Yes, you can get cash from a credit card, but it is not the same as using it to buy something
A cash advance is a withdrawal of actual money from your credit card account, usually from an ATM or a bank teller. The card issuer treats it like a loan against your available credit, not a purchase. You owe the money back when ready, and interest starts accruing the same day — there is no grace period like there is for regular purchases.
Most major card issuers (Visa, Mastercard, American Express, Discover) allow cash advances, but the terms and fees vary widely. Some cards charge a flat fee per advance, others charge a percentage of the amount withdrawn, and many charge both. The interest rate on a cash advance is usually higher than the rate on regular purchases from the same card.
Cash advances are meant for emergencies, not routine spending. The cost of getting the cash — fees plus interest — makes them expensive compared to other ways of borrowing money.
Key Takeaways
- Cash advances charge a fee (usually 3 to 5 percent of the amount) plus a higher interest rate than regular purchases, starting when ready with no grace period.
- You can withdraw cash at an ATM using your credit card PIN, or ask a bank teller to process the advance in person.
- The total cost depends on how much you withdraw, your card's fee structure, the interest rate, and how long you carry the balance.
- Alternatives like personal loans, payday loans, or borrowing from friends are often cheaper unless you need the money for just a few days.
Where and how to get a cash advance
You have two main routes: an ATM or a bank branch. At an ATM, insert your credit card and enter your PIN (the same one you use for a debit card, or one you set up with your issuer). The ATM will show you the amount you can withdraw — usually a daily limit set by your card issuer, often between $500 and $1,000, though it can be lower or higher depending on your account.
At a bank branch, you can ask a teller to process a cash advance. You will need your card and a form of ID. The teller will handle the transaction and give you the cash. Some banks charge an additional fee for this service on top of the card issuer's fee.
Not all ATMs accept credit cards for cash advances — some only accept debit cards. If you are unsure, call your card issuer's customer service number (on the back of your card) and ask which ATMs in your area accept your card for advances.
Fees and interest rates on cash advances
The cost of a cash advance has two parts: the upfront fee and the ongoing interest. The upfront fee is usually either a flat dollar amount (like $5 or $10) or a percentage of the amount withdrawn (typically 3 to 5 percent), whichever is higher. So if you withdraw $500 and the fee is 3 percent with a $5 minimum, you pay $15. If you withdraw $100, you still pay at least $5.
The interest rate on a cash advance is separate from your regular purchase APR and is almost always higher. While a purchase APR might be 15 to 20 percent, a cash advance APR is often 25 to 30 percent or more. Unlike purchases, there is no grace period — interest starts accruing the day you withdraw the cash.
To estimate your total cost, use this formula: (amount withdrawn × fee percentage) + (amount withdrawn × daily interest rate × number of days). For example, a $500 advance with a 4 percent fee ($20) and a 25 percent APR held for 30 days costs roughly $20 in fees plus $10 in interest, for a total of about $30. That same $500 borrowed through a personal loan at 12 percent APR for 30 days would cost roughly $5 in interest.
Daily withdrawal limits and credit limits
Your card issuer sets a cash advance limit separate from your overall credit limit. This limit is often lower than your credit limit — sometimes 20 to 50 percent of it. So if your credit limit is $5,000, your cash advance limit might be $1,000 or $2,500.
There is also a daily ATM withdrawal limit, which is usually between $500 and $1,000 but varies by issuer and account type. If you need more than the daily limit, you can make multiple withdrawals on different days, or go to a bank branch and ask for a larger advance (though the daily limit may still explore).
A cash advance counts against your overall credit limit. If you withdraw $500 in cash, you have $500 less available credit for purchases. This can hurt your credit utilization ratio — the percentage of your available credit you are using — which affects your credit score.
How a cash advance affects your credit score
A cash advance itself does not show up as a separate item on your credit report. However, it affects your score in two ways. First, it increases your credit utilization ratio. If your limit is $5,000 and you withdraw $1,000 in cash and charge $1,000 in purchases, you are using 40 percent of your available credit. High utilization (above 30 percent) can lower your score.
Second, if you carry the balance and miss a payment, that missed payment will be reported to the credit bureaus and will damage your score. Cash advances are treated like any other credit balance — if you do not pay them back on time, the consequences are the same.
The good news is that paying off a cash advance quickly will not harm your score. If you withdraw $500, pay it back within a week, and keep your overall utilization low, there is minimal impact.
Cheaper alternatives to a cash advance
Before you use a cash advance, consider whether another option is cheaper. A personal loan from a bank or credit union usually has a lower interest rate (often 8 to 15 percent) and no upfront fee. If you need $500 and can wait a few days for approval, a personal loan will cost less over time.
If you need the money urgently and have a friend or family member who can lend it, borrowing from them is free (unless you agree to pay interest). If you have a savings account, withdrawing from savings avoids interest entirely, though it leaves you with less emergency money.
A payday loan is another option, though it is often more expensive than a cash advance. Payday loans typically charge $15 to $20 per $100 borrowed, which works out to an APR of 400 percent or higher. Use them only if you can repay within two weeks and have no other option.
If you have a 0 percent introductory APR on your credit card, you could make a purchase instead of a cash advance — but this only works if the merchant accepts credit cards, and you still pay the cash advance fee if you withdraw cash.
What happens if you cannot pay back a cash advance
If you do not pay back a cash advance by the due date, the interest rate continues to explore and late fees may be added. Your card issuer may also raise your interest rate on all balances (both the cash advance and any purchases) if your account is 30 or more days late.
If the balance goes unpaid for several months, the card issuer may close your account and refer the debt to a collection agency. This will appear on your credit report and can lower your score significantly. The debt can also be used as grounds for a lawsuit, depending on your state's laws.
If you are struggling to pay back a cash advance, contact your card issuer as soon as possible. Some issuers offer hardship programs that lower your interest rate or allow you to set up a payment plan. It is better to work out a plan than to ignore the debt.
Frequently Asked Questions
Can I get a cash advance from any credit card?
Most major credit cards allow cash advances, but some do not — particularly store cards or cards with very low limits. Check your card's terms or call the issuer to confirm. Even if your card allows advances, you may have a zero cash advance limit if your account is new or if you have missed payments.
Is there a grace period on cash advances like there is on purchases?
No. Interest on a cash advance starts accruing when ready, with no grace period. This is one of the main reasons cash advances are expensive — you are paying interest from day one, even if you pay the balance in full at the end of the month.
What is the difference between a cash advance and a balance transfer?
A cash advance is a withdrawal of cash. A balance transfer is moving debt from one card to another, usually to take advantage of a lower interest rate. Both charge fees and affect your credit utilization, but a balance transfer does not give you cash in hand.
Can I use a credit card to withdraw cash from a bank teller if I do not know my PIN?
Yes. At a bank branch, you can ask a teller to process a cash advance without a PIN — you just need your card and ID. However, some banks charge an additional fee for this service on top of your card issuer's fee.
Will a cash advance show up on my credit report?
The cash advance itself does not appear as a separate line item. However, if you carry the balance and miss a payment, the missed payment will be reported. Your credit utilization ratio (which includes the cash advance balance) also affects your score.