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

You can withdraw cash directly from your credit card at an ATM, bank teller, or through a cash advance at a store. The money appears in your account within hours or days. But unlike a purchase, a cash advance starts charging interest immediately — there is no grace period — and you will pay a fee on top of the interest.

The fee is usually 3 to 5 percent of the amount you withdraw, charged upfront. Interest rates on cash advances are typically 2 to 3 percentage points higher than your regular purchase APR. If your card charges 18 percent on purchases, the cash advance rate might be 21 percent. That combination makes cash advances one of the most expensive ways to borrow money on a credit card.

Before you withdraw, check your card's terms or call the issuer to confirm the exact fee and interest rate. These vary by card and by bank.

Key Takeaways

  • Cash advances charge a fee (usually 3 to 5 percent) and a higher interest rate than purchases, with interest starting immediately.
  • You can get a cash advance at an ATM using your PIN, at a bank teller with your card and ID, or sometimes at a store checkout.
  • The total cost of a $500 cash advance can easily reach $50 to $100 in fees and interest over a few months.
  • Your credit card issuer sets a separate cash advance limit, which may be lower than your overall credit limit.
  • Paying back a cash advance does not reduce your credit card balance as quickly as paying back purchases, because payments go to purchases first.

Where and how to withdraw cash from your credit card

The easiest method is an ATM. Insert your card, enter your PIN, select "cash advance" or "withdraw cash," and choose the amount. The ATM will show you the fee before you confirm. Most ATMs let you withdraw up to your cash advance limit in a single transaction, though some cap it lower.

You can also visit a bank branch in person. Bring your credit card and a photo ID. Tell the teller you want a cash advance. They will process it on the spot, and you walk out with cash. This method works even if the bank is not your card issuer — any bank can process a cash advance on any major credit card.

Some retail stores offer cash advances at checkout, though this is less common than it once was. Ask the cashier whether your card is accepted for cash back or cash advances. The fee and process are the same as an ATM.

Understanding the fee and interest rate

The cash advance fee is a one-time charge applied when you withdraw. It appears on your statement as a separate line item. A $500 withdrawal with a 4 percent fee costs $20 upfront. Some cards cap the fee at a flat dollar amount (for example, $10 minimum, $50 maximum), so a very small withdrawal might hit the minimum, and a very large one might hit the cap.

The interest rate is separate from the fee. Interest begins accruing the day you withdraw — there is no interest-free period like there is for purchases. If your cash advance APR is 21 percent and you withdraw $500, you owe roughly $8.75 in interest after one month if you make no payment. After three months without payment, interest alone reaches about $26.

Your card issuer will show both the fee and the interest rate in your card agreement or online account. If you cannot find them, call the customer service number on the back of your card and ask for the cash advance fee percentage and the cash advance APR.

How much you can withdraw

Your credit card issuer sets a cash advance limit separate from your overall credit limit. You might have a $5,000 credit limit but only a $1,500 cash advance limit. The issuer decides this limit based on your credit history and account activity. It does not change automatically when your credit limit increases.

You can request a higher cash advance limit by calling customer service, but the issuer is not required to grant it. Some cards do not allow cash advances at all, particularly secured cards or cards designed for people rebuilding credit.

If you try to withdraw more than your limit, the ATM will decline the transaction and return your card. You will not be charged a fee for a declined advance.

How paying back a cash advance works

When you make a payment on your credit card, the money goes to your purchases first, then to your cash advance. This is called the payment hierarchy, and it is set by law. If you owe $300 in purchases and $200 in cash advance and you send in a $300 payment, the entire $300 goes to the purchase balance. Your cash advance still sits at $200, accruing interest.

This means you need to pay significantly more than your minimum payment to actually reduce the cash advance balance. If you want to pay off a $500 cash advance quickly, send in a payment larger than your total balance so that money reaches the cash advance after the purchases are covered.

Interest on the cash advance continues until the balance hits zero. Paying the minimum payment alone will take years to clear a cash advance, and you will pay far more in interest than the original withdrawal amount.

When a cash advance makes sense and when it does not

A cash advance is rarely the right choice for everyday cash needs. If you need $100 for groceries or gas, use your debit card or withdraw from your bank account. The fee and interest make a cash advance expensive for small amounts and short timeframes.

A cash advance might make sense in a genuine emergency — your car breaks down and you need cash for a repair, and you have no other way to pay. Even then, it is worth asking whether a personal loan, a payment plan with the repair shop, or a short-term loan from a friend or family member would cost less.

A cash advance does not make sense if you are already carrying a credit card balance. You will be paying interest on two things at once, and the cash advance interest is higher. Pay down the existing balance first, then avoid cash advances going forward.

Alternatives to a credit card cash advance

If you need cash urgently, consider these options before using a cash advance. A personal loan from a bank or credit union typically charges 6 to 36 percent APR depending on your credit, which is often lower than a cash advance rate. The loan comes as a lump sum, and you repay it in fixed monthly installments with no surprise fees.

A payday loan is faster to get but much more expensive — rates can reach 400 percent APR or higher. Avoid payday loans unless you are certain you can repay within two weeks.

A balance transfer to a card offering 0 percent introductory APR can help if you already owe money on another card, but balance transfers do not give you cash — they move debt between cards.

If you have a bank account, overdraft protection or a small overdraft fee might be cheaper than a cash advance fee, though overdraft fees are also high. Ask your bank what it charges.

Frequently Asked Questions

Does a cash advance hurt my credit score?

A cash advance itself does not appear on your credit report as a separate item. However, if the cash advance increases your overall credit card balance and your credit utilization (the percentage of your limit you are using), your score may drop slightly. Paying it off quickly will recover that drop.

Can I use a cash advance to pay another credit card bill?

Technically yes, but it is a bad idea. You are borrowing at a high rate to pay off debt, which costs more money overall. You are also moving the problem around rather than solving it. If you are juggling multiple cards, focus on paying down the highest-rate card first instead.

What happens if I do not pay back the cash advance?

The balance will accrue interest and late fees. After 30 days late, it will appear on your credit report as a late payment, damaging your score. After 180 days, the card issuer may charge off the account and sell the debt to a collection agency, which can pursue you legally.

Is there a limit to how many cash advances I can take?

You can take as many as you want up to your cash advance limit, but each one charges a separate fee. Taking multiple advances in a short time will rack up fees quickly and make the debt harder to repay.

Can I get a cash advance on a debit card?

No. Debit cards withdraw money you already have in your account. Credit card cash advances borrow money from the card issuer. If you need cash from a debit card account, use an ATM or ask a teller for a withdrawal — there is no fee.