Yes, you can withdraw cash from a credit card, but it costs more than a regular purchase
Most credit cards let you take out cash at an ATM or from a bank teller using your card's PIN. The money comes from your credit line, not a separate account. But a cash advance — that is what this withdrawal is called — charges you a fee right away, usually 3 to 5 percent of the amount you take out. You also start paying interest on that cash immediately, often at a higher rate than you pay on regular purchases. There is no grace period like there is for shopping.
The cost difference matters. If you buy something with your card, you might have 21 to 25 days before interest kicks in. With cash, interest starts the day you withdraw it. On a $500 cash advance at 5 percent fee plus 24 percent annual interest, you are paying $25 upfront and then roughly $10 a month in interest if you do not pay it back quickly.
Key Takeaways
- Cash advances charge a fee (usually 3 to 5 percent) plus a higher interest rate than regular purchases, with no grace period.
- You can withdraw cash at most ATMs using your credit card PIN, or ask a bank teller to process it for you.
- The interest clock starts immediately, so carrying a cash advance balance is expensive compared to other ways to borrow.
- Your credit card company sets a separate cash advance limit, which may be lower than your overall credit limit.
Where you can get cash from your credit card
ATMs are the most common route. You insert your card, enter your PIN, and withdraw cash just as you would with a debit card. Most ATMs accept credit cards, though some charge an additional ATM operator fee on top of your card's cash advance fee.
You can also walk into a bank branch — yours or any bank — and ask a teller to process a cash advance. You will need your card and ID. Some banks charge an extra fee for this service, and some do not. Call ahead if you want to know.
A few credit card companies let you request a cash advance by phone or online, and they send you a check or deposit the money into your bank account. This method takes a few business days but avoids the ATM fee.
Fees and interest rates for cash advances
The cash advance fee is a percentage of the amount you withdraw, charged to your account immediately. Most cards charge between 3 and 5 percent, though some charge a flat fee (like $10) if that is higher. A $300 withdrawal at 5 percent costs $15 right away.
The interest rate on cash advances is separate from your purchase rate. Many cards charge 2 to 5 percentage points higher on cash advances than on regular purchases. If your purchase APR is 18 percent, your cash advance APR might be 23 percent. This rate applies from day one — there is no 0 percent introductory period or grace period for cash.
Interest compounds daily, so the longer you carry the balance, the faster it grows. Paying it back within a few days costs far less than carrying it for a month.
Your cash advance limit is separate from your credit limit
Your credit card company sets a cash advance limit that may be much lower than your overall credit limit. If your card has a $5,000 limit, your cash advance limit might be $1,000 or $1,500. You cannot exceed this amount, even if you have unused credit available.
You can call your card issuer and ask what your cash advance limit is. Some companies let you request an increase, though they may run a hard inquiry on your credit report to decide. Others keep the limit fixed.
Why cash advances are expensive compared to alternatives
If you need cash urgently, a cash advance is fast but costly. A personal loan from a bank or credit union usually charges less interest and no upfront fee. A payday loan is faster but often charges even more. A balance transfer to a 0 percent card avoids interest for a set period, but that only works if you are moving existing debt, not getting new cash.
If you have a debit card or a bank account, withdrawing from your own money costs nothing. If you do not have cash available and cannot wait for a paycheck or transfer, a cash advance is an option — but the cost means it should be a last resort, not a habit.
How cash advances affect your credit score
A cash advance itself does not hurt your credit score directly. But it does increase your credit utilization — the percentage of your available credit you are using. If you have a $5,000 limit and take a $1,000 cash advance, your utilization jumps to 20 percent. High utilization can lower your score slightly.
Carrying a cash advance balance also means paying interest, which makes it harder to pay down debt quickly. If you miss a payment on the cash advance, that missed payment will damage your score and stay on your report for seven years.
Frequently Asked Questions
Can I use a credit card cash advance to pay another credit card bill?
Technically yes, but it is a bad idea. You are borrowing at a high rate (the cash advance rate) to pay off debt at a lower rate (your purchase rate on the other card). You also pay the cash advance fee upfront. A balance transfer or personal loan makes more sense if you need to move debt between cards.
What happens if I do not pay back a cash advance?
Interest keeps accruing daily at your cash advance rate. If you miss a payment, your card issuer may charge a late fee, raise your interest rate, and report the missed payment to credit bureaus. After 30 days late, it damages your credit score; after 180 days, the debt may be charged off and sold to a collection agency.
Is there a way to avoid the cash advance fee?
No. Every credit card charges a cash advance fee — it is built into the product. Some cards have lower fees (3 percent instead of 5 percent), so comparing cards before you open one matters if you know you will need cash advances. But you cannot avoid the fee once you have the card.
Can I get a cash advance from a credit card I just opened?
Usually yes. Most card issuers set a cash advance limit when they approve your application, even if you have not used the card yet. But some cards restrict cash advances for the first 30 days. Check your cardholder agreement or call the issuer to confirm.