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 a separate account. You will pay interest on the amount you withdraw starting immediately — there is no grace period like there is for regular purchases — plus a fee that is usually 3 to 5 percent of the cash amount.
Because the cost is high, cash advances make sense only when you need cash urgently and have no other option. If you have time to transfer money from a savings account or use a debit card, that is almost always cheaper.
Key Takeaways
- Cash advances charge interest from day one with no grace period, and most cards add a separate fee of 3 to 5 percent of the amount withdrawn.
- You can withdraw cash at an ATM using your credit card PIN, or ask a bank teller for cash over the counter.
- The interest rate on a cash advance is usually higher than the rate on regular purchases, even on the same card.
- Your credit card statement will show the cash advance separately from regular purchases, and you must pay it back before the interest charges grow.
Where to get cash with your credit card
The easiest method is to use an ATM. Insert your credit card and enter your PIN (the same one you use for a debit card). The ATM will let you withdraw up to a daily limit set by your card issuer — this is often $500 to $1,000 per day, though it varies by card and bank.
If you do not have a PIN or prefer not to use an ATM, you can visit a bank branch 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. Some banks charge an extra fee for over-the-counter cash advances, so ask before you request the cash.
Not all ATMs accept credit cards — many are set up for debit cards only. Look for ATMs at your card issuer's bank branches first, as those are most likely to work. ATMs at other banks may charge you an additional fee on top of the cash advance fee.
What the costs actually are
A cash advance has two separate charges. The cash advance fee is a flat percentage of the amount you withdraw, usually 3 to 5 percent. If you withdraw $500, you might pay $15 to $25 just to get the cash. Some cards set a minimum fee (such as $5) or a maximum fee (such as $10), so the actual percentage varies depending on how much you withdraw.
The second charge is interest, which starts accruing the moment you withdraw the money. Unlike regular credit card purchases, there is no grace period. If your card's cash advance rate is 24 percent and you withdraw $500, you will owe roughly $10 in interest after one month if you do not pay it back. The interest rate on cash advances is often 2 to 3 percentage points higher than the rate on regular purchases.
To see the exact fee and interest rate for your card, check your cardholder agreement or call the customer service number on the back of your card. Rates and fees vary widely between issuers and between card types.
How a cash advance affects your credit
A cash advance counts as a debt on your credit card, just like a purchase does. It uses up part of your credit limit and shows up on your credit report as part of your total credit card balance. If you carry a cash advance balance month to month, it will increase your credit utilization ratio — the amount of credit you are using compared to your total limit — which can lower your credit score.
The cash advance itself does not appear as a separate item on your credit report. Your lender reports only your total credit card balance. However, your monthly statement will show the cash advance separately so you can track it.
How to pay back a cash advance
When you make a payment to your credit card, the payment goes toward your balances in a specific order set by law. Payments are applied first to the balance with the highest interest rate. Since cash advances usually have the highest rate, your payment will go toward the cash advance first, which is what you want.
To avoid paying months of interest, pay back the cash advance as soon as you can. Even a payment of $100 on a $500 advance will reduce the interest you owe going forward. If you can pay the full amount within a few days, the total interest charge will be minimal.
If you cannot pay it back quickly, consider whether you can transfer the balance to a different card or borrow money from someone else at a lower rate. A personal loan from a bank or credit union, or even a short-term loan from a friend or family member, will almost always cost less than a credit card cash advance.
When a cash advance makes sense
A cash advance is reasonable only in specific situations. If you need cash for an emergency and have no other way to get it — no savings account, no access to a debit card, no time to visit your bank — then the cost of a cash advance may be worth it. The key is to pay it back within days, not weeks or months.
If you are considering a cash advance because you do not have enough money to cover an expense, that is a sign to pause and reassess. A cash advance does not solve a cash shortage; it only delays the problem and adds cost. If you are short on money regularly, building an emergency fund or finding ways to increase your income will help more than borrowing at high rates.
Alternatives that cost less
Before you use a cash advance, explore these cheaper options. If you have a savings account, transfer money to your checking account and withdraw it from an ATM using your debit card — this costs nothing. If you have a debit card, use it instead of a credit card for the cash withdrawal. If you need cash for a specific purchase, ask whether the merchant will take a credit card directly instead of requiring cash.
If you need a larger amount of money, a personal loan from a bank or credit union will have a lower interest rate than a cash advance. The application takes a few days, but if you are not in an immediate crisis, the savings are worth the wait. Some employers also offer paycheck advances or loans to employees; check with your HR department.
Frequently Asked Questions
What is the difference between a cash advance and a regular credit card purchase?
A regular purchase gives you a grace period — usually 21 to 25 days — before interest starts. A cash advance charges interest from day one. Cash advances also have a separate fee, and the interest rate is usually higher. You should use a cash advance only when you need physical cash, not when you can pay with the card itself.
Can I get a cash advance if my credit card is maxed out?
No. A cash advance uses your available credit, just like a purchase does. If you have no available credit left, you cannot withdraw cash. You would need to pay down your balance first or request a credit limit increase from your card issuer.
Does a cash advance show up separately on my credit report?
No. Your credit report shows only your total credit card balance. However, your monthly statement will list the cash advance separately so you can see it. The cash advance counts toward your overall credit utilization, which affects your credit score.
How long does a cash advance take to process?
An ATM withdrawal is instant. A cash advance from a bank teller usually processes the same day. The transaction will appear on your credit card statement within one to three business days, depending on your card issuer.
What happens if I do not pay back a cash advance?
Interest will continue to accrue, and the balance will grow each month. If you do not pay for several months, your card issuer may report the debt to credit bureaus, which will damage your credit score. Eventually, the issuer may close your account or pursue collection action.