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Can You Withdraw Cash From a Credit Card? Here's What You Need to Know

Yes, you can take out cash from a credit card—but it works differently from a debit card withdrawal, and the costs can add up quickly. Understanding how cash advances function will help you decide whether this option makes sense for your situation.

What Is a Cash Advance?

A cash advance is a short-term loan against your credit card's available credit. When you withdraw cash using your credit card at an ATM, through a bank teller, or at a point-of-sale terminal, you're borrowing money directly from your card issuer rather than accessing funds already in a bank account.

This distinction matters because cash advances trigger fees and interest rates that differ significantly from regular credit card purchases.

How the Process Works

At an ATM: Insert your credit card, enter your PIN, select the cash advance option, and choose the amount. Not all ATMs accept credit cards for cash advances—look for machines operated by your card issuer's bank or partner networks.

At a bank branch: Visit the teller and request a cash advance. You'll need your card and valid ID.

At a retailer: Some merchants allow cash advances at the register, though this option is less common than it once was.

The money appears in your hand within seconds, but the credit card company immediately records the transaction and begins charging you for it.

The Real Cost of Cash Advances 💰

Three distinct charges apply to cash advances:

Charge TypeWhat It Is
Cash advance feeA percentage of the amount withdrawn (typically 2–5% of the cash amount), often with a minimum flat fee
Higher APRInterest rates on cash advances often exceed the rate on regular purchases, sometimes significantly
No grace periodInterest accrues immediately—there's no interest-free window like there usually is for purchases paid in full by the due date

These costs apply even if you pay the full balance immediately. A $200 cash advance with a 3% fee and a 25% APR will cost you more than you might expect, especially if repayment takes several weeks or months.

Key Variables That Affect Your Cost

Card issuer policies vary widely. Some cards charge 3% while others charge 5%. Some interest rates match your purchase APR; others are substantially higher.

Your credit limit sets the ceiling for available cash. Withdrawing a large advance depletes your available credit for other purchases.

Repayment speed determines how much interest you'll pay. The longer the cash sits as a balance, the more you owe.

Local ATM network affects whether you'll face additional ATM operator fees on top of the card issuer's cash advance fee.

When Cash Advances Make Sense (and When They Don't)

A cash advance may be practical in limited situations:

  • You need cash urgently and have no other immediate access to funds
  • You're confident you can repay within days, minimizing interest charges
  • The cash advance fee and short-term interest are genuinely lower than alternative options (like an overdraft fee or short-term loan)

A cash advance typically doesn't make sense when:

  • You're using it as a way to fund ongoing expenses (a sign that cash flow is stretched)
  • You expect the balance to carry for weeks or months
  • A debit card, savings withdrawal, or personal loan would cost less

Alternatives to Consider

If you need cash and don't have a debit card readily available, consider whether you can use a mobile payment app, request cash back at a store where you're making a purchase, or visit your bank branch for a standard withdrawal from a savings account.

If you're facing a cash flow shortage, a cash advance may feel urgent—but it's typically an expensive way to bridge a gap, especially if the underlying problem persists.

The Bottom Line

You absolutely can take out cash from a credit card, but the mechanics and costs differ fundamentally from other ways of accessing money. Before you use this option, compare what you'll actually pay against the real cost of alternatives available to you. Your specific card's terms, your current APR, and how quickly you can repay all shape whether a cash advance is a reasonable financial tool or an expensive stop-gap.