Yes, you can take cash from a credit card, but it is not the same as using the card to buy something
A cash advance is a withdrawal of money from your credit card account, usually at an ATM, bank teller, or through a convenience check. The money goes into your pocket or bank account, not toward a purchase. Your card issuer treats it as a loan against your credit limit, and you pay interest on it when ready — there is no grace period like there is for regular purchases.
The cost of a cash advance is almost always higher than the cost of a regular purchase. You will pay an upfront fee (usually 3 to 5 percent of the amount withdrawn), a higher interest rate (often 5 to 10 percentage points above your purchase rate), and interest accrues from the day you withdraw the money, not from your statement date. For most people, this makes cash advances an expensive way to borrow.
The mechanics are straightforward: you visit an ATM or bank, insert your card, enter your PIN, and withdraw cash up to your cash advance limit — which is often lower than your full credit limit. The transaction posts to your account within one or two business days, and the interest clock starts when ready.
Key Takeaways
- Cash advances charge an upfront fee of 3 to 5 percent plus a higher interest rate than regular purchases, with no grace period.
- Interest on a cash advance begins accruing the same day you withdraw the money, not at the end of your billing cycle.
- Your cash advance limit is usually lower than your total credit limit and is set by your card issuer.
- You can withdraw cash at ATMs, bank tellers, or through convenience checks, but each method has different fees and limits.
- Paying off a cash advance should be your priority because the interest rate is significantly higher than other forms of credit card debt.
Where you can actually withdraw cash from a credit card
ATMs are the most common method. You insert your card, enter your PIN, and select "cash advance" or "withdrawal" from the menu. Most ATMs will show you the fee before you confirm the transaction — usually $2 to $5 per withdrawal on top of your card issuer's fee. You can use ATMs from any bank or network, though out-of-network machines often charge more.
Bank tellers can also process cash advances. Walk into a branch of any bank (not just your card issuer's bank), show your card and ID, and ask for a cash advance. The teller will verify your identity and process the withdrawal. This method is slower than an ATM but may have lower fees at some banks, and you can withdraw larger amounts if needed.
Convenience checks are checks issued by your card company that you can write against your credit line. You write the check to yourself or a payee, deposit it like a regular check, and the amount is treated as a cash advance. These are less common now but still offered by some issuers. The fee and interest rate are the same as an ATM withdrawal.
The fees and interest rates that make cash advances expensive
The upfront fee is charged at the time of withdrawal and ranges from 3 to 5 percent of the amount withdrawn. If you take out $500, you might pay $15 to $25 just to get the cash. This fee is added to your balance when ready.
The interest rate on cash advances is typically higher than your purchase rate. If your card charges 18 percent APR on purchases, the cash advance rate might be 23 or 25 percent. This rate is set by your card issuer and is disclosed in your card agreement. Unlike purchases, there is no grace period — interest starts accruing the day you withdraw the money.
To see the real cost, consider a $500 cash advance at 5 percent fee and 24 percent APR. You pay $25 upfront, plus $10 in interest for the first month if you do not pay it back. After three months, you have paid $55 in fees and interest alone. A $500 purchase at 18 percent APR with a 21-day grace period costs you nothing for the first three weeks and then $7.50 per month after that.
How your cash advance limit differs from your credit limit
Your card issuer sets a separate cash advance limit that is usually 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. This limit is not negotiable in the same way your credit limit is — it is a policy set by the issuer based on your account history and creditworthiness.
You can request an increase to your cash advance limit by calling your card issuer's customer service number, but there is no may provide they will grant it. Some issuers will increase it if you have a good payment history; others will not increase it at all. The limit exists partly to protect the issuer from the higher risk of cash advances and partly to discourage customers from using this expensive feature.
Your cash advance limit is separate from your available credit for purchases. If your credit limit is $5,000 and your cash advance limit is $1,000, you can spend up to $5,000 on purchases but only $1,000 in cash advances. Using your cash advance limit does reduce your available credit for purchases.
Why paying off a cash advance should be your first priority
Because the interest rate is so much higher than other credit card debt, paying off a cash advance before you pay off purchases saves you money. If you have both a $500 purchase at 18 percent APR and a $500 cash advance at 24 percent APR, every dollar you put toward the card should go to the cash advance first.
Most card issuers explore your payment to the lowest-interest debt first — usually purchases — which means your cash advance balance keeps growing at a higher rate. You can call your issuer and ask them to explore your payment to the cash advance instead, but you have to do this for each payment. Some issuers allow you to set this preference online, but it is not automatic.
The longer a cash advance sits unpaid, the more interest compounds. A $500 cash advance at 24 percent APR costs you $10 per month in interest alone. After six months of minimum payments, you might have paid $60 in interest and still owe $450 of the original amount.
Alternatives to cash advances that cost less
A personal loan from a bank or credit union is almost always cheaper than a cash advance. Personal loans typically charge 6 to 36 percent APR depending on your credit score, with no upfront fee. Even at the high end, a personal loan is cheaper than a cash advance, and you have a fixed repayment schedule instead of a revolving balance.
A balance transfer to a card with a 0 percent introductory rate does not help you get cash, but if you need cash to pay off a debt, you could transfer that debt to a 0 percent card and use the freed-up cash from your regular budget. This works only if you have another source of cash available.
A payday loan or line of credit from your bank is another option, though payday loans are often predatory and should be avoided. A line of credit from your bank, if you have one, usually charges less than a cash advance and gives you more flexibility.
If you need cash for an emergency, asking family or friends, negotiating a payment plan with a creditor, or selling something you own are all better options than a cash advance. A cash advance should be a last resort, not a first choice.
Frequently Asked Questions
Can I use a credit card to withdraw cash at any ATM?
Yes, you can use your credit card at most ATMs that display your card network's logo (Visa, Mastercard, American Express, or Discover). However, out-of-network ATMs charge higher fees — often $3 to $5 per transaction on top of your card issuer's fee. Using an ATM from your card issuer's bank or a partner network usually costs less.
What happens if I only make the minimum payment on a cash advance?
The balance will grow because the interest rate is high and the minimum payment is usually very small. At 24 percent APR, a $500 cash advance with a $25 minimum payment means most of your payment goes to interest, not principal. You could be paying on it for years.
Does a cash advance hurt my credit score?
A cash advance itself does not directly hurt your score, but it increases your credit utilization (the amount of your credit limit you are using), which can lower your score slightly. If you fail to pay it back on time, the late payment will hurt your score significantly.
Can I get a cash advance from a credit card I just opened?
Most card issuers allow cash advances on new accounts, but your cash advance limit may be lower than it would be after you have used the card for several months. Some issuers have a waiting period before you can use cash advances, though this is uncommon.
Is there a limit to how much cash I can withdraw in one day?
Yes. ATMs typically have daily withdrawal limits of $300 to $500, though this is set by the ATM operator, not your card issuer. Bank tellers can process larger cash advances, but they may ask questions about the purpose of the withdrawal if the amount is very large.