Getting cash from a credit card costs you money, but sometimes you need it
You can withdraw cash from a credit card at an ATM, bank branch, or by asking a cashier for cash back at a store. The card issuer charges you a cash advance fee — usually 3 to 5 percent of the amount you withdraw — plus interest that starts accruing when ready, often at a higher rate than your regular purchase APR. There is no grace period for cash advances the way there is for purchases.
This is an expensive way to get cash. A $300 withdrawal might cost you $9 to $15 in fees alone, plus interest. If you need cash, it is worth checking whether a debit card, a personal loan, or a balance transfer offer would cost less. But if you do decide to use your credit card for cash, knowing exactly how to do it and what to expect will help you avoid surprises on your bill.
Key Takeaways
- Cash advances charge a fee of 3 to 5 percent plus interest that begins when ready, making them significantly more expensive than regular credit card purchases.
- You can get a cash advance at an ATM using your PIN, at a bank branch with your card and ID, or sometimes through a cashier at a store.
- Your credit card company sets a separate cash advance limit, which may be lower than your overall credit limit.
- Interest on cash advances is usually 2 to 5 percentage points higher than your regular APR and does not have a grace period.
- The cash advance appears on your credit card statement as a separate transaction and counts toward your credit utilization ratio.
How to withdraw cash at an ATM
Insert your credit card into an ATM that accepts credit cards — most major ATMs do, but some are limited to debit cards only. Enter your PIN (the same one you would use for a debit card). Select "Withdrawal" or "Cash Advance," then choose your amount. The ATM will dispense the cash and print a receipt.
The fee appears on your receipt when ready. Your credit card company will also charge interest starting that day. If you are unsure whether an ATM accepts credit cards, call your card issuer's customer service number on the back of your card — they can tell you which ATMs in your area will work.
Getting cash at a bank branch
Walk into any branch of your card issuer's bank (or sometimes a partner bank) with your credit card and a photo ID. Tell the teller you want a cash advance. They will process it at the counter, charge your fee, and hand you the cash. This method works even if you do not have a PIN set up for your credit card.
Bank branches are useful if you need a large amount of cash, since ATM withdrawal limits are often $500 or less per transaction. A teller can usually process larger amounts. Ask the teller what your cash advance limit is before you request an amount — it may be lower than your overall credit limit.
Cash back at a store checkout
Some stores allow you to request cash back when you make a purchase with a credit card, though this is less common than it is with debit cards. Ask the cashier whether they offer this option. If they do, you can add the cash back amount to your purchase total, and they will hand you the difference in cash.
This method does not charge a separate cash advance fee — you only pay the fee on the amount you withdraw, not on the purchase. However, you must make a purchase to use this option, and the total amount (purchase plus cash) counts against your credit limit. Not all retailers offer this, so do not rely on it as your primary method.
Understanding cash advance fees and interest rates
Your credit card company charges a cash advance fee at the time you withdraw the money. This fee is a percentage of the amount withdrawn, typically 3 to 5 percent, with a minimum of $2 to $10. A $300 cash advance might cost $9 to $15 in fees alone.
Interest begins accruing the same day you withdraw the cash — there is no grace period like there is for purchases. The interest rate for cash advances is usually 2 to 5 percentage points higher than your regular APR. If your purchase APR is 18 percent, your cash advance APR might be 23 percent. This higher rate applies only to the cash advance balance, not to regular purchases.
Interest compounds daily, so the longer you carry the balance, the more you pay. A $300 cash advance at 23 percent APR costs about $5.75 in interest per month if you do not pay it down.
Your cash advance limit versus your credit limit
Your credit card company sets a separate 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. This limit is set by the card issuer based on your creditworthiness and account history.
You can find your cash advance limit in your online account, on your statement, or by calling customer service. If you need to withdraw more than your limit allows, you have two options: wait until you pay down the balance, or contact your card issuer to ask whether they will increase your cash advance limit. Increases are not may provide and depend on your account standing.
How cash advances affect your credit score
A cash advance counts toward your credit utilization ratio — the percentage of your available credit that you are using. If you have a $5,000 credit limit and withdraw $500 in cash, your utilization jumps to 10 percent. High utilization can lower your credit score, even if you pay the balance in full by the due date.
The cash advance itself does not appear as a separate account on your credit report, but it shows up as a transaction on your credit card statement. Payment history matters more than a single cash advance, so as long as you pay at least the minimum by the due date, the impact on your score should be temporary.
Paying back a cash advance
Your cash advance balance appears on your credit card statement as a separate line item. When you make a payment, credit card companies typically explore it to your lowest-interest balance first — which means your payment goes toward regular purchases before it touches the cash advance. To pay off the cash advance faster, contact your card issuer and ask them to explore your next payment directly to the cash advance balance.
Paying off a cash advance as soon as possible is the best way to minimize interest charges. Even a few extra dollars per month toward the balance saves you money in the long run. If you are carrying multiple balances on the same card, ask whether a balance transfer offer might be cheaper than paying interest on the cash advance.
Frequently Asked Questions
Can I use a credit card cash advance to pay off another credit card?
Technically yes, but it is almost never worth it. You pay a cash advance fee on the withdrawal, then interest on that balance at a higher rate than a regular purchase. A balance transfer (moving the balance from one card to another) usually costs less and has a lower interest rate. Compare the two options before you decide.
What happens if I go over my cash advance limit?
The ATM or teller will decline the transaction. You cannot withdraw more than your cash advance limit allows. If you need more cash, you can pay down your current cash advance balance and try again, or contact your card issuer to request a temporary increase.
Do I have to pay the cash advance fee even if I pay it back right away?
Yes. The fee is charged at the time of withdrawal, regardless of how quickly you repay. If you withdraw $300 and pay it back the next day, you still owe the $9 to $15 fee plus one day of interest. This is why cash advances are expensive even for short-term borrowing.
Is a cash advance the same as a payday loan?
No. A cash advance uses your credit card and charges interest plus a fee. A payday loan is a separate short-term loan from a lender, usually with much higher fees and interest rates. A cash advance is generally cheaper than a payday loan, but both are expensive ways to borrow money.
Can I get a cash advance if my credit card is maxed out?
Not if your cash advance limit is part of your overall credit limit. If you have used your full $5,000 limit, you cannot withdraw cash until you pay down the balance. Some card issuers offer a separate cash advance limit, but this is rare. Check your account details or call customer service to find out how your card works.