Yes, you can withdraw cash from a credit card, but it costs more than a regular purchase
A cash advance is a withdrawal of cash from your credit card account, treated as a loan from your card issuer. Unlike a debit card, which pulls money from your bank account, a cash advance borrows against your credit limit. The moment you take the cash, interest starts accruing — usually at a higher rate than your regular purchase APR — and you pay a fee upfront, typically 3 to 5 percent of the amount withdrawn.
You can withdraw cash at an ATM using your credit card, at a bank teller window, or through a cash advance check mailed by your issuer. The process is straightforward, but the cost is not. Most people should avoid cash advances unless they have no other option, because the combination of high interest, when ready fees, and no grace period makes them expensive very quickly.
Key Takeaways
- Cash advances charge an upfront fee (usually 3 to 5 percent) plus a higher interest rate than regular purchases, with no grace period.
- You can get a cash advance at an ATM, bank teller, or through a check, but the interest clock starts when ready.
- The interest rate on cash advances varies by card and issuer, and you should check your card's terms before withdrawing.
- Paying back a cash advance does not reduce your regular credit card balance — the two are tracked separately on your account.
How to withdraw cash at an ATM with your credit card
Insert your credit card into any ATM that displays your card's logo (Visa, Mastercard, American Express, or Discover). Enter your PIN — the same one you use for debit transactions — and select "Withdrawal" or "Cash Advance." Choose your amount and confirm. The ATM will dispense the cash and print a receipt showing the transaction and any fee charged.
Not all ATMs accept credit cards for cash advances. Bank-owned ATMs are most likely to allow it, while ATMs in convenience stores or gas stations may decline credit card withdrawals. If an ATM rejects your card, try a different machine or visit a bank branch instead.
The fee appears on your receipt when ready. Some issuers charge a flat fee (for example, $5 or $10), while others charge a percentage of the amount withdrawn. Check your cardholder agreement to know which applies to your card.
Withdrawing cash at a bank teller window
Walk into any bank branch — yours or another bank — and tell the teller you want a cash advance on your credit card. Bring your card and a photo ID. The teller will process the transaction, charge your fee, and hand you the cash. This method works even if you do not have a bank account at that branch.
Bank tellers can sometimes override ATM limits, so if you need more cash than an ATM will dispense, a teller window is your option. The fee structure is the same as an ATM withdrawal, and interest begins accruing the same day.
Understanding the costs: fees and interest rates
A cash advance costs you money in two ways. First, there is an upfront cash advance fee, charged the moment you withdraw. This fee is typically 3 to 5 percent of the amount withdrawn, with a minimum fee (often $5 to $10). On a $500 withdrawal at 4 percent, you pay $20 when ready.
Second, interest accrues from day one — there is no grace period like there is for regular purchases. The interest rate on cash advances is usually higher than your regular APR. For example, your card might charge 18 percent APR on purchases but 25 percent APR on cash advances. Interest compounds daily, so the longer you carry the balance, the more you owe.
To see your card's specific cash advance fee and APR, check your cardholder agreement or log into your online account. The terms vary widely by issuer and card type. Some premium cards offer lower cash advance fees or waived fees for the first advance, but the interest rate is rarely reduced.
How cash advances appear on your statement and credit report
A cash advance shows as a separate line item on your credit card statement, distinct from your regular purchases. The balance is tracked independently, meaning paying down your purchase balance does not reduce your cash advance balance. If you owe $1,000 in purchases and $500 in a cash advance, paying $500 toward your bill will not clear the advance — you must specify that the payment goes toward the cash advance.
When you make a payment to your credit card, most issuers explore it to the balance with the highest interest rate first (the cash advance), but check your account to confirm how your issuer handles payments. Some cards let you direct payments to a specific balance type through their online portal.
A cash advance does not appear differently on your credit report than a regular purchase — it is all part of your credit utilization and payment history. However, taking a large cash advance can raise your utilization ratio, which may lower your credit score temporarily.
When a cash advance check might arrive in the mail
Some credit card issuers send cash advance checks to cardholders, usually unsolicited. These checks draw directly against your credit limit and carry the same fees and interest rates as ATM withdrawals. You can deposit the check into your bank account or cash it at a bank.
Cash advance checks are convenient if you need to pay a bill by check, but they are not cheaper than other cash advance methods — the fee and interest rate are identical. Do not confuse them with balance transfer checks, which sometimes offer lower introductory rates.
If you receive a cash advance check and do not want to use it, straightforward discard it. There is no obligation to use checks your issuer sends, and using one does not help your credit score.
Alternatives to a credit card cash advance
Before you withdraw cash on your credit card, consider whether another option costs less. A personal loan from a bank or credit union typically charges lower interest than a cash advance and has a fixed repayment schedule. A payday loan is faster but often more expensive. A balance transfer to a card with a 0 percent introductory rate works only if you need to move debt between cards, not if you need actual cash.
If you need cash for an emergency, ask whether you can borrow from family or friends, negotiate a payment plan with the person or business you owe, or look into whether a local nonprofit offers emergency information. These options cost nothing or far less than a cash advance.
If you have a debit card linked to a bank account, use that instead — it withdraws your own money with no fee or interest. A cash advance should be a last resort, not a routine way to get cash.
Frequently Asked Questions
Does a cash advance hurt my credit score?
A cash advance itself does not damage your credit, but it can lower your score temporarily by raising your credit utilization ratio — the amount of your total credit limit you are using. If you pay it back quickly, the impact is usually small and short-lived. Late payments on a cash advance will hurt your score more than the advance itself.
Can I use a cash advance to pay off another credit card?
Technically yes, but it is a bad idea. You would pay the cash advance fee, then pay the higher cash advance interest rate on top of your existing card's interest. A balance transfer (moving debt from one card to another) is cheaper if you may have access to, because some cards offer 0 percent introductory rates on transfers.
What happens if I do not pay back a cash advance?
The balance stays on your account and interest keeps accruing. After 30 days, the late payment appears on your credit report and damages your score. Your issuer may raise your interest rate further or close your account. The debt does not disappear and can be sent to a collection agency.
Is there a limit to how much I can withdraw?
Yes. Your issuer sets a cash advance limit, which is usually lower than your total credit limit — often 20 to 50 percent of it. You can find your cash advance limit in your cardholder agreement or by calling your issuer. Some ATMs also have daily withdrawal limits that are separate from your card's limit.
Can I get a cash advance with a secured credit card?
Most secured cards allow cash advances, but the limit is often very low or nonexistent. Check your card's terms before assuming you can use this feature. The fees and interest rates are the same as a regular credit card.