What a Citi Cash Advance Card Does

A Citi Cash Advance credit card is a card designed to let you borrow money against your credit line in the form of cash, rather than making purchases. When you take a cash advance, you receive actual money—either at an ATM, through a bank teller, or by balance transfer—and you owe it back with interest and fees.

Cash advances are different from regular credit card purchases. The interest rate on a cash advance is typically higher than your purchase APR, and interest starts accruing when ready with no grace period. You also pay an upfront fee, usually a percentage of the amount you withdraw or a flat dollar amount, whichever is greater.

Citi offers cash advance features on many of its credit cards, though the specific terms depend on which card you hold. The cash advance limit may be lower than your total credit limit, and it draws from the same pool of available credit.

Key Takeaways

  • Cash advances charge a fee upfront (typically 3 to 5 percent of the amount) plus a higher interest rate than purchases, with interest starting when ready.
  • You can get a cash advance at ATMs, bank branches, or through balance transfers, but each method has different fees and limits.
  • Your cash advance limit is separate from your purchase limit and may be much lower than your total credit line.
  • Citi reports cash advance activity to credit bureaus, so it affects your credit utilization and payment history like any other debt.
  • Paying off a cash advance should be your priority because the interest rate is higher than almost any other form of borrowing.

How to Get a Cash Advance from Your Citi Card

You have three main ways to take a cash advance on a Citi card. The fastest is an ATM withdrawal using your card's PIN. You can withdraw up to your cash advance limit at any ATM that accepts your card network (Visa, Mastercard, or American Express, depending on your card). The ATM will charge a fee—usually $2 to $5 per transaction—on top of Citi's cash advance fee.

The second method is to visit a bank branch in person. A teller can process a cash advance and may charge a lower fee than an ATM, though this varies by location. You will need your card and a valid ID.

The third method is a balance transfer, where you move credit from your Citi card to another account—usually a bank account or another card. This is processed through Citi's website or by phone and may take one to three business days. Balance transfers sometimes carry a lower fee than ATM withdrawals, but check your card's terms first.

Fees and Interest Rates You Will Pay

Citi charges a cash advance fee on every withdrawal. This is typically 3 to 5 percent of the amount you withdraw, with a minimum fee of $5 to $10. So a $500 cash advance might cost $15 to $25 in fees alone. This fee is added to your balance when ready.

The interest rate on a cash advance is higher than your purchase APR. While purchase rates vary by card and creditworthiness, cash advance rates are often 5 to 10 percentage points higher. If your purchase APR is 18 percent, your cash advance APR might be 25 percent or more. Interest accrues daily from the moment you withdraw the cash—there is no grace period like there is for purchases.

If you use an ATM outside Citi's network, you will also pay the ATM operator's fee, which can range from $2 to $5. Some Citi cards offer ATM fee reimbursement, but this is rare and only on premium cards.

Your Cash Advance Limit and Credit Line

Your cash advance limit is set by Citi when you open the card and is separate from your purchase limit. It is often 20 to 50 percent of your total credit limit. So if your credit limit is $5,000, your cash advance limit might be $1,000 to $2,500. You cannot exceed this limit, even if you have unused purchase credit.

When you take a cash advance, it reduces both your available credit and your cash advance limit. If you withdraw $500 against a $1,000 cash advance limit, you have $500 left to borrow as cash. The same $500 also counts against your total credit limit, so your available purchase credit drops by $500 as well.

You can request a higher cash advance limit by calling Citi's customer service number on the back of your card. Citi will review your account and credit history. A higher limit is not may provide and depends on your payment history and credit score.

How Cash Advances Affect Your Credit

Cash advances are reported to the three major credit bureaus—Equifax, Experian, and TransUnion—just like purchases and other debts. They affect your credit score in two main ways.

First, a cash advance increases your credit utilization ratio, which is the percentage of your available credit you are using. If you have a $5,000 limit and take a $1,000 cash advance, your utilization jumps to 20 percent. High utilization (above 30 percent) can lower your credit score. Paying off the cash advance quickly brings your utilization back down.

Second, your payment history on the cash advance matters. If you make on-time payments, it helps your score. If you miss a payment or pay late, it damages your score and stays on your credit report for seven years. Cash advances are treated the same as any other debt when it comes to payment reporting.

Paying Off a Cash Advance

You should prioritize paying off a cash advance as quickly as possible because of the high interest rate. Every day the balance sits unpaid, interest accrues at a daily rate. On a $500 cash advance at 25 percent APR, you are paying about $3.42 per day in interest alone.

When you make a payment to your Citi card, the payment is applied in this order: minimum payment first, then to the balance with the highest interest rate (usually the cash advance), then to lower-rate balances. So if you pay more than the minimum, the extra money goes toward the cash advance.

If you have both a purchase balance and a cash advance balance, ask Citi how your payment will be split. Some cards allow you to direct payments to a specific balance, while others follow a fixed order. You can also pay the cash advance in full by phone or through your online account to avoid any ambiguity.

When a Cash Advance Makes Sense

A cash advance should be a last resort for short-term cash needs, not a regular borrowing tool. The fees and interest are too high for anything but an emergency. If you need cash for a few days or a week, a cash advance might be cheaper than a payday loan or overdraft fee, but only if you pay it back when ready.

A cash advance does not make sense if you cannot pay it back within a month. At that point, the interest and fees will exceed what you would pay for other forms of credit. If you are considering a cash advance to cover an ongoing expense, look for a personal loan, a lower-interest credit card, or a line of credit instead.

Some people use cash advances to move money between accounts or to pay bills that do not accept credit cards. This is a valid use case, but only if you can pay the balance off in full before interest accrues significantly.

Frequently Asked Questions

Can I take a cash advance if my card is not yet activated?

No. Your card must be activated before you can use it for any transaction, including a cash advance. set up usually happens when you call the number on the back of the card or use it for your first purchase. Some cards set up automatically after a few days.

What happens if I cannot pay back the cash advance?

If you miss a payment, Citi will charge a late fee (typically $25 to $40 for the first late payment) and report the missed payment to credit bureaus. Your interest rate may also increase. If the debt goes unpaid for 180 days, Citi may close your account and send the debt to a collection agency. The unpaid debt will stay on your credit report for seven years.

Is there a difference between a cash advance and a balance transfer?

Yes. A cash advance gives you physical cash or a deposit to your bank account. A balance transfer moves credit from your Citi card to another card or account. Balance transfers sometimes have lower fees but may have a time limit to complete the transfer. Cash advances are more flexible but usually cost more.

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

Technically yes, but it is not a good idea. You would pay the cash advance fee and interest on top of the other card's interest, making your debt more expensive. If you are trying to consolidate debt, a balance transfer or personal loan is a better option.

Does taking a cash advance hurt my credit score?

Taking a cash advance itself does not hurt your score, but it increases your credit utilization, which can lower your score slightly. The bigger risk is if you cannot pay it back on time—missed payments and high balances both damage your score significantly.