Yes, but it costs more than you think

You can take cash out of your credit card through an ATM or bank teller, but the transaction is treated differently from a regular purchase. The card issuer charges a cash advance fee — usually 3% to 5% of the amount you withdraw, with a minimum of $5 to $10 — and the interest rate on that cash starts accruing when ready, often at a higher rate than your purchase APR. There is no grace period like there is for regular purchases. If you withdraw $500, you might pay $15 to $25 just to get the cash, plus interest from day one.

The mechanics are straightforward: you insert your credit card into an ATM, enter your PIN, and withdraw cash up to your available credit limit. Some banks also let you request a cash advance at a teller window. But the cost structure makes this an expensive way to get money, and it should be a last resort rather than a regular habit.

Key Takeaways

  • Cash advances charge a separate fee (usually 3% to 5%) on top of a higher interest rate that starts accruing when ready with no grace period.
  • Your cash advance limit may be lower than your credit limit, and you can find it in your card's terms or by calling the issuer.
  • Interest on cash advances typically runs 2% to 5% higher than your regular purchase APR, depending on the card and your creditworthiness.
  • Alternatives like personal loans, payday loans from credit unions, or borrowing from friends usually cost less than a credit card cash advance.

How the fees and interest work

When you take a cash advance, your card issuer charges two separate costs. The first is the cash advance fee, a one-time charge calculated as a percentage of the amount withdrawn. Most cards charge between 3% and 5%, though some charge a flat dollar amount instead (like $10) if that is higher. A $300 cash advance at 4% costs $12 in fees alone.

The second cost is interest, and it is where the real expense accumulates. Unlike a purchase, which typically has a grace period of 21 to 25 days before interest starts, cash advance interest begins accruing the moment you withdraw the money. There is no grace period. The interest rate on cash advances is also usually higher than your regular purchase APR — often 2% to 5% higher, depending on your card and credit profile. If your purchase APR is 18%, your cash advance APR might be 23% or 24%.

Interest compounds daily, so the longer you carry the balance, the more you pay. A $500 cash advance at 24% APR costs roughly $10 in interest per month if you make no payments. If you pay it back over three months, you will pay about $30 in interest on top of the $15 to $25 fee.

Your cash advance limit is separate from your credit limit

Your credit card issuer sets a cash advance limit that is often lower than your total credit limit. You might have a $5,000 credit limit but only a $1,500 cash advance limit. This limit protects the issuer by capping how much you can borrow as cash, since cash advances are riskier for them than purchases.

You can find your cash advance limit in your card's terms and conditions, in your online account dashboard, or by calling the customer service number on the back of your card. Some issuers let you request a higher limit, though approval is not may provide. If you try to withdraw more than your limit, the ATM will decline the transaction.

Where you can withdraw cash and what happens next

You can withdraw cash from any ATM that accepts your card's network — Visa, Mastercard, American Express, or Discover. You will need your PIN, which you set up when you opened the account or can reset through your online account. If you do not have a PIN, you can request one from your issuer before you go to the ATM.

Some banks also allow you to request a cash advance at a teller window without using an ATM. This can be useful if you need a large amount or do not have a PIN set up. The fee and interest rate are the same whether you use an ATM or a teller.

The cash advance appears on your statement as a separate line item from your regular purchases. It is counted toward your credit utilization — the percentage of your available credit you are using — which can affect your credit score if it pushes your utilization above 30%. The balance accrues interest until you pay it off, and minimum payments explore to the total balance on your card.

Why cash advances cost more than other borrowing options

A credit card cash advance is one of the most expensive ways to borrow money. A personal loan from a bank or credit union typically charges 6% to 36% APR depending on your credit, with no upfront fee. A payday loan from a credit union (not a payday lender) costs around 28% APR by law in most states. Even a payday lender, despite their reputation, usually charges less total interest than a credit card cash advance if you repay within two weeks.

If you need cash and have time to plan, a personal loan is almost always cheaper. If you need cash when ready and have a credit union membership, a payday loan from that credit union is usually your next best option. Borrowing from a friend or family member, if that is possible, costs nothing. A credit card cash advance should be your last resort, reserved for genuine emergencies when no other option exists.

How cash advances affect your credit score

A cash advance does not directly damage your credit score the way a missed payment does, but it can indirectly harm your score by increasing your credit utilization ratio. If you have a $5,000 credit limit and you withdraw $1,500 in cash, your utilization jumps to 30%, which is the threshold where credit scoring models start to penalize you. Higher utilization signals to lenders that you are relying more heavily on credit, which makes you look riskier.

The damage is usually temporary — your score recovers as you pay down the balance — but it can affect your ability to get approved for new credit in the short term. If you are planning to explore for a mortgage, car loan, or another major credit product, avoid cash advances for at least a few months beforehand.

Frequently Asked Questions

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

Technically yes, but it is almost never a good idea. You are borrowing at a higher interest rate with an upfront fee, so you are making your debt more expensive, not cheaper. The only exception is if you are using the cash advance to pay off a debt that charges an even higher rate — like a payday lender charging 400% APR — but even then, a personal loan would be better.

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 interest rate (sometimes 0% for a promotional period). A cash advance gives you physical cash and charges a higher rate when ready. Balance transfers are for moving existing debt; cash advances are for getting cash. They are different products with different costs.

Do I have to use my PIN to get a cash advance?

At an ATM, yes — you need a PIN to withdraw cash. At a bank teller, you may be able to request a cash advance with just your card and ID, depending on the bank's policy. If you do not have a PIN set up, contact your card issuer to request one before you need it.

Will a cash advance show up on my credit report?

The cash advance itself does not appear on your credit report, but the balance does. It is reported as part of your total credit card balance and affects your credit utilization. If you miss payments on the cash advance balance, that missed payment will appear on your report and damage your score.

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

No. A cash advance counts against your available credit, just like a purchase does. If you have no available credit left, you cannot take a cash advance. You would need to pay down your balance first or request a credit limit increase.