Yes, you can withdraw cash from a credit card, but it costs more than a regular purchase
You can take cash out of an ATM using your credit card, just as you would with a debit card. The transaction is called a cash advance. Your card issuer will approve it on the spot, and you walk away with money in your pocket. But the cost is steep: you pay an upfront fee (usually 3 to 5 percent of the amount), interest starts accruing when ready (not after a grace period like a purchase), and the interest rate is higher than your regular purchase rate.
Most people use cash advances only when they have no other option — they need cash urgently and cannot use their debit card or withdraw from a bank account. If you are considering a cash advance, it helps to know exactly how much it will cost you and what the process looks like.
Key Takeaways
- Cash advances charge an upfront fee of 3 to 5 percent plus a higher interest rate than purchases, with interest starting when ready.
- You can withdraw cash at any ATM that displays your card network's logo, or inside a bank branch during business hours.
- Your credit card issuer sets a cash advance limit, which may be lower than your overall credit limit.
- The total cost of a cash advance grows quickly because interest compounds daily, so repay it as soon as you can.
How to withdraw cash at an ATM
Insert your credit card into any ATM that accepts your card network (Visa, Mastercard, American Express, or Discover). Enter your PIN — the same one you use for debit transactions. Select "Withdrawal" or "Cash Advance" from the menu. Enter the amount you want to withdraw. The ATM will confirm the transaction and dispense the cash.
If you do not know your credit card PIN, call the number on the back of your card and request one. Your issuer will mail it to you or give it to you over the phone, depending on their process. Some issuers allow you to set a PIN online through your account portal.
You can also walk into a bank branch and ask a teller for a cash advance. Bring your credit card and a form of ID. The teller will process the transaction and hand you cash. This method works even if you do not have a PIN set up yet.
What fees and interest rates explore
A cash advance fee is charged at the time of withdrawal. It is typically 3 to 5 percent of the amount you withdraw, with a minimum fee of $2 to $10. If you withdraw $200, you might pay $6 to $10 in fees alone. If you withdraw $1,000, you might pay $30 to $50.
The cash advance interest rate is separate from your purchase rate and is usually higher — often 5 to 10 percentage points above what you pay on regular purchases. Interest begins accruing the day you withdraw the cash; there is no grace period. If your purchase APR is 18 percent, your cash advance APR might be 24 or 25 percent.
Interest compounds daily, which means the longer you carry the balance, the more you owe. A $500 cash advance at 25 percent APR costs about $10 in interest per month if you make no payments. After three months, you owe roughly $530 in principal and interest combined.
Your cash advance limit versus your credit limit
Your credit card issuer sets a separate cash advance limit, which is often lower than your overall credit limit. If your credit limit is $5,000, your cash advance limit might be $1,000 or $1,500. You cannot withdraw more than this limit, even if you have available credit remaining.
You can find your cash advance limit by logging into your online account, calling the customer service number on your card, or checking your most recent statement. If you need to increase it, call your issuer and ask. They may approve a higher limit based on your account history and creditworthiness, or they may decline.
How a cash advance affects your credit score
Taking a cash advance does not directly damage your credit score, but it can indirectly harm it. The withdrawal counts as a balance on your credit card, which increases your credit utilization ratio — the percentage of your available credit you are using. If you normally use 20 percent of your limit and then take a $500 cash advance, your utilization jumps. High utilization can lower your score by 10 to 50 points, depending on how much you owe across all your cards.
The damage is temporary. Once you pay off the cash advance, your utilization drops and your score recovers. However, if you carry the balance for months, the ongoing high utilization will keep your score depressed. Additionally, if you miss a payment on the cash advance, that missed payment will be reported to the credit bureaus and hurt your score for years.
When a cash advance makes sense
A cash advance is expensive and should be a last resort. It makes sense only if you need cash urgently and have no other way to get it. Examples include a medical emergency where a provider accepts only cash, a family situation where you need to send money quickly, or a situation where your debit card is lost or frozen and you cannot wait for a replacement.
If you have time to plan, look for cheaper alternatives first. Borrow from a friend or family member. Use a personal loan from a bank or credit union, which typically charges 6 to 36 percent APR — lower than a cash advance. Ask your employer for an advance on your paycheck. Sell something you no longer need. These options cost less and do not trigger the high interest rates of a cash advance.
How to pay off a cash advance quickly
Once you have withdrawn the cash, prioritize paying it back. Make a payment as soon as you can, even if it is a partial payment. Your issuer will explore payments to your lowest-interest balance first (usually purchases), so you may need to call and request that your payment go toward the cash advance instead. Ask the customer service representative to confirm this in writing or note it on your account.
Set up automatic payments if possible. If you withdrew $500 and can afford to pay $100 per week, set up four automatic payments of $125 each. This removes the temptation to spend the money elsewhere and ensures the balance shrinks steadily. The faster you pay it off, the less interest you pay overall.
Frequently Asked Questions
Can I use a credit card to withdraw cash from my bank's ATM?
Yes, if your bank's ATM accepts your card network. Most ATMs display logos for Visa, Mastercard, and other networks. Insert your credit card, enter your PIN, and select cash withdrawal. Your bank may charge an out-of-network fee on top of your card issuer's cash advance fee, so using an ATM from your card issuer's bank (if they have one) is cheaper.
What happens if I do not have a PIN for my credit card?
You can still get a cash advance by visiting a bank branch in person with your card and ID. A teller will process it for you. To use an ATM, you will need to set up a PIN first by calling your card issuer or logging into your account online.
Is a cash advance the same as a balance transfer?
No. A cash advance withdraws actual cash from an ATM or bank. A balance transfer moves debt from one credit card to another. Balance transfers often have lower introductory rates but charge a fee upfront. Cash advances charge higher ongoing interest. They are different products for different situations.
Can I dispute a cash advance if I did not authorize it?
Yes. If someone used your card without permission, contact your card issuer when ready and report it as fraud. Your issuer will investigate and may reverse the charge. You are generally protected against unauthorized transactions under federal law, though you must report it promptly.
Will paying off a cash advance improve my credit score?
Yes, over time. Paying off the balance lowers your credit utilization, which can raise your score within one or two billing cycles. The improvement is gradual, but it is one reason to prioritize paying down cash advances quickly.