Yes, you can withdraw cash from a credit card, but it costs more than a regular purchase
A cash advance lets you take money out of an ATM or get cash back at a store using your credit card. The card issuer treats it as a loan, not a purchase. You pay interest on the amount when ready — there is no grace period like there is for regular purchases — and you also pay a fee upfront, usually 3 to 5 percent of the amount you withdraw.
Because the costs are high, a cash advance should be a last resort. If you need cash and have other options — a debit card, a personal loan, borrowing from someone you know — those are almost always cheaper.
Key Takeaways
- Cash advances charge interest from day one and include an upfront fee of 3 to 5 percent, making them much more expensive than regular credit card purchases.
- You can withdraw cash at an ATM, get cash back at a store, or visit your bank branch, depending on what your card issuer allows.
- The amount you can withdraw is limited by your cash advance limit, which is usually lower than your overall credit limit.
- Interest rates on cash advances are typically higher than the rate on regular purchases, sometimes by 5 to 10 percentage points.
- The interest starts accruing when ready, so even a short-term cash advance becomes expensive quickly.
How to withdraw cash using your credit card
The method depends on what your card issuer allows. Most cards let you use at least one of these routes.
ATM withdrawal: Insert your credit card into an ATM that accepts it, enter your PIN (which you may need to set up first if you have never done a cash advance), and select the amount. The ATM will dispense cash and charge the fee to your card. Not all ATMs accept credit cards — bank ATMs are more likely to than independent machines.
Cash back at a store: Some retailers let you ask for cash back when you swipe your credit card at checkout, similar to using a debit card. Ask the cashier whether they offer this. The fee structure is the same as an ATM withdrawal.
Bank branch: You can walk into a branch of your card issuer's bank and ask for a cash advance. Bring your card and ID. This method avoids ATM fees charged by third-party machines, though your card issuer's own fee still applies.
What fees and interest rates you will pay
A cash advance has two costs: an upfront fee and interest.
The cash advance fee is usually 3 to 5 percent of the amount you withdraw, with a minimum of $5 to $10. If you withdraw $500, you might pay $15 to $25 just to get the cash. Some cards charge a flat fee instead of a percentage, though this is less common.
The interest rate on a cash advance is separate from your regular purchase APR and is almost always higher — often 5 to 10 percentage points above what you pay on regular purchases. If your purchase rate is 18 percent, your cash advance rate might be 25 percent. Interest starts accruing the day you withdraw the cash; there is no grace period.
If you withdraw $500 at a 25 percent APR and pay it back in 30 days, you will pay roughly $10 in interest plus the upfront fee, for a total cost of $25 to $35. Over a year, the cost becomes much steeper.
Your cash advance limit versus your credit limit
Your card issuer sets a separate cash advance limit, which is usually much lower than your overall credit limit. If your credit limit is $5,000, your cash advance limit might be $500 or $1,000. You cannot withdraw more than this limit, even if you have available credit for regular purchases.
You can find your cash advance limit in your cardholder agreement, on your card issuer's website, or by calling the customer service number on the back of your card. Some issuers let you request a higher limit, though this is not may provide.
Why a cash advance is expensive compared to other borrowing
A cash advance is one of the most expensive ways to borrow money. Compare the costs: a personal loan from a bank might charge 8 to 15 percent APR with no upfront fee. A payday loan is predatory and should be avoided, but even so, a cash advance often costs more over time because of the combination of the high interest rate and the upfront fee.
If you need cash for an emergency, explore these options first: asking family or friends for a loan, taking out a personal loan from your bank or a credit union, using a debit card if you have one, or selling something you own. All of these are cheaper than a cash advance.
How a cash advance affects your credit score
A cash advance itself does not directly hurt your credit score, but it does increase your credit utilization — the percentage of your available credit that you are using. If you have a $5,000 limit and take a $500 cash advance, your utilization jumps by 10 percent. High utilization can lower your score temporarily.
The bigger risk is missing a payment. Because cash advances have high interest and no grace period, the balance grows quickly. If you cannot pay it back soon, you may fall behind, which damages your score. Always have a plan to pay back a cash advance within a few weeks if possible.
How to pay back a cash advance
A cash advance payment works like any other credit card payment. You can pay online through your card issuer's website or app, by phone, by mail, or in person at a branch. The payment goes toward your cash advance balance first, then toward regular purchases (or vice versa, depending on your issuer's policy — check your agreement).
Pay as much as you can as soon as you can. Even a small payment reduces the balance and the interest that accrues. If you can pay the full amount within the first month, do so — the longer you carry the balance, the more interest you pay.
Frequently Asked Questions
Can I use a credit card to withdraw cash from any ATM?
Not all ATMs accept credit cards. Bank ATMs are more likely to than independent machines in convenience stores or gas stations. Check your card issuer's website for a list of ATMs that accept your card, or call customer service to ask which networks your card works with.
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 offer a lower introductory rate for a set period. Balance transfers are for moving existing debt; cash advances are for getting cash.
Will my card issuer let me withdraw my full credit limit as cash?
No. Your cash advance limit is separate and usually much lower than your credit limit. Most issuers set it at 20 to 50 percent of your credit limit. You can contact your issuer to ask about raising it, but they may decline.
What happens if I cannot pay back a cash advance?
The balance will accrue interest at your cash advance rate, which is high. If you miss payments, your credit score will drop and your issuer may report the debt to a collection agency. If you are struggling, contact your issuer to discuss a payment plan before you fall behind.
Is there a way to avoid the cash advance fee?
No. Every credit card charges a fee for cash advances — it is built into the product. The only way to avoid it is to not take a cash advance. If you need cash, use a debit card, ask for cash back with a debit purchase, or borrow from another source.