Yes, you can withdraw cash with a credit card, but it costs you money and works differently than a debit card
A cash advance lets you pull money from an ATM or get cash back at a store using your credit card. The transaction goes on your credit card balance just like a purchase does. Unlike a debit card withdrawal, which pulls from your bank account, a cash advance borrows against your credit limit and starts charging interest when ready — there is no grace period like there is for regular purchases.
Most credit cards allow cash advances, but the fees and interest rates are steep enough that you should treat this as a last resort, not a convenience. A typical cash advance costs you an upfront fee (usually 3 to 5 percent of the amount) plus a higher interest rate than your regular purchase APR, sometimes 5 to 10 percentage points higher.
Key Takeaways
- Cash advances charge an upfront fee (typically 3 to 5 percent) plus a higher interest rate than regular purchases, with interest starting when ready.
- You can withdraw cash at an ATM using your credit card PIN, or ask for cash back at a store checkout, up to your available credit limit.
- The amount you can withdraw is usually lower than your full credit limit — many cards cap cash advances at 20 to 30 percent of your limit.
- Interest on a cash advance accrues daily from the moment you withdraw it, with no grace period to pay it back interest-free.
How to actually withdraw cash with your credit card
The mechanics are straightforward. Find an ATM that accepts your card's network (Visa, Mastercard, American Express, or Discover). Insert your card, select "cash advance" or "withdraw cash" from the menu, enter your PIN, and choose the amount. The ATM will dispense the cash and print a receipt showing the transaction and any fees charged.
If you do not have a PIN set up for your card, you will need to create one before you can use an ATM. Call the number on the back of your card or log into your online account to set a PIN. Some card issuers let you set a PIN through their mobile app.
An alternative is to ask for cash back at a retail checkout. Hand the cashier your credit card, tell them how much cash you want back, and they will add that amount to your purchase total. This method avoids ATM fees but still charges the cash advance fee and interest rate from your card issuer.
What fees and interest rates you will pay
The upfront cost is a cash advance fee, charged by your card issuer when you withdraw the money. This is usually a flat dollar amount (like $5 or $10) or a percentage of the amount withdrawn (typically 3 to 5 percent), whichever is higher. A $200 withdrawal with a 5 percent fee costs you $10 right away.
On top of that, the cash advance carries a higher APR (annual percentage rate) than your regular purchase rate. If your card charges 18 percent APR on purchases, the cash advance APR might be 25 percent or higher. This rate applies to the full amount from day one — there is no interest-free period like many cards offer for regular purchases.
Interest compounds daily. A $500 cash advance at 25 percent APR costs about $3.42 per day in interest. If you pay it back in a week, you owe roughly $24 in interest plus the original cash advance fee. If it sits for a month, interest alone could exceed $40.
Limits on how much you can withdraw
Your card issuer sets a cash advance limit that is separate from your credit limit. This limit is often 20 to 30 percent of your total credit limit, though it varies by card and issuer. If your credit limit is $5,000, your cash advance limit might be $1,000 or $1,500.
You can find your cash advance limit by logging into your online account, calling the number on the back of your card, or checking your most recent statement. Some issuers let you view this in their mobile app.
ATMs also have daily withdrawal limits set by the bank that owns the machine, usually $500 to $1,000 per day. Even if your card allows a larger cash advance, the ATM may not dispense more than its daily limit in a single transaction. You can make multiple withdrawals across different days or different ATMs to work around this.
How a cash advance affects your credit score
A cash advance does not directly hurt your credit score, but it can indirectly damage it. The withdrawal increases your credit utilization — the percentage of your available credit you are using. If you have a $5,000 limit and withdraw $500 in cash, your utilization jumps to 10 percent (or higher if you have other purchases on the card). High utilization can lower your score.
The real damage comes if you carry the balance. Missing a payment or letting the balance grow will hurt your score far more than the cash advance itself. Because interest accrues so quickly on cash advances, they are straightforward to let spiral.
When a cash advance makes sense (and when it does not)
A cash advance is rarely the right choice, but there are narrow situations where it might be worth the cost. If you need cash urgently and have no other way to get it — no ATM access, no nearby bank, no friends or family to borrow from — a cash advance is faster than a payday loan or personal loan.
It also makes sense if you can pay it back within days. A $200 cash advance with a $10 fee and 25 percent APR costs you roughly $12 to $13 if you repay it within a week. That is expensive, but it is not catastrophic.
Do not use a cash advance to cover regular expenses, pay bills, or fund purchases you cannot afford. The fees and interest will compound quickly, and you will end up paying far more than the cash was worth. If you are regularly short on cash, a cash advance is a sign you need to look at your budget or find additional income, not a solution to the problem.
Alternatives to a credit card cash advance
If you need cash, explore these options first. A personal loan from a bank or credit union typically charges lower interest than a cash advance and gives you a fixed repayment schedule. A payday loan is faster to get but often more expensive, so compare the total cost before choosing.
If you have a debit card, use that to withdraw cash from your bank's ATM or a partner network ATM — there is no fee and no interest. If you do not have a debit card, open a checking account at a bank or credit union; most offer free accounts and debit cards.
Asking a friend or family member to lend you cash costs nothing and avoids debt entirely. If that is not possible, a credit card purchase (not a cash advance) is cheaper than a cash advance because it has a grace period and a lower interest rate if you do carry a balance.
Frequently Asked Questions
Can I use any credit card to get cash at an ATM?
Most credit cards allow cash advances, but not all. Check your card's terms or call your issuer to confirm. Some cards, particularly store cards or cards designed for specific purposes, may not offer cash advances at all.
What happens if I do not pay back a cash advance?
The balance stays on your credit card and accrues interest daily at your cash advance rate. If you miss payments, your credit score drops, late fees are added, and the issuer may report the debt to collection agencies. The debt does not go away.
Is a cash advance the same as a balance transfer?
No. A balance transfer moves debt from one card to another, usually with a lower introductory rate. A cash advance withdraws actual cash and charges higher fees and interest from day one. They are different products with different costs.
Can I get a cash advance if my credit is bad?
If you already have the credit card, yes — your issuer will let you use your cash advance limit regardless of your current credit score. The limit was set when you opened the account. If you do not have a credit card yet, bad credit makes approval harder, but some issuers offer cards to people with lower scores.
Do I need a PIN to get cash back at a store?
No. Cash back at a store checkout does not require a PIN — you just hand over your card and tell the cashier the amount. An ATM withdrawal does require a PIN.