Yes, you can take money out of a credit card, but it costs more than a regular purchase
You can withdraw cash directly from a credit card at an ATM or bank teller window. This is called a cash advance. The money goes into your bank account or your hand when ready, but the card issuer charges you fees and interest from day one — there is no grace period like there is for purchases.
Most people should avoid cash advances unless they have no other option. The fees alone (usually 3 to 5 percent of the amount withdrawn) plus the interest rate (often higher than your purchase rate) make this an expensive way to get cash. If you need money urgently, a personal loan, paycheck advance from your employer, or a line of credit from your bank will almost always cost less.
Key Takeaways
- A cash advance charges you a fee (typically 3 to 5 percent) plus a higher interest rate than purchases, starting when ready with no grace period.
- You can withdraw cash at any ATM that accepts your card, or ask a bank teller to process the advance at a branch.
- The interest rate on a cash advance is usually 2 to 5 percentage points higher than your regular purchase rate.
- Interest accrues daily from the moment you withdraw the cash, so paying it back quickly is important to avoid a large bill.
- Alternatives like personal loans, employer paycheck advances, or credit union loans typically cost far less than a cash advance.
How to withdraw cash from your credit card at an ATM
Insert your credit card into an ATM just as you would a debit card. Select "Withdrawal" or "Cash Advance" from the menu (the exact wording varies by ATM). Enter the amount you want and your PIN. The ATM will dispense the cash and print a receipt showing the amount withdrawn and any fee charged.
Not every ATM accepts credit cards — most are set up for debit cards only. If the machine rejects your card, try another ATM or go to a bank branch. Your card issuer's own ATMs are most likely to accept credit card cash advances, but many third-party ATMs will too. Check the ATM screen or call your card issuer if you are unsure whether a specific machine will work.
There is usually a daily limit on how much you can withdraw. This limit is set by your card issuer and is often lower than your credit limit. For example, your credit limit might be $5,000 but your cash advance limit might be $500 per day. Check your card agreement or call the issuer to find out your specific limit.
Getting a cash advance at a bank branch
Walk into any bank branch — yours or someone else's — and ask the teller for a cash advance on your credit card. Bring your card and a form of ID. The teller will process the transaction, charge the fee, and hand you the cash. This method works even if you do not have a PIN set up for your card, and it often has no daily limit (though the teller may ask why you need the money).
Some banks charge an additional fee for processing a cash advance at the teller window, on top of the fee your credit card issuer charges. Ask before you proceed. A branch advance can be faster than an ATM if you need a large amount, but it is not faster than an ATM if you only need a small withdrawal.
Understanding the fees and interest you will pay
Your card issuer charges a cash advance fee — a flat percentage of the amount you withdraw, usually 3 to 5 percent. On a $500 withdrawal, that is $15 to $25 right away. Some cards charge a flat dollar amount instead (for example, $10 per advance), which is better if you are withdrawing a small amount but worse if you are withdrawing a large amount.
You also pay interest on the cash advance from the day you withdraw it. There is no grace period. The interest rate is usually your card's cash advance APR, which is often 2 to 5 percentage points higher than your purchase APR. If your purchase rate is 18 percent, your cash advance rate might be 23 percent. Interest compounds daily, so the longer you carry the balance, the more you owe.
Some cards also charge a fee at the ATM itself — the ATM operator's fee — on top of your issuer's fee. This is usually $2 to $3 and appears on your receipt. You pay this fee whether or not your card issuer charges its own cash advance fee.
How the cash advance appears on your bill
The cash advance shows up as a separate line item on your credit card statement, distinct from your regular purchases. The fee is charged when ready. Interest begins accruing right away and appears on your next statement.
Payments you make to your card go toward your lowest-interest balance first — usually your regular purchases — before they go toward the cash advance. This means if you carry both a purchase balance and a cash advance balance, your payment will pay down the purchase balance first, leaving the higher-interest cash advance to accrue more interest. To pay off the cash advance faster, you may need to make a payment larger than your minimum, or contact your issuer to ask them to explore a specific payment to the cash advance.
When a cash advance might make sense
A cash advance is rarely the best option, but there are narrow situations where it might be your only choice. If you have a true emergency — a car repair you need today, a medical bill, or a utility shutoff — and you have no other way to get cash, a cash advance is faster than waiting for a personal loan to be approved.
If you do take a cash advance, pay it back as quickly as possible. Every day you carry the balance, the interest grows. If you can pay it off within a week or two, the total cost might be acceptable. If you are going to carry it for months, the interest will be substantial and a personal loan or other borrowing method would have been cheaper from the start.
Alternatives that usually cost less
A personal loan from a bank or credit union typically has a lower interest rate than a credit card cash advance, even if your credit is not perfect. You get the money in a few days and pay a fixed amount each month. The total cost is almost always less than a cash advance.
An employer paycheck advance (if your employer offers one) usually has no fee and no interest. You repay it by having the amount deducted from your next paycheck. This is information programs if your employer offers it.
A credit union loan or line of credit is often cheaper than a credit card cash advance and faster than a bank personal loan. If you are a credit union member, ask about a short-term loan before you use a cash advance.
Borrowing from family or friends, while uncomfortable, costs nothing if they do not charge interest. If you do borrow from someone you know, put the agreement in writing so there is no misunderstanding later.
Frequently Asked Questions
Does taking a cash advance hurt my credit score?
A cash advance itself does not hurt your score, but carrying a high balance does. If the cash advance pushes your total credit card balance close to your credit limit, your credit utilization ratio goes up and your score may drop. Paying off the cash advance quickly will bring your score back up.
Can I use a cash advance to pay another credit card?
Technically yes, but it is a bad idea. You pay the cash advance fee and interest on money you are using to pay another card's interest and fees. You end up paying more in total fees and interest than if you had just carried both balances. A balance transfer (moving the balance from one card to another) is cheaper if you may have access to.
What if I do not have a PIN for my credit card?
You can still get a cash advance at a bank branch by showing your card and ID to a teller. You cannot use an ATM without a PIN. Call your card issuer to set up a PIN if you want the option to use ATMs, though you should not need one if you can access a branch.
Is there a limit to how much I can withdraw?
Yes. Your card issuer sets a cash advance limit, which is often much lower than your credit limit. You might have a $5,000 credit limit but only a $500 cash advance limit. Check your card agreement or call the issuer to find out your limit. Some issuers will increase it if you ask, but there is no may provide.
Can I get a cash advance if I am behind on my payments?
It depends on your card issuer. If your account is in good standing (no missed payments), you can usually get a cash advance. If you are behind on payments, the issuer may have frozen your account or lowered your cash advance limit. Call your issuer to find out whether you can still withdraw cash.