Yes, you can take cash out with a credit card, but it is not the same as using a debit card
When you withdraw cash using a credit card, you are borrowing money from your credit card issuer, not drawing from your own account. This is called a cash advance. The money goes into your pocket or bank account, but you owe it back to the card issuer, and interest starts accruing when ready — often at a higher rate than your regular purchase APR.
Most credit cards allow cash advances, but the terms and costs vary by card and issuer. You can get cash at an ATM, at a bank teller window, or sometimes through a cash advance check. The process is straightforward, but the fees and interest make it an expensive way to get cash unless you have no other option.
Key Takeaways
- Cash advances charge interest from day one with no grace period, unlike purchases, so the cost adds up fast.
- You will pay an upfront fee (usually 3 to 5 percent of the amount withdrawn) plus a higher APR than your regular card rate.
- ATM withdrawals have daily limits set by your card issuer, typically between $200 and $500, though you can request a higher limit.
- The cash advance appears on your credit card statement as a separate balance and must be paid back like any other charge.
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 — this is the same PIN you use for debit card transactions, or you may need to set one if you have never taken a cash advance before. Select "Withdrawal" or "Cash Advance," then enter the amount you want.
The ATM will show you the fee (usually $3 to $5 per transaction) before you confirm. Once you confirm, the cash is dispensed and the transaction is complete. The amount plus the fee will appear on your next credit card statement. Check your card's terms or call the issuer if you are unsure whether your card has a PIN set up — some cards require you to set one before your first cash advance.
Withdrawing cash from a bank teller or using a cash advance check
You can also walk into a bank branch and ask the teller for a cash advance using your credit card. Bring your card and a photo ID. The teller will process the transaction, charge you the cash advance fee, and hand you the cash. This method works even if you do not have a PIN set up, and there is no daily ATM limit — you can withdraw larger amounts this way, though your card's overall credit limit still applies.
Some credit card issuers send cash advance checks with your card or statements. You can write one of these checks to yourself and deposit it into your bank account, or give it to someone else. The check counts as a cash advance, so the same fees and interest explore. Cash advance checks are useful if you need a large amount or do not have access to an ATM, but they take a few days to clear.
Fees and interest rates for cash advances
A cash advance typically costs more than a purchase. Most cards charge a cash advance fee of 3 to 5 percent of the amount withdrawn, with a minimum fee of $3 to $10. So a $200 withdrawal might cost $6 to $10 in fees alone. Some cards charge a flat fee instead of a percentage.
The interest rate on a cash advance is usually higher than your regular APR. While a purchase might carry an APR of 15 to 20 percent, a cash advance APR can be 25 to 30 percent or higher. Unlike purchases, there is no grace period — interest starts accruing the day you withdraw the cash. If you carry the balance for a month, you will owe interest on top of the fee you already paid.
Check your card's terms or call the issuer to find out your specific cash advance fee and APR. These details are in your cardholder agreement or on the issuer's website.
Daily limits and how to increase them
Credit card issuers set a daily cash advance limit, usually between $200 and $500. This is separate from your credit limit. If you try to withdraw more than your daily limit at an ATM, the machine will decline the transaction. You can still go to a bank teller and request a larger amount, as long as it is within your overall credit limit.
To increase your daily ATM limit, call your card issuer's customer service number (on the back of your card) and ask to raise your cash advance limit. The issuer may approve an increase on the spot or ask you to wait a day or two. Some issuers let you set a higher limit online through your account portal. Raising your limit does not change the fees or interest rate — it only lets you withdraw more cash per transaction.
When a cash advance makes sense and when it does not
A cash advance is expensive and should be a last resort. Use it only if you need cash urgently and have no other way to get it — no ATM access, no debit card, no friends or family to borrow from. The fees and interest add up quickly, and you will owe the money back on your next statement.
Do not use a cash advance to pay another credit card or to cover everyday expenses you could pay for with a debit card. Do not use it to gamble, invest, or make risky purchases. If you find yourself needing cash advances regularly, that is a sign your budget needs attention or you need to explore other options like a personal loan or line of credit, which usually have lower interest rates.
How the cash advance appears on your statement and how to pay it back
When you take a cash advance, it shows up on your credit card statement as a separate line item, usually labeled "Cash Advance" or "ATM Withdrawal." The fee is listed separately. The cash advance balance is part of your total credit card balance and accrues interest each day until you pay it off.
When you make a payment to your credit card, the issuer typically applies your payment to the lowest-interest balance first (usually purchases), then to higher-interest balances like cash advances. To pay off a cash advance faster, ask your issuer if you can direct a payment specifically to the cash advance balance. Some issuers let you do this online or by phone. Paying off the cash advance as soon as possible is the best way to minimize the interest you owe.
Frequently Asked Questions
What is the difference between a cash advance and a regular purchase?
A purchase is charged to your card and has a grace period — you do not owe interest if you pay the full balance by the due date. A cash advance has no grace period and charges interest from day one. Cash advances also have a higher APR and an upfront fee, while purchases do not.
Can I use a credit card to withdraw cash from my own bank account?
No. If you want to withdraw from your own account, use your debit card or visit a teller with your account number and ID. A credit card withdrawal is always a cash advance, which means you are borrowing money, not accessing your own funds.
Does a cash advance hurt my credit score?
A cash advance itself does not hurt your score, but carrying a high balance does. If the cash advance pushes your credit utilization (the amount you owe versus your credit limit) above 30 percent, it may lower your score slightly. Paying it off quickly keeps the impact minimal.
What happens if I cannot pay back a cash advance?
If you do not pay, the balance stays on your card and interest keeps accruing. Late payments are reported to credit bureaus and damage your score. The issuer may raise your APR or close your account. Contact your issuer if you are struggling to pay — they may offer a hardship program or payment plan.
Can I take a cash advance from a credit card I just opened?
Most issuers allow cash advances on new cards, but some may restrict them for the first 30 days. Check your cardholder agreement or call the issuer to confirm. Even if you can take an advance, the fees and interest make it an expensive option for a new card.