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

A cash advance lets you withdraw cash from your credit card at an ATM, bank, or through a cash-back transaction at a store. The money goes into your pocket or account immediately. But the card issuer charges you for this convenience—usually a flat fee (often $5 to $10 per transaction) plus a higher interest rate than you pay on regular purchases.

The interest rate on a cash advance typically starts accruing the moment you withdraw the money, with no grace period. This means you begin paying interest right away, even if you pay off the balance in full at your next statement. On a regular purchase, you usually get 21 to 25 days before interest kicks in.

Cash advances are quickest when you use your card's PIN at an ATM. You can also get cash at a bank teller by showing your card, or ask for cash back when you pay for something at a store (though some stores limit this to $20 or $40). The amount you can withdraw is capped by your card's cash advance limit, which is often lower than your overall credit limit.

Key Takeaways

  • Cash advances charge both an upfront fee (typically $5 to $10) and a higher interest rate than regular purchases, making them expensive ways to get cash.
  • Interest on a cash advance starts immediately with no grace period, so you pay interest from day one even if you pay it back quickly.
  • Your cash advance limit is usually lower than your credit limit, and you can find it in your card's terms or by calling the issuer.
  • Alternatives like debit card ATM withdrawals, personal loans, or asking for cash back at a store cost far less if you have other options available.

What the fees and interest actually cost you

The total cost of a cash advance depends on how long you carry the balance. If you withdraw $500 and your card charges a 3% fee plus 25% annual interest, you pay $15 upfront plus roughly $10 in interest for one month. That $25 in costs on a $500 withdrawal is 5% of the money you took out—just to borrow it for 30 days.

The interest rate varies by card and issuer. Some cards charge 20% annual interest on cash advances; others charge 28% or higher. Check your card's disclosure document or call the issuer to find your specific cash advance fee and rate. Many cards list this information online in your account dashboard.

If you need cash regularly, a cash advance is one of the most expensive ways to get it. A personal loan from a bank or credit union, a payday loan (despite its reputation), or even a short-term loan from a friend costs less in most cases. A debit card withdrawal from your own bank account costs nothing.

How to find your cash advance limit

Your cash advance limit is separate from your credit limit. You might have a $5,000 credit limit but only a $1,500 cash advance limit. This cap protects the card issuer from risk and limits how much cash you can pull out at once.

Find your limit by logging into your online account or calling the customer service number on the back of your card. The representative can tell you the exact amount and confirm your cash advance fee and interest rate at the same time. Some cards show this information in your account settings or in the card's terms document.

If your limit is too low for what you need, you can request an increase by calling the issuer. They may approve it on the spot or ask you to wait a few days. There is no may provide they will raise it, especially if your account is new or your credit score is low.

Where to withdraw cash from your credit card

An ATM is the fastest option. Insert your card, enter your PIN, and select the cash advance option (usually labeled "withdraw" or "cash advance"). The ATM will show you the fee before you confirm, so you know the cost upfront. Most ATMs let you withdraw in $20 increments up to your daily limit.

A bank teller can also process a cash advance if you show your card and ID. This works even if you do not have an account at that bank, though some banks charge an extra fee for non-customers. Call ahead to confirm they offer this service.

Cash back at a store checkout is technically different from a cash advance—it is a debit transaction on your credit card—but some cards treat it the same way and charge the cash advance fee. Ask the cashier or check your card's terms to know whether cash back triggers the fee. If it does, you are better off using an ATM.

When a cash advance makes sense (and when it does not)

A cash advance is worth considering only in narrow situations: you need cash immediately, you have no other source of funds, and you can pay it back within a few days. For example, if your car breaks down and the mechanic takes only cash, and you do not have time to visit your bank, a $100 cash advance might be the fastest option despite the $5 fee.

A cash advance does not make sense if you are carrying a balance on your card already. The new cash advance will accrue interest at a higher rate than your existing purchases, and you will pay interest on both. It also does not make sense if you need the money for more than a few weeks. The interest compounds quickly, and you end up paying far more than the original amount.

If you are considering a cash advance to cover a shortfall in your budget—groceries, rent, utilities—that is a sign you need a different solution. A personal loan, a payment plan with the creditor, or a conversation with a nonprofit credit counselor will cost less and address the real problem.

How cash advances affect your credit score

Taking a cash advance does not directly damage your credit score the way a missed payment does. However, it does increase your credit utilization ratio—the percentage of your available credit you are using. If you have a $5,000 limit and you take a $1,000 cash advance, your utilization jumps to 20%, which can lower your score slightly.

The bigger risk is carrying the balance. If you cannot pay off the cash advance quickly, the interest compounds and you end up owing more than you borrowed. This makes it harder to pay down your overall balance, which keeps your utilization high and your score lower for longer.

If you miss a payment on the cash advance, that missed payment shows up on your credit report and damages your score significantly. This is why it is critical to have a plan to pay back the cash before you withdraw it.

Alternatives that cost less

A personal loan from a bank or credit union usually charges 8% to 15% interest, far less than a credit card cash advance. The loan comes as a lump sum deposited into your account, and you repay it in fixed monthly payments. The downside is that approval takes a few days, so this does not work for emergencies.

A payday loan is expensive but sometimes cheaper than a cash advance if you repay it within two weeks. A typical payday loan charges $15 per $100 borrowed, which equals 390% annual interest—terrible if you carry it longer than two weeks, but less than a credit card cash advance if you pay it back fast. Many states regulate payday loans, so check your state's rules before borrowing.

A line of credit from your bank or credit union is another option. These typically charge lower interest than credit cards and let you draw money as you need it. You pay interest only on what you withdraw, not the full line.

If you have a debit card linked to a checking account, simply withdrawing from an ATM costs nothing. If you do not have a bank account, opening one takes 15 minutes online or in person and gives you access to free cash withdrawals forever.

Frequently Asked Questions

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

Technically yes, but it is a terrible idea. You pay the cash advance fee and high interest rate on the new card, then pay interest again on the original card. You end up paying interest twice on the same money. If you are juggling multiple cards, a balance transfer or personal loan is far cheaper.

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

The balance stays on your card and accrues interest at the cash advance rate. If you miss a payment, it shows up on your credit report and damages your score. The card issuer can also raise your interest rate on all balances and eventually send the debt to a collection agency.

Is there a daily limit on how much I can withdraw?

Yes. Most cards set a daily ATM withdrawal limit (often $500 to $1,000) separate from your cash advance limit. You can withdraw up to your daily limit at one ATM, but if you need more, you have to wait until the next day or use a different method like a bank teller.

Do I have to pay the cash advance fee every time I withdraw?

Yes. Each withdrawal is a separate transaction and triggers its own fee. If you withdraw $500 twice, you pay the fee twice. This is another reason to avoid multiple small withdrawals and take out what you need in one transaction.

Can I get a cash advance if my credit score is low?

Usually yes, as long as your card is open and active. Your cash advance limit is set by the card issuer based on your account history and credit profile, not your credit score alone. Even people with fair or poor credit can take a cash advance on an existing card, though the limit may be small.