You can withdraw cash from a credit card, but it costs more than a regular purchase

A cash advance is a withdrawal of cash from your credit card account. Unlike a debit card, which pulls money from your bank account, a cash advance borrows against your credit limit. The card issuer charges you a fee upfront, usually 3 to 5 percent of the amount withdrawn, plus a higher interest rate than regular purchases — often 20 to 30 percent annually. You start paying interest when ready, with no grace period.

You can get a cash advance at an ATM using your credit card and PIN, at a bank teller's window, or through a cash advance check if your card issuer sends one. The process takes minutes, but the cost adds up fast. A $500 cash advance with a 4 percent fee and 25 percent APR will cost you $20 upfront, then roughly $10 per month in interest if you carry the balance.

Key Takeaways

  • Cash advances charge a separate fee (usually 3 to 5 percent) on top of a higher interest rate than regular purchases.
  • Interest on a cash advance begins accruing when ready — there is no grace period like there is for regular credit card purchases.
  • You can withdraw cash at an ATM, a bank branch, or through a cash advance check, depending on what your card issuer offers.
  • Paying off a cash advance should be your priority because the interest rate is significantly higher than other forms of credit card debt.

Where to withdraw cash from your credit card

The most common method is an ATM withdrawal. Find an ATM that accepts your card's network (Visa, Mastercard, American Express, or Discover), insert your card, enter your PIN, and select the cash advance option. Not all ATMs display this option clearly — you may need to select "other transactions" or "cash advance" from a menu. The ATM will show you the fee before you confirm, so you can decline if the cost is too high.

You can also visit a bank branch in person. Walk up to a teller, show your credit card and ID, and ask for a cash advance. The teller will process it on the spot. This method works even if you do not have a PIN set up yet, though you will still pay the same fees.

Some card issuers send cash advance checks in the mail. These work like regular checks but draw from your credit line instead of a bank account. You can deposit them into a bank account or cash them at a check-cashing service. The fee and interest rate still explore, and the issuer may charge an additional processing fee for using the check.

Fees and interest rates you will pay

Every cash advance comes with an upfront fee, charged when ready when you withdraw the money. This fee is a percentage of the amount withdrawn — typically 3 to 5 percent, though some cards charge a flat minimum (like $10) if the percentage would be lower. A $200 cash advance with a 4 percent fee costs you $8 right away. A $50 advance with a $10 minimum fee costs you $10.

The interest rate on a cash advance is separate from your regular purchase APR and is almost always higher. While a card might charge 15 percent on purchases, the cash advance APR could be 25 or 30 percent. This rate applies from the moment you withdraw the money — there is no grace period. If you carry a $500 cash advance for one month at 25 percent APR, you will owe roughly $10 in interest alone.

Check your card's terms or call the issuer to find out your specific cash advance fee and APR. These details are in your cardholder agreement or on the issuer's website under "cash advance terms" or "fees and rates."

How to set up or reset your PIN

To withdraw cash at an ATM, you need a PIN (personal identification number). If you have never set one up, contact your card issuer by phone, through their mobile app, or online. Most issuers let you create a PIN in seconds through their website or app — you choose a four-digit number and confirm it. Some issuers mail a temporary PIN to your address on file, which you then change to something you remember.

If you forgot your PIN, call the customer service number on the back of your card. The issuer will verify your identity and either reset it when ready or mail you a new one. This process usually takes a few minutes by phone.

Paying back a cash advance quickly

Because cash advances carry a high interest rate and no grace period, they should be your first priority to pay off. When you make a payment to your credit card, the issuer applies it to your balance in a specific order set by law: first to the highest-interest debt (usually the cash advance), then to regular purchases, then to balance transfers. This means your payment goes toward the cash advance first, which is what you want.

If you have both a cash advance and regular purchases on the same card, paying the minimum will reduce the cash advance balance, but slowly. A $500 cash advance at 25 percent APR will take about 18 months to pay off if you only make minimum payments. Paying $50 per month instead will clear it in about 11 months and save you roughly $40 in interest.

The fastest way to stop the bleeding is to pay the full cash advance amount in one lump sum as soon as you can. Even paying it back within a week or two saves you significant interest compared to carrying it for months.

Alternatives to a cash advance

Before you take a cash advance, consider whether another option costs less. A personal loan from a bank or credit union typically charges 6 to 36 percent APR with no upfront fee — often lower than a cash advance APR plus fee combined. A balance transfer to a 0 percent promotional card (if you may have access to) costs a 3 to 5 percent transfer fee but no interest for 6 to 21 months, depending on the offer.

If you need cash for an emergency, a payday loan or line of credit from your bank may be faster and cheaper, though payday loans can be predatory. A payment plan with the person or business you owe money to (a medical provider, utility company, or landlord) often costs nothing and gives you time to pay without borrowing at all.

If you are considering a cash advance because you are short on cash regularly, that is a sign to look at your budget or talk to a financial counselor. A one-time cash advance for a genuine emergency is different from using it as a regular source of spending money.

Frequently Asked Questions

Can I withdraw more cash than my credit limit?

No. Your cash advance limit is part of your overall credit limit. If your limit is $5,000 and you have already charged $3,000 in purchases, you can only withdraw up to $2,000 in cash. Some card issuers set a separate, lower cash advance limit — for example, 50 percent of your credit limit — so you may be able to charge more in purchases than you can withdraw in cash.

How long does a cash advance show up on my credit card statement?

The cash advance appears on your statement the same day or the next business day, depending on when you withdrew it and your issuer's processing schedule. The fee is listed separately from the cash advance amount. Interest begins accruing when ready and appears on your next statement.

Does a cash advance hurt my credit score?

A cash advance itself does not hurt your score, but carrying a high balance does. If your cash advance pushes your total balance close to your credit limit, your credit utilization ratio increases, which can lower your score. Paying it off quickly brings the ratio back down and minimizes the damage.

What if the ATM declines my cash advance?

The ATM may decline because you do not have a PIN set up, you entered the wrong PIN, your card is blocked, or you have reached your cash advance limit. Try a different ATM or visit a bank branch instead. If the problem persists, call your card issuer to find out why the transaction was declined.

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

Technically yes, but it is almost always a bad idea. You are borrowing at 25 to 30 percent interest to pay off debt that might be at 15 to 20 percent interest. You are also paying an upfront fee on top of the higher rate. It is cheaper to make a regular payment from your bank account or to transfer the balance to a 0 percent promotional card instead.