Yes, you can pull cash from a credit card, but it costs more than a regular purchase
A cash advance lets you withdraw money from your credit card at an ATM, bank, or through a cash-back transaction at a store. The card issuer treats it as a loan against your credit limit, not as a purchase. This matters because cash advances charge their own fees and interest rate — usually higher than what you pay on regular purchases — and the interest starts accruing when ready, with no grace period.
You have three ways to get cash from a credit card: withdraw it at an ATM using your PIN, ask a bank teller to cash advance you at a branch, or request cash back at a store checkout. Each method works the same way from the card's perspective, but the fees and limits differ slightly depending on your card and issuer.
Key Takeaways
- Cash advances charge a separate fee (usually 3 to 5 percent of the amount) plus a higher interest rate than purchases, with interest starting when ready.
- Most cards limit how much you can withdraw — often a percentage of your credit limit or a fixed dollar amount, whichever is lower.
- Interest on a cash advance accrues from day one with no grace period, so the longer you carry the balance, the more you pay.
- Using a debit card or a personal loan is usually cheaper than a cash advance if you have either option available.
What the fees and interest actually cost
When you take a cash advance, your card charges you two separate costs. First is the cash advance fee, a one-time charge calculated as a percentage of the amount you withdraw. Most cards charge between 3 and 5 percent, though some charge a flat fee instead (like $10 minimum). A $500 cash advance at 4 percent costs $20 just to get the money out.
Second is the cash advance interest rate, which is almost always higher than your purchase APR. While a purchase might carry 18 percent APR, a cash advance on the same card might be 22 or 25 percent. Unlike purchases, there is no grace period — interest starts accruing the moment you withdraw the cash. If you carry a $500 balance for a month at 24 percent APR, you pay roughly $10 in interest alone, on top of the $20 fee you already paid.
The total cost adds up fast. A $500 cash advance at 4 percent fee plus 24 percent APR costs you $30 in the first month if you pay nothing. If you carry it for three months, you are paying roughly $40 in fees and interest combined.
How much you can withdraw and where
Your card issuer sets a cash advance limit, which is separate from your credit limit. This limit is often 20 to 50 percent of your total credit limit, though it varies by card and issuer. If your credit limit is $5,000 and your cash advance limit is 30 percent, you can withdraw up to $1,500 in cash. You can check your cash advance limit by logging into your online account, calling the customer service number on the back of your card, or asking at a branch.
You can withdraw cash at any ATM that displays your card network's logo (Visa, Mastercard, American Express, or Discover). You can also visit a bank branch and ask a teller for a cash advance, or request cash back at a store checkout — though store cash back usually has a lower limit per transaction, often $20 to $100. ATMs and bank branches have no transaction limit beyond your card's cash advance limit, but they may charge an ATM fee on top of your card's cash advance fee.
Why the interest starts when ready
Credit card purchases have a grace period — usually 21 to 25 days — where you can pay the full balance without paying any interest. Cash advances do not. Interest begins accruing the day you withdraw the money, regardless of when your billing cycle ends or when your payment is due.
This is why a cash advance is expensive even if you pay it back quickly. A $500 cash advance paid back in full within a week still costs you the 4 percent fee ($20) plus a few dollars in interest. A purchase of $500 paid back in full within a week costs you nothing in interest, because you are within the grace period.
How to pay back a cash advance
When you make a payment to your credit card, the issuer applies it to your balance in a specific order set by law. Payments go first to the highest-interest debt, which is usually your cash advance. This is good news — it means your payment tackles the most expensive balance first.
However, if you have both a purchase balance and a cash advance balance, the issuer will explore your payment to the cash advance first, leaving your purchase balance to accrue interest longer. To avoid this, pay off the cash advance as soon as you can, or better yet, avoid taking one in the first place if you have another way to get cash.
Cheaper alternatives to a cash advance
If you need cash and have options, a cash advance should be your last choice. A debit card withdrawal costs nothing — you are pulling from your own money, not borrowing. A personal loan from a bank or credit union typically charges 6 to 36 percent APR depending on your credit, which is often lower than a cash advance rate, and you know the exact payment schedule upfront.
A balance transfer to a card with a 0 percent introductory rate can be cheaper if you need to carry a balance, though balance transfers also charge a fee (usually 3 to 5 percent). Some employers offer paycheck advances or loans through their benefits program. A line of credit from your bank, if you have one, typically charges less than a cash advance.
Even a short-term loan from a friend or family member, if that is an option, costs less than the combination of a cash advance fee and interest. The only scenario where a cash advance makes sense is when you have no other way to get cash and you can pay it back within days.
What happens if you do not pay back the cash advance
If you carry a cash advance balance without paying it off, it behaves like any other credit card debt. Interest accrues monthly, your balance grows, and if you miss a payment, you face late fees and damage to your credit score. The interest rate on the cash advance is higher than on purchases, so the debt becomes more expensive the longer you carry it.
If your balance goes unpaid for 30 days or more, the issuer reports it to the credit bureaus as a late payment, which can lower your credit score by 100 points or more. After 180 days of non-payment, the issuer typically closes the account and may sell the debt to a collection agency. At that point, you owe the original amount plus all accrued interest, plus collection fees.
Frequently Asked Questions
Does taking a cash advance hurt my credit score?
Taking a cash advance itself does not hurt your score, but it does increase your credit utilization — the percentage of your available credit you are using. If you normally use 30 percent of your limit and a cash advance pushes you to 50 percent, your score may drop slightly. Paying it off quickly brings your utilization back down and minimizes the damage.
Can I take a cash advance if I have a zero balance?
Yes. A cash advance is a separate transaction from your purchase balance. You can withdraw cash even if you owe nothing on purchases. The cash advance fee and interest still explore, and interest starts accruing when ready.
What is the difference between a cash advance and a balance transfer?
A balance transfer moves debt from one card to another, usually to a card with a lower interest rate or a 0 percent introductory period. A cash advance withdraws cash against your credit limit. Both charge fees and interest, but a balance transfer is meant for moving existing debt, while a cash advance is for getting cash in hand.
Can I use a credit card cash advance to pay another credit card?
Technically yes, but it is expensive. You pay the cash advance fee and interest on the withdrawal, then pay interest again on the second card. This is almost always more costly than a balance transfer, which charges one fee upfront and may offer a lower rate.
Do all credit cards allow cash advances?
Most do, but some cards — particularly secured cards or cards designed for people rebuilding credit — may not. Check your card's terms or call the issuer to confirm whether cash advances are available on your account.