The three ways to withdraw cash using your credit card
You can get cash from your credit card in three ways: at an ATM using your PIN, at a bank teller's window, or through a cash advance service at a store. Each method charges a fee and starts charging interest when ready — there is no grace period like there is for purchases. The cash advance fee is usually 3% to 5% of the amount you withdraw, plus a higher interest rate (often 20% to 30% annually) than your regular purchase rate.
Before you withdraw, check your card's terms for the exact fee percentage and interest rate. These vary by card issuer and your credit history. The total cost of borrowing $500 for a month can easily be $20 to $30 in fees and interest combined.
Key Takeaways
- Cash advances charge a fee (usually 3% to 5%) and a higher interest rate than purchases, with interest starting when ready.
- ATM withdrawals are the fastest method but require your PIN; bank tellers can withdraw larger amounts and may waive the fee for account holders.
- Your credit card issuer sets a separate cash advance limit, which may be lower than your overall credit limit.
- Interest on cash advances accrues daily and is not forgiven if you pay your full statement balance, unlike purchase interest.
Withdrawing cash at an ATM
Insert your credit card into an ATM that displays your card brand's logo (Visa, Mastercard, American Express, or Discover). Enter your PIN. Select "Withdrawal" or "Cash Advance." The ATM will show you the fee amount before you confirm. Choose your withdrawal amount and complete the transaction.
The ATM will dispense cash when ready and charge the fee to your card. You will see both the withdrawal amount and the fee listed separately on your next statement. Most ATMs allow withdrawals up to your cash advance limit, which your issuer sets independently of your overall credit limit — it may be $500, $1,000, or higher depending on your account.
ATMs are open 24 hours, but some charge an additional operator fee on top of your card issuer's fee. Bank-branded ATMs (your own bank's machines) sometimes charge no fee to cardholders, so check before you withdraw.
Getting cash from a bank teller
Walk into a branch of your card issuer's bank or any bank that accepts your card brand. Tell the teller you want a cash advance. Bring your credit card and a photo ID. The teller will process the transaction at the counter, verify your identity, and hand you the cash.
Bank tellers can withdraw amounts larger than ATM limits and may waive the cash advance fee if you hold a checking or savings account with them. Ask before the transaction completes. The teller will print a receipt showing the amount withdrawn, the fee, and the interest rate that will explore.
This method takes longer than an ATM (you must wait for business hours and teller availability) but gives you a chance to ask questions about the fee or negotiate it away if you are an account holder.
Cash advances through third-party services
Some retailers, check-cashing services, and money transfer companies (like MoneyGram or Western Union) accept credit cards for cash advances. You hand over your card, they run it as a cash advance, and they give you the cash minus their fee. This is the most expensive option because you pay both your card issuer's fee and the service provider's fee on top.
Use this method only if you cannot reach an ATM or bank and need cash urgently. The combined fees can reach 8% to 10% of the amount withdrawn. Always ask for the total fee in dollars before you hand over your card.
Understanding your cash advance limit
Your credit card issuer sets a cash advance limit separate from your overall credit limit. You might have a $5,000 credit limit but only a $1,500 cash advance limit. This limit appears in your online account or on your statement.
The cash advance counts against your overall credit limit. If you withdraw $500 in cash, you have $4,500 left to spend on purchases (assuming a $5,000 limit). The cash advance limit can be increased by calling your card issuer and requesting a raise, though approval is not may provide.
How interest and fees work on cash advances
A cash advance fee is charged once, at the time of withdrawal. It appears as a separate line item on your statement. If you withdraw $500 and the fee is 4%, you are charged $20 when ready.
Interest begins accruing the day you withdraw the cash. Unlike purchase interest, which you can avoid by paying your full statement balance by the due date, cash advance interest charges even if you pay off the entire balance. The interest rate is usually 5 to 10 percentage points higher than your purchase rate.
If you withdraw $500 at a 25% annual rate and pay it back in 30 days, you owe roughly $10 in interest plus the $20 fee — a total cost of $30. Longer repayment periods multiply this cost quickly.
Alternatives to credit card cash advances
Before you take a cash advance, consider whether another option costs less. A personal loan from a bank or credit union often charges 6% to 15% interest with no upfront fee — much cheaper than a credit card cash advance. Payday loans are predatory and should be avoided, but a short-term personal loan from a credit union may be available within hours.
If you need cash for an emergency, ask family or friends for a loan, negotiate a payment plan with the person or business you owe money to, or contact a local nonprofit that offers emergency information. These routes avoid debt entirely.
If you regularly need cash, ask your bank about a debit card or a line of credit tied to your checking account. Both let you withdraw cash at no fee and charge interest only on what you borrow.
Frequently Asked Questions
Does a cash advance hurt my credit score?
A cash advance itself does not hurt your score, but it increases your credit utilization (the percentage of your limit you are using), which can lower your score slightly. Paying it back quickly restores your utilization and your score. Late payments on the cash advance will hurt your score.
Can I get a cash advance on a secured credit card?
Yes. Secured cards work the same way as regular cards for cash advances — you can withdraw at an ATM or bank teller. The fee and interest rate explore the same way. Check your card's terms for the cash advance limit, which may be lower than your overall limit.
What happens if I don't pay back the cash advance?
The balance rolls over to your next statement with interest accruing daily. If you miss the payment due date, late fees explore and the missed payment is reported to credit bureaus, damaging your credit score. The issuer may also raise your interest rate or close your account.
Is there a grace period for cash advances like there is for purchases?
No. Interest on cash advances starts the day you withdraw, regardless of when you pay it back. There is no grace period. This is why cash advances are much more expensive than regular purchases.
Can I withdraw cash from a credit card I don't have in my wallet?
No. You need the physical card or the card number, expiration date, and CVV to process a cash advance. You also need a PIN for ATM withdrawals. Some issuers allow you to set a PIN online if you have forgotten it.