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

You can take cash out of a credit card through an ATM, bank teller, or cash advance service. The card issuer treats this as a cash advance — not a purchase. That distinction matters because cash advances charge higher fees and interest rates than regular charges, and interest starts accruing immediately with no grace period.

The three main ways to get cash are: use an ATM with your credit card PIN, visit a bank branch and ask the teller for a cash advance, or use a convenience check if your card issuer sends them. Each method has the same cost structure but different convenience levels.

Key Takeaways

  • Cash advances charge a separate fee (usually 3 to 5 percent of the amount) plus a higher interest rate than purchases, often 20 to 29 percent.
  • Interest on a cash advance begins the day you withdraw it, with no grace period, so the cost grows immediately.
  • Most cards set a cash advance limit lower than your credit limit, so you may not be able to withdraw your full available balance.
  • Debit cards and bank accounts are cheaper ways to access cash; credit card cash advances should be a last resort.

What fees and interest rates apply to cash advances

When you take a cash advance, you pay two costs: an upfront fee and ongoing interest. The cash advance fee is usually between 3 and 5 percent of the amount you withdraw, charged immediately. A $300 cash advance might cost $9 to $15 just to take it out. Some cards charge a flat fee instead (like $5 or $10), which is cheaper for larger amounts but more expensive for small withdrawals.

The interest rate on a cash advance is separate from your purchase rate and is almost always higher — often 20 to 29 percent annually. Unlike a purchase, which may have a grace period of 21 to 25 days before interest kicks in, a cash advance starts charging interest the same day you withdraw it. If you take out $300 at 25 percent annual interest and pay it back in 30 days, you will owe roughly $6 in interest on top of the $9 to $15 fee.

Your card's terms document lists both the cash advance fee and the cash advance APR. You can find this in your cardholder agreement or by calling the number on the back of your card.

How much you can withdraw and where

Most credit card issuers set a cash advance limit that is lower than your overall credit limit. You might have a $5,000 credit limit but only a $1,000 cash advance limit. This limit is set by the issuer and you cannot change it yourself, though you can call and ask if it can be raised.

You can withdraw cash at ATMs that accept your card's network (Visa, Mastercard, American Express, or Discover). You can also visit a bank branch — even if it is not your bank — and ask a teller for a cash advance. Some card issuers mail convenience checks that work like cash advances when you deposit or cash them. ATMs usually charge an additional ATM fee ($2 to $3) on top of the cash advance fee, so a bank teller is often cheaper if one is nearby.

Why cash advances are expensive compared to other options

A credit card cash advance is one of the most expensive ways to borrow money. The combined cost of the upfront fee plus high interest rate makes it significantly more costly than other borrowing methods. For comparison: a personal loan from a bank might charge 10 to 15 percent interest with no upfront fee, a payday loan charges much higher interest but over a shorter period, and a balance transfer to a 0 percent card charges a 3 to 5 percent fee but no interest for 6 to 21 months.

If you have a debit card or a bank account, withdrawing from that account costs nothing. If you need cash and have access to your own money, that is always the cheapest option. If you do not have cash available and need to borrow, a personal loan or line of credit from your bank is usually cheaper than a credit card cash advance.

How a cash advance affects your credit and payment

A cash advance counts toward your credit utilization — the percentage of your available credit you are using. If you have a $5,000 credit limit and take a $1,000 cash advance, your utilization jumps to 20 percent. High utilization can lower your credit score slightly. The cash advance and the fee both count as part of your balance, so your minimum payment will be higher.

When you make a payment on your credit card, the issuer applies it first to the highest-interest balance. Since a cash advance has a higher interest rate than purchases, payments go to the cash advance first — but only after you have paid off any purchase balances. This means if you have both purchases and a cash advance on the same card, your purchases may sit and accrue interest while you pay down the advance.

Alternatives to a credit card cash advance

If you need cash urgently, explore these options first: withdraw from your own bank account or savings, ask an employer for an advance on your paycheck, borrow from a friend or family member, or use a personal loan from a bank or credit union. A credit union personal loan often has lower rates than a credit card cash advance and may approve you faster than a bank.

If you already carry a balance on your credit card, a balance transfer to a new card with a 0 percent introductory rate can be cheaper than a cash advance — though you still pay a transfer fee (usually 3 to 5 percent) and the 0 percent rate expires after 6 to 21 months depending on the card.

Frequently Asked Questions

Can I use a credit card cash advance to pay another credit card bill?

Technically yes, but it is expensive. You pay the cash advance fee and high interest rate on the money you withdraw, then use it to pay another card. You end up paying more in fees and interest than if you had just paid the original card directly. This is rarely a good financial move.

What happens if I do not pay back a cash advance?

The balance stays on your card and interest continues to accrue at the cash advance rate. Your credit score will drop as the balance grows and your utilization increases. If you miss payments, the issuer may report it to credit bureaus and eventually close your account or send it to a collection agency.

Is there a way to avoid the cash advance fee?

No. The fee is built into the cash advance product and applies every time you take one out. The only way to avoid it is to not take a cash advance. Some cards offer slightly lower fees (3 percent instead of 5 percent), so comparing cards before you apply can help, but the fee itself cannot be waived.

Can I take a cash advance from a credit card I just opened?

Usually yes, but some issuers may restrict cash advances for new cardholders or set a lower limit for the first 30 to 60 days. Check your cardholder agreement or call the issuer to confirm your cash advance limit is active.