Yes, you can withdraw cash with a credit card, but it costs more than a regular purchase
You can take cash out of an ATM using your credit card, but the card issuer treats it differently than a purchase. The moment you withdraw cash, you start paying interest when ready — there is no grace period like you get with regular purchases. You also pay an upfront fee, usually 3 to 5 percent of the amount you withdraw, plus whatever fee the ATM operator charges. A $200 cash withdrawal can cost you $10 to $15 before interest even starts.
The process itself is straightforward: insert your credit card into an ATM, enter your PIN, and select "cash advance" or "withdrawal." But the financial cost makes this an expensive way to get cash unless you have no other option. If you need cash regularly, a debit card or a trip to your bank is almost always cheaper.
Key Takeaways
- Credit card cash advances charge an upfront fee (usually 3 to 5 percent) plus interest that starts when ready, with no grace period.
- The interest rate on cash advances is often higher than the rate on regular purchases from the same card.
- ATM operators may charge an additional fee on top of your card issuer's fee.
- You can only withdraw up to your credit limit, and the amount counts against that limit just like a purchase does.
- Using a debit card, visiting your bank, or using a cash-back option at a store is cheaper than a credit card cash advance.
How the fees and interest work
When you take a cash advance, your card issuer charges a fee upfront. This fee is a percentage of the amount you withdraw — typically 3 to 5 percent, though some cards charge a flat fee instead (like $5 or $10 minimum). A $300 withdrawal at 4 percent costs you $12 right away.
Interest starts accruing the same day. Unlike a purchase, which may have a grace period of 20 to 25 days before interest kicks in, a cash advance has no grace period. The interest rate is also usually higher than your regular purchase APR. If your card charges 18 percent APR on purchases, the cash advance rate might be 22 or 25 percent. That $300 withdrawal will cost you roughly $1.50 to $2 per day in interest until you pay it back.
Some ATMs charge their own fee on top of this — often $2 to $3 per transaction. If you use an out-of-network ATM (one not run by your bank or card issuer), both your bank and the ATM operator may charge you.
What limits explore to cash advances
Your credit card issuer sets a separate cash advance limit, which may be lower than your overall credit limit. You might have a $5,000 credit limit but only a $1,500 cash advance limit. You can find this limit in your cardholder agreement or by calling the number on the back of your card.
The cash you withdraw counts against your credit limit. If you withdraw $300, you have $300 less available to spend on purchases. This matters if you are close to your limit already, because it can push you over and trigger over-limit fees or a declined transaction.
Cheaper ways to get cash
If you have a debit card linked to a checking account, use that instead. Debit card ATM withdrawals usually cost nothing or a small fee ($1 to $2), and there is no interest charge. If your bank charges ATM fees, visit a branch and ask the teller for cash over the counter — this is free.
Many stores offer cash back when you make a purchase with a debit card or credit card. This is free and often easier than finding an ATM. You buy something small and ask for $20 or $40 back in cash. Some stores limit how much you can withdraw this way, but it beats paying a cash advance fee.
If you do not have a debit card, opening a basic checking account at a bank or credit union is faster and cheaper than relying on credit card cash advances. Many accounts have no monthly fee and come with a debit card automatically.
When a cash advance might make sense
A cash advance is rarely the right choice, but there are narrow situations where it might be your only option. If you are traveling abroad and cannot access your bank account, a credit card cash advance may be the only way to get local currency. Even then, you should check whether your bank offers a travel-friendly debit card or whether you can wire money to yourself first.
If you face a genuine emergency and have no other way to get cash, a small cash advance is better than missing a payment or going without. But this should be a last resort, not a habit. The fees and interest add up fast, and they make your debt harder to pay off.
How a cash advance affects your credit score
Taking a cash advance does not directly hurt your credit score, but it can indirectly. The withdrawal counts toward your credit utilization — the percentage of your available credit you are using. If you withdraw $300 on a $1,000 limit, your utilization jumps to 30 percent. High utilization can lower your score slightly.
The real damage comes if you cannot pay back the cash advance quickly. Carrying a balance on a credit card, especially at a higher interest rate, makes it harder to pay down debt. If you miss a payment, that will hurt your score much more than the cash advance itself.
What to do if you have already taken a cash advance
Pay it back as fast as you can. Because interest starts when ready and the rate is usually high, every day you carry the balance costs you money. If you have other debts with lower interest rates, pay those first and tackle the cash advance next.
If you took the cash advance because you were short on cash, look at what caused the shortage. Did an unexpected expense come up? Are you spending more than you earn each month? Fixing the underlying problem is more important than paying off this one transaction. A cash advance is a symptom, not the disease.
Frequently Asked Questions
Can I use my credit card PIN at any ATM?
Yes, but you will likely pay a fee. ATMs run by your card issuer or bank usually charge nothing or a small fee. Out-of-network ATMs charge more — sometimes $3 to $5 per transaction. Always check the ATM screen before you complete the withdrawal; it will tell you the fee amount.
Is the interest rate on a cash advance the same as my purchase rate?
No. Cash advance rates are almost always higher than purchase rates on the same card. Your cardholder agreement lists both rates separately. If you do not know your cash advance rate, call the number on your card and ask.
What happens if I cannot pay back the cash advance?
The balance carries over to the next month and interest keeps accruing. If you miss a payment, your card issuer may charge a late fee and report the missed payment to credit bureaus, which will hurt your credit score. The longer you carry the balance, the more interest you pay.
Can I get a cash advance from a credit card I do not have with me?
No. You need the physical card to use an ATM, or you need your card number and PIN to use some online banking apps. You cannot get a cash advance over the phone or through the mail.
Is there a limit to how much cash I can withdraw?
Yes. Your card issuer sets a separate cash advance limit, which may be lower than your overall credit limit. You can find this limit in your cardholder agreement or by calling customer service. The amount you withdraw also counts against your total credit limit.