Yes, but it costs more than a regular purchase
You can withdraw cash from a credit card at an ATM, bank teller, or through a cash advance at a store checkout. The money comes from your credit line, not a savings account. But unlike a purchase, a cash advance charges you fees upfront and starts charging interest immediately — there is no grace period like there is for regular purchases.
The cost difference matters. A $200 cash advance might cost you $6 to $10 in fees alone, plus interest that begins accruing the same day. A $200 purchase on the same card would have no upfront fee and no interest if you pay the full balance by the due date.
Key Takeaways
- Cash advances charge an upfront fee (usually 3 to 5 percent of the amount) plus a higher interest rate than regular purchases, starting immediately.
- You can get a cash advance at an ATM using your credit card PIN, at a bank teller with your card and ID, or sometimes at a store checkout.
- Your credit card company sets a cash advance limit, which may be lower than your total credit limit and is listed in your account terms.
- Interest on a cash advance accrues daily from the withdrawal date, so the longer you carry the balance, the more you pay.
Where you can actually withdraw the cash
An ATM is the fastest option. Insert your credit card, enter your PIN, select "cash advance" or "withdrawal," and choose your amount. The ATM will dispense cash and charge the fee immediately. You will see the transaction on your statement within a day or two.
A bank teller can also process a cash advance if you bring your credit card and a photo ID. This works at your card issuer's bank (the bank that issued the card) or sometimes at other banks if they have a partnership agreement. The teller will verify your identity, process the advance, and hand you cash on the spot.
Some retailers allow cash advances at checkout — you ask the cashier, they run your card as a cash advance rather than a purchase, and you receive cash back. This is less common than it once was, but some grocery stores and pharmacies still offer it.
The fees and interest that make cash advances expensive
Every cash advance carries an upfront fee, charged the moment you withdraw the money. This fee is typically 3 to 5 percent of the amount you withdraw, though some cards charge a flat fee (like $5 or $10) if that is higher. A $300 cash advance at 4 percent costs you $12 before you even leave the ATM.
The interest rate on cash advances is also higher than the rate on regular purchases. Your card's purchase APR might be 18 percent, but the cash advance APR could be 24 or 28 percent. This higher rate applies only to the cash advance balance, not to purchases you make on the same card.
Interest begins accruing the day you withdraw the cash — there is no grace period. If you withdraw $300 on the 1st and pay it back on the 15th, you owe interest for all 15 days. With a 24 percent APR, that is roughly $3 in interest alone, on top of the $12 fee you already paid.
Your cash advance limit is separate from your credit limit
Your credit card company sets a cash advance limit when they open your account. This limit is often lower than your total credit limit — you might have a $5,000 credit limit but only a $1,500 cash advance limit. The company does this because cash advances are riskier for them; they charge higher fees and interest precisely because more people default on them.
You can find your cash advance limit in your account terms, on your statement, or by calling the customer service number on the back of your card. If you try to withdraw more than your limit, the ATM will decline the transaction.
Using a cash advance does not increase your credit limit or your cash advance limit. It only reduces the available balance on both. If you have a $1,500 cash advance limit and withdraw $500, your remaining cash advance limit drops to $1,000.
How the balance works when you pay it back
When you make a payment on your credit card, the payment goes toward your balances in a specific order set by law. Payments typically go to the highest-interest balance first — so if you have both a purchase balance and a cash advance balance, your payment goes to the cash advance (the higher-rate debt) before it touches the purchase balance.
This means if you have a $500 purchase and a $300 cash advance on the same card, and you send in a $400 payment, that $400 goes entirely to the cash advance. The $500 purchase keeps accruing interest at the lower rate. This is actually in your favor, because you are paying off the more expensive debt first.
To avoid confusion, the simplest approach is to pay off the cash advance as quickly as possible. The longer it sits, the more interest piles up. A $300 cash advance carried for three months at 24 percent APR costs roughly $18 in interest, on top of the $12 fee — making the true cost of that $300 withdrawal about $30.
When a cash advance makes sense and when it does not
A cash advance makes sense only in genuine emergencies where you need cash and have no other option. If you need $200 for a car repair and your debit account is empty, a cash advance might be worth the $8 to $10 fee if you can pay it back within a week or two. The total cost stays low.
A cash advance does not make sense for regular cash needs, for building a balance you plan to carry, or as a way to get around a declined debit card. If you find yourself taking cash advances regularly, that is a sign your income does not cover your expenses — and paying 24 percent interest on borrowed money will only make that problem worse.
If you need cash regularly, a better option is to open a checking account with a debit card and ATM access. You withdraw your own money with no fees and no interest. If you do not have a bank account, many banks and credit unions offer low-cost checking accounts with no minimum balance.
Frequently Asked Questions
What is the difference between a cash advance and a regular purchase?
A purchase charges no upfront fee and no interest if you pay the full balance by the due date. A cash advance charges a fee immediately and starts charging interest the same day, with no grace period. The interest rate on a cash advance is also higher.
Can I use my credit card PIN at any ATM?
You can use your PIN at most ATMs, but some may decline your card if they do not recognize your card issuer. ATMs owned by your card issuer's bank almost always work. If an ATM declines your card, try a different machine or visit a bank teller instead.
Does a cash advance hurt my credit score?
A cash advance itself does not hurt your score, but carrying a high balance does. If the cash advance pushes your total credit card balance above 30 percent of your credit limit, your score may drop slightly. Paying it off quickly minimizes this effect.
What happens if I cannot pay back the cash advance?
The balance stays on your card and keeps accruing interest at the higher cash advance rate. If you miss the minimum payment, late fees apply and your credit score drops. The debt does not go away — it only gets more expensive the longer you carry it.
Can I get a cash advance from a credit card I do not have a PIN for?
Yes. You can visit a bank teller with your card and photo ID, and they can process a cash advance without a PIN. Some retailers also allow cash advances at checkout without a PIN. An ATM, however, requires a PIN.