Yes, you can withdraw cash with a credit card, but it costs more than a purchase and counts as a loan, not a transaction
Most credit cards let you take cash out at an ATM or from a bank teller. The card issuer treats this as a cash advance — a short-term loan separate from your regular credit limit. You pay interest on it when ready, usually at a higher rate than you pay on purchases. You also pay an upfront fee, typically 3 to 5 percent of the amount withdrawn. If you need cash, this is the most expensive way to get it from your card.
The mechanics are straightforward: insert your card at an ATM, enter your PIN, and withdraw up to your cash advance limit. That limit is often lower than your overall credit limit — sometimes half, sometimes less. The money appears in your bank account within minutes. But the cost starts accruing the same day, with no grace period like you might have on purchases.
Key Takeaways
- Cash advances charge an upfront fee (usually 3 to 5 percent) plus a higher interest rate than purchases, with no grace period.
- Your cash advance limit is typically lower than your credit limit and is set by the card issuer, not by you.
- Interest starts accruing when ready on the day you withdraw, even if you pay the balance in full the next day.
- If you need cash regularly, a debit card, bank withdrawal, or personal loan will cost you far less than repeated cash advances.
How the fees and interest work
A cash advance fee is charged once, at the time of withdrawal. If you take out $500 and the fee is 4 percent, you pay $20 upfront — the $500 is added to your credit card balance along with the $20 fee. You now owe $520.
Interest begins accruing on day one. Unlike purchases, which often have a 21-day grace period before interest kicks in, cash advances have no grace period. If your card's cash advance APR (annual percentage rate) is 24 percent, that $520 balance is growing by roughly 0.066 percent per day. After 30 days, you owe about $545. After 90 days, you owe about $580. The longer you carry the balance, the more you pay.
The cash advance APR is almost always higher than your purchase APR. If you pay 18 percent on purchases, you might pay 24 or 26 percent on cash advances. Some cards charge the same rate for both, but these are uncommon. Check your card's terms or call the issuer to find out your specific cash advance APR and fee.
What your cash advance limit is and how it's set
Your card issuer decides your cash advance limit when they open your account. It is not the same as your credit limit. If your credit limit is $5,000, your cash advance limit might be $1,500 or $2,500 — the issuer sets it based on your credit history and account activity.
You can call your card issuer and ask what your cash advance limit is. Some cards show it in your online account or mobile app. You cannot usually increase it on your own; the issuer controls it. If you try to withdraw more than your limit, the ATM will decline the transaction.
Using your cash advance limit does not increase your available credit. If you have a $5,000 limit and a $1,500 cash advance limit, and you withdraw $500 in cash, your available credit drops by $500 — the same as if you had made a $500 purchase.
Where you can withdraw cash and what happens next
You can withdraw cash at any ATM that accepts your card's network (Visa, Mastercard, American Express, or Discover). You can also go into a bank branch and ask a teller for a cash advance, though this is less common. The teller will swipe your card and process the transaction like a withdrawal.
The cash appears in your hand when ready at an ATM, or the teller hands it to you. The charge appears on your credit card statement within one to three business days. You owe the full amount plus the fee plus accruing interest. Paying it off quickly — within a week or two — reduces the total interest you pay, but you still pay the upfront fee no matter what.
Why a cash advance is expensive compared to other options
If you need $500 in cash, a cash advance costs you roughly $20 in fees plus $10 to $20 in interest over a month. A personal loan from a bank or credit union, if you have decent credit, might cost you $15 to $30 total for the same amount over the same period — and you can repay it on a fixed schedule rather than watching interest compound daily.
A debit card withdrawal from your own bank account costs nothing. A payday loan, while predatory, is sometimes cheaper than a cash advance if you repay it within two weeks. A balance transfer to a 0 percent APR card (if you have one available) costs a 3 to 5 percent fee upfront but no interest for 6 to 21 months, depending on the card.
The only scenario where a cash advance makes sense is an emergency where you have no other option and you can repay it within days. Even then, you are paying for convenience you could have avoided by keeping a small cash buffer or using a debit card.
How a cash advance affects your credit score
Taking a cash advance does not directly hurt your credit score. However, it increases your credit utilization — the percentage of your available credit you are using. If you have a $5,000 limit and you withdraw $500 in cash and charge $1,000 in purchases, you are using 30 percent of your limit. Credit scoring models penalize high utilization, so your score may drop slightly.
The bigger risk is if you cannot pay off the balance quickly. Carrying a high balance month to month, especially at a high interest rate, signals financial stress to lenders. If you miss a payment, your score drops sharply. If you default on the cash advance, the issuer may close your account and report the delinquency to credit bureaus, damaging your score for years.
Alternatives to a cash advance
If you need cash but do not want to pay cash advance fees, consider these options first:
- Withdraw from your bank account. Use your debit card at your bank's ATM or a branch. No fee, no interest.
- Ask for cash back at a store. Many retailers let you withdraw cash when you pay with a debit card. No fee.
- Borrow from a friend or family member. No fee, no interest, though it carries social risk.
- Take a personal loan. If you have time and decent credit, a bank or credit union personal loan has a fixed rate and repayment schedule, usually cheaper than a cash advance over time.
- Use a 0 percent balance transfer card. If you have access to another credit card with a 0 percent introductory APR, you can transfer the balance and pay no interest for months — though you pay a one-time 3 to 5 percent transfer fee.
Frequently Asked Questions
Can I use a credit card to withdraw cash from my own bank account?
No. A credit card is a line of credit, not a debit card. Withdrawing cash with a credit card is borrowing from the card issuer, not accessing your own money. Use your debit card or visit your bank in person to withdraw from your account.
What happens if I cannot pay back a cash advance?
The balance stays on your credit card and interest continues to accrue. If you miss payments, your credit score drops and the issuer may charge late fees. If the debt goes unpaid for months, the issuer may close your account and report it to credit bureaus, damaging your credit for seven years.
Is the cash advance fee the same at every ATM?
The fee from your card issuer is the same everywhere — usually 3 to 5 percent. However, some ATMs charge an additional operator fee (often $2 to $3) if you use an out-of-network machine. Your bank's ATM typically has no operator fee.
Can I get a cash advance with a debit card?
No. Debit cards withdraw money from your account; they do not borrow. If you need cash and do not have it in your account, you cannot get a cash advance with a debit card. You would need a credit card or a loan.
Does paying off a cash advance early stop the interest?
Paying it off early reduces the total interest you pay, but you still pay the upfront fee. If you withdraw $500 with a 4 percent fee and 24 percent APR, you owe $520 when ready. If you pay it back the next day, you owe roughly $521 (one day of interest). The fee is not refundable.