You can withdraw cash using a credit card, but it works differently than a debit card and costs more

A cash advance is a withdrawal of cash from your credit card account. You can get one at an ATM using your credit card and PIN, at a bank teller window, or through a cash advance service. The money comes from your available credit, not a separate bank account.

The catch is that cash advances are expensive. You pay an upfront fee (usually 3 to 5 percent of the amount withdrawn), and the interest rate on the cash advance is typically higher than the rate on regular purchases — often 2 to 3 percentage points higher. Interest starts accruing when ready; unlike purchases, there is no grace period. A $500 cash advance at 5 percent fee plus 25 percent APR costs you $25 upfront and then $10.42 per month in interest if you carry the balance.

Key Takeaways

  • Cash advances charge an upfront fee of 3 to 5 percent plus a higher interest rate than purchases, with interest starting the day you withdraw.
  • You can withdraw cash at ATMs, bank teller windows, or through cash advance services using your credit card and PIN.
  • The amount you can withdraw is limited by your cash advance limit, which is usually lower than your total credit limit and set by your card issuer.
  • If you need cash regularly, a debit card or bank account withdrawal costs nothing and should be your first choice.

Where and how to get a cash advance

The easiest method is an ATM. Insert your credit card, enter your PIN, select "cash advance" or "withdrawal," and choose the amount. The ATM will dispense cash and charge the fee when ready. Your credit card statement will show the transaction within one to three business days.

You can also visit a bank teller window — yours or any bank that accepts your card — and ask for a cash advance. Bring your card and ID. The teller will process it on the spot, though some banks charge an additional fee for teller-processed advances on top of the card issuer's fee.

A third option is a cash advance service or check-cashing store. These businesses will advance you cash against your credit card for a fee, though their fees are often higher than ATM fees. Use this only if ATMs and banks are unavailable.

Cash advance limits and how they work

Your card issuer sets a separate cash advance limit, which is different from your credit limit. If your credit limit is $5,000, your cash advance limit might be $1,000 or $2,500. You cannot withdraw more than this limit, even if you have unused credit available.

You can find your cash advance limit in your cardholder agreement, on your online account portal, 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.

The cash advance counts against your total available credit. If you withdraw $500 and your credit limit is $5,000, you now have $4,500 in available credit remaining.

Fees and interest rates for cash advances

Most card issuers charge a cash advance fee of 3 to 5 percent of the amount withdrawn, with a minimum fee of $2 to $10. A $100 advance might cost $5 to $10; a $1,000 advance might cost $30 to $50. Check your cardholder agreement or call your issuer to learn your specific fee.

The cash advance APR (annual percentage rate) is separate from your purchase APR and is almost always higher. If your purchase APR is 18 percent, your cash advance APR might be 25 percent. Interest accrues daily from the moment you withdraw the cash — there is no grace period like there is for purchases.

To calculate the cost: a $500 cash advance at a 5 percent fee ($25) plus 25 percent APR costs $25 upfront. If you pay it back in one month, you owe approximately $10.42 in interest, for a total cost of $35.42. If you carry it for six months, the interest alone reaches about $65.

Why cash advances are more expensive than other borrowing methods

Credit card cash advances are among the most expensive ways to borrow money. A personal loan from a bank typically charges 6 to 36 percent APR with no upfront fee. A payday loan charges a flat fee but is meant for very short-term borrowing. Even a credit card purchase, which has a grace period and lower APR, costs less than a cash advance.

The high cost reflects the risk to the card issuer: cash advances are unsecured (not backed by collateral), and the issuer has less control over how the money is used. They charge more to offset that risk.

If you need cash and have other options — a debit card, a bank account, a personal loan, or even a credit card purchase followed by a cash-back withdrawal — those are almost always cheaper than a cash advance.

How cash advances affect your credit score

A cash advance itself does not directly damage your credit score. However, it does increase your credit utilization ratio, which is the percentage of your available credit you are using. If you have a $5,000 credit limit and withdraw a $1,000 cash advance, your utilization jumps to 20 percent (or higher if you have other balances). High utilization can lower your score by a few points.

The bigger risk is carrying a balance. If you cannot pay off the cash advance quickly, the high interest rate means your balance grows faster than it would on a purchase. A growing balance further increases your utilization and can hurt your score over time. Paying off the cash advance in full as soon as possible limits this damage.

Alternatives to cash advances

If you need cash, consider these cheaper options first: withdraw from your bank account using a debit card or ATM (free), use a credit card to make a purchase and ask for cash back at a store (free), or request a personal loan from your bank or credit union (typically 6 to 36 percent APR with no upfront fee).

If you are in a true emergency and have no other way to access cash, a cash advance is available, but treat it as a last resort. Pay it off as quickly as possible to minimize interest charges.

Frequently Asked Questions

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

A cash advance withdraws cash from your credit line and charges a fee plus high interest. A balance transfer moves debt from one card to another and typically offers a lower introductory rate for a set period (often 0 percent for 6 to 21 months). Balance transfers are for moving existing debt; cash advances are for getting cash.

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

Technically yes, but it is expensive. You would pay the cash advance fee plus the high cash advance APR, then use that cash to pay another card. A balance transfer (if you may have access to) is much cheaper because it avoids the cash advance fee and often includes a 0 percent introductory rate.

Do I have to pay back a cash advance right away?

No, but you should. Interest starts accruing when ready at your cash advance APR, which is higher than your purchase rate. The longer you carry the balance, the more interest you pay. Paying it off within a month or two is much cheaper than letting it sit.

Will my bank let me withdraw more than my cash advance limit?

No. Your cash advance limit is a hard cap set by your card issuer. You cannot exceed it, even if you have unused credit available. If you need more cash, you would have to pay off part of the advance first or use a different method to borrow.

Can I get a cash advance from a credit card without a PIN?

At an ATM, you need a PIN. At a bank teller window, you can request a cash advance with just your card and ID, though some banks may ask for additional verification. Cash advance services vary; call ahead to ask what they require.