Yes, you can take money off your credit card, but it costs you and works differently than a debit card withdrawal
Taking money off a credit card is called a cash advance. Unlike a debit card, where you withdraw your own money, a cash advance is a loan from your credit card company. You pay interest on it when ready — usually a higher rate than your regular purchase APR — plus an upfront fee of 3 to 5 percent of the amount you withdraw. A $200 cash advance might cost you $6 to $10 just to get the cash, then interest starts accruing the same day, with no grace period.
Most people use cash advances only when they have no other option: an ATM is broken, a business doesn't take cards, or they need cash for an emergency. The cost makes it an expensive way to borrow, and the debt sits separately from your regular balance on your statement.
Key Takeaways
- Cash advances charge an upfront fee (usually 3 to 5 percent) plus a higher interest rate than purchases, with no grace period.
- You can withdraw cash at an ATM using your credit card PIN, at a bank teller window, or through a cash advance check from your card issuer.
- Interest begins accruing the day you withdraw the cash, not at the end of the billing cycle like purchases.
- The total cost of a cash advance makes it more expensive than using a debit card, a personal loan, or a credit card purchase.
How to physically take money off your credit card
There are three main ways to get cash from a credit card. The most common is using an ATM: insert your credit card, enter your PIN (which you may need to set up if you haven't used it before), and withdraw up to your cash advance limit. Your card issuer sets this limit separately from your credit limit — it's often lower, sometimes 20 to 30 percent of your total credit limit.
You can also visit a bank branch and ask a teller for a cash advance. Bring your credit card and ID. The teller will process it like a withdrawal and hand you cash. Some card issuers also mail cash advance checks — special checks that work like a cash advance when you deposit or cash them. These arrive in your statement or you can request them online.
All three methods trigger the same fees and interest rates. The ATM is fastest; the bank teller is useful if you need a large amount or your card's PIN isn't working; the checks are useful if you want to move money into a bank account rather than carry cash.
What the fees and interest actually cost
The upfront fee is non-negotiable and appears on your statement as a separate charge. A $300 cash advance at a 4 percent fee costs $12 when ready. That $312 then accrues interest at your cash advance APR, which your card issuer discloses in your terms — often 2 to 5 percentage points higher than your purchase APR.
If your purchase APR is 18 percent and your cash advance APR is 22 percent, a $300 advance costs $12 upfront, then $5.50 in interest in the first month if you don't pay it back. Over six months, the interest alone reaches $33. By contrast, a $300 purchase at 18 percent APR accrues no interest if you pay it within your grace period (usually 21 days), and only $4.50 per month if you carry it.
The cash advance also doesn't benefit from a grace period. Interest starts the day you withdraw it, not at the end of your billing cycle. This is the biggest difference from a regular purchase.
Your cash advance limit and how it affects your credit
Your card issuer sets a cash advance limit when they open your account. It's usually lower than your credit limit — sometimes $500 on a $5,000 credit limit, sometimes $2,000 on a $10,000 limit. You can call your card issuer to ask what yours is, or check your online account.
Taking a cash advance counts against your available credit just like a purchase does. If you have a $5,000 limit and a $2,000 cash advance limit, and you withdraw $500 in cash, you now have $4,500 in available credit left. The cash advance also appears on your credit report as a balance, which can raise your credit utilization ratio and lower your credit score slightly.
Paying back a cash advance works the same way as paying back a purchase: any payment you make goes toward your lowest-APR debt first (usually purchases), so the cash advance sits and accrues interest until you've paid off everything else. This is another reason cash advances are expensive — they're often the last thing you pay down.
When a cash advance makes sense (and when it doesn't)
A cash advance makes sense only in narrow situations: you need cash urgently, you have no other way to get it, and you can pay it back within a few weeks. If a business won't take your card and you need $50 for a deposit, a cash advance might be worth the $2 fee if you'll repay it before interest compounds.
A cash advance does not make sense if you're carrying a balance on your card already, if you need the money for more than a month, or if you have alternatives. A personal loan from a bank or credit union, even at a higher stated APR, often costs less than a credit card cash advance because there's no upfront fee and the interest is calculated differently. A payday loan is also usually cheaper if you're only borrowing for two weeks. A debit card withdrawal costs nothing.
If you're considering a cash advance because you're short on money, that's a sign to look at your budget or talk to a financial counselor, not to borrow at a high rate.
How to set or reset your cash advance PIN
To use an ATM, you need a PIN (personal identification number) for your credit card. If you've never set one, you can do it online through your card issuer's website or app — look for "Cash Advance PIN" or "ATM PIN" in the settings. Some issuers let you set it when ready; others mail it to you.
If you've forgotten your PIN, call the customer service number on the back of your card. They'll verify your identity and either reset it when ready (you can use it right away) or mail you a new one. The process usually takes a few minutes on the phone.
Not all credit cards offer cash advances. Some cards, especially rewards cards or cards for people rebuilding credit, don't allow them. Check your card's terms or call the issuer to confirm yours does before you need it.
Frequently Asked Questions
Can I take out more cash than my cash advance limit?
No. Your card issuer sets a maximum, and the ATM or teller will decline the transaction if you try to exceed it. If you need more cash, you'd have to make multiple withdrawals on different days, but each one incurs its own fee. It's better to find another way to get the money.
What happens if I can't pay back the cash advance right away?
The balance stays on your card and accrues interest at your cash advance APR. Payments go toward your lowest-APR debt first, so the cash advance sits and grows. If you're already carrying a purchase balance, the cash advance will be the last thing you pay off, making it very expensive over time.
Is a cash advance the same as a balance transfer?
No. A balance transfer moves debt from one card to another (usually at a lower rate for a set period). A cash advance is a new loan of actual cash. Balance transfers have different fees and terms, and they're meant for moving existing debt, not getting cash.
Will a cash advance hurt my credit score?
It can, slightly. The withdrawal increases your credit utilization (the amount of your available credit you're using), which can lower your score a few points. The effect is temporary and goes away as you pay it back, but it's another reason to avoid cash advances unless necessary.
Can I use a credit card cash advance to pay another bill?
Technically yes — you can withdraw cash and use it for anything. But it's expensive. You're paying a fee and high interest to borrow money to pay a bill. If the bill is urgent, call the biller and ask about a payment plan instead. If you're short on cash regularly, that's a budget problem, not a borrowing problem.