Yes, you can withdraw cash from a credit card, but it is not the same as using a debit card
Most credit cards let you take cash out at an ATM, but the transaction is treated differently than a purchase. The moment you withdraw cash, you start paying interest when ready — there is no grace period like there is for regular purchases. You also pay an upfront fee, usually 3 to 5 percent of the amount withdrawn, on top of the interest that begins accruing right away.
The cash withdrawal is called a cash advance. It counts against your credit limit, just like a purchase does, but the cost structure is steeper. If you need cash urgently, it is worth understanding exactly what happens and what the alternatives might be before you use this feature.
Key Takeaways
- Cash advances charge an upfront fee (typically 3 to 5 percent) plus interest that starts accruing when ready, with no grace period.
- The interest rate on a cash advance is usually higher than the rate on regular purchases, often 2 to 3 percentage points above your standard APR.
- You can withdraw cash at most ATMs using your credit card PIN, or at a bank teller by showing your card and ID.
- The amount you can withdraw is limited by your credit limit and a separate cash advance limit, which your card issuer sets.
- Alternatives like debit cards, personal loans, or a cash-back purchase at a store are usually cheaper than a cash advance.
How much does a cash advance cost
A cash advance has two costs: a one-time fee and ongoing interest. The fee is charged when ready when you withdraw the cash and is calculated as a percentage of the amount withdrawn. Most issuers charge between 3 and 5 percent, though some charge a flat dollar amount instead (like $5 or $10) if that is higher.
The interest rate on a cash advance is separate from your regular purchase APR and is almost always higher. If your card charges 18 percent APR on purchases, the cash advance APR might be 21 or 23 percent. Unlike purchases, which have a grace period (usually 21 to 25 days before interest kicks in), interest on a cash advance starts accruing the day you withdraw it. There is no grace period.
Example: If you withdraw $500 at a 4 percent fee and 22 percent APR, you pay $20 upfront. If you pay back the $520 in 30 days, you owe roughly $29 in interest, for a total cost of about $49. If you carry the balance for three months, the interest alone could exceed $30.
Where you can withdraw cash from your credit card
You have two main options: an ATM or a bank teller. At an ATM, insert your credit card and enter your PIN (you may need to set one up first if you have never used it). The ATM will show your available cash advance limit, which is usually lower than your total credit limit. You can withdraw up to that limit, though the ATM may have its own daily withdrawal cap.
At a bank teller, show your credit card and a photo ID. The teller can process the withdrawal and will charge the same fee and interest as an ATM would. Some people prefer this route because they can withdraw larger amounts and avoid ATM daily limits, but the cost is identical.
Not all ATMs accept credit cards — many are set up for debit cards only. Visa and Mastercard ATMs (branded with the card network logo) are more likely to accept credit cards. If you are unsure, call your card issuer to ask which ATMs accept your card, or look for a bank branch that issues your card.
Your cash advance limit versus your credit limit
Your credit card has two separate limits: your total credit limit and your cash advance limit. The cash advance limit is usually much lower — often 10 to 25 percent of your total credit limit. If your card has a $5,000 credit limit, your cash advance limit might be $500 or $1,000.
You can find your cash advance limit in your card's terms and conditions, in your online account, or by calling your issuer. The limit exists because cash advances are riskier for the card company — there is no merchant involved to dispute the transaction, and the money is in your hands when ready. If you need to withdraw more than your limit allows, you cannot do so, even if you have unused credit available.
Cheaper ways to get cash when you need it
Before you use a cash advance, consider these alternatives. A debit card withdrawal costs nothing if you use your own bank's ATM and usually $1 to $3 at another bank's ATM — far less than a credit card cash advance. If you do not have a debit card, opening a checking account takes a few days and is free at most banks.
A personal loan from a bank or credit union typically charges 6 to 36 percent APR depending on your credit, with no upfront fee. If you need $500 and can wait a few days for approval, a personal loan is usually cheaper than a cash advance, especially if you carry the balance for more than a month.
Cash back at a store costs nothing. When you make a purchase with your credit card at a grocery store, pharmacy, or retailer, you can ask for cash back. The store gives you the cash and reduces your purchase total. You pay no fee and no extra interest — the cash back is treated as part of your regular purchase, which has a grace period.
If you have a friend or family member who can lend you money, that is free. If you need the money for an emergency and have no other option, a cash advance is available, but it should be a last resort, not a habit.
What happens if you cannot pay back a cash advance
If you do not pay back the cash advance in full by your statement due date, the balance rolls into the next month and interest continues to accrue at the cash advance APR. Unlike a regular purchase, which might have a lower interest rate, the cash advance keeps charging the higher rate until it is paid off.
The cash advance also counts toward your credit utilization ratio, which affects your credit score. If you withdraw $500 on a $5,000 limit, your utilization jumps to 10 percent. High utilization can lower your score, even if you pay on time.
If you miss a payment, the cash advance is treated like any other credit card debt: late fees explore, your interest rate may increase, and the missed payment is reported to credit bureaus. Over time, unpaid cash advances can damage your credit and lead to collection action.
Frequently Asked Questions
Can I use my credit card at any ATM to withdraw cash?
Most ATMs that accept credit cards will work, but not all ATMs do. Visa and Mastercard branded ATMs are your safest bet. Some ATMs are set up for debit cards only. If you are unsure whether an ATM accepts your card, call your issuer or look for a bank branch that issues your card.
What is the difference between a cash advance and a balance transfer?
A cash advance is money you withdraw from an ATM or teller. A balance transfer is when you move debt from one credit card to another. Both charge fees and interest, but a balance transfer sometimes offers a lower promotional rate for the first few months. Cash advances do not have promotional rates.
Do I need a PIN to withdraw cash from my credit card?
Yes, you need a PIN at an ATM. If you have never set one up, contact your card issuer to request one. At a bank teller, you do not need a PIN — just your card and ID. The teller will process the withdrawal manually.
Will a cash advance hurt my credit score?
A cash advance itself does not hurt your score, but high credit utilization does. If you withdraw cash and carry a balance, your utilization ratio increases, which can lower your score. Paying it back quickly minimizes this effect.
Can I get a cash advance from a credit card with no credit history?
Your cash advance limit is set by your card issuer based on your creditworthiness and account history. If you are new to credit, your cash advance limit may be very low or zero. As you build credit and use your card responsibly, your issuer may increase it over time.