Yes, you can take cash out of your credit card, but it costs more than a regular purchase
A cash advance lets you withdraw money from your credit card at an ATM, bank, or through a cashier. The card issuer treats it as a loan against your credit limit, not a purchase. You will pay a fee upfront — usually 3% to 5% of the amount withdrawn — plus a higher interest rate than you pay on regular purchases, often 20% to 30% annually. Interest starts accruing when ready, with no grace period like you get on purchases.
Because cash advances are expensive, they make sense only when you need cash urgently and have no other option. If you can use a debit card, borrow from a friend, or wait until payday, those are cheaper choices.
Key Takeaways
- Cash advances charge an upfront fee of 3% to 5% plus a higher interest rate than purchases, with interest starting right away.
- You can withdraw cash at an ATM using your credit card PIN, at a bank teller, or through a cash advance check from your issuer.
- Your credit card company sets a cash advance limit, which may be lower than your total credit limit.
- The interest you pay on a cash advance counts as a transaction fee, not a purchase, so it does not earn rewards points.
How to get a cash advance at an ATM
Insert your credit card into an ATM that accepts credit cards — most do, but some only take debit cards. Enter your PIN. Select "cash advance" or "withdraw cash" from the menu. Enter the amount you want to withdraw, up to your cash advance limit. The ATM will dispense the cash and charge your card when ready.
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 a PIN online through their app or website. Without a PIN, you cannot use an ATM, but you have other options.
Getting cash at a bank or through a check
Walk into any bank branch — yours or another bank — and tell the teller you want a cash advance on your credit card. Bring your card and a photo ID. The teller will process the transaction and hand you cash. This method works even if you do not have a PIN.
Your credit card issuer may also send you cash advance checks in the mail. You write one like a regular check, deposit it into your bank account or cash it at a bank, and the amount is charged to your credit card as a cash advance. Check the terms: some issuers charge a fee for using these checks, and the fee may differ from the ATM fee.
Know your cash advance limit before you try
Your credit card issuer sets a separate cash advance limit, which is often much lower than your total credit limit. You might have a $5,000 credit limit but only a $1,000 cash advance limit. Log into your online account or call the number on your card to find out what yours is.
If you try to withdraw more than your limit, the ATM or teller will decline the transaction. Asking the issuer to raise your cash advance limit is possible but not may provide, and requesting a higher limit may trigger a hard inquiry on your credit report.
What the fees and interest actually cost
Suppose you withdraw $500 from your credit card. The issuer charges a 4% cash advance fee, which is $20. You now owe $520. If you pay it back in full the next month and your cash advance interest rate is 25% annually, you will owe about $11 in interest. Your total cost is roughly $31 for borrowing $500 for one month.
If you carry the balance longer, the interest compounds. After three months at 25% annual interest, you will have paid about $32 in interest alone, plus the original $20 fee. This is why cash advances are expensive: the fee hits you when ready, and the interest clock starts ticking the same day.
How a cash advance affects your credit score
Taking a cash advance does not directly hurt your credit score, but it can indirectly. The withdrawal counts as a balance on your credit card, which raises your credit utilization ratio — the percentage of your available credit you are using. A higher utilization ratio can lower your score slightly.
If you carry the cash advance balance and miss a payment, that will damage your score. If you pay it off quickly, the impact is usually small and temporary. The hard inquiry triggered by requesting a higher cash advance limit, if you ask for one, will also have a small short-term effect.
Cheaper ways to get cash when you need it
Before you take a cash advance, consider these alternatives. A personal loan from a bank or credit union usually has a lower interest rate than a cash advance and no upfront fee. A payday loan is fast but often more expensive than a cash advance, so compare the total cost. Asking family or friends to lend you money costs nothing if they agree. Using your debit card to withdraw from your own bank account is free.
If you need cash regularly and do not have a debit card, opening a checking account at a bank or credit union takes a few days and gives you free ATM access to your own money. If you are in a true emergency and have no other option, a cash advance is available, but plan to pay it back as quickly as possible to minimize interest.
Frequently Asked Questions
Can I use my credit card to withdraw cash from any ATM?
Most ATMs accept credit cards, but some only accept debit cards. Look for a sign on the machine or try inserting your card — if it does not work, try another ATM. Bank tellers will always process a cash advance if you bring your card and ID in person.
What happens if I do not pay back a cash advance?
The balance stays on your credit card and interest keeps accruing. If you miss payments, your issuer will charge late fees, your interest rate may increase, and the missed payments will show on your credit report and lower your score. Your issuer can also take legal action to collect the debt.
Do I earn rewards points on a cash advance?
No. Cash advances are treated as transactions separate from purchases, and most issuers do not award points, miles, or cash back on them. You pay the fee and interest with no benefit in return.
Can I take a cash advance on a secured credit card?
Yes, most secured cards allow cash advances, though the limit is often very low. Check your card's terms or call the issuer to confirm whether cash advances are available and what the fee and interest rate are.
Is there a limit to how much I can withdraw?
Yes. Your issuer sets a cash advance limit, which is separate from your credit limit and usually lower. You cannot withdraw more than that limit in a single transaction or over a set period, depending on your issuer's rules.