Yes, you can withdraw cash using your credit card, but it costs more than a purchase and comes with higher interest rates

A cash advance lets you borrow money against your credit card's available balance and withdraw it as cash from an ATM, bank teller, or convenience store. The money is not your own — it is a loan you repay to your card issuer, and the fees and interest rates are steeper than what you pay on regular purchases.

Most credit cards allow cash advances, but the terms vary by card and issuer. Before you use one, you should understand what it will cost you and whether the timing makes sense for your situation.

Key Takeaways

  • Cash advances charge an upfront fee (usually 3 to 5 percent of the amount withdrawn) plus a higher interest rate than purchases, often 20 to 30 percent or more.
  • Interest on a cash advance starts accruing immediately — there is no grace period like there is for purchases.
  • You can withdraw cash at ATMs, bank branches, or through convenience stores, depending on your card issuer's network.
  • Your available credit for a cash advance may be lower than your total credit limit, and some cards cap how much you can withdraw.
  • Cash advances show up on your credit report as debt and can lower your credit score if they push your overall credit utilization higher.

Where to withdraw cash and what the process looks like

The method depends on your card issuer and the network they use. Most Visa and Mastercard holders can withdraw cash at any ATM that displays the card's logo. Bank of America, Chase, Capital One, and Discover each maintain their own ATM networks, and cardholders can usually withdraw from those machines without a fee (though out-of-network ATMs charge a surcharge).

You can also visit a bank branch where your card is issued and ask a teller for a cash advance. Some convenience stores and grocery stores offer cash back at checkout, though this is less common with credit cards than with debit cards. You will need your physical card and a PIN, which you may need to set up if you have never used your card for cash before.

The withdrawal happens instantly, but the charge appears on your statement within one to three business days. There is no waiting period or approval process — if you have available credit, the cash is yours immediately.

Fees and interest rates that apply to cash advances

Every cash advance carries at least two costs: an upfront fee and interest. The cash advance fee is typically 3 to 5 percent of the amount you withdraw, with a minimum of $5 to $10. If you withdraw $500, expect to pay $15 to $25 just to get the cash. Some cards charge a flat fee instead of a percentage, though this is less common.

The interest rate on a cash advance is separate from your purchase APR and is almost always higher — often 20 to 30 percent or more, depending on your creditworthiness and the card. Unlike purchases, there is no grace period. Interest starts accruing the day you withdraw the cash, even if you pay your full statement balance on time.

If you withdraw $500 at a 25 percent APR and pay it back over three months, you will pay roughly $31 in interest on top of the $15 to $25 fee. The total cost is $46 to $56 for borrowing $500 for 90 days.

How much you can withdraw and limits on your account

Your card issuer sets a cash advance limit, which may be lower than your total credit limit. For example, you might have a $5,000 credit limit but only a $1,500 cash advance limit. Some issuers set the limit at 20 to 50 percent of your total credit limit; others use a fixed dollar amount.

You can find your cash advance limit in your online account, on your statement, or by calling your card issuer's customer service number. If you want to increase it, you can request a higher limit, though approval is not may provide and depends on your payment history and credit score.

ATMs also have daily withdrawal limits, which are separate from your card's cash advance limit. A typical ATM allows $500 to $1,000 per day, though this varies by bank and machine. If you need more cash than the ATM allows, you can visit a bank branch and ask a teller to process a larger advance.

How a cash advance affects your credit and debt

A cash advance is treated as a debt on your credit report, just like a purchase. The amount you owe counts toward your credit utilization ratio — the percentage of your total available credit that you are using. If you have a $5,000 limit and withdraw $1,000 in cash, your utilization jumps to 20 percent (assuming no other balance).

High utilization can lower your credit score, especially if you are already carrying a balance on the card. The impact is temporary — your score will recover as you pay down the advance — but it is worth considering if you are planning to apply for a loan or mortgage soon.

The cash advance also appears separately on your credit report as a type of debt, which some lenders view differently than a regular purchase balance. This does not disqualify you from borrowing, but it may be noted in a lender's review of your application.

Alternatives to a cash advance that may cost less

Before you use a cash advance, consider whether another option would be cheaper. A personal loan from a bank or credit union typically has a lower interest rate (8 to 20 percent, depending on your credit) and no upfront fee. If you need $500 and can wait a few days for approval, a personal loan may cost you less in interest.

A balance transfer to a card with a 0 percent introductory APR can work if you need to move debt around, though balance transfers also charge a fee (usually 3 to 5 percent) and the 0 percent rate applies only to transferred balances, not new cash advances.

If you need cash urgently and have a savings account, withdrawing from savings avoids any interest or fees. If you do not have savings and cannot wait for a personal loan, a cash advance may be your fastest option — just plan to pay it back as quickly as possible to minimize interest.

How to pay back a cash advance quickly

Interest on a cash advance accrues daily, so the longer you carry the balance, the more you pay. Your credit card statement will show a separate line item for the cash advance balance, and you can pay it down like any other debt.

When you make a payment to your card, the issuer typically applies it to the lowest-interest debt first (usually purchases), then to the cash advance. If you want to pay off the cash advance faster, call your issuer and ask them to apply your next payment directly to the cash advance balance, or pay more than the minimum so there is enough to cover both the purchase balance and the advance.

Some cards allow you to set up automatic payments, which can help you stay on track. The sooner you pay off the advance, the less interest you will owe.

Frequently Asked Questions

Can I get a cash advance if I have a low credit score?

Yes. If your card issuer has already approved you for a credit card, they have already assessed your creditworthiness. You can use a cash advance as long as you have available credit. However, your cash advance limit may be lower than someone with a higher score, and the interest rate you are charged is based on your credit profile.

What happens if I cannot pay back the cash advance?

The balance carries over to your next statement and continues to accrue interest. If you miss payments, your card issuer may report it to the credit bureaus, which will damage your credit score. You may also face late fees and a higher interest rate on future purchases. Contact your issuer as soon as you know you will struggle to pay — they may offer a hardship plan or temporary rate reduction.

Is there a way to avoid the cash advance fee?

No. The fee is mandatory and charged by your card issuer. Some cards marketed to people with poor credit have higher fees (5 to 10 percent), while premium cards may charge 3 percent. The only way to avoid the fee is to not use a cash advance.

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

Technically yes, but it is not a good idea. You would pay the cash advance fee, then the interest would start accruing immediately on the transferred balance. A balance transfer (moving debt from one card to another) is designed for this purpose and may offer a lower fee and a temporary 0 percent interest rate, making it a better choice.

Do cash advances count toward rewards or cashback?

No. Cash advances do not earn rewards points, cashback, or any other benefits. Only purchases earn rewards on most cards. This is another reason cash advances are more expensive than they appear — you lose the benefit of any rewards you would have earned on the same amount spent as a purchase.