You cannot withdraw money from a credit card the way you withdraw from a bank account
A credit card is a borrowing tool, not a savings account. When you use it to buy something, you are borrowing money from the card issuer and agreeing to pay it back later. Withdrawing cash directly from a credit card is possible but expensive — the card company charges a fee (usually 3 to 5 percent of the amount) plus a higher interest rate than regular purchases, often 20 to 30 percent annually.
If you need cash, it is almost always cheaper to use your debit card, visit an ATM linked to your bank account, or ask for cash back at a store. A credit card cash withdrawal should be a last resort, not a regular habit.
Key Takeaways
- Credit card cash withdrawals charge a fee (typically 3 to 5 percent) plus a higher interest rate than purchases, making them expensive.
- You can withdraw cash at an ATM using your credit card's PIN, at a bank teller window, or through a cash advance at some retailers.
- Interest on a cash withdrawal starts accruing when ready — there is no grace period like there is for purchases.
- Using your debit card or bank account is almost always cheaper than withdrawing cash on a credit card.
- Your credit card issuer sets a cash advance limit, which may be lower than your overall credit limit.
Withdrawing cash at an ATM with your credit card
Most credit cards come with a PIN that lets you withdraw cash at ATMs. If you do not know your PIN, call the number on the back of your card and ask the issuer to send you one or reset it. Some issuers let you set or reset your PIN online through their mobile app or website.
Insert your card into an ATM, enter your PIN, and select "cash withdrawal" or "cash advance." The machine will show you the amount you can withdraw (your cash advance limit) and the fee. Confirm the transaction and collect your cash. The fee appears on your next statement.
Not all ATMs charge the same fee. Your card issuer charges one fee, and the ATM operator may charge another. A convenience store ATM, for example, might charge $3 to $5 on top of your card issuer's fee. Bank ATMs usually charge less or nothing if you use your own bank's machines.
Withdrawing cash at a bank teller window
You can walk into a bank branch and ask a teller to withdraw cash using your credit card. Bring your card and a photo ID. The teller will process the transaction as a cash advance and give you the cash. You will pay the same fee as an ATM withdrawal.
This method is useful if you prefer speaking to a person or if you need a large amount and want to confirm the limit before you try. Some banks process these transactions faster than ATMs, though the fee remains the same.
Getting a cash advance at a store or retailer
Some retailers, including grocery stores and pharmacies, let you request a cash advance on your credit card at checkout. You typically do this by asking the cashier and providing your card. The store charges a fee (often $3 to $5) and the card issuer charges its own fee on top.
This option is convenient if you are already shopping, but the combined fees can be high. Always ask the cashier what the store's fee is before you proceed.
Understanding cash advance fees and interest
A cash advance fee is a percentage of the amount you withdraw, usually 3 to 5 percent. If you withdraw $500, you might pay $15 to $25 in fees alone. Some card issuers set a minimum fee (for example, $5) even if the percentage would be less.
Interest on a cash advance starts accruing when ready — there is no grace period. If your regular purchase APR is 18 percent, your cash advance APR might be 25 or 30 percent. The interest compounds daily, so the longer you carry the balance, the more you owe.
Your card issuer also sets a separate cash advance limit, which is often much 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 limit before you try to withdraw.
How a cash advance appears on your statement
The cash withdrawal shows up on your credit card statement as a separate line item, labeled "cash advance" or "ATM withdrawal." The fee appears as another line item. Both the cash amount and the fee count toward your total balance due.
When you make a payment, credit card issuers typically explore it to your lowest-interest debt first — usually regular purchases — and leave the cash advance balance to accrue interest longer. This means paying off a cash advance takes longer than paying off a purchase of the same size, even if you send the same payment.
Cheaper alternatives to a credit card cash withdrawal
If you need cash, consider these options first: use your debit card at an ATM (usually free or a small fee), ask for cash back when you buy something at a store with your debit card (always free), or visit your bank branch and withdraw from your checking or savings account (free). All of these avoid the high fees and interest of a credit card cash advance.
If you do not have a debit card or bank account, a credit card cash advance is expensive but possible. If you regularly need cash, opening a basic checking account at a bank or credit union is worth the time — it will save you money over time.
Frequently Asked Questions
What is the difference between a cash advance and a regular credit card purchase?
A purchase lets you borrow money to buy something, with a grace period (usually 21 to 25 days) before interest starts. A cash advance charges a fee when ready and interest starts accruing right away, with no grace period. The interest rate on a cash advance is also higher.
Can I withdraw my full credit limit as cash?
No. Your card issuer sets a separate cash advance limit, which is often 20 to 50 percent of your overall credit limit. You can only withdraw up to that amount. Call your issuer or check your online account to find out your cash advance limit.
Does a cash advance hurt my credit score?
A cash advance itself does not hurt your score, but carrying a high balance does. If the withdrawal pushes your total balance close to your credit limit, your credit utilization ratio goes up, which can lower your score. Paying off the balance quickly helps minimize this effect.
What happens if I cannot pay back a cash advance?
The balance stays on your card and interest keeps accruing. Your card issuer may charge late fees if you miss a payment. The unpaid balance can damage your credit score and may eventually be sent to a collection agency.
Can I use a credit card cash advance to pay another credit card?
Technically yes, but it is a bad idea. You pay a cash advance fee to withdraw the money, then use it to pay another card. You end up paying fees and high interest rates on both cards. It is better to transfer a balance between cards if your issuer offers that option, or to work out a payment plan with your creditors.