cash in hand.
Can I get a cash advance from a prepaid card or gift card?
No. Only credit cards and some debit cards linked to a checking account allow cash advances. Prepaid cards and gift cards do not. If you try to withdraw cash at an ATM with a prepaid card, the transaction will decline.
How long does it take to process a cash advance?
An ATM withdrawal is instant. A bank teller withdrawal takes a few minutes. The fee and interest appear on your next statement, usually within one to three business days. The cash is yours immediately, but the charges post shortly after.