When you withdraw cash from an ATM or bank using your credit card, it’s called a cash advance. This gives you immediate access to money, but it comes with costs and risks that differ from regular credit card purchases.
The Pros of Using Credit Card Cash
Instant Access to Money – You can get cash quickly in an emergency, even if you don’t have funds in your bank account.
No Need for Loan Approval – Unlike personal loans, you don’t need to apply or wait for approval.
Worldwide Availability – ATMs and banks 신용카드현금화 globally allow credit card cash withdrawals, which can be helpful while traveling.
The Cons of Using Credit Card Cash
High Fees – Most issuers charge a cash advance fee (often 3–5% of the amount withdrawn).
Immediate Interest – Unlike purchases, there’s no grace period. Interest starts the same day you withdraw.
Higher Interest Rate – Cash advance interest rates are usually much higher than regular purchase rates.
ATM Charges – If you use another bank’s ATM, you’ll likely pay extra fees.
Credit Score Impact – If you don’t repay quickly, your credit utilization ratio spikes, which may lower your credit score.
When It Might Be a Good Idea
True emergencies (medical bills, urgent travel, unexpected expenses) when no other funds are available.
Short-term cash needs where you know you can repay the balance in days, not months.
When It’s a Bad Idea
For everyday expenses like shopping or dining.
To pay off other debts, since fees and interest make the problem worse.
For long-term borrowing, because the costs pile up quickly.
Smarter Alternatives
Instead of withdrawing cash from your credit card, consider:
Using a debit card linked to your bank account.
Applying for a personal loan with lower interest.
Building an emergency savings fund to avoid relying on high-cost credit.
✅ Final Verdict:
Using credit card cash is usually not a good idea unless it’s a real emergency and you can repay quickly. For most people, the high fees and immediate interest make it an expensive option.