Yes, you can take cash out with a credit card, but it costs more than a purchase and counts as a loan, not a withdrawal

Most credit card issuers let you borrow cash against your credit limit through a feature called a cash advance. Unlike swiping your card at a store, a cash advance is treated as a short-term loan. You pay interest on it when ready — usually at a higher rate than your purchase APR — plus an upfront fee. The cash appears in your bank account within one to three business days, depending on your bank and card issuer.

The mechanics are straightforward: you request the cash, the card issuer sends it to your bank account or gives it to you at an ATM, and you owe it back with interest and fees. But the cost structure is what matters. A cash advance of $500 can easily cost $50 to $100 in fees and interest over a few months, depending on your card's terms and how quickly you pay it back.

Key Takeaways

  • Cash advances charge an upfront fee (typically 3 to 5 percent of the amount) plus a higher interest rate than regular purchases, often 20 to 30 percent APR.
  • Interest on a cash advance starts accruing when ready, with no grace period like you get on purchases.
  • You can request a cash advance through your card issuer's website, app, phone line, or at an ATM, and the money usually arrives within one to three business days.
  • The cash advance counts against your credit limit, so borrowing $500 reduces your available credit by $500.
  • Paying back a cash advance is slower than paying back purchases because card issuers explore your payments to purchases first, then cash advances.

How the fees and interest work

When you take a cash advance, you pay two costs upfront: a cash advance fee and cash advance APR. The fee is usually a flat percentage of the amount you borrow — typically 3 to 5 percent. So a $500 cash advance costs $15 to $25 just to get the money. Some cards cap the fee at a minimum amount (like $5 minimum, $10 maximum), which can make small advances cheaper or larger ones more expensive than the percentage suggests.

The interest rate on cash advances is separate from your purchase APR and is almost always higher. While a card might charge 18 percent APR on purchases, the cash advance APR could be 25 to 30 percent. Interest starts accruing the day you take the advance — there is no grace period. If you borrow $500 at 28 percent APR and pay it back in 30 days, you owe roughly $12 in interest on top of the $15 to $25 fee.

Your card issuer's payment rules also work against you. When you make a payment, the issuer applies it to your purchase balance first, then to your cash advance balance. If you have both a $500 purchase and a $500 cash advance, and you pay $600, that $600 goes toward the purchase first. The cash advance keeps accruing interest at the higher rate while you pay down the purchase.

Where and how to request a cash advance

You have four main ways to get a cash advance: through your card issuer's website or app, by calling their customer service number, at an ATM, or at a bank branch. The fastest method is usually your card issuer's app or website — you can request the advance and have the money in your bank account within one to three business days. Some issuers offer same-day or next-day transfers if you request before a certain time.

At an ATM, you can withdraw cash directly using your credit card's PIN, but this method has limits. Most ATMs let you withdraw only $200 to $500 per transaction, and you may be limited to one or two withdrawals per day. ATM withdrawals also charge a fee from the ATM operator (usually $2 to $5) on top of your card issuer's cash advance fee. Bank tellers can process larger amounts, but they follow the same fee and interest structure.

Before you request a cash advance, check your card's terms for the exact fee percentage and APR. This information is in your cardholder agreement or on your issuer's website. Some cards offer promotional periods with lower cash advance APRs (rare), and a few cards marketed to people with limited credit history waive the cash advance fee entirely — but these are exceptions.

Why cash advances are expensive compared to other borrowing

A cash advance is one of the most expensive ways to borrow money. The combination of an upfront fee and a high interest rate with no grace period makes it costlier than a personal loan, a line of credit, or even a payday loan in many cases. A $500 personal loan from a bank or credit union might cost $25 to $50 in interest over three months. The same $500 cash advance could cost $50 to $75 in fees and interest over three months.

Credit cards are designed to make money on interest and fees, and cash advances are where that incentive is strongest. The issuer charges you to borrow, charges you a high rate while you owe, and structures payments so the cash advance balance lingers longer. If you need cash regularly, a personal line of credit or a credit union loan is cheaper. If you need cash once, a personal loan or even a 0 percent balance transfer card (if you have good credit) is usually better.

How a cash advance affects your credit score and available credit

A cash advance reduces your available credit when ready. If your card has a $5,000 limit and you take a $500 cash advance, your available credit drops to $4,500. This affects your credit utilization ratio — the percentage of your total credit limit you are using across all cards. If you normally use 20 percent of your credit and the cash advance pushes you to 30 percent, your credit score may drop slightly. The effect is temporary and reverses as you pay down the balance.

The cash advance itself does not show up as a separate account on your credit report. It is part of your credit card account. However, if you miss a payment on the cash advance, that missed payment appears on your credit report and damages your score. The cash advance also does not help your credit mix — it is still just credit card debt, not a different type of credit like an installment loan.

Alternatives to cash advances

If you need cash, consider these options before taking a cash advance. A personal loan from a bank, credit union, or online lender usually has a lower APR (8 to 20 percent) and no upfront fee. You get a lump sum and repay it in fixed monthly installments, making the total cost predictable. A line of credit works similarly but lets you borrow only what you need and pay interest only on what you use.

A 0 percent balance transfer card does not give you cash directly, but if you need to move money between accounts, you can transfer a balance from another card and pay no interest for 6 to 21 months (depending on the card). This works only if you have good credit and another card to transfer from. A payday loan is faster but often more expensive than a cash advance, so it is not a better option.

If you need cash for an emergency, ask yourself whether you actually need the full amount right now. Many emergencies can be partially solved with a smaller cash advance or by using a debit card to access money you already have. If you do not have savings and regularly need cash advances, that is a sign to build an emergency fund or explore a cheaper credit product.

What happens if you cannot pay back a cash advance

If you cannot pay back a cash advance, the interest and fees keep growing. Your card issuer will report the missed payment to the credit bureaus after 30 days, and your credit score will drop. After 60 days, the issuer may increase your APR on the entire card (including purchases). After 180 days, the issuer may charge off the debt and sell it to a collection agency.

You can contact your card issuer and ask about a hardship program or a payment plan, but these are not may provide. Some issuers offer to lower your interest rate or waive fees if you commit to a fixed payment schedule. Ignoring the debt does not make it go away — it will eventually be reported to a collection agency, and you may be sued.

Frequently Asked Questions

Can I take out a cash advance if I have a low credit limit?

Yes. Your cash advance limit is usually the same as your credit limit, but some issuers set a lower cash advance limit. A $1,000 credit limit might allow only a $500 cash advance. Check your cardholder agreement or call your issuer to find out your cash advance limit.

Does a cash advance show up on my credit report?

The cash advance itself does not appear as a separate item. It is part of your credit card balance. However, if you miss a payment, that missed payment is reported and damages your score. The cash advance also counts toward your credit utilization ratio.

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

A cash advance gives you actual cash in your bank account or from an ATM. A balance transfer moves money from one credit card to another. Balance transfers usually have lower fees and APRs than cash advances, but they do not give you cash to spend.

Can I use a credit card to withdraw cash at any ATM?

Most ATMs accept credit cards, but not all. ATMs owned by your card issuer's bank usually have no surcharge. ATMs owned by other banks charge a fee ($2 to $5) on top of your card issuer's cash advance fee. Check your card issuer's website for a list of surcharge-free ATMs.

How long does it take to get a cash advance?

An ATM withdrawal is when ready. A bank teller withdrawal takes minutes. A request through your card issuer's app or website usually takes one to three business days for the money to appear in your bank account. Some issuers offer same-day or next-day transfers for an additional fee.