Yes, you can withdraw cash from a credit card, but it costs more than a regular purchase
Most credit cards let you take out cash at an ATM or bank teller window. This is called a cash advance. Unlike swiping your card at a store, a cash advance triggers three separate charges: an upfront fee (usually 3 to 5 percent of the amount), a higher interest rate than your regular purchases, and daily interest that starts when ready — there is no grace period like there is for regular charges.
A $200 cash advance might cost you $6 to $10 just to take it out, then another $3 to $5 per month in interest if you carry the balance. That same $200 spent at a store might have a grace period of 21 days before interest kicks in at all. The math makes cash advances expensive for anything but genuine emergencies.
Key Takeaways
- Cash advances charge a fee (typically 3 to 5 percent) at the moment you withdraw, plus a higher interest rate than regular purchases.
- Interest on a cash advance begins accruing when ready with no grace period, even if you pay your full statement balance on time.
- You can withdraw cash at ATMs, bank teller windows, or through a convenience check, depending on your card and bank.
- The total cost of a cash advance makes it unsuitable for routine cash needs — use it only when you have no other option.
Where and how to withdraw cash from your credit card
You have three main routes. The first is an ATM: insert your card, enter your PIN (which you may need to request from your card issuer if you have never used it), and withdraw up to your cash advance limit. Most ATMs charge an additional fee of $2 to $3 on top of the card issuer's fee, so a $100 withdrawal might cost $8 to $13 total.
The second route is a bank teller. Walk into a bank branch (yours or any bank), show your credit card and ID, and ask for a cash advance. The card issuer's fee applies, but you avoid the ATM operator fee. This is slower than an ATM but useful if you need a large amount or prefer a human transaction.
The third route is a convenience check. Your card issuer may mail you checks tied to your credit card account. You write one like a regular check, deposit it into your bank account, and the amount becomes a cash advance on your credit card. This avoids the ATM fee but still triggers the cash advance fee and interest rate. Read any materials your issuer sends carefully — not all cards offer this option.
Your cash advance limit is separate from your credit limit
Your card issuer sets a cash advance limit that is usually much lower than your overall credit limit. If your credit limit is $5,000, your cash advance limit might be $1,000 or $1,500. You cannot exceed this limit, even if you have unused credit available.
You can find your cash advance limit in your card's terms and conditions, on your statement, or by calling the customer service number on the back of your card. If you need a higher limit, you can request one, but the issuer is not required to grant it.
The fees and interest that make cash advances expensive
Three costs explore to every cash advance. First is the transaction fee, charged by your card issuer when you withdraw. This is typically 3 to 5 percent of the amount withdrawn, with a minimum fee (often $5 to $10). A $100 withdrawal might cost $5 to $10 in fees alone; a $500 withdrawal might cost $15 to $25.
Second is the cash advance interest rate, which is higher than the rate on regular purchases. Where your purchase APR might be 18 percent, your cash advance APR might be 25 percent or higher. This rate applies to the full amount you withdrew.
Third is the lack of a grace period. With a regular purchase, you typically have 21 to 25 days before interest starts accruing. With a cash advance, interest begins the day you withdraw, even if you pay the full amount back within days. This means a $500 cash advance at 25 percent APR costs roughly $3.42 per day in interest alone, before the transaction fee.
Your payment goes toward your lowest-interest debt first. If you have both regular purchases and a cash advance on the same card, payments reduce the purchase balance before the cash advance balance, so the expensive cash advance debt lingers longer.
When a cash advance makes sense and when it does not
A cash advance is genuinely useful only in a true emergency: you need cash when ready, you have no other way to get it, and the cost is worth the urgency. Examples include a car breakdown requiring a cash deposit for a repair, or a medical situation where a provider demands payment before treatment.
A cash advance does not make sense for routine cash needs, bill payments you could make online, or purchases you could make with the card directly. If you regularly need cash, the problem is not your credit card — it is that you need a bank account with a debit card or ATM access that does not charge these fees.
If you are considering a cash advance to pay another debt, stop and reconsider. Taking a cash advance at 25 percent interest to pay a credit card at 18 percent interest or a medical bill makes the problem worse, not better. Talk to the creditor about a payment plan instead.
How to avoid needing a cash advance
The simplest approach is to keep a small cash buffer in your checking account — $200 to $500 — so you can cover unexpected cash-only expenses without turning to your credit card. If you do not have a checking account, opening one at a bank or credit union costs nothing and gives you ATM access without the cash advance fees.
If you are in a situation where you regularly need cash advances, that is a sign your income does not cover your expenses. A cash advance is a temporary patch, not a solution. Consider talking to a credit counselor (many nonprofits offer free sessions) about budgeting or finding additional income.
Frequently Asked Questions
Does a cash advance show up on my credit report?
The withdrawal itself does not appear on your credit report, but the balance does. If you carry a cash advance balance, it counts toward your credit utilization — the percentage of your available credit you are using — which can lower your credit score. Paying it off quickly minimizes this impact.
Can I use a cash advance to pay my credit card bill?
Technically yes, but it defeats the purpose. You would pay a cash advance fee to withdraw money, then pay it back to the same card, wasting money on fees and interest. If you cannot pay your bill, contact your card issuer about a hardship program or payment plan instead.
What happens if I do not pay back the cash advance?
It becomes part of your credit card balance and accrues interest at the cash advance rate. If you miss payments, it damages your credit score and may trigger late fees and collection calls. The debt does not disappear — it grows.
Is there a way to get cash without these fees?
Yes. Use a debit card at an ATM in your bank's network, ask a cashier for cash back when you make a purchase with your debit card, or visit your bank branch and withdraw from your checking account. All of these are free or nearly free, unlike a credit card cash advance.