Yes, you can take money directly out of a credit card, but it costs more than a regular purchase
You can withdraw cash from a credit card at an ATM or by asking a bank teller for cash back. This is called a cash advance. The money comes from your credit card's available balance, just like a purchase does. But unlike buying something, a cash advance charges you fees and interest that start right away—there is no grace period where you pay nothing.
Most people use cash advances only when they have no other option, because the cost adds up fast. A single $200 cash advance can cost $10 to $15 in fees alone, plus interest that begins accruing the same day you withdraw the money.
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- Cash advances charge an upfront fee (usually 3 to 5 percent of the amount withdrawn) plus a higher interest rate than regular purchases.
- Interest on a cash advance starts immediately with no grace period, so you pay interest every single day until the balance is paid off.
- You can get a cash advance at an ATM using your credit card PIN, at a bank teller window, or sometimes at a store checkout.
- The total cost of a cash advance makes it expensive compared to using a debit card, getting cash back at a store, or borrowing from another source.
Where and how to withdraw cash from your credit card
The easiest way is to use an ATM. Insert your credit card, enter your PIN (which you may need to set up if you have never done a cash advance before), and withdraw the amount you need. The ATM will show you the fee before you confirm the transaction.
You can also walk into any bank or credit union branch—not necessarily your own bank—and ask a teller for a cash advance. Bring your credit card and a form of ID. The teller will process it the same way they would a withdrawal from a checking account, and they will tell you the fee upfront.
Some stores let you get a cash advance at the checkout when you pay with a credit card, though this is less common than it used to be. Ask the cashier if they offer it; if they do, they will add the fee to your total.
What fees and interest you will pay
Every cash advance has two costs: a one-time fee and ongoing interest.
The cash advance fee is usually 3 to 5 percent of the amount you withdraw. On a $300 withdrawal, that is $9 to $15 charged immediately. Some credit cards have a flat fee instead (like $5 or $10 per advance) if the percentage would be smaller. Your card issuer will charge whichever is higher.
The interest rate on a cash advance is almost always higher than the rate on regular purchases—often 2 to 5 percentage points higher. If your card charges 18 percent APR on purchases, the cash advance rate might be 23 percent. This interest starts accruing the day you withdraw the money. There is no 21-day grace period like there is for purchases. You are paying interest every single day until the balance is gone.
If you withdraw $300 and pay it back in 30 days, you might pay $15 in fees plus roughly $6 in interest—a total cost of $21, or 7 percent of what you borrowed. That is why cash advances are expensive.
How a cash advance appears on your bill
The cash advance shows up as a separate line item on your credit card statement, distinct from your regular purchases. It will list the amount withdrawn, the fee charged, and the interest accrued so far.
When you make a payment to your credit card, the payment goes toward your lowest-interest debt first. That means if you have both regular purchases and a cash advance, your payment will pay off the regular purchases before it touches the cash advance. This is why a cash advance can sit on your card longer than you expect, continuing to accrue interest.
To pay off a cash advance faster, you can ask your card issuer to apply extra payments directly to the cash advance balance. Some issuers do this automatically if you request it; others require you to call and specify.
Why cash advances cost so much compared to alternatives
A cash advance is one of the most expensive ways to get cash. Here is how it compares:
Debit card withdrawal: Free at your own bank's ATM, maybe $2 to $3 at another bank's ATM. No interest.
Cash back at a store: Free when you use a debit card. If you use a credit card, you pay the cash advance fee but avoid the higher interest rate (though you still pay interest on the amount).
Personal loan from a bank or credit union: Usually 5 to 15 percent interest with no upfront fee. Slower to get but cheaper if you need the money for more than a few weeks.
Borrowing from a friend or family member: Free if they agree to it.
A cash advance makes sense only when you have no debit card, no access to a store, and no time to get a loan—and you need the money urgently.
What happens if you cannot pay back a cash advance
If you do not pay back the cash advance, it becomes part of your credit card debt. The interest keeps accruing at the higher cash advance rate, and the balance grows. If you miss payments, your credit score drops and you may face late fees and penalty interest rates.
Unlike some debts, a credit card company cannot seize your assets or garnish your wages for a cash advance. But they can sue you, and if they win, they can garnish your wages or freeze your bank account depending on your state's laws.
If you are struggling to pay back a cash advance, contact your card issuer and ask about a hardship program. Many issuers offer lower interest rates or payment plans for customers in financial difficulty.
Frequently Asked Questions
Can I get a cash advance if my credit card is maxed out?
No. A cash advance draws from your available credit, just like a purchase does. If you have no available balance left, you cannot take a cash advance. You would need to pay down your balance first or request a credit limit increase.
Do I need a PIN to get a cash advance?
At an ATM, yes. If you have never set up a PIN for your credit card, you will need to call your card issuer or use their app to create one before you can use the ATM. At a bank teller window or store checkout, you usually do not need a PIN—just your card and ID.
Will a cash advance hurt my credit score?
A single cash advance will not directly hurt your score, but it increases your credit utilization (the percentage of your available credit you are using), which can lower your score slightly. If you miss payments on the cash advance, that will hurt your score significantly.
Can I take a cash advance from a credit card I do not own?
No. You can only take a cash advance from a card in your own name. Using someone else's card without permission is fraud. An authorized user on someone else's card may be able to take a cash advance depending on the card issuer's rules, but they should ask first.
What is the difference between a cash advance and a balance transfer?
A cash advance gives you physical cash and charges a higher interest rate immediately. A balance transfer moves debt from one card to another and usually has a lower introductory rate for a set period. They are two different tools for two different situations.