Yes, you can take cash out using your credit card, but it costs more than a regular purchase
You can withdraw cash from a credit card at an ATM, bank teller, or through a cash advance at a store. The transaction is called a cash advance. Unlike a debit card withdrawal, a cash advance charges you fees when ready and starts charging interest right away — there is no grace period like there is for regular purchases.
Most people use cash advances only when they have no other option, because the cost adds up quickly. A typical cash advance might cost you 3 to 5 percent of the amount withdrawn, plus a per-transaction fee of $3 to $10, plus a higher interest rate than your regular purchase APR.
Key Takeaways
- Cash advances charge an upfront fee (usually 3 to 5 percent of the amount) plus a per-transaction fee, and interest begins accruing when ready with no grace period.
- You can withdraw cash at an ATM using your credit card PIN, at a bank teller by showing your card and ID, or sometimes at a store checkout.
- The interest rate on a cash advance is typically higher than your regular purchase APR and varies by card issuer and your creditworthiness.
- The total cost of a cash advance makes it expensive compared to using a debit card, a bank loan, or borrowing from friends or family.
How to withdraw cash at an ATM
Insert your credit card into any ATM that displays your card's logo (Visa, Mastercard, American Express, or Discover). Enter your PIN — the same four-digit code you use for a debit card. Select "Withdrawal" or "Cash Advance" from the menu, then enter the amount you want to withdraw.
The ATM will show you the fees before you confirm. Read this screen carefully, because the fee amount will surprise you. Once you confirm, the cash dispenses and the transaction posts to your credit card account within one business day.
Not all ATMs accept credit cards — most machines that only accept debit cards will reject your credit card. If one ATM declines it, try another location or move to step three below.
How to get cash from a bank teller
Walk into any bank branch that issues your credit card (or sometimes any branch of your card's network). Bring your credit card and a photo ID. Tell the teller you want a cash advance.
The teller will ask how much cash you want and may ask why. They will show you the fee before processing. Once you agree, they hand you the cash and the transaction posts to your account. This method often has lower fees than ATM withdrawals because you are not paying an ATM operator's fee on top of your card issuer's fee.
How to get cash back at a store
Some retailers let you request cash back when you use your credit card at checkout, similar to using a debit card. Not all stores offer this, and not all credit cards allow it — call your card issuer first to confirm your card supports it.
If your card allows it, tell the cashier you want cash back and specify the amount. The total (purchase plus cash) will be charged to your credit card. The cash-back amount may or may not trigger a cash advance fee depending on your card issuer's rules — ask before you complete the transaction.
What the fees and interest actually cost
A cash advance fee is usually 3 to 5 percent of the amount withdrawn, with a minimum fee of $3 to $10. If you withdraw $200, you might pay $6 to $10 just to get the cash. If you withdraw $500, you might pay $15 to $25.
The interest rate on a cash advance is typically 2 to 5 percentage points higher than your regular purchase APR. If your purchase APR is 18 percent, your cash advance APR might be 22 or 23 percent. Interest starts accruing the day you withdraw the cash — there is no 21-day grace period like there often is for purchases.
If you withdraw $500 at a 5 percent fee plus 23 percent APR, you pay $25 upfront plus roughly $9.58 in interest for one month. After three months, you have paid about $43 in fees and interest alone, and you still owe the $500.
When a cash advance makes sense
A cash advance is rarely the best option, but it may be necessary if you need cash urgently and have no other way to get it. Examples include a broken-down car that needs a same-day repair, a medical bill that requires cash payment, or an emergency when your bank is closed.
Before you use a cash advance, check whether you can borrow from family or friends, take out a personal loan from a bank or credit union, use a payday loan (which is also expensive but sometimes cheaper than a cash advance), or wait until you can access your own money. Each of these has drawbacks, but most cost less than a credit card cash advance.
How a cash advance affects your credit score
A cash advance itself does not directly hurt your credit score the way a late payment does. However, it increases your credit card balance, which raises your credit utilization ratio — the percentage of your available credit you are using. A higher utilization ratio can lower your score by a few points.
If you carry the cash advance balance for months without paying it off, the interest charges grow and your utilization stays high, which keeps your score depressed. The real damage comes from the debt itself, not the cash advance transaction.
Frequently Asked Questions
Is there a limit to how much cash I can withdraw?
Yes. Your card issuer sets a cash advance limit, which is often lower than your overall credit limit. You might have a $5,000 credit limit but only a $1,000 cash advance limit. Call your card issuer to find out your limit before you go to an ATM.
Can I use a credit card cash advance to pay off another credit card?
Technically yes, but it is expensive. You pay the cash advance fee and interest rate on the money you withdraw, then use it to pay another card. You are paying to move debt from one card to another. A balance transfer (moving debt directly between cards) is usually cheaper if your new card offers a 0 percent introductory rate.
What happens if I cannot pay back the cash advance?
The balance stays on your credit card and interest keeps accruing. If you miss payments, your card issuer reports it to credit bureaus and your score drops. After 30 days late, you may face late fees. After 180 days, the account may be charged off and sent to a collection agency.
Do all credit cards allow cash advances?
Most credit cards do, but some do not — particularly secured cards or cards designed for people rebuilding credit. Check your cardholder agreement or call your issuer to confirm your card allows cash advances before you try to use one.
Is a cash advance the same as a balance transfer?
No. A cash advance gives you physical cash and charges a higher fee and interest rate. A balance transfer moves debt from one card to another and often has a lower fee and may include a 0 percent introductory APR period. Balance transfers are for moving existing debt; cash advances are for getting cash.