Getting cash from a credit card is possible but costs more than a purchase

You can withdraw cash from a credit card at an ATM, through a bank teller, or by getting cash back at a store checkout. The card issuer treats this as a cash advance — a separate transaction from a purchase. Cash advances charge a higher interest rate than regular purchases, usually 3 to 5 percentage points more, and start accruing interest when ready with no grace period. You also pay an upfront fee, typically 3 to 5 percent of the amount withdrawn.

Because of these costs, pulling money off a credit card should be a last resort. If you need cash, a personal loan, a line of credit, or even a payday loan from a credit union will almost always be cheaper. But if you have no other option, knowing how to do it and what it will cost you matters.

Key Takeaways

  • Cash advances charge a separate, higher interest rate than purchases — usually 20 to 30 percent — plus an upfront fee of 3 to 5 percent of the amount you withdraw.
  • Interest on a cash advance starts the day you withdraw it, with no grace period, so the cost grows when ready.
  • You can get a cash advance at an ATM using your PIN, at a bank teller with your card and ID, or at some store checkouts.
  • Your credit card issuer sets a cash advance limit, which may be lower than your credit limit, and you can find it in your account or by calling the card's customer service number.
  • Paying off a cash advance should be your priority because the interest rate is so high.

Where to withdraw cash from your credit card

The easiest method is an ATM. Insert your card, enter your PIN, select "withdrawal" or "cash advance," and choose the amount. The ATM will dispense cash and charge it to your card when ready. Most ATMs accept credit cards, though some are limited to debit cards — the machine will tell you if yours does not work.

You can also visit a bank branch and ask a teller for a cash advance. Bring your credit card and a photo ID. The teller will process the transaction and hand you cash. This method works even if you do not have a PIN set up for your card, though you may need to set one up first by calling your card issuer.

A third option is cash back at a store. Some retailers — grocery stores, pharmacies, and big-box stores — will give you cash when you use your credit card at checkout. You typically have to make a purchase first, and the cash back amount is limited, often to $20 to $100. This is cheaper than an ATM or bank withdrawal because there is no separate cash advance fee, though the interest rate on the cash back still applies.

Understanding cash advance fees and interest rates

When you take a cash advance, you pay two costs upfront: a transaction fee and a higher interest rate. The transaction fee is usually 3 to 5 percent of the amount withdrawn — so a $500 cash advance costs $15 to $25 just to get the money out. Some cards charge a flat fee instead, like $10 per advance, which is better for larger amounts but worse for small ones.

The interest rate on a cash advance is separate from your purchase rate. If your card charges 18 percent on purchases, the cash advance rate might be 23 or 25 percent. This rate varies by card and by your creditworthiness, and you can find it in your card's terms or by calling the issuer. Unlike purchases, there is no grace period — interest starts accruing the day you withdraw the cash.

A $500 cash advance at 25 percent interest costs roughly $10 per month in interest alone, before you pay down the principal. If you carry it for six months, you will have paid $30 in interest plus the original $15 to $25 fee. The longer you carry it, the more expensive it becomes.

Finding your cash advance limit

Your credit card issuer sets a separate cash advance limit, which is often lower than your overall credit limit. You might have a $5,000 credit limit but only a $1,000 cash advance limit. This limit protects the issuer from risk and is based on your credit history and account status.

You can find your cash advance limit by logging into your online account or mobile app — it is usually listed under "account details" or "limits." If you cannot find it there, call the customer service number on the back of your card and ask. The representative will tell you your current limit and whether you have room to take an advance.

If you need more than your limit allows, you can request an increase by calling customer service. The issuer may grant it or may deny it depending on your account history. There is no harm in asking, but there is also no may provide.

How the cash advance appears on your bill

A cash advance shows up as a separate line item on your credit card statement, distinct from purchases. It will list the amount withdrawn, the transaction fee, and the interest charged. The cash advance balance is subject to the cash advance interest rate, not your purchase rate, even if you pay off your purchases in full.

When you make a payment to your card, the issuer applies it to your lowest-interest balance first — usually purchases — and leaves the cash advance balance to accrue interest. This means paying the minimum will not pay down the cash advance quickly. To reduce the cost, you need to pay more than the minimum and direct that extra payment toward the cash advance balance.

Some issuers let you specify which balance to pay down when you make a payment online or by phone. If yours does, use that option to send extra money directly to the cash advance. If not, you may need to call and ask the issuer to explore your payment to the cash advance specifically.

Alternatives that cost less than a cash advance

Before you take a cash advance, explore other options. A personal loan from a bank or credit union typically charges 8 to 15 percent interest with no upfront fee — much cheaper than a cash advance. You can often get approved and funded within a few days.

A line of credit from your bank works similarly and may have an even lower rate if you have good credit. A credit union payday loan alternative (PAL) is designed for people in a pinch and charges no more than 28 percent interest with no fee — still cheaper than most credit card cash advances when you factor in the upfront fee.

If you have a 401(k) or similar retirement account, you may be able to borrow against it at a low rate, though this has tax consequences if you do not repay it on time. A family loan, if that is an option, costs nothing but requires a conversation and possibly a written agreement to avoid misunderstanding.

Paying off a cash advance quickly

Once you have taken a cash advance, your priority should be paying it off as fast as you can. The interest rate is high enough that every week you carry the balance costs you real money. If you took a $500 advance at 25 percent, waiting a month to pay it back costs you roughly $10 in interest plus the original fee.

Make a plan to pay it off within one or two billing cycles if possible. If you cannot pay it all at once, pay as much as you can and then stop taking new advances. Each payment reduces the principal and the interest you owe going forward. Once the cash advance balance is zero, do not use that feature again unless it is a genuine emergency.

If you find yourself regularly taking cash advances, that is a sign you are spending more than you earn. A budget, a side income, or a conversation with a credit counselor can help you break the cycle before the debt grows.

Frequently Asked Questions

Can I take a cash advance if I am already carrying a balance?

Yes. Your cash advance limit is separate from your available credit, so you can take an advance even if you are carrying a purchase balance. However, the advance will accrue interest at a higher rate than your purchases, making your overall debt more expensive. Paying down your existing balance first is usually smarter.

What happens if I exceed my cash advance limit?

The ATM or teller will decline the transaction if you try to withdraw more than your limit. You cannot go over it. If you need more cash, you can request a limit increase by calling customer service, but there is no may provide the issuer will grant it.

Does a cash advance hurt my credit score?

Taking a cash advance itself does not directly hurt your score, but carrying a high balance does. A cash advance increases your overall credit card balance, which raises your credit utilization ratio — the percentage of your available credit you are using. High utilization can lower your score. Paying it off quickly minimizes this damage.

Can I take a cash advance from a rewards credit card?

Yes, but you will not earn rewards points on the cash advance. Rewards are typically earned only on purchases, not on cash advances or balance transfers. This is another reason cash advances are expensive — you get no benefit from the transaction.

What if my card does not have a PIN?

You can still get a cash advance at a bank teller with your card and ID, or you can set up a PIN by calling your card issuer. Most issuers let you create a PIN over the phone or through your online account in minutes. Once it is set, you can use any ATM.