Yes, you can withdraw cash from a credit card, but it costs more than a regular purchase
You can take cash out of an ATM using your credit card, just as you would with a debit card. The transaction is called a cash advance. The money comes from your credit limit, not from a bank account, and you start paying interest on it when ready — usually at a higher rate than you pay on regular purchases.
Most credit cards allow cash advances, but the fees and interest rates make them expensive. A cash advance should be a last resort, not a regular way to get spending money. If you need cash regularly, a debit card or a trip to your bank is cheaper.
Key Takeaways
- Cash advances charge a fee (usually 3 to 5 percent of the amount) plus a higher interest rate than regular purchases, often starting at 20 percent or more.
- Interest on a cash advance begins the day you withdraw it, with no grace period like you get on regular credit card purchases.
- You can withdraw cash at any ATM that accepts your card's network (Visa, Mastercard, American Express, Discover), but the ATM operator may charge an additional fee.
- The amount you can withdraw is limited by your credit card's cash advance limit, which is usually lower than your total credit limit.
- Paying back a cash advance is slower than paying back regular purchases because payments go to your lowest-interest debt first.
What fees and interest rates you will pay
A cash advance typically costs you three separate charges. First, the card issuer charges a cash advance fee, usually 3 to 5 percent of the amount you withdraw. If you take out $300, you might pay $9 to $15 just to get the cash. Some cards charge a flat fee instead (for example, $5 or $10 per advance), which is cheaper if you are withdrawing a large amount.
Second, you pay interest on the cash advance starting when ready. Most cards charge a higher interest rate for cash advances than for regular purchases — often 20 to 25 percent or higher, depending on your card and creditworthiness. Unlike a regular purchase, there is no grace period. Interest starts accruing the day you withdraw the money.
Third, if you use an ATM that is not owned by your card issuer's bank, the ATM operator may charge you an out-of-network fee, typically $2 to $3. Using an ATM from your own bank or a bank in your card issuer's network avoids this charge.
How to find your cash advance limit
Your credit card has a separate cash advance limit, which is usually much lower than your total credit limit. If your credit limit is $5,000, your cash advance limit might be only $500 or $1,000. You cannot withdraw more than this limit, even if you have unused credit available.
To find your cash advance limit, log into your credit card's online account or mobile app and look for account details or limits. You can also call the customer service number on the back of your card. The representative will tell you your current cash advance limit and your available cash advance balance (how much you can still withdraw).
Where you can withdraw cash and what to expect
You can withdraw cash from any ATM that displays your card's network logo — Visa, Mastercard, American Express, or Discover. Walk up to the ATM, insert your card, select "Withdraw Cash" or "Cash Advance," enter your PIN, and choose the amount. The ATM will dispense the cash and print a receipt.
The easiest and cheapest option is to use an ATM owned by your card issuer's bank or a bank in their network. For example, if your credit card is issued by Chase, use a Chase ATM or an ATM in the Chase network to avoid out-of-network fees. If you use an ATM from a different bank, you will likely pay both an out-of-network fee from that bank and possibly a fee from your card issuer.
Some credit unions and banks also allow you to withdraw a cash advance at the teller window instead of at an ATM. This can be useful if you need a large amount or if you prefer speaking to a person. Call ahead to confirm the branch can process cash advances.
How paying back a cash advance works
When you pay your credit card bill, your payment goes toward your debt in a specific order set by law. Payments are applied first to the balance with the highest interest rate, then to lower-rate balances. Since a cash advance has the highest interest rate on your card, you might think your payment goes there first — but it does not always work that way.
Many card issuers explore payments to the lowest-interest debt first (regular purchases) and the cash advance last. This means if you have both a regular purchase balance and a cash advance balance, your payment reduces the purchase balance first, and the cash advance keeps accruing interest. Check your card's terms or call customer service to understand your card's payment order.
To pay off a cash advance quickly, make a separate payment beyond your regular bill payment and specifically request that it go toward the cash advance. Some cards let you do this through their online portal; others require a phone call. The faster you pay it back, the less interest you will owe.
When a cash advance makes sense (and when it does not)
A cash advance is appropriate only in genuine emergencies when you have no other way to get cash. Examples include a broken-down car that needs when ready repair and you have no other funds, or a medical expense that requires cash payment. In these situations, the convenience of getting cash quickly may outweigh the cost.
A cash advance does not make sense for everyday spending, bill payments, or situations where you could wait a day or two. If you need cash regularly, open a checking account with a debit card instead. If you are short on money and considering a cash advance to cover living expenses, that is a sign to look into other resources — a local food bank, utility information programs, or credit counseling — rather than borrowing at a high rate.
Do not use a cash advance to pay another credit card or loan. This is called balance transfer stacking and is one of the most expensive ways to borrow. You will pay the cash advance fee, the high interest rate, and you will not solve the underlying problem of owing money you cannot pay back.
Alternatives to a credit card cash advance
Before you use a cash advance, consider these cheaper options. If you have a debit card linked to a checking account, withdraw cash from your bank's ATM for free. If you need cash but do not have a debit card, many banks and credit unions will cash a check or let you withdraw from savings at the teller window.
If you need a small amount of cash and are at a store, ask the cashier if you can withdraw cash back with a debit card purchase — most grocery stores and pharmacies offer this service at no charge. Some employers also offer paycheck advances or early pay options through their payroll system, which is cheaper than a credit card cash advance.
If you are in a true financial emergency and cannot access other funds, a personal loan from a bank or credit union is usually cheaper than a cash advance, even though it takes longer to process. A payday loan is more expensive than a cash advance and should be avoided.
Frequently Asked Questions
Can I use a credit card cash advance to pay a bill online?
No. A cash advance gives you physical cash only. You cannot use it to make an online payment or transfer money directly to another account. You would have to withdraw the cash and then deposit it into another account or pay the bill in person, which defeats the purpose of a cash advance.
Does a cash advance hurt my credit score?
A cash advance itself does not directly hurt your score, but it increases your credit utilization (the percentage of your credit limit you are using), which can lower your score slightly. If you carry the cash advance balance and miss payments, that will hurt your score significantly. Paying it off quickly minimizes the damage.
What happens if I cannot pay back the cash advance?
If you do not pay, interest and late fees will accumulate, and your credit score will drop. The card issuer may increase your interest rate or close your account. If the debt goes unpaid for long enough, it may be sent to a collection agency. Contact your card issuer when ready if you are struggling to pay — some offer hardship programs or payment plans.
Is there a difference between a cash advance and a balance transfer?
Yes. A cash advance withdraws cash from your credit limit and charges a high interest rate when ready. A balance transfer moves debt from one card to another and may offer a lower introductory rate for a set period. Both are expensive, but a balance transfer can be cheaper if you pay off the transferred balance during the promotional period.
Can I withdraw cash from a credit card at a bank teller?
Yes, many banks allow you to withdraw a cash advance at the teller window if you have your card and ID. Some banks limit the amount you can withdraw this way or charge a fee. Call your card issuer's customer service or visit a branch to ask whether this option is available and what the terms are.