Need cash fast and thinking of using your credit card? Here's what to know before you swipe or withdraw.
Note: The fees, limits and rules below reflect US credit cards. Check your own card's terms for exact figures.
What is a credit card cash advance?
A cash advance is a withdrawal of cash against your credit card account, which means you're borrowing money.
Most cards set a cash advance limit that's lower than your overall credit limit.
For example, a $15,000 credit limit with a 20% cash advance limit means you can take out up to $3,000 in cash.
How can you get one?
- At an ATM: You'll usually need a cash advance PIN from your card issuer.
- At a bank branch: Bring your card and a valid ID.
- With a convenience check: These are blank checks some issuers mail to you, and they're charged at the cash advance rate.
Watch out for "hidden" cash advances
Some transactions may be treated as cash advances even if you never touch an ATM.
Depending on your issuer, these can include:
- Buying money orders or other cash equivalents
- Sending wire transfers
- Funding certain financial accounts
- Placing gambling-related transactions
If you're unsure, check your card agreement's definition of a cash advance.
What does it cost?
Three charges can stack up at once.
1. An upfront fee
Fees often run 3% to 5% of the amount, and some issuers set a minimum dollar charge instead.
On a $1,000 advance with a 5% fee, that's $50 just to get the money.
2. A higher interest rate
Cash advances usually carry a higher interest rate than regular purchases.
A card might charge 22% on purchases but 29.99% on cash advances.
3. No grace period
Purchases get a window before interest kicks in, but a cash advance generally starts accruing interest right away.
That means you can owe interest even if you repay before your next statement.
Example: a $1,000 advance for 30 days
This assumes a 29.99% APR, a 5% fee and no payments during the month.
| Cost | Amount |
|---|---|
| Cash advance | $1,000.00 |
| Fee (5%) | $50.00 |
| Interest after 30 days (approx.) | $24.65 |
| Total to repay | $1,074.65 |
Borrowing for one month costs nearly $75.
Actual costs can be higher if your issuer charges interest on the fee or an ATM operator adds its own fee.
Does it hurt your credit score?
Not directly.
It can still hurt indirectly, though.
A cash advance raises your balance, which raises your credit utilization (the share of your available credit you're using).
For example, a $1,500 balance on a $15,000 limit is 10% utilization.
Add a $3,000 advance and you're at 30%.
Higher utilization can lower your score, and late payments can make things worse.
When might it make sense?
Only in a true emergency, when you have no other way to pay.
Think of an urgent repair bill where the shop doesn't take cards.
If you do take one out, pay it back as fast as you can.
Cheaper alternatives to consider first
- Emergency savings: No fees and no interest.
- Personal loan: Often a lower rate, especially with good credit, but approval and funding can take days.
- 0% intro APR card: Good for purchases, though you'll need to qualify and the regular rate applies after the promo ends.
- Card installment plan: Splits a purchase into fixed payments, but it doesn't give you cash.
- Rewards redemption: Cash-back rewards may be redeemable as a bank deposit.
- Family or friends: Agree on the amount and the due date, and put it in writing.
- Paycheck advance or early direct deposit: Check for fees, since some apps charge for fast transfers.
- Payment services: These may let you pay bills by card, but they often charge fees and some issuers count them as cash advances.
Ways to get cash without the usual advance charges
A few issuers offer workarounds, but availability and limits vary.
- Discover Cash at Checkout: Eligible cardholders can request cash during a purchase at participating retailers.
- Amex Send: Eligible American Express cardholders can send money to friends and family through Venmo or PayPal, and it's treated as a purchase rather than a cash advance.
Always confirm the current terms with your issuer.
Quick answers
Can I use a credit card at an ATM?
Yes, but expect a fee and immediate interest.
How much cash can I take out?
It depends on your cash advance limit, which is usually lower than your credit limit.
How fast should I pay it off?
As soon as you can, since interest starts on day one.
Bottom line
A cash advance is one of the most expensive ways to use your card.
Try savings or a cheaper loan first.
References
- Hostetler, J., & Little, K. (November 4, 2026). What is a credit card cash advance? How it works, fees, and cheaper alternatives. Yahoo Finance. https://finance.yahoo.com/personal-finance/credit-cards/article/what-is-a-cash-advance-on-a-credit-card-195622056.html
- Consumer Financial Protection Bureau (date not shown on page). Can I withdraw money from my credit card at an ATM? https://www.consumerfinance.gov/ask-cfpb/can-i-withdraw-money-from-my-credit-card-at-an-atm-en-34/
- Federal Deposit Insurance Corporation (January 2023, per page URL). Credit Card Checks and Cash Advances. https://www.fdic.gov/consumer-resource-center/2023-01/credit-card-checks-and-cash-advances
- Bank of America, Better Money Habits (date not shown on page). What is a Credit Card Cash Advance and the Associated Fees? https://bettermoneyhabits.bankofamerica.com/en/credit/what-is-a-credit-card-cash-advance
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