Yes, you can withdraw cash from a credit card, but it costs more than a regular purchase
You can pull cash directly from a credit card at an ATM or bank teller window. This is called a cash advance. The money goes into your bank account or your hand when ready, but the card issuer charges you a fee upfront — usually 3% to 5% of the amount — plus a higher interest rate than you pay on regular purchases. That interest starts accruing the same day, with no grace period like you get on purchases.
Cash advances are meant for genuine emergencies, not for regular spending. The fees and interest make them expensive compared to using a debit card, borrowing from a friend, or taking out a personal loan. If you find yourself needing cash advances often, that is usually a sign your budget needs attention or you need a different borrowing tool.
Key Takeaways
- A cash advance charges a fee of 3% to 5% of the amount withdrawn, charged when ready to your card balance.
- Interest on cash advances is higher than interest on purchases and begins accruing the day you withdraw the money, with no grace period.
- You can get a cash advance at any ATM using your credit card PIN, or at a bank teller by showing your card and ID.
- The total cost of a cash advance — fee plus interest — makes it one of the most expensive ways to borrow money.
Where to withdraw cash from your credit card
The easiest place is any ATM that displays your card network's logo — Visa, Mastercard, American Express, or Discover. Insert your card, enter your PIN, select "cash advance" or "withdraw cash," and choose your amount. The ATM will show you the fee before you confirm, so you know the exact cost before the money leaves your account.
You can also go to a bank teller at any branch of your card issuer or at many other banks. Bring your credit card and a photo ID. Tell the teller you want a cash advance. They will process it the same way an ATM does, but you can ask questions and get a receipt on the spot. Some banks charge an additional fee for teller-assisted cash advances, so ask before you proceed.
Your credit card issuer may also let you request a cash advance by phone or through their mobile app, though the money will be deposited into your linked bank account rather than handed to you in cash. Check your card's terms or call the number on the back of your card to see if this option is available.
How much you can withdraw
Your credit card has a separate cash advance limit, which is usually lower than your overall credit limit. For example, if your credit limit is $5,000, your cash advance limit might be $1,500. This limit is set by your card issuer and you cannot change it yourself.
You can find your cash advance limit in your online account, by calling the number on your card, or by checking your cardholder agreement. If you try to withdraw more than your limit, the ATM or teller will decline the transaction. Some card issuers let you request a higher cash advance limit, but this is not may provide and may require a hard inquiry into your credit.
Fees and interest you will pay
A cash advance fee is charged the moment you withdraw the money. This fee is usually a flat amount (like $5 to $10) or a percentage of the amount withdrawn (typically 3% to 5%), whichever is greater. A $300 cash advance with a 5% fee costs you $15 right away, added to your card balance.
Interest on the cash advance is separate from the fee. Most credit cards charge a higher APR (annual percentage rate) on cash advances than on purchases — often 2% to 5% higher. If your purchase APR is 18%, your cash advance APR might be 23%. This interest accrues daily from the moment you withdraw the cash, and there is no grace period. You start paying interest when ready, even if you pay off the balance within a few days.
To see the real cost, use your card issuer's online calculator or do the math yourself. A $500 cash advance at a 5% fee ($25) plus 23% APR costs you roughly $25 upfront, then about $9.58 in interest after one month if you do not pay it back. After three months, the interest alone reaches nearly $30.
How a cash advance affects your credit
A cash advance does not hurt your credit score in the moment you withdraw it. However, it does increase your credit utilization — the percentage of your available credit you are using. If you have a $5,000 credit limit and take a $1,000 cash advance, your utilization jumps to 20%. High utilization can lower your credit score, especially if you carry the balance for several months.
The cash advance also appears on your credit report as a separate transaction type. Credit scoring models treat cash advances differently from purchases, sometimes viewing them as riskier borrowing. If you carry a cash advance balance while also carrying purchase balances, the cash advance interest will accrue faster and cost you more.
The best way to protect your credit is to pay off the cash advance as quickly as possible. Pay more than the minimum payment so you reduce the principal and stop the interest from compounding.
Cheaper alternatives to a cash advance
Before you use a cash advance, consider these options. A personal loan from a bank or credit union usually has a lower interest rate and fixed repayment terms, so you know exactly what you will pay. A payday loan is fast but often more expensive than a cash advance, so compare the total cost first. Borrowing from a friend or family member costs nothing if they agree, though it can strain relationships.
If you need cash regularly, a debit card tied to your bank account lets you withdraw money for free at your bank's ATMs. A line of credit from your bank may offer lower rates than a cash advance. Some employers offer paycheck advances with little or no fee — ask your HR department if this is available to you.
If you are in a true emergency and have no other options, a cash advance is better than missing a bill payment or going without necessities. But treat it as a last resort, not a habit.
How to pay back a cash advance
The cash advance balance appears on your credit card statement as a separate line item from your purchases. When you make a payment to your card, the issuer applies it to your balances in a specific order set by law: first to the balance with the highest interest rate (usually the cash advance), then to purchases, then to balance transfers.
This means if you have both a cash advance and purchases on your card, your payment goes toward the cash advance first, which is good — you stop the highest interest from accruing. However, you still owe interest on the purchases while you pay down the cash advance. The fastest way to clear a cash advance is to pay as much as you can afford each month until the balance hits zero.
Do not rely on a 0% promotional offer to cover a cash advance. Most 0% APR promotions explore only to purchases or balance transfers, not to cash advances. Read your offer carefully before assuming the cash advance is included.
Frequently Asked Questions
What is the difference between a cash advance and a balance transfer?
A cash advance gives you physical cash or money in your bank account. A balance transfer moves debt from one credit card to another. Cash advances charge a fee and high interest when ready. Balance transfers may have a lower introductory rate for a set period, making them cheaper for moving existing debt. Neither is ideal, but a balance transfer is usually less expensive if you are moving debt you already owe.
Can I use a credit card cash advance to pay off another credit card?
Technically yes, but it is not a good idea. You would be taking a cash advance (with its fee and high interest) to pay off another card's balance. A balance transfer between the two cards would be cheaper. If you need to consolidate debt, a personal loan or balance transfer card offers better terms than a cash advance.
Do I have to use my PIN to get a cash advance?
At an ATM, yes — you need your PIN to withdraw cash. At a bank teller, you do not need a PIN; you just show your card and ID. Some card issuers let you set or reset your PIN through their app or website if you have forgotten it.
Will a cash advance show up on my credit report?
The cash advance itself does not appear as a separate item on your credit report, but the increased balance and utilization will show. If you carry the cash advance balance for months, it will be visible in your payment history and credit utilization ratio, both of which affect your credit score.
Can I get a cash advance if my credit is bad?
Yes. Cash advances are available to anyone with an active credit card, regardless of credit score. Your cash advance limit is set by the card issuer based on your account history and creditworthiness, but even people with lower credit scores can usually access some amount. However, you may have a lower limit than someone with excellent credit.