Yes, you can withdraw cash from a credit card, but it works differently than a debit card and costs more
You can take cash out of an ATM using your credit card, but the bank treats it as a separate transaction called a cash advance. Unlike a debit card withdrawal, which pulls from money you already have, a cash advance is a loan. You start paying interest on it when ready — there is no grace period like there is for regular purchases — and you also pay an upfront fee.
The fee is usually 3 to 5 percent of the amount you withdraw, charged right away. If you take out $200, you might pay $6 to $10 just to get the cash. Then interest starts accruing the same day, often at a higher rate than your regular purchase APR. For example, if your purchase rate is 18 percent, your cash advance rate might be 24 percent or higher.
Most people use cash advances only when they have no other option — they are expensive and the debt grows fast.
Key Takeaways
- A cash advance charges an upfront fee of 3 to 5 percent plus interest that starts when ready, with no grace period.
- The interest rate on cash advances is usually higher than your regular purchase APR and varies by card and issuer.
- You can withdraw cash at ATMs, bank branches, or by asking a cashier — each method has the same fee and interest terms.
- If you need cash, a personal loan, payday loan alternative, or borrowing from a friend usually costs less than a credit card cash advance.
Where you can withdraw cash and how much it costs
You can get a cash advance at any ATM that displays your card's logo — Visa, Mastercard, American Express, or Discover. You can also walk into a bank branch and ask the teller for cash, or ask a cashier at a store to give you cash back when you make a purchase (though some stores no longer offer this). All three methods charge the same fee and interest rate.
Your card issuer sets a cash advance limit, which is usually lower than your credit limit. You might have a $5,000 credit limit but only a $1,500 cash advance limit. Check your card agreement or call the number on the back of your card to find out what yours is.
The fee appears on your next statement as a separate charge. If you withdraw $300 at a 4 percent fee, you owe $312 plus interest from day one. Some cards also charge an ATM operator fee on top of the card issuer's fee — this can add another $2 to $3 per withdrawal.
How interest on a cash advance works
Interest on a cash advance starts accruing the moment you withdraw the money. There is no 21-day grace period like there usually is for purchases. If you withdraw $500 on January 15 and pay it back on February 1, you still owe interest for those 17 days.
The daily interest is calculated using your cash advance APR divided by 365. If your rate is 24 percent, that is about 0.066 percent per day. On a $500 advance, that is roughly 33 cents per day. Over a month, it adds up to $10 or more, on top of the initial fee you already paid.
The longer you carry the balance, the more interest compounds. Many people find that paying off a cash advance quickly is the only way to keep the cost manageable.
How a cash advance affects your credit score
A cash advance shows up on your credit report as a separate transaction, not as a regular purchase. It counts toward your credit utilization ratio — the percentage of your available credit you are using. If you have a $5,000 credit limit and take a $1,000 cash advance, your utilization jumps to 20 percent, which can lower your score slightly.
The impact is usually small if you pay it back quickly. But if you carry the balance for months, the high utilization and the late payments (if you miss any) will hurt your score more than a regular purchase would.
The cash advance itself does not appear as a separate account on your credit report — it is part of your credit card account. But the balance and payment history are recorded just like any other charge.
Cheaper ways to get cash when you need it
If you need cash and have time to plan, several options cost less than a credit card cash advance. A personal loan from a bank or credit union usually has a lower interest rate and no upfront fee. You might pay 8 to 15 percent APR instead of 24 percent, and you know the exact monthly payment from day one.
If you have a savings account, withdrawing from savings costs nothing. If you have a 401(k), some plans allow loans against your balance at a low rate. Asking a friend or family member to lend you money costs nothing if they agree, though it can complicate the relationship.
If you have a bank account with overdraft protection, you might be able to overdraw and pay a flat overdraft fee instead of a percentage-based cash advance fee. Some banks charge $25 to $35 per overdraft, which is less than the 3 to 5 percent fee on a large withdrawal.
A payday loan alternative — sometimes called a credit builder loan or small-dollar loan from a credit union — may also be cheaper than a cash advance, though you should compare the total cost before borrowing.
What happens if you cannot pay back a cash advance
If you do not pay back a cash advance, it works like any other credit card debt. The balance stays on your account, interest keeps accruing, and if you miss payments, your credit score drops and the card issuer may close your account or send the debt to a collection agency.
Unlike a payday loan, there is no single due date for a cash advance — it is part of your monthly credit card bill. You can pay it back in full, make a minimum payment, or pay any amount in between. But the longer you carry it, the more expensive it becomes.
If you are struggling to pay back a cash advance, contact your card issuer and ask about a hardship program or payment plan. Many issuers will work with you to lower your interest rate or set up a plan if you ask before you fall behind.
Frequently Asked Questions
Can I use a credit card cash advance to pay off another credit card?
Technically yes, but it is almost always a bad idea. You would pay the cash advance fee plus a higher interest rate, making your debt more expensive. A balance transfer to a card with a 0 percent introductory rate, or a personal loan, would cost much less.
Does a cash advance show up differently on my credit report than a regular purchase?
No, it appears as part of your credit card balance, not as a separate account. But it counts toward your credit utilization and can lower your score if it is large or unpaid for a long time.
What is the difference between a cash advance and a balance transfer?
A cash advance gives you physical cash and charges a fee plus high interest when ready. A balance transfer moves debt from one card to another and may have a lower fee and a temporary 0 percent rate. Balance transfers are for moving existing debt; cash advances are for getting cash.
Can I get a cash advance from a credit card I just opened?
Usually yes, but your cash advance limit may be lower than your purchase limit, especially on a new card. Call the issuer to find out what your limit is before you try to withdraw.
Is there a way to avoid the cash advance fee?
No. The fee is built into the cash advance product and applies every time. The only way to avoid it is to not take a cash advance and use another method to get cash instead.