Yes, you can get cash with a credit card, but it costs more than a regular purchase
A cash advance lets you withdraw money from an ATM or get cash from a bank teller using your credit card. The money comes from your credit limit, not from a bank account. Unlike a debit card withdrawal, you pay interest on the amount immediately — there is no grace period — and you also pay an upfront fee.
The real cost is what makes cash advances different from other ways to borrow. A typical cash advance fee runs 3 to 5 percent of the amount you withdraw, charged right away. Interest rates on cash advances are usually higher than the rate on regular purchases, often 20 to 25 percent or more, and that interest starts accruing the day you take the cash. If you need money urgently, a cash advance is one of the most expensive options available.
Key Takeaways
- Cash advances charge an upfront fee (usually 3 to 5 percent) plus interest that starts immediately, with no grace period like you get on purchases.
- The interest rate on a cash advance is typically higher than your card's purchase rate and varies by card issuer and your creditworthiness.
- You can withdraw cash at an ATM, a bank teller, or through a convenience check, and the money counts against your credit limit.
- Alternatives like personal loans, payday loans, or borrowing from family cost less or are safer than a cash advance in most situations.
Where and how to get the cash
You have three main ways to get cash with a credit card. The simplest is to use an ATM: insert your card, enter your PIN (which you may need to set up first with your card issuer), and withdraw the amount you need. Most ATMs will show you the fee before you confirm the transaction.
You can also walk into a bank branch — yours or any other bank — and ask the teller for a cash advance. Bring your credit card and a photo ID. The teller will process the transaction and hand you cash on the spot. This method works even if you do not have a PIN set up.
A third option is a convenience check. Your credit card issuer may send you blank checks tied to your credit line. You write a check to yourself or to someone else, and the amount is treated as a cash advance. This method is less common now but still available from some issuers.
What the fees and interest actually cost
The fee structure for a cash advance is straightforward but steep. Most card issuers charge a flat percentage of the amount withdrawn — typically 3, 4, or 5 percent — with a minimum fee (often $5 or $10). So if you withdraw $500 at a 4 percent rate, you pay $20 in fees alone, right away.
Interest compounds on top of that fee. If your card's cash advance rate is 24 percent annual percentage rate (APR), that translates to roughly 2 percent per month. On a $500 advance, you would owe about $10 in interest after one month, $20 after two months, and so on — unless you pay the balance down. The interest accrues daily, so the longer you carry the balance, the more you pay.
A concrete example: you withdraw $500 with a 4 percent fee and 24 percent APR. You pay $20 in fees immediately. If you repay the $500 in full within 30 days, you owe roughly $10 more in interest, for a total cost of $30. If you take three months to repay, the interest alone could reach $30 or more, doubling your total cost.
How a cash advance affects your credit
A cash advance does not hurt your credit score directly — the transaction itself is not reported to credit bureaus. However, it does increase your credit utilization ratio, which is 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 credit score slightly.
The real credit risk comes if you cannot repay the advance quickly. Missing a payment on a cash advance works the same as missing a payment on a regular purchase: it gets reported to credit bureaus and damages your score. The higher interest rate also makes it easier to fall behind, so the cash advance can indirectly harm your credit by making the debt harder to manage.
Cheaper alternatives to a cash advance
Before you use a cash advance, consider other ways to get cash. A personal loan from a bank or credit union usually has a lower interest rate than a cash advance — often 6 to 36 percent depending on your credit — and no upfront fee. The downside is that approval takes a few days, so this works only if you do not need the money immediately.
Borrowing from family or friends costs nothing if they agree to it, though it can strain relationships. Some employers offer paycheck advances or loans to employees. A credit union may offer a short-term loan at a lower rate than a cash advance. Even a high-interest payday loan, while expensive, is sometimes cheaper than a cash advance if you repay it within two weeks.
If you have a savings account with money in it, withdrawing from savings is always cheaper than borrowing. The trade-off is that you lose the money you had set aside, but you avoid interest and fees entirely.
When a cash advance makes sense
Cash advances are rarely the best choice, but a few situations make them worth considering. If you have a true emergency — a car repair you need to drive to work, a medical bill you cannot delay — and you have no other way to pay, a cash advance may be faster than waiting for a personal loan to be approved.
A cash advance also makes sense if you can repay it within days rather than weeks or months. The fee is fixed, but the interest is daily, so the faster you pay it back, the less total interest you owe. If you know you will have the money to repay within a week, the interest cost stays low.
In almost all other cases, a personal loan, a credit union loan, or borrowing from family is cheaper and safer. The key is to avoid treating a cash advance as a regular way to get spending money — the cost adds up quickly and can trap you in a cycle of debt.
Frequently Asked Questions
Can I get a cash advance if my credit is bad?
Yes. A cash advance uses your existing credit limit, so the card issuer does not re-check your credit. As long as you have available credit on the card, you can take a cash advance regardless of your current credit score or recent payment history.
What is the difference between a cash advance and a balance transfer?
A cash advance gives you physical cash and charges a fee plus high interest immediately. A balance transfer moves debt from one card to another and may offer a low or zero percent introductory rate for a set period. Balance transfers are for moving existing debt; cash advances are for getting new cash.
Will the cash advance show up on my bank statement?
No. The cash advance appears on your credit card statement, not your bank statement. It is treated as a charge against your credit limit, just like a purchase, but with higher fees and interest.
Can I use a cash advance to pay off another credit card?
Technically yes, but it is a bad idea. The cash advance fee and high interest rate make it more expensive than other ways to move debt. A balance transfer or a personal loan would cost less.
How long does a cash advance stay on my credit report?
The cash advance itself does not appear on your credit report. Only late or missed payments on the advance get reported. Once you pay off the balance, there is no record of the cash advance on your credit history.