Yes, you can withdraw money from a credit card, but it costs more than a regular purchase
You can take cash out of a credit card at an ATM, bank branch, or by asking a cashier for cash back at a store. The transaction is called a cash advance. Unlike a purchase, a cash advance starts charging interest when ready — there is no grace period — and you pay an upfront fee, usually 3 to 5 percent of the amount you withdraw. If you withdraw $200, you might pay $6 to $10 just to get the cash, plus interest from day one.
Most people should avoid cash advances unless they have no other option. The interest rate on a cash advance is often higher than the rate on regular purchases, sometimes by several percentage points. You are also borrowing money at a cost, not using a benefit of the card.
Key Takeaways
- A cash advance charges an upfront fee (usually 3 to 5 percent) and interest that starts when ready, with no grace period like purchases have.
- The interest rate for cash advances is typically higher than the rate for regular purchases on the same card.
- You can withdraw cash at an ATM using your credit card PIN, at a bank branch, or by requesting cash back at a store checkout.
- Your credit card company sets a cash advance limit, which may be lower than your overall credit limit.
- Cash advances appear on your credit card statement and count toward your credit utilization, which affects your credit score.
Where you can withdraw cash from a credit card
An ATM is the most common place. Insert your credit card, enter your PIN, and select the cash withdrawal option. The ATM will show you the fee before you confirm — read it. Most ATMs charge a fee on top of your card issuer's fee, so you may pay two fees at once.
A bank branch works if the card is issued by that bank or a partner bank. Walk in, give the teller your card and ID, and ask for a cash advance. This route usually has no ATM fee, only the card issuer's fee.
Some stores offer cash back at checkout. You make a purchase, and the cashier gives you extra cash from the register. This method has no ATM fee, only the card issuer's fee. Not all stores offer it, and limits vary — many cap cash back at $20 to $100 per transaction.
Fees and interest you will pay
The cash advance fee is charged by your card issuer and is usually a flat amount (like $5 or $10) or a percentage of the amount withdrawn, whichever is higher. Most cards charge 3 to 5 percent. A $200 withdrawal might cost $6 to $10.
An ATM operator fee is charged by the ATM owner if your card issuer does not have a network agreement with that ATM. This fee is separate from the card issuer's fee and typically ranges from $2 to $4. Using an ATM from your card issuer's bank or a partner network avoids this fee.
Interest starts accruing the day you withdraw the cash. There is no grace period. If your card's cash advance rate is 24 percent APR and you withdraw $200, you owe roughly $4 in interest for the first month. The longer you carry the balance, the more interest you pay.
The cash advance interest rate is often 2 to 5 percentage points higher than the rate for regular purchases. Check your card's terms to see both rates.
Your cash advance limit is separate from your credit limit
Your credit card company sets a cash advance limit that is usually lower than your overall credit limit. If your credit limit is $5,000, your cash advance limit might be $1,500 or $2,000. You cannot withdraw more than this limit, even if you have unused credit available.
You can contact your card issuer to ask what your cash advance limit is. Some card issuers let you request an increase, but this is not may provide. The limit exists partly because cash advances are riskier for the lender — the money leaves the card network when ready and is harder to recover if you default.
How a cash advance affects your credit score
A cash advance counts toward your credit utilization ratio, which is the percentage of your available credit you are using. If you have a $5,000 credit limit and withdraw $500 in cash, your utilization jumps to 10 percent. High utilization can lower your credit score, even if you pay the balance in full the next month.
The cash advance itself does not appear as a separate item on your credit report, but it shows up on your credit card statement as a transaction. Payment history matters more than a single cash advance, so paying it back quickly minimizes the damage.
When a cash advance makes sense
A cash advance is worth considering only in specific situations. If you need cash for an emergency and have no other way to get it — no savings, no access to a personal loan, no friends or family to borrow from — a cash advance is faster than a loan process. You get the money in minutes.
If you are paying for something that requires cash and you have no ATM card or debit card, a cash advance is an option. Some small businesses, street vendors, or informal transactions only take cash.
In almost every other case, there is a cheaper way. A personal loan from a bank or credit union usually has a lower interest rate and no upfront fee. A payday loan, while expensive, may be cheaper than a cash advance if you repay it within two weeks. Borrowing from a friend or family member costs nothing. Even using a debit card to withdraw from your own bank account is free.
How to repay a cash advance quickly
Interest on a cash advance accrues daily, so the faster you repay it, the less you pay. Make a payment as soon as possible after the withdrawal. Do not wait for the statement to arrive.
When you make a payment to your credit card, the card issuer applies it to your balance in a set order: usually minimum payments first, then purchases, then cash advances and other fees. This means if you have both a purchase balance and a cash advance balance, your payment may go toward the purchase first, leaving the cash advance to accrue interest longer. Pay extra to cover the cash advance specifically, or pay the entire balance at once.
Check your online account or statement to confirm the cash advance balance is zero. Some cards show cash advances separately from purchases, making it easier to track.
Frequently Asked Questions
Can I withdraw cash from a credit card without a PIN?
At an ATM, you need a PIN. At a bank branch, you can show your ID instead. For cash back at a store, you typically do not need a PIN — the cashier just processes it like a purchase. If you do not have a PIN, contact your card issuer to set one up, or use the bank branch or cash back method.
What is the difference between a cash advance and a balance transfer?
A cash advance gives you physical cash and charges a fee plus high interest when ready. A balance transfer moves debt from one card to another and may offer a low or zero interest rate for a promotional period. Balance transfers are for moving existing debt; cash advances are for getting cash. Both charge fees and count toward your credit utilization.
Will 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. Paying it back quickly minimizes the impact. Missing payments or carrying a high balance for months will hurt your score more.
Can I use a credit card to withdraw money from another person's bank account?
No. A cash advance only withdraws from your own credit card account. You cannot use someone else's card or account. If you need to transfer money to someone else, use a bank transfer, wire, or payment app instead.
Is there a limit to how much cash I can withdraw?
Yes. Your card issuer sets a cash advance limit, which is usually lower than your overall credit limit. You also may hit daily ATM withdrawal limits set by the ATM operator or your bank. Check your card's terms or contact your issuer to learn your specific limit.