Can You Take Out Cash With a Credit Card?

Yes, you can withdraw cash using a credit card through a feature called a cash advance. However, it works differently from a debit card withdrawal—and the costs and terms matter significantly for your finances.

How Credit Card Cash Advances Work

A cash advance lets you borrow money against your credit card's available credit and receive it as physical cash or a check. You can typically access cash through:

• ATMs — using your credit card and PIN
• Bank tellers — at your card issuer's branches or partner banks
• Convenience checks — advance checks mailed by your card issuer that you can cash or deposit

The transaction is treated as a loan against your credit limit, not a withdrawal from a bank account. The money borrowed immediately appears on your credit card statement as a separate charge.

Key Costs That Make Cash Advances Expensive 💳

Cash advances come with fees and interest rates that differ from regular credit card purchases:

Your card's terms determine the exact fees and rates—check your cardholder agreement or contact your issuer to learn what applies to your specific card.

When a Cash Advance Might Make Sense

Cash advances are expensive, so they work best only when:

• You need cash urgently and have no other access to funds
• The amount is small enough that fees don't create a heavy burden
• You can pay back the balance quickly to minimize interest charges
• No lower-cost alternative (like an ATM withdrawal from a bank account) is available

Better Alternatives to Consider

Before using a cash advance, explore these typically lower-cost options:

• Debit card ATM withdrawal — usually free or low-cost
• Getting cash back at a store — often free when you make a purchase
• Personal loan or line of credit — may offer lower interest rates
• Borrowing from a bank or credit union — potentially better terms

How Cash Advances Affect Your Credit

Cash advances can influence your credit in two ways:

1. Utilization rate — the cash advance counts toward your credit card's used credit limit, which may increase your overall credit utilization. Higher utilization can temporarily lower your credit score.

2. Payment history — paying the advance on time helps; missing payments damages your credit.

What You Need to Know Before Withdrawing Cash

• Verify your PIN — some credit card users don't have a PIN set up for ATM access; check with your issuer if you've never used this feature
• Withdrawal limits — your issuer may cap how much cash you can withdraw per transaction or per day
• Available credit — you can only borrow what your credit limit allows
• Repayment — the advance and all fees must be paid back through your regular credit card payments

The right decision depends on your financial situation, the amount you need, how quickly you can repay, and whether lower-cost options are available. Understand your card's specific terms before proceeding.