Yes, you can take cash out with a credit card, but it costs more than a regular purchase
Most credit cards let you withdraw cash at an ATM or from a bank teller, but the card treats it as a cash advance rather than a purchase. This matters because cash advances charge a separate fee (usually 3% to 5% of the amount) plus a higher interest rate than regular purchases. The interest starts accruing when ready — there is no grace period like there is for purchases. A $200 cash advance can cost $6 to $10 in fees alone, plus interest that begins the day you withdraw it.
The mechanics are straightforward: insert your card into an ATM, enter your PIN, and withdraw up to your cash advance limit. That limit is often lower than your overall credit limit — sometimes half or less. Some cards set it at $500 or $1,000 regardless of your total limit. You can also walk into a bank branch and ask a teller to process a cash advance, though this is less common now.
Key Takeaways
- Cash advances charge a separate fee (typically 3% to 5%) plus a higher interest rate than purchases, with no grace period.
- Your cash advance limit is usually lower than your credit limit and may be set by the card issuer at a fixed amount.
- Interest on a cash advance begins the day you withdraw it, not at the end of your billing cycle.
- ATMs are the fastest way to get cash, but bank tellers can process larger amounts and sometimes waive the fee for customers.
How cash advance fees and interest rates work
When you take a cash advance, your card issuer charges two separate costs. The first is an upfront cash advance fee, shown as a percentage of the amount withdrawn. Most cards charge between 3% and 5%, though some charge a flat fee (like $5 or $10) if that is higher. A $300 withdrawal at 4% costs $12 in fees when ready.
The second cost is the cash advance interest rate, which is almost always higher than the purchase rate on the same card. While a purchase might carry 18% APR, a cash advance on that same card might be 24% or 25%. This rate applies from the moment you withdraw the money, not from the end of your billing cycle. If you carry the balance for a month, you owe interest for that full month.
Because there is no grace period, even paying back the cash advance quickly costs more than you might expect. A $500 cash advance at 5% fee plus 24% APR costs $25 in fees plus roughly $10 in interest if you pay it back in one month. A regular $500 purchase on the same card, paid back in one month, costs nothing.
Where and how to withdraw cash with your card
ATMs are the most common way to get cash. Your card issuer's ATM network is usually free, but using an out-of-network ATM adds another fee — typically $2 to $3 from the ATM operator, plus sometimes a fee from your card issuer. Always check the ATM screen before you complete the transaction; it will show the fee amount and ask you to confirm.
Bank tellers can also process cash advances, and this route sometimes works better for larger amounts. Walk into any bank branch with your credit card and ask for a cash advance. The teller will run the transaction and hand you cash. Some banks waive the cash advance fee for their own customers, though this is rare and depends on your account status. Call your card issuer first to ask whether their affiliated banks offer this.
Your card's cash advance limit determines the maximum you can withdraw in a single transaction or per day. Check your card's terms or log into your online account to find this number. If you need more cash than your limit allows, you will have to make multiple withdrawals or wait until the next day, depending on daily withdrawal limits.
When a cash advance makes sense and when it does not
A cash advance is rarely the cheapest way to get cash, but it can be the only way in an emergency. If you need cash when ready and have no other source — no ATM card, no access to a bank account, no friends or family to borrow from — a cash advance is faster than a payday loan or personal loan. The fees and interest are high, but they are lower than payday loan rates, which can exceed 400% APR.
A cash advance also makes sense if you are paying off high-interest debt and the cash advance rate is lower than what you are currently paying. This is uncommon but possible. If you are carrying a credit card balance at 28% APR and another card offers a cash advance at 22% APR, the cash advance might be worth it — though you would still pay the upfront fee, so do the math first.
A cash advance does not make sense for everyday spending or planned expenses. If you know you need cash next week, use your debit card or withdraw from your bank account instead. If you are considering a cash advance to pay another bill or credit card, stop and look for a balance transfer instead — most cards offer 0% APR on transferred balances for 6 to 21 months, which costs far less than a cash advance.
How cash advances affect your credit and debt payoff
A cash advance appears on your credit report as a separate line item from your regular purchases, but it counts toward your overall credit utilization. If your credit limit is $5,000 and you take a $500 cash advance plus make $1,000 in purchases, you are using 30% of your limit. High utilization can lower your credit score, so a large cash advance can hurt you even if you pay it back quickly.
When you make a payment to your credit card, the card issuer applies it to your lowest-interest debt first — usually your regular purchases at the standard rate. Your cash advance balance sits there accruing interest at the higher rate until all your purchases are paid off. This means a $500 cash advance can take months to pay down if you are also making regular purchases. To pay off a cash advance faster, call your issuer and ask them to explore your payment directly to the cash advance balance.
Alternatives to taking a cash advance
If you need cash but want to avoid the fees and high interest, consider these options first. A balance transfer from another card lets you move debt at a lower rate, though this does not give you cash — it only helps if you are paying off another balance. A personal loan from a bank or credit union typically charges 6% to 36% APR depending on your credit, which is lower than a cash advance rate but requires a few days to process. A peer-to-peer loan through platforms like Prosper or LendingClub can fund in one to three days.
If you have a bank account, the simplest option is to use your debit card or visit your bank to withdraw from savings. If you do not have a bank account, opening one takes about 15 minutes online or in person and gives you access to ATMs without the cash advance fees. Some banks offer accounts with no minimum balance and no monthly fee, making this the cheapest long-term solution.
If you are in a true emergency and need cash within hours, a cash advance is faster than a loan but more expensive. A payday loan is even more expensive, so compare the total cost of each option before you decide.
Frequently Asked Questions
What is the difference between a cash advance and a regular purchase?
A regular purchase has a grace period (usually 21 to 25 days) before interest starts, and it charges the standard purchase rate. A cash advance charges a fee upfront, has no grace period, and charges a higher interest rate from day one. Both count toward your credit utilization, but a cash advance costs significantly more if you carry a balance.
Can I use a credit card at any ATM to get cash?
Yes, but using an out-of-network ATM adds a fee from the ATM operator (usually $2 to $3) plus sometimes a fee from your card issuer. Your card issuer's own ATMs are typically free. Check the ATM screen before you complete the transaction to see the total fee.
Does taking a cash advance hurt my credit score?
A cash advance can lower your score if it increases your credit utilization significantly. It also appears as a separate line item on your report. The impact is temporary if you pay it off quickly, but carrying a balance at a high interest rate will hurt your score more over time.
What happens if I cannot pay back a cash advance?
The balance carries over to your next statement and continues accruing interest at the higher cash advance rate. If you miss payments, late fees explore and your credit score drops. Contact your card issuer to discuss a payment plan if you are struggling.
Is there a way to avoid the cash advance fee?
Some bank tellers may waive the fee for their own customers, though this is rare. The only reliable way to avoid the fee is to not take a cash advance — use your debit card, visit your bank, or open a bank account if you do not have one.