Yes, you can withdraw cash with a credit card, but it costs you money and starts charging interest when ready
A cash advance is a withdrawal of cash from your credit card account, usually at an ATM or bank teller window. Unlike a debit card, which pulls from money you already have, a cash advance borrows against your credit limit and treats the money as a debt you owe back.
The catch: cash advances charge a separate fee (usually 3 to 5 percent of the amount withdrawn) and a higher interest rate than regular purchases — often 25 to 30 percent or more. Interest starts accruing the moment you withdraw the cash, with no grace period. If you need cash urgently, a cash advance is almost always more expensive than other options.
Key Takeaways
- Cash advances charge an upfront fee of 3 to 5 percent plus a higher interest rate that begins when ready, making them expensive for short-term cash needs.
- You can withdraw cash at most ATMs using your credit card PIN, or at a bank teller by showing your card and ID.
- Your credit card issuer sets a separate cash advance limit, which may be lower than your total credit limit.
- Paying back a cash advance takes longer because payments go to regular purchases first, leaving the advance to accrue interest longer.
- Personal loans, payday loans, or asking for a paycheck advance are usually cheaper ways to get cash quickly.
Where and how to withdraw cash with a credit card
You can withdraw cash at any ATM that displays your card's logo (Visa, Mastercard, American Express, or Discover). Insert your card, enter your PIN, select "cash withdrawal" or "cash advance," and choose the amount. The ATM will dispense the cash and charge the fee when ready.
You can also visit a bank branch — yours or any bank — and ask a teller for a cash advance. Bring your credit card and a photo ID. The teller will process the withdrawal, charge the fee, and hand you the cash. Some banks may charge an additional fee for this service on top of your card issuer's fee.
Not all ATMs accept credit cards for cash advances. Some machines are restricted to debit cards only. If an ATM rejects your card, try a different machine or go to a bank branch instead.
Fees and interest rates for cash advances
Every cash advance comes with two costs. The cash advance fee is a one-time charge, usually 3 to 5 percent of the amount withdrawn. On a $500 withdrawal, that is $15 to $25 upfront. This fee is added to your balance when ready.
The cash advance interest rate is separate from your regular purchase APR and is almost always higher — often 25 to 30 percent annually or more. Unlike purchases, which may have a grace period before interest kicks in, interest on a cash advance starts accruing the day you withdraw it. There is no grace period.
If you withdraw $500 and pay it back in one month, you will owe roughly $25 in fees plus $10 to $12 in interest — a total cost of $35 to $37 for borrowing $500 for 30 days. Compare that to a personal loan at 15 percent APR, which would cost about $6 in interest for the same amount and time.
Your cash advance limit versus your credit limit
Your credit card issuer sets a separate cash advance limit, which is often much lower than your total credit limit. If your credit limit is $5,000, your cash advance limit might be only $1,000 or $1,500. You cannot exceed this limit, even if you have available credit remaining.
You can find your cash advance limit in your card's terms and conditions, on your statement, or by calling the customer service number on the back of your card. If you need to withdraw more than your limit allows, you will have to make multiple withdrawals (and pay multiple fees) or find another source of cash.
Some cards allow you to request an increase to your cash advance limit, but this is not may provide and may require a hard inquiry into your credit.
How cash advances affect your credit and payment priority
A cash advance does not directly hurt your credit score, but it does increase your credit utilization — the percentage of your available credit you are using. If you have a $5,000 limit and withdraw $1,000 in cash, your utilization jumps to 20 percent. High utilization can lower your score temporarily.
When you make a payment to your credit card, the money goes to your lowest-interest debt first — usually regular purchases. Any remaining payment goes toward the cash advance, which carries the highest interest rate. This means your cash advance balance shrinks slowly, and you pay interest on it for longer. To pay off a cash advance faster, you have to pay more than the minimum or make a payment specifically designated for the advance.
Cheaper alternatives to cash advances
Before you use a cash advance, consider these options:
- Personal loan: Banks and online lenders offer personal loans at rates typically between 6 and 36 percent, lower than most cash advance rates. You get a lump sum upfront and repay it in fixed monthly installments over a set period.
- Paycheck advance: Some employers offer paycheck advances or loans against future earnings, often with no fee or interest.
- Payday loan: These are short-term loans with high fees and interest, but they are sometimes cheaper than a cash advance if you repay within two weeks.
- Borrow from family or friends: If possible, this is usually the cheapest option — no fees, no interest, and flexible repayment.
- Sell something: Selling items you no longer need avoids debt altogether.
What happens if you cannot pay back a cash advance
If you do not pay back a cash advance, the interest and fees continue to grow. Your minimum payment will increase, and if you miss payments, your credit score will drop and late fees will pile on. After 30 days of missed payments, your card issuer may report the debt to credit bureaus, which stays on your credit report for seven years.
If the debt goes unpaid for long enough, the card issuer may close your account, sue you for the debt, or sell the debt to a collection agency. At that point, you may owe not just the original advance and interest, but also court costs and collection fees.
Frequently Asked Questions
Can I use a credit card to withdraw cash from my own bank account?
No. A credit card is a borrowing tool, not a way to access your own money. If you need to withdraw from your bank account, use your debit card or visit a teller. If you do not have a debit card, contact your bank about getting one.
Is there a limit to how much cash I can withdraw at once?
Yes. Your cash advance limit (set by your card issuer) is the maximum per transaction. Some ATMs also have daily withdrawal limits, usually $500 to $1,000. If you need more, you can make multiple withdrawals, but you will pay a fee for each one.
Do I have to use my PIN to withdraw cash with a credit card?
At an ATM, yes — you need your PIN. At a bank teller, no — you just show your card and ID. If you do not have a PIN set up, contact your card issuer to request one before you try an ATM.
Can I get a cash advance with a rewards credit card?
Yes, but you will not earn rewards points on the cash advance. You will only earn rewards on regular purchases. The cash advance will still charge the higher interest rate and upfront fee.
What if my card issuer denies my cash advance?
This can happen if you have reached your cash advance limit, if your account is flagged for fraud, or if you are behind on payments. Contact your card issuer to find out why. If your limit is the issue, you may be able to request an increase, but there is no may provide.