You can take cash from a credit card, but it is not the same as using it to buy something
Yes, you can pull money off a credit card. The process is called a cash advance, and it lets you withdraw cash from an ATM or get it over the counter at a bank using your credit card. But a cash advance costs more than a regular purchase — you pay a fee upfront, and interest starts accruing immediately, with no grace period like you get on purchases.
The three main ways to get cash are: use an ATM with your credit card PIN, ask a bank teller to withdraw cash, or use a convenience check if your card issuer sent you one. Each method triggers the same cash advance charges, so the route you pick does not change the cost.
Key Takeaways
- Cash advances charge a fee (usually 3 to 5 percent of the amount) plus a higher interest rate than regular purchases, starting immediately with no grace period.
- You can get a cash advance at an ATM, a bank teller window, or by using a convenience check your card issuer may have mailed you.
- Most credit cards set a cash advance limit that is lower than your overall credit limit, so you may not be able to withdraw your full available balance.
- Interest on a cash advance accrues daily from the moment you withdraw it, so the longer you carry the balance, the more you pay.
What fees and interest rates apply to cash advances
A cash advance typically costs you two things: an upfront fee and a higher interest rate. The upfront fee is usually between 3 and 5 percent of the amount you withdraw — so a $200 cash advance might cost $6 to $10 just to take it out. Some cards charge a flat fee instead (like $5 or $10), which is better if you are withdrawing a large amount but worse if you are withdrawing a small one.
The interest rate on a cash advance is almost always higher than the rate on purchases. While a purchase might carry an APR of 18 percent, a cash advance on the same card might be 25 or 28 percent. And unlike purchases, there is no grace period — interest starts accruing the day you withdraw the cash, even if you pay it back immediately.
Your card's terms will list both the cash advance fee and the cash advance APR. Check your cardholder agreement or log into your online account to find these numbers before you withdraw.
Cash advance limits and how they work
Most credit card issuers set a separate cash advance limit that is lower than your overall 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 and you cannot change it yourself, though you can call and ask them to raise it.
When you take a cash advance, it counts against both your cash advance limit and your overall credit limit. So if you withdraw $500 and your cash advance limit is $1,500, you have $1,000 left to withdraw as cash, but you also have $4,500 left to spend on purchases (assuming a $5,000 overall limit).
If you try to withdraw more than your cash advance limit allows, the ATM or bank will decline the transaction. There is no way around this limit without calling your issuer first to request an increase.
Where to get a cash advance and what to expect
You have three options for getting cash. An ATM is the fastest — insert your card, enter your PIN, select "cash advance" or "withdrawal," and choose the amount. The ATM will dispense the cash and charge your account immediately. Most ATMs let you withdraw up to your cash advance limit in a single transaction, though some have daily limits that are lower.
A bank teller can also process a cash advance. Walk into any bank branch (it does not have to be your card issuer's bank), show your credit card and ID, and ask for a cash advance. The teller will process it the same way an ATM does, and you will walk out with cash. This method is useful if you do not know your PIN or if the ATM is not working.
Some card issuers mail convenience checks to cardholders. These checks are drawn on your credit card account, not a bank account. You can write one to yourself, deposit it in your bank account, and the amount is treated as a cash advance. Convenience checks carry the same fees and interest rates as ATM withdrawals.
How cash advances affect your credit score
Taking a cash advance does not directly hurt your credit score the way a missed payment does. However, it can harm your score indirectly by raising your credit utilization ratio — the percentage of your available credit you are using. If you have a $5,000 limit and you withdraw $1,000 as a cash advance, your utilization jumps to 20 percent. Credit scoring models penalize high utilization, so your score may drop a few points.
The bigger risk is that a cash advance makes it easier to carry a balance. Because interest starts immediately and the rate is high, you can end up paying far more than you borrowed. If you then miss a payment on that balance, your score will drop significantly and you may face late fees and a higher interest rate.
Alternatives to cash advances
Before you take a cash advance, consider whether another option might cost less. If you need cash urgently, a personal loan from a bank or credit union often has a lower interest rate than a cash advance, though it takes longer to process. A payday loan is faster but usually costs even more than a cash advance, so it is rarely the better choice.
If you need cash to pay a bill, ask whether you can pay by credit card instead — most utilities, insurance companies, and government agencies accept credit card payments, and you avoid the cash advance fee entirely. If you need cash for an emergency, a cash advance from a credit card is faster than a personal loan, but borrowing from family or friends, if possible, costs nothing.
Some employers offer paycheck advances or loans to employees. If you are facing a short-term cash shortage, this may be worth asking about before you take a cash advance.
How to pay back a cash advance
A cash advance is part of your credit card balance, so you pay it back the same way you pay any other balance — by making a payment to your card issuer. However, the way your payment is applied matters. Most card issuers apply your payment to the lowest-interest debt first, which means purchases get paid before cash advances. If you want to pay off the cash advance faster, call your issuer and ask them to apply your next payment to the cash advance specifically.
The sooner you pay back a cash advance, the less interest you pay. Because interest accrues daily at a high rate, even a few extra days of carrying the balance adds up. If you took a $500 cash advance at 25 percent APR, you are paying about $3.42 per day in interest. Paying it back in a week costs you roughly $24 in interest; paying it back in a month costs roughly $104.
Frequently Asked Questions
Can I use a cash advance to pay off another credit card?
Yes, you can withdraw cash and deposit it into another account or use it to pay another card. However, this is usually a bad idea because you are paying a cash advance fee and high interest rate to move money between cards. A balance transfer, where you move debt directly from one card to another, is almost always cheaper.
What happens if I cannot pay back the cash advance?
If you do not pay, the balance stays on your card and interest keeps accruing. After 30 days, the issuer reports the late payment to credit bureaus, which damages your credit score. After 180 days, the issuer may close your account and send the debt to a collection agency.
Is there a daily limit on how much cash I can withdraw?
Yes. Most ATMs have a daily withdrawal limit (often $500 to $1,000), and your card issuer may set a separate daily cash advance limit. These limits are set by the issuer and the ATM operator, and you cannot override them without calling ahead.
Do cash advances show up differently on my credit report?
No. A cash advance is part of your credit card balance and appears as regular credit card debt on your report. It does not show up as a separate type of borrowing, but the high balance and interest charges make it more expensive than a purchase.
Can I take a cash advance from a debit card?
No. Debit cards draw from your bank account directly, so there is no credit being extended. You can withdraw cash from an ATM using a debit card, but that is a regular withdrawal, not a cash advance.