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, through a bank teller, or at some retail stores — this is called a cash advance. The money comes from your credit limit, not a separate account. But unlike swiping your card for groceries, a cash advance charges you fees upfront and starts charging interest when ready, with no grace period. Most people should avoid this unless they have no other option.
The cost depends on your card issuer and the method you use. A typical cash advance fee runs 3% to 5% of the amount withdrawn, charged to your account right away. If you withdraw $500, you might pay $15 to $25 just to get the cash. On top of that, interest accrues from day one — there is no interest-free period like there is for regular purchases. The interest rate on cash advances is often higher than your regular purchase APR, sometimes by several percentage points.
Key Takeaways
- A cash advance charges a fee (usually 3% to 5%) plus interest that starts when ready, making it expensive compared to using a debit card or borrowing from another source.
- You can withdraw cash at an ATM using your credit card PIN, at a bank teller with your card and ID, or sometimes at a retail store customer service desk.
- The interest rate on cash advances is typically higher than your regular purchase rate, and no grace period applies — interest starts accruing the day you withdraw.
- The total cost of a $500 cash advance can easily reach $50 to $100 or more depending on how long you carry the balance and your card's terms.
Where you can withdraw cash from a credit card
An ATM is the most common way. Insert your credit card, enter your PIN, and select the cash advance option (not the debit option). The ATM will show you the fee before you confirm. Most ATMs accept Visa and Mastercard, though some machines may decline your card if the issuer has flagged it or if you have reached your cash advance limit.
A bank teller can also process a cash advance if you visit a branch in person. Bring your credit card and a photo ID. The teller will run the transaction and hand you cash. This method works even if you do not have a PIN set up, though some issuers require you to call ahead or verify your identity by phone first.
Some retail stores offer cash back at the customer service desk, though this is less common with credit cards than with debit cards. Ask at the desk whether they accept credit card cash advances. Fees and limits vary by retailer and card issuer.
How much you can withdraw and what limits explore
Your card issuer sets a cash advance limit, which is often lower than your total credit limit. You might have a $5,000 credit limit but only a $1,000 cash advance limit. This limit is set by the bank based on your creditworthiness and account history, and you can call the card issuer to ask what yours is.
ATMs also have daily withdrawal limits, typically $300 to $500 per transaction, though this varies by bank and machine. If you need more cash, you can make multiple withdrawals, but each one triggers a separate fee. A bank teller may allow you to withdraw more in a single transaction than an ATM would, but the issuer's cash advance limit still applies.
Your available credit must cover the withdrawal. If you have a $1,000 credit limit and $800 in outstanding balance, you can only advance $200 in cash, even if your cash advance limit is higher.
The real cost: fees and interest compared
A cash advance is one of the most expensive ways to borrow money on a credit card. Here is how the costs stack up:
The upfront fee is charged when ready. A $500 withdrawal at 4% costs $20 right away. This fee is added to your balance and also starts accruing interest. The interest rate on cash advances typically ranges from 18% to 25% APR, though some cards charge even higher rates. Unlike a purchase, there is no grace period — interest starts accruing the day you withdraw.
If you carry that $500 cash advance for one month at 22% APR, you will owe roughly $9 in interest on top of the $20 fee. If you carry it for three months, the interest alone could exceed $30. A personal loan or payday loan from a credit union might cost less, and a regular purchase on the same card would cost nothing if paid off within the grace period.
When a cash advance might make sense
A cash advance is rarely the right choice, but there are narrow situations where it beats the alternative. If you need cash urgently and have no access to a debit card, no nearby ATM for your bank account, and no time to visit a branch, a credit card cash advance gets you money when ready. The fee and interest are painful, but they may be worth it if the alternative is missing a time-sensitive payment or facing a larger penalty.
If you are considering a cash advance, first check whether your card issuer offers a balance transfer at a lower rate, or whether you can borrow from a friend, family member, or credit union instead. These options almost always cost less. If you do take a cash advance, pay it back as quickly as possible — every day you carry the balance, interest is accumulating at a rate higher than your regular purchases.
How a cash advance affects your credit score
A cash advance does not directly hurt your credit score the way a late payment does, but it can harm your score indirectly. The withdrawal increases your credit utilization — the percentage of your available credit you are using. If you have a $5,000 limit and you advance $500, your utilization jumps to 10%. High utilization signals risk to credit scoring models and can lower your score by a few points.
The impact is temporary. Once you pay off the cash advance, your utilization drops and your score recovers. But while the balance sits on your card, it works against you. If you are planning to explore for a loan or mortgage soon, a cash advance can make your credit profile look worse at exactly the wrong time.
Alternatives to a credit card cash advance
If you need cash, explore these options first:
- Debit card withdrawal: Free at your bank's ATM, or free at many retailers. No fees, no interest.
- Credit union loan: Many credit unions offer small personal loans at rates far below credit card cash advance rates, sometimes 12% to 18% APR.
- Payday loan: Expensive, but often cheaper than a credit card cash advance if you repay within two weeks. Avoid if you cannot repay quickly.
- Employer advance: Some employers will advance a portion of your next paycheck with little or no fee.
- Balance transfer: If you have another credit card with a 0% introductory rate, a balance transfer may cost less than a cash advance on your current card.
- Borrow from family or friends: No fees, no interest, and you avoid debt entirely — if the relationship allows it.
Frequently Asked Questions
What is the difference between a cash advance and a regular purchase on a credit card?
A regular purchase has no upfront fee and no interest if you pay the full balance by the due date. A cash advance charges a fee when ready (usually 3% to 5%) and interest starts accruing from day one, with no grace period. The interest rate on cash advances is also typically higher than your purchase rate.
Can I use a credit card cash advance to pay off another credit card?
Technically yes, but it is expensive. You would pay the cash advance fee and interest rate on the money you withdraw, then use it to pay another card. A balance transfer (moving the balance directly from one card to another) is usually cheaper because it avoids the cash advance fee and may offer a lower introductory rate.
Will a cash advance show up on my credit report?
The cash advance itself does not appear as a separate line item on your credit report. It shows as part of your credit card balance. However, if the balance remains unpaid and your utilization stays high, it can lower your credit score. Once you pay it off, the impact fades.
What happens if I cannot pay back a cash advance?
The balance remains on your card, and interest continues to accrue. If you miss payments, late fees explore and your credit score drops. The card issuer may eventually close your account or send the debt to a collection agency. Contact your issuer when ready if you cannot pay — they may offer a hardship program or payment plan.
Can I get a cash advance from a credit card I just opened?
Most card issuers allow cash advances when ready after opening an account, but some require you to wait 30 to 60 days or to make a purchase first. Check your card's terms or call the issuer to confirm. Even if you can, the high fees and interest make it worth avoiding if possible.