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

A cash advance lets you borrow money against your credit card's line of credit and receive it as cash. You can do this at an ATM, a bank teller, or sometimes through a convenience store or casino cage. The money appears in your account within hours or days, depending on the method and your bank.

The catch is that cash advances are expensive. You pay an upfront fee (usually 3 to 5 percent of the amount withdrawn), interest starts accruing immediately at a higher rate than regular purchases, and there is no grace period. A $500 cash advance can cost $15 to $25 in fees alone, plus interest that begins the day you withdraw the money.

Key Takeaways

  • Cash advances charge a fee of 3 to 5 percent upfront, plus a higher interest rate than purchases, with no grace period.
  • You can get cash at an ATM using your credit card PIN, at a bank teller with your card and ID, or through a casino or convenience store.
  • Interest on a cash advance starts immediately, so the longer you carry the balance, the more you pay in total.
  • Most credit cards set a cash advance limit that is lower than your total credit limit, and you can find yours by calling your card issuer or checking your statement.

Where to withdraw cash and what you need

The easiest method is an ATM. Insert your credit card, enter your PIN, select "cash advance" or "withdrawal," and choose your amount. The ATM will show you the fee before you confirm. You get the cash immediately, though it may take a day or two to appear on your statement.

At a bank branch, 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. Some banks charge an additional fee for teller-processed advances on top of your card issuer's fee.

Casinos, convenience stores, and some check-cashing services also offer cash advances, but they often charge extra fees beyond what your card issuer charges. Avoid these unless you have no other option.

How much you can withdraw

Your credit card issuer sets a cash advance limit that is separate from your regular credit limit. This limit is often lower — sometimes 20 to 50 percent of your total credit limit. If your credit limit is $5,000, your cash advance limit might be $1,000 or $2,500.

You can find your cash advance limit by calling the customer service number on the back of your card, logging into your online account, or checking your most recent statement. If you do not see it listed, ask the representative directly. Some card issuers let you request an increase, though approval is not may provide.

The real cost: fees and interest rates

The fee is charged immediately and appears on your next statement. A $500 advance with a 4 percent fee costs $20 right away. Interest then accrues daily on the full $500 at your card's cash advance rate, which is typically 2 to 5 percentage points higher than your purchase APR.

If your purchase APR is 18 percent, your cash advance APR might be 23 percent. On a $500 advance, that is roughly $9.58 in interest per month if you do not pay it down. After three months, you have paid $20 in fees plus $29 in interest — nearly $50 total on a $500 withdrawal.

Unlike regular purchases, there is no grace period. Interest starts the day you withdraw the cash, even if you pay your full statement balance on time.

How payments are applied when you carry multiple balances

If you have both regular purchases and a cash advance balance on the same card, your payments go toward the lowest-interest balance first — usually your regular purchases. This means your cash advance sits there accruing interest at the higher rate while you pay down cheaper debt.

To pay off a cash advance faster, contact your card issuer and ask them to apply your next payment directly to the cash advance balance. Some issuers will do this; others will not. If yours will not, you may need to pay more than the minimum to make a dent in the cash advance.

When a cash advance makes sense and when it does not

A cash advance is rarely the best option. If you need cash for an emergency and have no other way to get it, a cash advance is faster than a personal loan but more expensive. If you have access to a personal loan, a line of credit, or even a payday loan (which is also expensive but sometimes cheaper for very short terms), compare the total cost first.

A cash advance makes the most sense if you can pay it back within a few days or a week. The longer you carry the balance, the more the high interest rate works against you. If you are considering a cash advance to cover regular expenses or to carry for months, look for a different borrowing method or address the underlying cash shortage.

Alternatives to consider before taking a cash advance

A balance transfer to a card with a 0 percent introductory APR can be cheaper if you need to carry a balance for several months, though balance transfers also charge a fee (usually 3 to 5 percent). A personal loan from a bank or credit union typically has a lower interest rate than a cash advance, even if approval takes a few days. A line of credit, if you have one, usually costs less.

If you need cash for a true emergency, ask family or friends, negotiate a payment plan with the person or business you owe, or look into whether a local nonprofit or government program can help. These options cost nothing and should be your first choice.

Frequently Asked Questions

Can I use my credit card to get cash at any ATM?

Most ATMs accept credit cards for cash advances, but some do not. ATMs owned by your card issuer's bank are most likely to work. Out-of-network ATMs may charge an additional fee on top of your card issuer's fee. Check your card's website or call customer service to find ATMs that accept your card.

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

The balance carries over to your next statement with interest, just like any other credit card debt. If you do not pay, interest compounds, your balance grows, and your credit score drops. After several months of non-payment, the card issuer may close your account and send the debt to a collection agency.

Is a cash advance the same as a payday loan?

No. A payday loan is a separate short-term loan from a lender, while a cash advance borrows against your existing credit card limit. Payday loans often have higher fees but shorter terms. A cash advance has lower upfront fees but a higher interest rate if you carry it longer than a few weeks.

Can I get a cash advance if my credit card is maxed out?

No. A cash advance counts against your available credit, just like a purchase. If your credit limit is $5,000 and you have already charged $5,000, you cannot take a cash advance. You would need to pay down your balance first or request a credit limit increase.

Do cash advances hurt my credit score?

A cash advance itself does not hurt your score, but carrying a high balance does. If your cash advance pushes your total balance close to your credit limit, your credit utilization ratio rises, which can lower your score. Paying it off quickly minimizes this impact.