Yes, you can get cash from a credit card, but it costs more than a regular purchase
You can withdraw cash using your credit card at an ATM, through a bank teller, or by asking a merchant for cash back. The card issuer treats this as a cash advance — a short-term loan separate from your regular credit line. Unlike a purchase, a cash advance starts charging interest immediately, usually at a higher rate than your purchase APR. You also pay an upfront fee, typically 3 to 5 percent of the amount withdrawn.
The math works against you quickly. If you withdraw $500 at a 5 percent fee plus a 25 percent APR, you owe $25 immediately and then $10.42 per month in interest alone (if you make no payments). Most people use cash advances only when they have no other option — an unexpected expense and no access to a debit account or personal loan.
Key Takeaways
- Cash advances charge a fee (usually 3 to 5 percent) plus a higher interest rate than purchases, with interest starting immediately.
- You can get cash at an ATM, a bank branch, or by asking a merchant, but each method has the same fees and rates.
- The interest rate on a cash advance is often 5 to 10 percentage points higher than your purchase APR and does not benefit from a grace period.
- If you need cash regularly, a debit card, personal loan, or line of credit will cost far less than repeated cash advances.
Where to get cash and what each method costs
You have three ways to get cash from a credit card. An ATM withdrawal is the most common: insert your card, enter your PIN, and withdraw up to your cash advance limit (which your issuer sets separately from your credit limit). A bank teller withdrawal works the same way — walk into a branch of your card issuer or a partner bank, show your card and ID, and ask for cash. A cash advance check or convenience check comes in the mail with your statement; you write it like a regular check and deposit it into another account or hand it to a merchant.
All three methods trigger the same fees and rates. The fee is a flat percentage of the amount withdrawn — typically 3, 4, or 5 percent depending on your card and issuer. Some cards cap the fee at a dollar amount (for example, $10 minimum, $100 maximum). The interest rate is your cash advance APR, which your card issuer lists in your terms and conditions. This rate is almost always higher than your purchase APR — often 5 to 10 percentage points higher — and it applies from the day you withdraw, with no grace period.
How interest and fees add up over time
The cost of a cash advance depends on how long you carry the balance. If you withdraw $300 at a 4 percent fee and 24 percent APR, you owe $12 in fees immediately. If you pay back the full $312 within one month, you pay roughly $6 in interest, for a total cost of $18. If you take three months to repay, the interest alone reaches $18, and your total cost is $30. At six months, you have paid $36 in interest plus the original $12 fee.
Your card issuer applies your monthly payment to the lowest-APR balance first — usually your purchases — so a cash advance can sit unpaid for months while you pay down other charges. This means the interest compounds faster than you might expect. If you carry a cash advance alongside regular purchases, ask your issuer how they apply payments, or request that payments go to the cash advance first.
Your cash advance limit versus your credit limit
Your card issuer sets a separate cash advance limit, which is usually lower than your total credit limit. For example, you might have a $5,000 credit limit but only a $1,500 cash advance limit. You can find your limit in your online account, 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.
Withdrawing cash counts against both your cash advance limit and your overall credit limit. If you withdraw $500, you have $1,000 left in cash advance room and $4,500 left in total credit room. This means a large cash advance can quickly eat into your ability to make regular purchases.
Cheaper ways to get cash when you need it
If you need cash regularly, a debit card linked to a checking account costs nothing — no fees, no interest. If you do not have a bank account, a prepaid card or money order costs less than a cash advance, though you may pay a small fee to load or cash it. A personal loan from a bank or credit union typically charges 6 to 36 percent APR depending on your credit, which is usually lower than a cash advance rate, and you pay interest only on what you borrow.
If you are in a true emergency — you need cash today and have no other way to get it — a cash advance is faster than a loan application. But if you have even a few days, a personal loan or a loan from a friend or family member will cost far less. Some employers also offer paycheck advances or emergency loans to employees; ask your HR department whether this is an option.
How a cash advance affects your credit score
A cash advance does not hurt your credit score directly, but it can harm your score indirectly. When you withdraw cash, your credit utilization — the percentage of your available credit you are using — goes up immediately. If you had a $5,000 limit and were using $1,000, your utilization was 20 percent. A $500 cash advance raises it to 30 percent. Credit scoring models penalize high utilization, so your score may drop a few points.
The bigger risk is that a cash advance tempts you to carry a balance. If you cannot pay back the cash advance quickly, the high interest rate means your balance grows each month, your utilization stays high, and your score continues to fall. Over time, a cash advance that becomes a long-term balance can lower your score by 50 to 100 points or more.
Frequently Asked Questions
What is the difference between a cash advance and a regular purchase?
A purchase is a transaction with a merchant; the issuer charges you interest only if you carry a balance past your grace period. A cash advance is a loan of cash; the issuer charges you a fee upfront and interest from day one, with no grace period. The interest rate on a cash advance is also higher.
Can I use a credit card to withdraw cash at any ATM?
You can use your card at ATMs branded with your card network (Visa, Mastercard, American Express, Discover) or at your issuer's own ATMs. Some ATMs charge an additional out-of-network fee on top of your card's cash advance fee. Check your card's terms to see which ATMs are fee-free.
Do I have to pay back a cash advance before I can use my card again?
No. You can make new purchases while carrying a cash advance balance. However, your payment goes to the lowest-APR balance first, so your cash advance may sit unpaid while you pay down purchases. Call your issuer and ask them to apply your payment to the cash advance if you want to pay it off faster.
What happens if I cannot pay back the cash advance?
The balance stays on your card and interest continues to accrue. Your credit score will drop as your utilization stays high. If you miss payments, late fees apply and your issuer may report the missed payment to credit bureaus, which can lower your score by 100 points or more.
Is there a way to avoid the cash advance fee?
No. Every credit card charges a cash advance fee. The only way to avoid it is to not take a cash advance. If you need cash, use a debit card, ask for cash back at a store, or borrow from a friend or family member instead.