You can withdraw cash directly from your credit card at an ATM or bank teller, but the cost and interest rate are significantly higher than a regular purchase
A cash advance lets you treat your credit card like a debit card — you go to an ATM, insert your card, and withdraw money. The cash hits your account immediately. But unlike a purchase, the bank charges you a fee (usually 3 to 5 percent of the amount withdrawn) and starts charging interest right away, with no grace period. If you withdraw $500, you might pay $15 to $25 just to get the cash, plus interest accruing from day one.
The interest rate on a cash advance is almost always higher than your regular purchase APR — often 5 to 10 percentage points higher. If your card charges 18 percent on purchases, the cash advance rate might be 28 percent. That difference matters fast: $500 at 28 percent costs you roughly $12 per month in interest alone, before you pay down the principal.
Key Takeaways
- Cash advances charge an upfront fee (typically 3 to 5 percent) plus a higher interest rate than purchases, with interest starting immediately.
- You can get a cash advance at any ATM using your PIN, or at a bank teller by showing your card and ID.
- Your credit card issuer sets a cash advance limit, which may be lower than your overall credit limit and appears on your statement.
- Most people should borrow from a personal loan, credit union, or family member instead, because the total cost is almost always lower.
Where and how to withdraw cash from your card
You have two main routes. The fastest is an ATM: insert your card, enter your PIN, select "cash advance" or "withdrawal," and choose the amount. The ATM will show you the fee before you confirm. Money appears in your account within seconds, though some banks take up to one business day to post it.
The second route is a bank teller. Walk into any bank branch (yours or another bank), show your credit card and a photo ID, and ask for a cash advance. The teller will process it on the spot. You'll pay the same fee as an ATM, but a teller can sometimes override a daily limit if you need more than the ATM allows.
Not all ATMs accept credit card cash advances — some only work with debit cards. ATMs at your card issuer's bank almost always work. If you're unsure, call the number on the back of your card and ask which ATMs accept cash advances, or try a bank branch teller instead.
What fees and interest rates you'll pay
The cash advance fee is a one-time charge, usually 3 to 5 percent of the amount you withdraw. A $300 advance costs $9 to $15. Some cards charge a flat fee (like $10) instead of a percentage — check your cardholder agreement or call the issuer to find out which applies to yours.
The interest rate starts accruing immediately, with no grace period. A regular purchase might have a 21-day grace period before interest kicks in; a cash advance does not. If you withdraw $500 at a 28 percent APR and pay it back in 30 days, you'll owe roughly $12 in interest on top of the $15 fee — a total cost of $27 for borrowing $500 for one month.
Interest compounds daily. The longer you carry the balance, the faster it grows. If you don't pay off the cash advance quickly, the interest can exceed the original fee within a few months.
Your cash advance limit and how it affects your credit
Your credit card issuer sets a separate cash advance limit, which is often lower than your overall credit limit. If your card has a $5,000 limit, your cash advance limit might be $1,500. You can find this limit on your statement, in your online account, or by calling the issuer.
A cash advance counts toward your overall credit utilization — the percentage of your total available credit you're using. If you have a $5,000 limit and take a $500 cash advance, your utilization jumps to 10 percent. High utilization can lower your credit score, even if you pay the advance off quickly. The damage is temporary: once you pay it down, your score recovers.
The cash advance itself doesn't show up as a separate line item on your credit report, but the balance does appear on your credit card statement and affects your score the same way any other balance would.
Why a personal loan or credit union is usually cheaper
If you need cash, a personal loan from a bank or online lender is almost always less expensive than a credit card cash advance. Personal loans have no upfront fee, a fixed interest rate (often 8 to 15 percent for someone with decent credit), and a set repayment schedule. Borrowing $500 at 12 percent for 12 months costs roughly $33 in interest — less than half the cost of a cash advance.
A credit union loan is often even cheaper. Credit unions typically charge lower rates than banks and may waive fees for members. If you belong to a credit union, call and ask about a short-term personal loan before using a cash advance.
Family or friends are free, if that's an option. A payment plan with a merchant (many retailers offer this) also costs nothing if you pay on time. Even a regular credit card purchase, which has a grace period and a lower interest rate, is cheaper than a cash advance — so if you can wait a few days, put the expense on the card instead.
When a cash advance might make sense
Cash advances are rarely the best choice, but a few situations justify the cost. If you need cash for an emergency and have no other way to get it — no savings, no access to a loan, no family to borrow from — a small cash advance is better than missing a critical payment or going without food.
If you're only borrowing for a few days and can pay it back immediately, the interest cost is minimal. A $200 advance paid back in three days might cost $3 in interest plus the fee — not ideal, but survivable if it's truly temporary.
Some people use cash advances to move money between accounts quickly, though this is rarely necessary and almost never worth the cost. If you're considering a cash advance for any reason other than a genuine emergency, pause and explore alternatives first.
How to avoid needing a cash advance
Build an emergency fund — even $500 to $1,000 in a savings account — so you're not forced to borrow when something unexpected happens. Start small: set aside $25 or $50 per paycheck until you reach your goal. This takes time, but it's the cheapest insurance against high-cost borrowing.
Keep a credit union membership active, even if you don't use it regularly. Credit unions offer loans to members at rates far below credit cards, and membership is often free or costs just a few dollars per year. When you need cash, you have a cheap option waiting.
If you're regularly short on cash, look at your spending and income. Can you cut expenses, pick up extra work, or negotiate a raise? A cash advance is a symptom of a deeper problem — not enough money coming in or too much going out. Fixing that problem is worth more than any short-term borrowing trick.
Frequently Asked Questions
Can I use a credit card cash advance to pay another credit card bill?
Technically yes, but it's a bad idea. You'll pay the cash advance fee and high interest rate just to move money between cards. If you're struggling to pay a bill, contact the card issuer and ask about a hardship program or payment plan instead. Most will work with you rather than push you toward expensive borrowing.
Does a cash advance hurt my credit score?
Yes, temporarily. It increases your credit utilization, which can lower your score by 10 to 50 points depending on how much you borrow. The damage is temporary — once you pay it off, your score recovers within a month or two. But if you carry the balance, the score damage persists and gets worse as interest accrues.
What's the difference between a cash advance and a balance transfer?
A cash advance gives you physical cash; a balance transfer moves debt from one card to another. Both charge fees and interest, but balance transfers sometimes offer a low introductory rate (0 percent for 6 to 12 months). If you're moving existing debt, a balance transfer is usually cheaper. If you need cash, a personal loan is cheaper than either.
Can I get a cash advance if my card is maxed out?
No. Your cash advance limit is separate from your overall credit limit, but you can't exceed your total available credit. If your card is maxed out, you have no room for a cash advance. You'd need to pay down the balance first or use a different card.
How long does a cash advance stay on my statement?
The cash advance appears as a separate transaction on your statement and stays there indefinitely as a record. The balance itself stays until you pay it off. Interest accrues daily until the balance reaches zero. Once paid, it remains on your statement history for your records, but stops accruing interest.