Yes, you can withdraw cash using your credit card, but it costs more than a regular purchase
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 transaction is treated as a loan, not a purchase, which means you pay interest immediately—there is no grace period like you get with regular card spending.
The process itself is simple: insert your card into an ATM, select "cash advance" or "withdraw cash," enter the amount, and take your money. At a bank or check-cashing location, you can ask the teller directly. But the real cost comes in the fees and interest rate, which are almost always higher than what you pay on regular purchases.
Key Takeaways
- Cash advances charge an upfront fee (usually 3 to 5 percent of the amount withdrawn) plus a higher interest rate than regular purchases, with interest starting immediately.
- Your credit card's cash advance limit is often lower than your overall credit limit, so you may not be able to withdraw as much as you can spend.
- Interest accrues daily from the moment you withdraw the cash, so the longer you carry the balance, the more you pay.
- Most ATMs charge an additional fee on top of your card issuer's fee, making convenience store and bank withdrawals the cheapest option.
What fees and interest rates you actually pay
Every credit card issuer sets its own cash advance fee and interest rate. The fee is typically charged as a percentage of the amount you withdraw—usually between 3 and 5 percent—though some cards charge a flat dollar amount instead (often $5 to $10 minimum). A $300 cash advance with a 4 percent fee costs you $12 right away.
The interest rate on cash advances is separate from your regular purchase APR and is almost always higher. While a card might charge 18 percent APR on purchases, the cash advance APR could be 25 percent or more. That interest starts accruing the day you withdraw the cash—there is no interest-free period. If you carry a $300 advance for a month at 25 percent APR, you pay roughly $6.25 in interest on top of the upfront fee.
Check your card's terms or call the number on the back to find out your specific cash advance fee and APR before you withdraw. These numbers vary by card and by cardholder, so what one person pays is not what you pay.
ATM fees add to the cost
If you use an out-of-network ATM (one that is not run by your card issuer's bank), you will pay an ATM operator fee on top of your card issuer's cash advance fee. That operator fee is usually $2 to $3 per transaction. Some ATMs in bars, casinos, or convenience stores charge $4 or more.
To avoid the ATM fee, withdraw cash at an ATM owned by your card issuer's bank, or ask a teller at any bank branch to give you a cash advance over the counter. Many banks do this for free or for a lower fee than an ATM charges. A teller withdrawal also lets you take out larger amounts if you need to, since ATMs often have daily withdrawal limits.
Your cash advance limit is separate from your credit limit
Your credit card issuer sets a cash advance limit that is usually much lower than your overall credit limit. If your card has a $5,000 credit limit, your cash advance limit might be only $1,000 or $1,500. This limit is the maximum you can withdraw in a single transaction and sometimes the maximum you can withdraw in a billing period.
You can find your cash advance limit by logging into your online account, calling the card issuer, or checking your cardholder agreement. If you need more cash than your limit allows, you will have to find another source or make multiple withdrawals on different days (though this means paying the fee multiple times).
When a cash advance makes sense and when it does not
A cash advance is expensive and should be a last resort, not a regular habit. It makes sense only when you need cash urgently and have no other option—for example, if a business accepts only cash and you have no ATM card or debit card with you. Even then, you are paying 3 to 5 percent plus interest and possibly an ATM fee, so the cost adds up fast.
A cash advance does not make sense if you are trying to move debt around, pay off other debts, or cover a shortfall in your budget. The interest rate is too high and the fees are too steep. If you are short on cash regularly, look instead at a personal loan from a bank or credit union (which usually charges less interest), a payment plan with the creditor you owe, or a side income source.
If you are considering a cash advance to pay another credit card or loan, stop and calculate the total cost first. You might find that paying the original debt on time, even with a late fee, costs less than the cash advance fee plus interest.
How to pay back a cash advance quickly
Because interest starts immediately and accrues daily, the longer you carry a cash advance balance, the more you pay. Treat it like an emergency loan: pay it back as fast as you can, ideally within a few days or a week.
When you make a payment to your card, the payment goes toward your lowest-interest debt first (usually regular purchases), not the cash advance. To pay down the cash advance faster, contact your card issuer and ask them to apply your payment directly to the cash advance balance. Some cards let you do this through their online portal; others require a phone call.
If you cannot pay it back quickly, the balance rolls into your next billing cycle and interest keeps accruing. A $300 cash advance that sits on your card for three months at 25 percent APR will cost you roughly $19 in interest alone, on top of the original fee.
Alternatives to a cash advance
Before you use a cash advance, explore these cheaper options. A personal loan from a bank, credit union, or online lender usually charges 6 to 36 percent APR depending on your credit score—often much less than a cash advance APR. You pay one upfront fee (usually 1 to 6 percent) and then a fixed monthly payment, so you know exactly what you owe.
A payday loan is faster to get (sometimes same-day) but charges very high fees and interest—often 400 percent APR or more—so it is usually worse than a cash advance. A line of credit from your bank, if you have one, typically charges less interest than a cash advance and lets you borrow only what you need.
If you need cash for an emergency, ask family or friends for a loan, negotiate a payment plan with the person or business you owe, or look for a local nonprofit that offers emergency assistance. These options cost nothing or very little compared to a cash advance.
Frequently Asked Questions
Does a cash advance hurt my credit score?
A cash advance itself does not hurt your score, but carrying a high balance does. If your cash advance pushes your total credit card balance close to your credit limit, your credit utilization ratio goes up, which can lower your score. Pay it back quickly to keep utilization low.
Can I use a cash advance to pay off another credit card?
Technically yes, but it is almost never worth it. You pay a cash advance fee (3 to 5 percent) plus a higher interest rate, so you end up paying more to move the debt than you would by paying the original card on time or negotiating a lower rate with the issuer.
What happens if I do not pay back a cash advance?
The balance stays on your card, interest keeps accruing daily, and your minimum payment increases. If you miss payments, your credit score drops, late fees pile up, and the card issuer can raise your interest rate or close your account. The debt can also be sent 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 every card issuer charges one. Some cards marketed to people with poor credit have lower fees, but you still pay something. The only way to avoid the fee is to not take a cash advance.
Can I get a cash advance from a debit card?
No. Debit cards withdraw money directly from your bank account, so there is no advance or loan involved. If you need cash and have a debit card, use an ATM or ask a teller for a withdrawal—both are free or low-cost.