Yes, you can take cash out with a credit card, but it costs more than a regular purchase
Taking cash out with a credit card is called a cash advance. Your card issuer lets you borrow cash against your credit limit, just as you would with a purchase. The money goes into your bank account or you receive it at an ATM or bank teller window. But a cash advance is not the same as spending with your card — it triggers separate fees and a higher interest rate that starts right away, with no grace period.
Most people use cash advances only when they have no other option, because the cost adds up fast. A single $200 cash advance can cost $10 to $15 in fees alone, plus interest that begins accruing when ready. If you carry the balance, you will pay significantly more than you would on a regular purchase.
Key Takeaways
- Cash advances charge an upfront fee (usually 3 to 5 percent of the amount) plus a higher interest rate than regular purchases, with no grace period.
- You can get a cash advance at an ATM using your PIN, at a bank teller window, or through a cash advance check from your card issuer.
- Interest on a cash advance starts accruing the day you withdraw it, so carrying a balance is expensive.
- Your credit card's cash advance limit may be lower than your overall credit limit, and some cards do not offer cash advances at all.
Where to get a cash advance
The easiest method is to use an ATM with your credit card and PIN. Insert your card, enter your PIN, select "cash advance" or "withdraw cash," and choose the amount. The ATM will dispense the cash when ready. Most ATMs that accept your card's network (Visa, Mastercard, American Express, Discover) will process the advance, though some may charge an additional ATM operator fee on top of your card issuer's fee.
You can also visit a bank branch in person and ask a teller for a cash advance. Bring your credit card and a photo ID. The teller will process the transaction and give you cash on the spot. This method avoids ATM operator fees, though your card issuer's cash advance fee still applies.
Some card issuers send cash advance checks with your statement or make them available through your online account. You write a check against your credit line, deposit it into your bank account, and the amount is treated as a cash advance. This method is slower than an ATM but useful if you need to transfer funds to another account.
Fees and interest rates for cash advances
Every cash advance carries an upfront fee, charged the moment you withdraw the money. This fee is usually 3 to 5 percent of the amount withdrawn, with a minimum fee of $2 to $10. A $300 cash advance at 4 percent costs $12 in fees alone. This fee is added to your balance when ready and you owe it whether or not you pay off the advance quickly.
Cash advances also carry a higher interest rate than regular purchases. While a purchase might have an APR of 18 percent, a cash advance on the same card might be 24 or 28 percent. This rate applies only to the cash advance balance, not your entire card balance. Unlike purchases, there is no grace period — interest begins accruing the day you withdraw the cash.
If you withdraw $300 at a 4 percent fee ($12) and a 25 percent APR, and you pay it back over three months, you will pay roughly $37 in total fees and interest. If you carry it for six months, that cost rises to roughly $60. The longer you hold the balance, the more expensive it becomes.
How cash advance limits work
Your credit card may have a separate cash advance limit that is lower than your overall credit limit. If your card has a $5,000 credit limit, your cash advance limit might be only $1,000 or $1,500. This limit is set by your card issuer and you can find it in your cardholder agreement or by calling the number on the back of your card.
Some cards, particularly store cards and certain secured cards, do not offer cash advances at all. If your card does not support cash advances, an ATM will reject the transaction and a bank teller will tell you the card cannot be used for this purpose. Check your cardholder agreement or contact your issuer before you need the cash, so you know whether this option is available to you.
A cash advance counts against your available credit just like a purchase does. If you withdraw $300, your available credit drops by $300 until you pay it back. This affects your credit utilization ratio, which can impact your credit score if the balance is high relative to your limit.
When a cash advance makes sense
A cash advance is most useful when you need cash urgently and have no other way to get it — for example, if a business accepts only cash and you have no ATM card or debit card with you. The cost is high, but sometimes it is the only option available in the moment.
A cash advance does not make sense if you have a debit card, a bank account with ATM access, or a personal loan available to you. All of these are cheaper ways to get cash. Even a payday loan, which is expensive, is often cheaper than a credit card cash advance if you repay it within two weeks.
If you are considering a cash advance to pay a bill or cover an emergency, explore whether the creditor or service provider will accept a credit card payment directly instead. Paying with your card avoids the cash advance fee and the higher interest rate, and you get the grace period that applies to regular purchases.
How cash advances affect your credit score
A cash advance itself does not appear on your credit report as a separate item. However, it affects your credit score in two ways. First, it increases your credit utilization — the percentage of your available credit you are using. If you have a $5,000 limit and you withdraw $1,000 in cash, your utilization jumps to 20 percent. High utilization can lower your score temporarily.
Second, if you carry the cash advance balance and miss a payment, that missed payment will be reported to the credit bureaus and will damage your score. As long as you pay on time, the cash advance itself does not hurt your score beyond the temporary utilization effect.
Alternatives to cash advances
If you need cash and want to avoid the high fees and interest of a cash advance, consider these options first. A debit card withdrawal at your bank's ATM costs nothing. A personal loan from a bank or credit union typically has a lower interest rate than a cash advance, though it takes a few days to fund. A balance transfer to a card with a 0 percent introductory rate can be cheaper if you need to borrow money, though balance transfers also carry fees.
If you are in a true emergency, ask friends or family for a short-term loan, or contact a local nonprofit credit counselor who may know of emergency information programs in your area. These options cost nothing or very little compared to a cash advance.
Frequently Asked Questions
Does taking a cash advance hurt my credit score?
A cash advance itself does not appear on your credit report, but it increases your credit utilization ratio, which can lower your score temporarily. If you carry the balance and miss a payment, that missed payment will damage your score. Paying on time prevents this damage.
Can I use a credit card to withdraw cash from any ATM?
You can use most ATMs that display your card's network logo (Visa, Mastercard, American Express, Discover). Some ATMs may decline the transaction if they do not support cash advances, or if your card issuer has restrictions. Bank tellers will always process a cash advance if your card supports them.
What is the difference between a cash advance and a regular purchase?
A regular purchase has a grace period (usually 21 days) before interest starts, and a lower interest rate. A cash advance charges an upfront fee, has a higher interest rate, and interest starts accruing when ready with no grace period. The cost of a cash advance is significantly higher.
Can I get a cash advance if my credit card is maxed out?
No. A cash advance counts against your available credit, so you must have room in your credit limit to withdraw cash. If your card is maxed out, you cannot take a cash advance. You would need to pay down your balance first.
How long does it take to get a cash advance?
An ATM or bank teller cash advance is when ready — you receive the cash when ready. A cash advance check takes as long as a regular check to clear, usually three to five business days after you deposit it. The fee and interest start accruing the moment you withdraw or deposit the cash, not when it clears.