Yes, you can take money off a credit card, but it costs more than a regular purchase
You can withdraw cash from a credit card at an ATM, bank teller, or through a cash advance at a store. The money goes into your pocket immediately, but the card issuer charges you a fee — usually 3 to 5 percent of the amount — plus a higher interest rate than you pay on regular purchases. That interest starts accruing right away, with no grace period like you get on purchases.
The three main ways to get cash are ATM withdrawal, bank teller withdrawal, and over-the-counter cash advance. Each has the same fee structure but different limits and convenience levels. Most cards set a cash advance limit that is lower than your overall credit limit — sometimes as low as 20 or 30 percent of what you can spend on purchases.
Key Takeaways
- Cash advances charge a fee (typically 3 to 5 percent) plus a higher interest rate than purchases, with interest starting immediately.
- Your card issuer sets a separate cash advance limit, which is often much lower than your purchase limit.
- ATM withdrawals are the fastest method but may have additional fees from the ATM operator on top of your card's fee.
- Interest on cash advances does not have a grace period, so charges begin the day you withdraw the money.
- Alternatives like personal loans, balance transfers, or asking your bank for a short-term loan may cost less depending on your situation.
How the fees and interest work
When you take a cash advance, your card issuer charges two separate costs. The first is an upfront fee, shown as a percentage of the amount withdrawn. If you withdraw $500 and the fee is 5 percent, you pay $25 immediately — the card adds it to your balance. The second cost is interest, which starts accruing the same day you withdraw the money, at a rate higher than your purchase APR.
The interest rate on cash advances is typically 2 to 3 percentage points higher than the rate on purchases. If your purchase APR is 18 percent, your cash advance APR might be 21 or 22 percent. Unlike purchases, there is no grace period — interest begins accruing immediately, even if you pay the balance in full when your statement arrives.
The total cost depends on how long you carry the balance. A $500 cash advance with a 5 percent fee ($25) and a 21 percent APR costs about $8.75 in interest if you pay it back in one month. If you carry it for six months, the interest alone reaches roughly $52.
Where you can withdraw cash and what each method costs
| Method | How it works | Additional fees | Speed |
|---|---|---|---|
| ATM withdrawal | Insert card at any ATM and withdraw cash like a debit card | ATM operator fee (often $2–$4) on top of card issuer fee | Immediate |
| Bank teller | Visit your card issuer's branch and request cash advance | Card issuer fee only; no additional ATM fee | Immediate |
| Over-the-counter at store | Some retailers allow cash back when you use credit card (rare) | Card issuer fee; store may add fee | Immediate |
ATM withdrawal is the fastest but often the most expensive because you pay both your card issuer's fee and the ATM operator's fee. Using your card issuer's own ATM network, if available, avoids the operator fee. A bank teller withdrawal costs only the card issuer's fee, making it cheaper than an ATM if you have time to visit a branch.
Over-the-counter cash advances at retail stores are rare and usually require the store's permission. When available, they work like a debit card transaction but trigger your credit card's cash advance terms and fees. This method is worth asking about only if you are already at a store and need cash immediately.
Your cash advance limit and how to find it
Your card issuer sets a cash advance limit separately from your purchase limit. This limit is often 20 to 30 percent of your total credit limit, though it varies by card and issuer. If your credit limit is $5,000, your cash advance limit might be $1,000 or $1,500. You cannot exceed this limit, even if you have unused purchase credit.
To find your cash advance limit, check your credit card statement, log into your online account, or call the customer service number on the back of your card. The limit is usually listed in your account details or terms. If you need a higher limit, you can request an increase, though the issuer may deny it or conduct a hard inquiry into your credit.
Why cash advances are expensive compared to other options
A cash advance is one of the most costly ways to borrow money on a credit card. The combination of an upfront fee and immediate interest makes it significantly more expensive than a purchase or a balance transfer. For example, a $500 cash advance at 5 percent fee plus 21 percent APR costs $25 upfront plus interest. A $500 personal loan at 12 percent APR from a bank or credit union would cost roughly $30 in interest over six months — less than half the cost of the cash advance.
Balance transfers are another option if you need to move debt between cards. They typically charge a one-time fee (2 to 5 percent) but offer a lower or zero interest rate for a promotional period, sometimes 6 to 21 months. This works only if you are moving existing debt, not getting new cash.
If you need cash urgently, asking your bank for a short-term personal loan, a line of credit, or even a payday loan from a credit union (not a payday lender) may cost less than a credit card cash advance. Compare the total cost — fee plus interest — before deciding.
What happens if you cannot pay back a cash advance
If you carry a cash advance balance, interest accrues daily at your cash advance APR. The issuer applies your monthly payment to the lowest-interest debt first — usually purchases — so the cash advance balance can grow quickly if you only make minimum payments. After several months of non-payment, the issuer may report the debt to credit bureaus, damaging your credit score and making future borrowing more expensive.
If the debt goes unpaid for 180 days (six months), the issuer typically closes the account and may sell the debt to a collection agency. At that point, you may face calls from collectors and potential legal action. Paying down the cash advance as quickly as possible prevents this escalation.
Frequently Asked Questions
Can I use a credit card cash advance to pay another credit card bill?
Technically yes, but it is a costly strategy. You would pay the cash advance fee and interest rate on the money, then use it to pay another card. Most people in this situation benefit more from a balance transfer or a personal loan, both of which have lower total costs.
Does a cash advance show up differently on my credit report?
A cash advance does not appear separately on your credit report — it is part of your overall credit card balance. However, if you miss payments, the missed payment itself is reported, which damages your credit score regardless of whether it was a purchase or cash advance.
What if my card does not have a cash advance limit?
Some cards, particularly secured cards or cards for people rebuilding credit, do not offer cash advances. If your card does not allow them, you cannot withdraw cash using that card. Contact your issuer to confirm, or explore other borrowing options like a personal loan or credit union line of credit.
Can I get a cash advance on a debit card?
No. Debit cards draw directly from your bank account and do not offer cash advances. You can withdraw money from an ATM or bank teller using your debit card, but there is no fee or interest because you are spending your own money, not borrowing.
Is there a way to avoid the cash advance fee?
No. The fee is mandatory whenever you take a cash advance. The only way to avoid it is to not take a cash advance. If you need cash, consider a personal loan, asking friends or family, or using a credit union line of credit instead.