Yes, you can pull money out of a credit card, but it is not the same as using it to buy something

You can withdraw cash directly from a credit card at an ATM or by asking a bank teller for a cash advance. The money goes into your hand or your bank account the same day. But the card issuer charges you fees and interest that start when ready — there is no grace period like there is for purchases. A $200 cash advance can cost you $10 to $15 in fees alone, plus interest at a rate that is often several percentage points higher than your regular purchase rate.

Most people use cash advances only when they have no other option: an emergency expense, a place that does not take cards, or a situation where they need physical cash right now. If you have a choice, a personal loan, a line of credit, or even a payday loan from a credit union usually costs less.

Key Takeaways

  • Cash advances charge an upfront fee (usually 3 to 5 percent of the amount) plus a higher interest rate than regular purchases, with interest starting when ready.
  • You can get a cash advance at any ATM using your credit card PIN, or by visiting a bank branch and asking the teller.
  • Your credit card company sets a separate cash advance limit, which may be lower than your overall credit limit.
  • The money counts as a debt on your credit card statement and must be paid back like any other balance.

How to withdraw cash from a credit card

The fastest method is to use an ATM. Insert your credit card, enter your PIN (the same one you use at a debit card ATM), select "cash advance" or "withdraw cash," and choose the amount. The ATM will tell you the fee before you confirm. The money comes out when ready, and the charge appears on your credit card statement within a day or two.

If you do not have a PIN set up, call the number on the back of your card and ask the issuer to send you one or set one up over the phone. This usually takes a few minutes to a few hours. Some card issuers also let you request a cash advance through their mobile app or website, though the money may take a business day to reach your bank account instead of appearing at an ATM.

A third option is to visit a bank branch in person. Bring your credit card and a photo ID, tell the teller you want a cash advance, and they will process it on the spot. This works even if you do not have a PIN. The teller will show you the fee before you sign anything.

What fees and interest you will pay

Every cash advance comes with two costs. The first is an upfront fee, usually 3 to 5 percent of the amount you withdraw. A $500 cash advance typically costs $15 to $25 just to get the money out. Some card issuers charge a flat fee instead (like $10 per advance) if that is lower, but most use a percentage.

The second cost is interest, which starts accruing the day you withdraw the cash. Unlike a purchase, there is no grace period — you do not get 21 days interest-free. The interest rate for cash advances is usually 2 to 5 percentage points higher than your regular purchase APR. If your purchase rate is 18 percent, your cash advance rate might be 23 percent. That means a $500 advance costs you roughly $9.58 per month in interest alone if you do not pay it back when ready.

Your credit card statement will show the cash advance as a separate line item from your purchases. When you make a payment, the card issuer typically applies it to purchases first, then to cash advances. This means if you carry a balance, your cash advance can sit there accruing interest for months while you pay down purchases.

Your cash advance limit is separate from your credit limit

Your credit card company sets a cash advance limit that is usually much lower than your overall credit limit. If your credit limit is $5,000, your cash advance limit might be $1,000 or $1,500. You cannot withdraw more than this limit, even if you have unused credit available.

You can find your cash advance limit by logging into your online account, calling the number on your card, or checking your most recent statement. If you need to withdraw more than your limit allows, you can call and ask the issuer to raise it, though they are not required to do so. Some issuers will increase it on the spot; others will deny the request or require you to wait.

When a cash advance makes sense

A cash advance is worth considering only in specific situations. If you need cash for an emergency and have no other way to get it, the upfront fee and higher interest rate may be acceptable costs. If a vendor will not take your card and you have no access to your bank account, a cash advance might be your only option.

But if you have alternatives, they are almost always cheaper. A personal loan from a bank or credit union typically charges 6 to 36 percent interest with no upfront fee. A line of credit works the same way. Even a payday loan from a credit union (which has a 28 percent rate cap in most states) costs less than a credit card cash advance when you factor in both the fee and the interest rate.

If you are considering a cash advance because you cannot pay a bill with your card, pause and contact the biller directly. Many utilities, insurance companies, and government agencies will set up a payment plan or let you pay by phone without a cash advance fee.

How a cash advance affects your credit score

A cash advance itself does not hurt your credit score directly. The withdrawal does not show up as a negative mark. However, it does increase your credit utilization — the percentage of your available credit you are using. If your credit limit is $5,000 and you withdraw $500 in cash, your utilization jumps from whatever it was to at least 10 percent. High utilization can lower your score by a few points.

The bigger risk is if the cash advance balance sits unpaid. If you miss a payment or carry the balance for months, that will damage your score. The interest charges also make it harder to pay down the balance, which keeps your utilization high and your score depressed.

Frequently Asked Questions

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

Technically yes, but it is a bad idea. You would pay a 3 to 5 percent fee to get the cash, then pay it toward another card. You are paying a fee to move money between cards, and the cash advance interest rate is usually higher than your regular rate. If you are trying to pay down debt, transfer the balance instead or contact both card issuers about a hardship plan.

What happens if I cannot pay back a cash advance?

It becomes part of your credit card debt. If you miss payments, the issuer will charge late fees and report the missed payment to credit bureaus, which will lower your score. The balance will keep accruing interest at the higher cash advance rate. Eventually, the issuer may freeze your account or send the debt to a collection agency.

Is there a way to get cash from a credit card without paying a fee?

Not directly. Every cash advance charges a fee. However, some card issuers waive the fee for the first cash advance in a certain period, or offer a promotional period with no cash advance fee. Check your card's terms or call the issuer to ask if any promotions explore to you.

Can I get a cash advance from a credit card I just opened?

Usually yes, but your cash advance limit may be very low — sometimes $100 to $300 — even if your overall credit limit is higher. New cardholders are considered higher risk for cash advances. As you use the card responsibly, the issuer may raise your cash advance limit over time.

What is the difference between a cash advance and a balance transfer?

A balance transfer moves debt from one card to another and usually has a lower fee (0 to 3 percent) and a promotional interest rate. A cash advance gives you physical cash and charges a higher fee with interest starting when ready. Balance transfers are for moving existing debt; cash advances are for getting cash in hand.