What Is a Cash Advance on a Credit Card?
4 Min Read | Last updated: July 23, 2026
A cash advance lets you borrow cash against your credit line. Learn what a cash advance is, how it works, and the potential costs to consider.
At-A-Glance
- A credit card cash advance lets you borrow cash against your credit line, which may help when you need cash quickly.
- Cash advances may come with fees, a higher annual percentage rate (APR), and interest that starts accruing immediately.
- A cash advance can raise your credit card balance and credit utilization ratio, which may affect your credit score if the balance stays high.
When you need cash right away, you might consider using a credit card cash advance. A cash advance is a way to borrow cash from your card’s available credit. But it’s not the same as withdrawing money from a checking account with a debit card, and while it may help you meet immediate cash needs, there are several downsides to consider. Understanding the ins and outs of a credit card cash advance can help you decide if it’s the right financial move for your needs.
How a Credit Card Cash Advance Works
A cash advance on a credit card is when you withdraw funds from your available credit limit on that card. The most accessible option is often an ATM withdrawal; you’ll need to have your credit card’s PIN handy to complete the transaction.
If an ATM isn’t an option, you can also complete a cash advance through these methods:1
- Online
You may be able to get a cash advance through your online account or mobile app. Before you complete the transaction, you may be prompted to confirm that you want to proceed with a cash advance, with a warning about additional fees and interest. - Your Bank
If the ATM doesn’t allow cash advances, you may be able to complete the transaction at a participating bank or credit union. You’ll have to provide your government-issued ID and the amount you want to advance to the teller. - Convenience Check
Some card issuers mail out convenience checks that you can use to complete a cash advance. If you receive one of these checks or request one, you can make it out to yourself and either cash it or deposit it into your bank account.
Unlike a debit card withdrawal at an ATM, you’re borrowing against your credit line, not taking money from your bank account. Your credit card may also have a cash advance limit, which may be lower than your total credit limit. The amount you can access can depend on your card issuer, your available credit, and your account terms.
Did you know?
The APR on a cash advance is often higher than the standard purchase rate, and interest begins accruing immediately.2
Transactions That May Be Considered Cash Advances
Using your credit card to get cash at an ATM is commonly categorized as a credit card cash advance. However, other types of transactions may also fall into this category. These may include, but aren’t limited to, the following:3
- Lottery Tickets and Gambling
Credit card issuers may treat lottery ticket purchases or gambling transactions as cash advances. - Peer-to-Peer Payments
Peer-to-peer payments are transfers of funds from one person to another. - Wire Transfers or Money Orders
Wire transfers, money orders, or similar cash-like transactions could be considered cash advances depending on the issuer. - Foreign Currency Purchases
Some issuers may treat foreign currency or cryptocurrency purchases as cash advances.
Each issuer has its own guidelines for categorizing transactions as cash advances. That’s why it’s important to verify the circumstances that qualify as a cash advance through your credit card’s terms and conditions.
Pros and Cons of Credit Card Cash Advances
Sure, you can access cash quickly through an ATM if your card allows it, but there are also costly disadvantages to consider before taking a cash advance. Here’s a look at some of the pros and cons of credit card cash advances:4
| Pros | Cons |
|---|---|
| Get Cash Fast | Cash Advance Fees |
| Access Via ATM | High Annual Percentage Rate (APR) |
| No New Credit Check Required | Interest Starts Accumulating Immediately |
| May Impact Your Credit Score Over Time |
What Fees Are Involved With a Cash Advance?
Most credit card companies charge a fee for each cash advance. That’s in addition to the higher APR you’re also charged on the amount you withdraw. The fee is usually a flat minimum of $10, no matter how much you withdraw, or a percentage of the cash advance amount—whichever is greater.5 There may also be a surcharge for withdrawing the money at certain ATMs. Cash advances typically don’t have the same grace period as regular purchases, either, so interest begins accruing on the amount immediately.
Cash Advance Costs at a Glance
| Feature | Standard Credit Card Purchase | Credit Card Cash Advance |
|---|---|---|
| How It Works | You use your card to buy goods or services | You borrow cash against your credit line |
| Fees | May not include a transaction fee | Whichever is greater, $10 or a percentage of the amount May also include an ATM fee |
| APR | Purchase APR may apply if you carry a balance | Cash advance APR may be higher |
| Interest Timing | A grace period typically applies to purchases | Interest starts accruing right away |
| Rewards | Eligible purchases may earn rewards | Cash advances typically don’t earn rewards |
All these fees and extra costs make cash advances an expensive choice. Before using this option to get access to cash, consider how you plan to repay the balance.
How Do You Pay Back a Cash Advance?
Once you make a cash advance, the amount is added to your credit card balance. You pay back a cash advance by making payments to your credit card account, like with any other charges. Since cash advances may start accruing interest right away, paying more than the minimum payment may help reduce the balance faster.
While you can’t dictate which balances your monthly payment is applied to, your cash advance balance is usually paid off first since it likely has the higher APR.6 You can also check your account terms or contact your card issuer to understand how payments are applied to different balances.
Cash Advance Alternatives
A credit card cash advance is one of the most expensive ways to borrow money. The convenience of accessing cash during an emergency is a clear advantage. But if the benefits don’t outweigh the cost for you, consider these alternatives:
- Personal Loan
If you’re approved, a personal loan online or at your local bank may offer fast funding options. - Borrowing From Friends or Family
Asking friends or family members for a short-term loan may be less costly. - Emergency Savings
Ideally, you’d withdraw from your emergency savings to skip the fees and hassle of a cash advance.
Frequently Asked Questions
If you need a PIN to get a cash advance from an ATM, you can usually request one through your online account, mobile banking app, or by calling the number on the back of your credit card. The process can vary by issuer. In some cases, you may be able to set your PIN online. In others, your issuer may mail it to you.
A cash advance doesn’t typically appear on your credit report as a separate transaction. However, it can still affect your credit indirectly. If you have trouble repaying the balance after a cash advance, you could raise your credit utilization ratio or make late payments, both of which can lower your credit score.
You typically do not earn rewards, including points, miles, and cash back, when you take out a cash advance.7 Check with your credit card issuer for more information.
The Takeaway
A credit card cash advance can be a simple way to get cash when you need it fast. But it may come with hefty fees, a higher APR, and interest that adds to your balance immediately. Before taking one, review the costs and your cash advance limit, and make a plan to repay the amount you withdraw plus any fees and interest. While this borrowing method can come in handy in a pinch, other borrowing options may have lower costs. Carefully assess your financial situation to determine whether this is the right choice for you.
1,4 “What is a Cash Advance and How Does It Work?,” Experian
2 “Can I Withdraw Money From My Credit Card at the ATM?,” Consumer Financial Protection Bureau (CFPB)
3 “Credit Card Cash Advance Fees Spike After Legalization of Sports Gambling,” CFPB
5 “How To Get a Cash Advance From Your Credit Card in 2026,” US News & World Report
6 “Can You Pay Back a Cash Advance Right Away?,” Experian
7 “How To Get Cash Back From a Credit Card,” Bankrate
Kevin D. Flynn is a financial services provider, business coach, and financial writer. He lives in Leominster, Massachusetts with his wife Evelyn, two cats, and ten wonderful grandchildren.
All Credit Intel content is written by freelance authors and commissioned and paid for by American Express.
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