Yes, you can withdraw cash with a credit card, but it costs more than a regular purchase
Most credit cards let you take cash out at an ATM, bank teller, or through a cash advance at a store. The card issuer treats this as a cash advance — a short-term loan separate from your regular credit line. You will pay an upfront fee (usually 3 to 5 percent of the amount) plus a higher interest rate than you pay on purchases, and interest starts accruing when ready with no grace period.
The catch is that cash advances are expensive by design. A $200 cash advance might cost you $6 to $10 in fees alone, plus daily interest. If you carry the balance for a month, the total cost can easily reach $15 to $25. For comparison, a $200 purchase on the same card might cost you nothing if you pay it off by the due date.
Cash advances make sense only when you have no other option — you need cash urgently and cannot use your debit card or visit your own bank. If you have time to plan, a debit card withdrawal or a personal loan from your bank will cost you far less.
Key Takeaways
- Cash advances charge an upfront fee of 3 to 5 percent plus a higher interest rate than purchases, with no grace period.
- You can get a cash advance at an ATM, bank branch, or by asking a store cashier, but each method has different fees.
- Interest on a cash advance starts the day you withdraw it, so even a short-term advance becomes expensive quickly.
- Your credit card's cash advance limit may be lower than your overall credit limit, so you cannot always withdraw as much as you can spend.
Where you can withdraw cash with a credit card
The most common way is an ATM. You insert your card, enter your PIN, and withdraw cash just as you would with a debit card. Most ATMs accept credit cards, though some charge an extra ATM operator fee on top of your card issuer's fee. If you use an ATM outside your card issuer's network, expect to pay both your issuer's cash advance fee and the ATM operator's surcharge — often $2 to $5 total.
You can also visit a bank branch where your card is issued and ask the teller for a cash advance. This method usually has no ATM surcharge, only your card issuer's fee. Bring your card and ID. Some banks let you request a cash advance over the phone or through their app, though this is less common.
A third option is to ask a store cashier for a cash advance at checkout. Some retailers — grocery stores, pharmacies, and convenience stores — will give you cash back when you pay with a credit card, treating it as a cash advance rather than a debit transaction. This avoids the ATM fee but still triggers your card issuer's cash advance fee and interest rate.
Fees and interest rates for cash advances
Your card issuer charges a cash advance fee upfront, usually 3 to 5 percent of the amount withdrawn. On a $300 advance, that is $9 to $15 before you leave the ATM. This fee is added to your credit card balance when ready.
The interest rate on a cash advance is higher than the rate on purchases. Where a purchase might carry an APR of 15 to 22 percent, a cash advance might be 25 to 30 percent or higher. Check your card's terms to see the exact rates — they vary by issuer and by your creditworthiness.
Unlike purchases, there is no grace period. Interest starts accruing the moment you withdraw the cash. If you take out $300 on the 1st of the month and pay it back on the 30th, you will owe interest for all 30 days, not zero days as you might with a purchase.
Some cards also set a cash advance limit lower than your overall credit limit. You might have a $5,000 credit limit but only a $1,000 cash advance limit. Check your card agreement or call your issuer to find out your limit before you try to withdraw.
How much a cash advance actually costs you
Here is a concrete example. You withdraw $300 in cash using a credit card with a 4 percent cash advance fee and a 28 percent APR.
- Cash advance fee: $300 × 0.04 = $12
- Balance owed when ready: $312
- Interest for 30 days: $312 × 0.28 ÷ 12 = $7.28
- Total cost if paid back in 30 days: $19.28
If you carry the balance for 60 days instead, the interest compounds and the total cost rises to roughly $27. If you only make minimum payments and carry it for six months, the total cost could exceed $50 on that original $300 withdrawal.
By contrast, if you had withdrawn $300 from your own bank account using a debit card, the cost would be zero. If you had borrowed $300 from a credit union personal loan at 12 percent APR, the cost over 30 days would be about $3. A cash advance is the most expensive way to get cash in most situations.
When a cash advance makes sense
A cash advance is worth considering only when you have no faster alternative and the amount is small enough that the fee does not outweigh the benefit. Examples include:
- You need cash for an emergency and your bank is closed or you do not have access to your debit card.
- A vendor or service requires cash and you cannot pay by card, and the cash advance fee is less than the cost of not paying (like a late fee or penalty).
- You are traveling internationally and your debit card does not work, but your credit card does.
In all these cases, the cash advance is a temporary solution. Pay it back as soon as you can — ideally within a few days — to minimize interest charges.
Do not use a cash advance to fund everyday spending, to cover a shortfall in your budget, or as a substitute for a personal loan. The fees and interest will compound quickly, and you will end up paying far more than the cash was worth.
Alternatives to a credit card cash advance
If you need cash, explore these options first:
- Debit card withdrawal: Free at your bank's ATM, and often free at other banks in a shared network. No fees, no interest.
- Personal loan from your bank or credit union: Usually 8 to 15 percent APR, with a fixed repayment schedule. Much cheaper than a cash advance if you need the money for more than a few days.
- Paycheck advance app: Apps like Earnin or Dave let you borrow against your next paycheck for a small fee, often $0 to $15. Faster than a personal loan but only works if you have regular income.
- Asking family or friends: No fees, no interest, and no credit check — if you have that option.
- Selling something: If you have items you no longer need, selling them online or locally can raise cash without borrowing.
How to minimize the cost if you do take a cash advance
If a cash advance is your only option, take these steps to keep the cost as low as possible.
First, withdraw only what you need. Every dollar you advance costs you the upfront fee plus interest, so a $100 advance is cheaper than a $300 advance even if both solve your when ready problem.
Second, pay it back as fast as you can. Even paying it back in full within a week instead of a month will cut your interest cost in half. Set a specific date to repay it and treat it like a bill.
Third, use your card issuer's ATM or branch if possible, to avoid the ATM operator surcharge. A $2 to $5 surcharge on top of your card's fee adds up quickly.
Fourth, check whether your card offers any cash advance benefits or fee waivers. Some premium cards waive the cash advance fee for the first few withdrawals per year, or offer a lower rate for the first 30 days. It is worth reading your card agreement or calling customer service to ask.
Frequently Asked Questions
Does taking a cash advance hurt my credit score?
A cash advance itself does not appear on your credit report as a separate item. However, it increases your credit card balance, which raises your credit utilization ratio — the percentage of your available credit you are using. A higher utilization can lower your score slightly. Once you pay off the advance, your utilization drops and your score recovers.
Can I use a credit card to withdraw cash from my own bank account?
No. A credit card is a loan product, not a debit product. When you use it at an ATM or bank teller, you are borrowing money from the card issuer, not accessing your own funds. If you want to withdraw from your own account, use your debit card or visit your bank in person.
What happens if I cannot pay back a cash advance?
The balance stays on your credit card and accrues interest at the higher cash advance rate. 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 card issuer as soon as you know you will have trouble paying — they may offer a hardship plan or lower rate.
Is there a limit to how much cash I can withdraw?
Yes. Your card issuer sets a cash advance limit, which is often lower than your overall credit limit. You might have a $5,000 spending limit but only a $1,000 cash advance limit. Call your issuer or check your online account to find your specific limit before you try to withdraw.
Do all credit cards offer cash advances?
Most do, but not all. Some cards, particularly secured cards or cards for people rebuilding credit, may not offer cash advances or may offer them only after a certain period of account history. Check your card agreement or call customer service to confirm whether your card supports cash advances.