Yes, you can take cash out with a credit card, but it costs more than a regular purchase
You can withdraw cash from a credit card at an ATM, through a bank teller, or sometimes at a store checkout. This is called a cash advance. The money comes from your credit limit, not a separate account, and you start paying interest on it when ready — usually at a higher rate than you pay on regular purchases. There are also upfront fees. For most people, a cash advance should be a last resort, not a regular way to get spending money.
The total cost of a cash advance grows quickly because interest accrues from day one with no grace period. A $500 withdrawal at a typical cash advance rate of 25 percent APR, combined with a 3 to 5 percent upfront fee, can cost $25 to $35 in the first month alone if you only make minimum payments. Understanding how each withdrawal method works and what it costs helps you decide whether a cash advance is necessary and how to minimize the damage if you use one.
Key Takeaways
- Cash advances charge interest from day one with no grace period, unlike regular credit card purchases that give you 21 to 25 days before interest starts.
- Most cards charge a fee of 3 to 5 percent of the amount you withdraw, plus a higher interest rate than purchases, making the total cost substantial even for small amounts.
- You can get cash at ATMs, bank branches, or some retailers, but each method has different fee structures and convenience levels.
- Paying back a cash advance as soon as possible is critical because the interest rate is higher than other forms of borrowing and compounds quickly.
- Alternatives like employer paycheck advances, personal loans, or balance transfers are usually cheaper than a credit card cash advance.
How to withdraw cash at an ATM
Insert your credit card into any ATM that displays your card's logo — Visa, Mastercard, American Express, or Discover. Enter your PIN (the same one you use for debit transactions). Select "cash withdrawal" or "cash advance" from the menu. The ATM will show you the fee before you confirm, usually between $3 and $10 depending on the ATM operator and your card issuer. Choose your amount and complete the transaction.
The fee you see at the ATM is only the ATM operator's charge. Your card issuer will also charge its own fee — typically 3 to 5 percent of the amount withdrawn — which appears on your next statement. If you withdraw $200, you might pay $6 at the ATM plus $6 to $10 from your card issuer, totaling $12 to $16 in fees alone before any interest accrues. This stacking of fees makes ATM withdrawals one of the most expensive ways to get cash.
Getting cash from a bank teller
Walk into any bank branch that accepts your card and ask the teller for a cash advance. You will need your credit card and a photo ID. The teller will process the transaction and hand you cash. Bank tellers do not charge an ATM fee, but your card issuer still charges its cash advance fee — again, usually 3 to 5 percent of the amount you withdraw.
This method is useful if you need a large amount and want to avoid multiple ATM fees, or if you are uncomfortable using an ATM. The downside is that bank branches have limited hours and you may have to wait in line. The interest rate and fees are the same as an ATM withdrawal, but you save the ATM operator's charge, which can add up if you are withdrawing several hundred dollars.
Cash advances at the checkout
Some retailers let you request cash back when you pay with a credit card, similar to a debit card transaction. Ask the cashier whether they offer this service. If they do, you can add the amount to your purchase total and receive cash from the register. This method usually has no additional fee beyond what your card issuer charges, making it cheaper than an ATM withdrawal.
Not all stores offer this option — it depends on the retailer's policy and their payment system. Grocery stores and pharmacies are more likely to allow it than smaller shops. Always ask before you reach the register so you are not surprised if they decline. This is the cheapest way to get a cash advance because you avoid the ATM operator's fee entirely.
What the fees and interest actually cost
A cash advance is expensive because interest starts accruing when ready. When you make a regular purchase, you get a grace period — usually 21 to 25 days — before interest kicks in. Cash advances have no grace period. Interest begins the day you withdraw the money, which means you are paying to borrow even if you pay the full amount back within a few days.
The interest rate on a cash advance is also higher than the rate on purchases. If your card charges 18 percent APR on purchases, the cash advance rate might be 24 or 28 percent. Over time, this difference adds up. A $500 cash advance at 25 percent APR costs about $10 in interest per month if you only make minimum payments. Combined with the upfront fee of $15 to $25, you are paying $25 to $35 just to borrow $500 for a month. If you carry the balance for three months, the total cost doubles.
When a cash advance makes sense
A cash advance is rarely the best option, but there are narrow situations where it might be necessary. If you have an emergency and no other way to get cash — no savings, no access to a personal loan, no friends or family who can help — a short-term cash advance is better than missing a critical payment or going without food. The key is to treat it as a temporary solution, not a regular source of spending money.
The critical factor is how quickly you pay it back. If you take out $300 and pay it back within two weeks, the interest cost is minimal — perhaps $3 to $5. If you carry the balance for months, the fees and interest will exceed what you borrowed. Never use a cash advance to fund regular spending or to cover a shortfall in your budget. That pattern leads to debt that grows faster than you can repay it, and the high interest rate makes it harder to escape.
Alternatives to a cash advance
Before you use a credit card cash advance, explore other options. If you need cash for an emergency, ask your employer about an advance on your paycheck — many employers offer this with little or no cost. If you have a savings account, withdraw from that instead — you will pay no fees or interest. If you have a bank account with overdraft protection, you can write a check or use your debit card even if your balance is low, and you will pay a one-time overdraft fee instead of ongoing interest.
If you need a larger amount, a personal loan from a bank or credit union usually charges less interest than a credit card cash advance and gives you a fixed repayment schedule. Some employers offer emergency loans to employees at low or no interest. A balance transfer — moving an existing credit card balance to a card with a lower rate or an introductory 0 percent period — is cheaper if you are trying to consolidate debt. Compare the total cost of each option before you choose a cash advance.
Frequently Asked Questions
Does a cash advance hurt my credit score?
A cash advance itself does not directly damage your score, but it increases your credit utilization — the percentage of your available credit you are using. High utilization can lower your score temporarily. If you carry the balance and make late payments, that will hurt your score more significantly.
Can I use a cash advance to pay off another credit card?
Technically yes, but it is a bad idea. You are paying a cash advance fee and high interest to move debt from one card to another. A balance transfer — moving the balance to a card with a lower rate or an introductory 0 percent period — is much cheaper if you may have access to.
What happens if I can't pay back the cash advance?
The balance stays on your credit card and interest continues to accrue. If you miss payments, your card issuer will report it to the credit bureaus, which damages your credit score. You may face late fees and a higher interest rate. Contact your card issuer to discuss a payment plan if you are struggling.
Is there a limit to how much I can withdraw?
Yes. Your cash advance limit is usually lower than your total credit limit — often 20 to 50 percent of it. Your card issuer sets this limit and you can call to ask what yours is. Some cards let you request a higher limit, but approval is not may provide.
Can I get a cash advance with a debit card?
No. A debit card withdraws money directly from your bank account, so there is no advance involved. You can withdraw cash at an ATM or from a teller with no fees (unless the ATM operator charges), and no interest applies.