Yes, you can take cash off your credit card, but it costs more than a regular purchase

You can withdraw cash from your credit card at an ATM or by asking a bank teller for a cash advance. The money comes from your credit limit, just like a purchase does. But unlike buying something, a cash advance starts charging you interest immediately — there is no grace period — and you pay a separate fee on top of the interest.

The catch is that this is one of the most expensive ways to borrow money on a credit card. Most people use it only when they have no other option, like needing cash for an emergency and having no ATM access to their checking account.

Key Takeaways

  • Cash advances charge interest from day one with no grace period, unlike purchases that may have 20+ days before interest starts.
  • You pay both a cash advance fee (usually 3 to 5 percent of the amount) and a higher interest rate than your regular purchase rate.
  • The interest rate on cash advances is often 5 to 10 percentage points higher than your standard APR.
  • You can get cash at an ATM using your credit card PIN, or ask your bank's teller for a cash advance in person.

How the fees and interest work

When you take a cash advance, your credit card company charges you two separate costs. The first is an upfront fee, which is a percentage of the amount you withdraw. This fee typically ranges from 3 to 5 percent, though some cards charge a flat dollar amount instead (like $10 minimum). You pay this fee once, when you take the cash.

The second cost is interest, which starts accruing the moment you withdraw the cash. Unlike a purchase, which may have a 20- to 25-day grace period before interest kicks in, a cash advance begins charging interest immediately. The interest rate on cash advances is also higher than your regular purchase APR — often 5 to 10 percentage points higher. If your card charges 18 percent APR on purchases, the cash advance rate might be 23 or 24 percent.

These two costs stack up fast. A $500 cash advance with a 4 percent fee and 24 percent APR costs you $20 upfront, plus about $10 in interest if you pay it back in one month.

Where you can get cash from your credit card

You have two main options. The first is to use an ATM. Most ATMs accept credit cards, though not all do. You will need your credit card PIN, which you may have to request from your card issuer if you have never used the card at an ATM before. Insert your card, enter your PIN, select "cash advance" or "withdrawal," and choose your amount. The ATM will dispense the cash and charge your credit card account.

The second option is to visit a bank branch in person. You can ask a teller for a cash advance and provide your credit card. The teller will process it like a withdrawal from a checking account, except the money comes from your credit limit instead. This method works even if you do not have a PIN set up.

Some credit card issuers also allow you to transfer your cash advance to your checking account through their mobile app or website, though this is less common and still charges the same fees and interest.

How a cash advance affects your credit score

A cash advance does not directly hurt your credit score the way a missed payment does. However, it does increase your credit utilization ratio — the percentage of your total credit limit that you are currently using. If you have a $5,000 credit limit and take a $1,000 cash advance, your utilization jumps to 20 percent. High utilization can lower your score slightly, even if you pay on time.

The real damage comes if you cannot pay back the cash advance quickly. Because interest starts immediately and the rate is high, the balance grows fast. If you miss a payment or carry the balance for months, your score will drop more noticeably.

Why cash advances are expensive compared to other borrowing

A cash advance is almost always more expensive than other ways to get money. A personal loan from a bank or credit union typically charges 6 to 36 percent APR with no upfront fee. A payday loan charges a flat fee but is meant to be repaid in two weeks. Even a balance transfer to a 0 percent APR card (if you may have access to) costs less than a cash advance, because you get a grace period on interest.

The only scenario where a cash advance makes sense is when you need cash immediately and have no other option — for example, you are traveling abroad and your debit card does not work, or you need emergency cash and your bank is closed. Even then, you should plan to pay it back as fast as possible to minimize interest charges.

How to pay back a cash advance

A cash advance payment works like any other credit card payment. You can pay online through your card issuer's website or app, by phone, by mail, or in person at a branch. The payment goes toward your total credit card balance, but most card issuers apply payments to your lowest-interest debt first — meaning purchases before cash advances. This means your cash advance may keep accruing interest even while you are making payments.

To pay off a cash advance faster, contact your card issuer and ask if you can specify that your payment goes toward the cash advance balance. Some issuers allow this; others do not. If yours does not, the only way to stop the interest is to pay off your entire credit card balance, including all purchases.

Alternatives to a cash advance

Before you take a cash advance, consider these cheaper options. If you need cash and have a checking account, use your debit card at an ATM — there is no fee or interest. If you do not have cash available in your checking account, ask a friend or family member to lend you money. If you need a larger amount, a personal loan from a bank, credit union, or online lender will almost always be cheaper than a cash advance, even if you have to wait a few days for approval.

If you are in a bind and need cash urgently, some employers offer paycheck advances or loans. Some nonprofits also offer emergency cash assistance. These are worth exploring before you turn to a cash advance on your credit card.

Frequently Asked Questions

What is the difference between a cash advance and a regular purchase on my credit card?

A purchase has a grace period (usually 20 to 25 days) before interest starts, while a cash advance charges interest from day one. A cash advance also charges an upfront fee and a higher interest rate. Both count toward your credit limit and appear on your statement.

Can I use a credit card to withdraw cash from any ATM?

Most ATMs accept credit cards, but not all. ATMs at your card issuer's bank branches almost always work. ATMs at other banks may charge an additional ATM fee on top of the cash advance fee. Check your card issuer's website or app to find ATMs that accept your card without extra fees.

Do I have to pay the cash advance fee if I pay back the money right away?

Yes. The fee is charged when you withdraw the cash, not based on how long you keep it. Even if you pay back the full amount the next day, you still owe the upfront fee. You will also owe one day's worth of interest, though that amount is small.

Will a cash advance show up differently on my credit report?

A cash advance does not appear separately on your credit report. It is part of your total credit card balance. However, if you miss a payment or carry a large balance, that will show up and can lower your credit score.

What happens if I cannot pay back the cash advance?

The balance will keep growing with interest charges. If you miss payments, your card issuer may charge late fees and report the missed payment to credit bureaus, which will lower your credit score. Your interest rate may also increase. Contact your card issuer as soon as you know you will have trouble paying — they may offer a hardship plan or lower interest rate.