Yes, you can get cash back from a credit card, but it costs you
Most credit cards let you withdraw cash at an ATM or ask a cashier for cash back when you make a purchase. The money comes from your credit line, not a debit account, which means you are borrowing it. You will pay a cash advance fee (usually 3 to 5 percent of the amount) plus a higher interest rate than you pay on regular purchases — often 20 to 30 percent — and interest starts accruing when ready, with no grace period.
Cash back at a store checkout is usually free if you ask the cashier while making a debit card purchase, but that is different from a credit card cash advance. If you use your credit card to get cash back at a register, the same fees and rates explore as an ATM withdrawal.
The practical answer: use cash back only if you have no other option and can pay the balance back within days. Otherwise, it is one of the most expensive ways to borrow money.
Key Takeaways
- Credit card cash advances charge a fee (typically 3 to 5 percent) plus a higher interest rate than purchases, with interest starting when ready.
- You can get cash at an ATM using your credit card PIN, or ask for cash back at a store register when you swipe your credit card.
- Cash back at a store is free only if you use a debit card; using a credit card triggers the same fees as an ATM withdrawal.
- Interest on a cash advance has no grace period, so charges begin the day you withdraw the money.
- Paying back a cash advance should be your first priority because the interest rate is much higher than on regular purchases.
How to withdraw cash at an ATM with your credit card
Go to any ATM that displays your card's logo (Visa, Mastercard, American Express, Discover). Insert your card and enter your PIN — this is the same PIN you use for a debit card, or you may need to set one up if you have never used your credit card at an ATM before. Select "Withdrawal" or "Cash Advance," choose the amount, and complete the transaction.
The ATM will show you the fee before you confirm. Some ATMs charge an operator fee on top of your card issuer's cash advance fee, so you may pay two fees at once. Check your card's terms to know your issuer's fee before you go, so you are not surprised at the machine.
The money appears in your credit card account as a balance you owe, not as a deposit. You will see it listed separately from purchases on your statement, often labeled "Cash Advance" or "Cash Withdrawal."
Getting cash back at a store when you pay with a credit card
Tell the cashier you want cash back after you swipe or insert your credit card. They will ask how much you want, add it to your total, and give you the cash. This counts as a cash advance, not a regular purchase, so the same fees and interest rates explore.
The amount will show on your receipt and on your credit card statement as a cash advance. Some stores have limits on how much cash back they will give — often $20 to $100 — so ask before you assume you can withdraw a large amount.
This method is convenient if you are already at a register, but it is not cheaper than an ATM. Use it only if an ATM is not available and you need cash urgently.
Understanding cash advance fees and interest rates
A cash advance fee is a one-time charge applied when you withdraw the money. It is usually a percentage of the amount (3 to 5 percent is typical) with a minimum fee of $2 to $10. Some cards charge a flat fee instead. Check your card's disclosure or call the issuer to find your exact fee before you withdraw.
The cash advance interest rate is separate from your purchase rate and is almost always higher. While a purchase might carry 15 percent APR, a cash advance might be 25 or 30 percent. This rate applies only to the cash advance balance, not to purchases you make at the same time.
Interest on a cash advance begins the day you withdraw it — there is no grace period like there is for purchases. If you carry a balance for a month, you will owe interest for the full month, even if you usually pay your statement in full and avoid interest charges.
How cash advances affect your credit score and account
A cash advance counts as a balance on your credit card, so it raises your credit utilization ratio — the percentage of your available credit you are using. If you have a $5,000 limit and withdraw $1,000 in cash, your utilization jumps to 20 percent. High utilization can lower your credit score, even if you pay it back quickly.
The withdrawal also appears on your credit report as a transaction, but it does not create a separate account or show up differently than a purchase would. However, the higher balance and the interest charges you rack up will be visible to lenders reviewing your history.
Some card issuers may also flag frequent cash advances as a sign of financial stress and may reduce your credit limit or close your account if the pattern continues.
When you might need a cash advance and what to do instead
Cash advances make sense only in genuine emergencies when you have no other way to get cash — a broken ATM, a store that does not accept cards, or a situation where you need cash when ready and cannot wait for a transfer. Even then, plan to pay it back within days.
Better alternatives exist for most situations. If you need cash regularly, open a checking account and use a debit card or visit your bank to withdraw from your own account. If you need a short-term loan, a personal loan from a bank or credit union usually has a lower rate than a credit card cash advance. If you are in a financial emergency, look into a payment plan with the person or business you owe, or contact a local nonprofit credit counselor.
If you have already taken a cash advance, make it your first payment priority. Pay more than the minimum and focus on clearing the balance before you make any new purchases on that card.
Checking your credit card's cash advance terms
Your card's terms and conditions document lists the cash advance fee and interest rate. You can find this in the paperwork that came with your card, or log into your card issuer's website and look for "Account Terms," "Pricing," or "Disclosures." Call the customer service number on the back of your card if you cannot find it online.
Write down three numbers: the cash advance fee (as a percentage or flat amount), the cash advance APR, and any daily limit on how much you can withdraw. Some cards cap cash advances at $500 or a percentage of your credit limit, so you may not be able to withdraw as much as you think.
If your card's cash advance terms are unfavorable and you do not use cash advances, you do not need to worry about them. But if you think you might need cash in an emergency, knowing these terms ahead of time means you will not be surprised by fees when you need the money.
Frequently Asked Questions
Does getting cash back at a store with a debit card cost money?
No. Cash back with a debit card is free at most stores and ATMs. The money comes from your own account, not a borrowed line of credit, so there are no fees or interest charges. This is why debit card cash back is a much better option than credit card cash advances.
Can I get a cash advance from a credit card without a PIN?
At an ATM, you need a PIN. At a store, you do not — you just ask the cashier and sign or enter your PIN at the register like a normal purchase. However, some cards require a PIN for all transactions, so check with your issuer if you are not sure.
What happens if I do not pay back a cash advance?
The balance stays on your credit card and accrues interest at the cash advance rate every month. If you miss payments, your credit score will drop, late fees will be added, and the issuer may close your account or take legal action. Treat a cash advance like any other debt and pay it back as soon as you can.
Is there a limit to how much cash I can withdraw?
Yes. Your card issuer sets a daily limit (often $500 to $1,000) and may also cap your total cash advance at a percentage of your credit limit. Check your card's terms or call the issuer to find your limit before you try to withdraw.
Can I use a credit card cash advance to pay another credit card bill?
Technically yes, but it is a bad idea. You would pay a cash advance fee plus a high interest rate to move money from one card to another, which costs far more than just paying the other card normally. If you are struggling to pay multiple cards, contact a credit counselor instead.