Yes, you can take cash out using your credit card, but it costs more than a regular purchase
You can withdraw cash from your credit card at an ATM, bank teller, or through a cash advance at a store. The transaction is called a cash advance. Unlike a debit card withdrawal, a cash advance charges you a fee upfront and starts charging interest when ready — there is no grace period like there is for regular purchases.
The cost varies by card and by how you withdraw the money. A bank ATM withdrawal might charge 3% to 5% of the amount you take out, plus a flat fee of $2 to $5. A cash advance at a store checkout (sometimes called "cash back") usually costs less or nothing. Interest rates on cash advances are typically higher than the rate on purchases — often 20% to 30% annually, depending on your card.
Because of these costs, taking cash from a credit card should be a last resort, not a regular habit. If you need cash regularly, a debit card or a trip to your bank is cheaper.
Key Takeaways
- Cash advances charge a fee (usually 3% to 5% of the amount) and start accruing interest when ready at a higher rate than purchases.
- You can withdraw cash at an ATM, a bank teller window, or ask for cash back at a store checkout.
- Interest on a cash advance begins the day you withdraw it, with no grace period.
- The total cost of a cash advance can add up quickly, so use this option only when you have no other way to get cash.
Where you can withdraw cash from a credit card
An ATM is the most common place to withdraw cash using your credit card. Insert your card, enter your PIN, select "cash advance" or "withdrawal," and choose the amount. The ATM will charge you a fee when ready — this fee appears on your statement separately from the amount withdrawn.
A bank teller can also process a cash advance. Walk into a branch of your card issuer (or sometimes any bank) and ask for a cash advance. You will need your card and ID. The teller will charge the same fee as an ATM, though some banks waive the fee if you are a customer.
A store checkout is often the cheapest option. Ask the cashier for "cash back" when you pay with your credit card. Many stores offer this with no fee or a small fee, though not all do. This counts as a cash advance on your credit card statement.
How much the fees and interest will cost you
The upfront fee is usually a percentage of the amount you withdraw, a flat dollar amount, or whichever is greater. A typical card charges 3% of the cash advance amount or $5, whichever is higher. If you withdraw $100, you pay $5. If you withdraw $500, you pay $15 (3% of $500). Some cards charge up to 5%, and a few charge a flat fee of $10 regardless of amount.
Interest starts accruing the moment you withdraw the cash — there is no interest-free period. If your card's cash advance rate is 25% annually and you withdraw $500, you will owe about $10.42 in interest after one month if you do not pay it back. After three months, you will owe about $31.25. The longer you carry the balance, the faster the interest compounds.
To see your card's specific cash advance fee and interest rate, check your cardholder agreement or log into your online account. The fee and rate are often different from what you pay on regular purchases.
How to minimize the cost if you need cash
Pay back the cash advance as soon as possible. Every day you carry the balance, interest accrues. If you can pay it back within a week, the interest cost will be minimal. If you must carry it longer, make extra payments toward the cash advance balance rather than the minimum payment, because interest compounds daily.
Use cash back at checkout instead of an ATM when you can. Many stores offer cash back with no fee or a smaller fee than an ATM. Walmart, Target, and grocery stores typically allow cash back on credit card purchases.
Avoid repeated cash advances. If you find yourself needing cash from your credit card regularly, that is a sign your budget needs adjustment or you need a different tool — like a debit card linked to a checking account, or a personal loan with a lower interest rate.
How a cash advance affects your credit score
A cash advance itself does not hurt your credit score, but carrying a high balance does. When you take out a cash advance, it counts toward your credit utilization ratio — the percentage of your total credit limit you are using. If you have a $5,000 limit and take out a $1,000 cash advance, your utilization jumps to 20%. High utilization can lower your score temporarily.
The bigger risk is missing a payment. If you cannot pay back the cash advance on time, late payments will damage your score and stay on your report for seven years. Because cash advances charge high interest, they can spiral quickly if you only make minimum payments.
What happens if you cannot pay back the cash advance
If you cannot pay the full amount by the due date, you will owe interest on the remaining balance. The card issuer will report the account as past due if you miss the payment date. After 30 days late, the late payment appears on your credit report. After 60 or 90 days, the card issuer may freeze your account or send the debt to a collection agency.
You can contact your card issuer to ask about a payment plan or hardship program, though these are less common for cash advances than for regular purchases. Some issuers will work with you if you call before you miss a payment. Waiting until after you are late makes negotiation much harder.
Alternatives to a credit card cash advance
A personal loan from a bank or credit union often has a lower interest rate than a credit card cash advance. If you need $500 or more and can wait a few days for approval, a personal loan may cost you less overall, even with origination fees. Rates typically range from 6% to 36% depending on your credit score.
A payday loan is faster but much more expensive. Payday lenders will give you cash the same day, but charge fees that work out to 400% annual interest or higher. Avoid payday loans unless you have no other option and can pay it back within two weeks.
Borrowing from family or friends costs nothing and has no interest, though it can strain relationships. If you do borrow, put the agreement in writing so both sides are clear on repayment terms.
If you have a 401(k) or similar retirement account, some plans allow you to borrow against your balance. The interest rate is usually lower than a credit card, and you pay yourself back rather than a lender. However, if you leave your job before repaying the loan, you may owe taxes and penalties.
Frequently Asked Questions
Can I withdraw cash from a credit card without a PIN?
At an ATM, you need your PIN to withdraw cash. At a bank teller window, you can withdraw cash with just your card and ID — the teller does not need a PIN. At a store checkout, you do not need a PIN for cash back on a credit card purchase, though some stores may ask for ID.
Does a cash advance show up differently on my credit report?
A cash advance does not appear separately on your credit report. It counts as part of your credit card balance and affects your utilization ratio. Only missed payments or late accounts show up as negative marks on your report.
What is the difference between a cash advance and a balance transfer?
A cash advance gives you physical cash and charges a fee plus high interest. A balance transfer moves debt from one card to another and may offer a lower introductory rate. Cash advances are for getting cash; balance transfers are for moving existing debt between cards.
Can I use a credit card cash advance to pay off another debt?
Technically yes, but it is usually a bad idea. The cash advance fee and high interest rate mean you will pay more to borrow the money than you would with most other loans. A personal loan or balance transfer card would be cheaper.
Will taking a cash advance hurt my credit score when ready?
Not when ready, but it can lower your score within a few days because it increases your credit utilization. The bigger damage comes if you miss a payment or carry the balance for a long time, which signals risk to lenders.