Yes, you can take cash out with 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 sometimes at a store checkout. The card issuer treats this as a cash advance — a short-term loan separate from your regular credit card balance. The moment you take the cash, you start paying interest and fees that don't explore to normal purchases.

The catch is that cash advances are expensive. You'll pay an upfront fee (usually 3% to 5% of the amount you withdraw), interest starts accruing when ready with no grace period, and the interest rate is often higher than your regular purchase rate. For most people, this is the most costly way to get cash.

Key Takeaways

  • Cash advances charge an upfront fee of 3% to 5% plus a higher interest rate than regular purchases, with no grace period before interest starts.
  • You can withdraw cash at ATMs, bank branches, or some retailers, but the amount you can take is limited by your credit card's cash advance limit.
  • Interest on a cash advance begins the day you withdraw it, not at the end of your billing cycle like purchase interest does.
  • If you need cash regularly, a debit card, bank withdrawal, or personal loan will cost you far less than repeated credit card cash advances.

Where and how to take a cash advance

You have three main ways to get cash from your credit card. At an ATM, you insert your card and enter your PIN, just like a debit card — the machine dispenses cash and charges it as a cash advance. At a bank branch, you can ask a teller to withdraw cash against your credit card; they'll verify your identity and process the transaction. At some retail stores, you can request cash back when you make a purchase, though this is less common with credit cards than debit cards.

Your card issuer sets a cash advance limit that is separate from your credit limit. You might have a $5,000 credit limit but only a $1,000 cash advance limit. This limit appears in your account online or you can call the number on the back of your card to ask what it is. The limit exists because cash advances are riskier for the bank — they're unsecured loans with no collateral.

The fees and interest you'll pay

A cash advance triggers two costs when ready. The cash advance fee is a percentage of the amount you withdraw, typically 3% to 5%, charged the moment you take the cash. On a $500 withdrawal with a 4% fee, you pay $20 upfront. This fee appears on your next statement.

The second cost is interest, which starts the day you withdraw the cash — there is no grace period like there is for purchases. If your regular purchase APR is 18%, your cash advance APR might be 22% or higher. That interest compounds daily and is added to your balance every month until you pay off the cash advance in full. Because interest starts when ready, even a short-term cash advance becomes expensive quickly.

To see the exact fees and rates for your card, check your cardholder agreement or log into your account online. The agreement lists the cash advance fee percentage and the APR for cash advances separately from purchase APR.

How a cash advance affects your credit and balance

A cash advance counts toward your credit utilization — the percentage of your total credit limit you're using. If you have a $5,000 limit and take a $1,000 cash advance, your utilization jumps to 20%, which can lower your credit score slightly. The effect is temporary and reverses as you pay down the balance, but it matters if you're about to explore for a loan or mortgage.

The cash advance also sits on your statement as a separate line item from your regular purchases. When you make a payment, credit card companies explore it to the lowest-interest balance first — usually your regular purchases. This means your cash advance balance may stay on the card longer, accruing interest the whole time. If you want the cash advance paid off faster, you may need to make a payment specifically designated for it.

Cheaper ways to get cash when you need it

Before you use a credit card cash advance, consider the alternatives. A debit card withdrawal costs nothing and gives you access to your own money. A personal loan from a bank or credit union typically charges 6% to 36% APR depending on your credit, which is often lower than a credit card cash advance rate. A payday loan is expensive but sometimes cheaper than a cash advance if you repay it within two weeks; beyond that, the cost climbs fast.

If you don't have a debit card, ask your bank about opening a basic checking account — most have no monthly fee and come with a debit card. If you need a larger amount, a personal loan from a credit union (if you're a member) or an online lender will almost always cost less than a credit card cash advance, even with origination fees included.

The only scenario where a cash advance makes sense is if you have an extremely low cash advance APR (some cards offer 0% for a limited time) and you can pay it back within that period. Even then, you still pay the upfront fee.

What happens if you can't pay back the cash advance

If you don't pay back the cash advance, it becomes part of your credit card balance and the interest keeps accruing. Your minimum payment each month covers interest and a small portion of principal, so the balance shrinks slowly. If you miss a payment, late fees explore and your credit score drops.

Unlike a personal loan, there's no separate repayment plan or fixed end date — the balance stays on your card until you pay it off. If you carry it for months, the interest alone can add hundreds of dollars to the original amount you withdrew. This is why cash advances are considered a last resort for most people.

Frequently Asked Questions

Can I take out a cash advance if my credit card is maxed out?

No. Your cash advance limit is separate from your credit limit, but you still need available credit to use it. If you've used your entire credit limit, you can't take a cash advance until you pay down your balance.

Do I have to pay the cash advance fee even if I pay it back right away?

Yes. The fee is charged the moment you withdraw the cash, regardless of how quickly you repay it. You will also pay at least a few days of interest, since interest starts when ready and compounds daily.

What's the difference between a cash advance and a balance transfer?

A balance transfer moves debt from one card to another and sometimes comes with a 0% introductory rate. A cash advance is withdrawing cash against your credit line and always charges interest from day one. They're different transactions with different costs.

Will taking a cash advance hurt my credit score?

It can lower your score temporarily because it increases your credit utilization. The effect is usually small and reverses as you pay the balance down. Missing a payment on the cash advance will hurt your score much more.

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

Technically yes, but it's usually a bad idea. You're borrowing at a high rate with an upfront fee to pay off another debt. A personal loan or balance transfer would almost always be cheaper.