What Is a Cash Advance on a Credit Card?
Using a credit card to take out cash. It usually comes with a fee, a higher interest rate than purchases, and interest from day one.
A cash advance borrows cash against your card's limit, at an ATM or a bank. The CFPB says interest on a cash advance generally starts on the transaction date, because grace periods typically cover purchases only. Most cards also charge a cash advance fee and a separate cash advance APR that is often higher than the purchase rate.
A CFPB review of card agreements found the most common cash advance fee was "the greater of $10 or 5%" of the amount. Your own card agreement sets the real fee, the rate and exactly which transactions count as a cash advance, so check it before you treat a transaction like a normal purchase.
You pull $200 from an ATM on your card for a convention weekend. At a "greater of $10 or 5%" fee you pay $10 up front, and interest starts that day. The same $200 spent as a purchase and paid off in full by the due date would have cost $200.
Key points
- Interest usually starts on the day you take the cash.
- Expect a fee on top of a higher APR.
- Your card agreement defines what counts.
Sources CFPB: Can I withdraw money from my credit card at an ATM?CFPB: What is a grace period for a credit card?CFPB Data Spotlight: Credit card cash advance fees Checked October 2026. Rules and fees vary by issuer and country; your card agreement has the final word.
Carrying a balance? Put every card and plan in one place, then pick a payoff order.