Yes, you can withdraw money from a credit card, but it costs more than a regular purchase
You can take cash out of a credit card account through an ATM, bank teller, or cash advance service. The transaction is called a cash advance. Unlike a purchase, a cash advance charges you interest when ready — there is no grace period — and also charges a separate fee, usually 3 to 5 percent of the amount you withdraw. The interest rate on cash advances is typically higher than the rate on regular purchases from the same card.
Most people should avoid cash advances unless they have no other option. The cost adds up quickly, and the debt can be harder to pay off because interest starts accruing the moment you take the money out.
Key Takeaways
- Cash advances charge a fee (usually 3 to 5 percent) plus interest that starts when ready, with no grace period like purchases have.
- The interest rate on cash advances is often 2 to 5 percentage points higher than the rate on regular purchases.
- You can withdraw cash at an ATM using your credit card PIN, at a bank teller, or through a cash advance service.
- Payments toward a cash advance are applied after purchases are paid off, so the debt lingers longer.
- Alternatives like personal loans, payday loans from credit unions, or borrowing from family usually cost less.
How to withdraw cash using an ATM
Insert your credit card into an ATM that displays your card's logo (Visa, Mastercard, American Express, or Discover). Enter your PIN — the same four-digit code you use for debit transactions. Select "Withdrawal" or "Cash Advance" from the menu. Enter the amount you want to withdraw. The ATM will dispense the cash and print a receipt showing the transaction as a cash advance.
Not all ATMs accept credit cards for cash advances. Bank-owned ATMs are more likely to allow it than independent ATMs in convenience stores or bars. If one ATM declines your card, try another location or call your card issuer to confirm your PIN is active for cash advances.
There may be an additional ATM fee on top of the cash advance fee. Some ATMs charge $2 to $5 just for using the machine, and your card issuer may charge another $3 to $10 for the cash advance itself.
Getting cash from a bank teller or over the counter
Walk into a branch of your card issuer's bank (or any bank that accepts your card) and ask the teller for a cash advance. Bring your credit card and a form of ID. Tell the teller the amount you want to withdraw. They will process the transaction, charge the same fees as an ATM would, and hand you the cash.
This method works even if you do not have a PIN set up for your card. It can also be faster than an ATM if you need a large amount, since ATMs have daily withdrawal limits — often $500 to $1,000 per day — while a teller may be able to process a larger advance.
What fees and interest rates to expect
The cash advance fee is usually a flat percentage of the amount withdrawn, typically 3 to 5 percent. A $300 cash advance might cost $9 to $15 in fees alone. Some cards cap the fee at a maximum amount (for example, $10 maximum), while others do not.
Interest on the cash advance begins accruing the day you withdraw it. There is no grace period. If your card's regular purchase APR is 18 percent, the cash advance APR might be 22 or 25 percent. The higher rate applies only to the cash advance balance, not to regular purchases.
When you make a payment toward your credit card balance, the payment is typically applied to purchases first, then to cash advances. This means if you have both a purchase and a cash advance on your card, your cash advance debt sits there accruing interest while you pay down the purchase.
Daily limits and how much you can withdraw
Your credit card issuer sets a cash advance limit, which is often lower than your overall credit limit. You might have a $5,000 credit limit but only a $1,000 cash advance limit. Check your card's terms or call the issuer to find out your specific limit.
ATMs also have daily withdrawal limits, usually $500 to $1,000 per day, even if your card's cash advance limit is higher. A bank teller may be able to process a larger single withdrawal, but the daily limit still applies across all transactions.
If you need more than your daily limit, you can withdraw again the next day, but each withdrawal triggers a separate fee.
Cheaper alternatives to a cash advance
A personal loan from a bank or credit union usually has a lower interest rate than a cash advance and no upfront fee. If you have decent credit, you might may have access to for a rate of 8 to 15 percent, compared to 22 to 30 percent for a cash advance.
A credit union payday loan (sometimes called a payday alternative loan) is capped at $1,000 and charges a maximum fee of $20, with an interest rate of around 28 percent APR. The fee is much lower than a cash advance fee, and the loan term is short — usually two months.
Borrowing from family or friends costs nothing if they do not charge interest. If you do borrow from someone you know, put the terms in writing so there is no misunderstanding later.
If you need cash for an emergency and have no other option, a cash advance is faster than a personal loan process, which can take several days. But if you have even a few days, a personal loan or credit union loan will save you money.
How a cash advance affects your credit score
A cash advance does not directly hurt your credit score the way a missed payment does. However, it increases your credit utilization — the percentage of your available credit you are using. If you have a $5,000 limit and take a $1,000 cash advance, your utilization jumps to 20 percent. High utilization can lower your score by a few points.
The cash advance also shows up on your credit report as a separate transaction type, which some scoring models view differently than a regular purchase. The impact is usually small unless you take multiple cash advances or your utilization was already high.
The real damage comes if you cannot pay off the cash advance quickly. Carrying a balance at 25 percent interest will cost you far more than any score drop, and if you miss a payment, that will hurt your score significantly.
Frequently Asked Questions
Can I use a credit card to withdraw money at any ATM?
Most ATMs that display your card's logo (Visa, Mastercard, American Express, Discover) will accept it for a cash advance. Independent ATMs in bars or convenience stores may decline credit cards. Bank-owned ATMs are your best bet. If an ATM declines your card, try a different location or contact your card issuer to confirm your PIN is active.
What is the difference between a cash advance and a balance transfer?
A cash advance is money you withdraw as cash and pay interest on when ready. A balance transfer moves debt from one card to another, usually with a lower introductory rate for a set period. Balance transfers are for moving existing debt; cash advances are for getting cash in hand.
Will my credit card issuer let me set a lower cash advance limit?
Many issuers allow you to request a lower cash advance limit through your online account or by calling customer service. Lowering the limit can prevent accidental cash advances and reduce temptation, though it does not prevent you from raising it again later if you need to.
Can I withdraw cash from a credit card if I am maxed out?
No. Your cash advance limit is part of your overall credit limit. If you have used your full limit, you cannot take a cash advance until you pay down the balance. Some issuers may allow a small cash advance even when you are at your limit, but this is rare and depends on the card.
How long does it take to pay off a cash advance?
That depends on how much you owe and how much you pay each month. Because payments are applied to purchases first, a cash advance can take much longer to pay off than the principal amount suggests. If you have a $500 cash advance at 25 percent APR and pay $50 per month, it will take about 12 months and cost roughly $150 in interest.