Yes, you can withdraw cash from a credit card, but it costs more than a regular purchase
You can take cash out of an ATM using your credit card, just as you would with a debit card. The transaction is called a cash advance. Your credit card issuer will approve it, the ATM will dispense the money, and the amount will show up on your credit card bill as a debt you owe.
The catch is that cash advances are expensive. You pay an upfront fee (usually 3 to 5 percent of the amount you withdraw), interest starts accruing when ready at a higher rate than regular purchases, and that interest compounds daily until you pay it back. A $300 cash advance can easily cost you $15 to $20 in fees and interest within the first month, depending on your card and how quickly you repay it.
Most people should avoid cash advances unless they have no other option. If you need cash, a debit card, a bank withdrawal, or a personal loan from a bank or credit union will cost you far less.
Key Takeaways
- Cash advances charge a fee of 3 to 5 percent upfront, plus interest that starts when ready and is usually higher than the rate on purchases.
- Interest on a cash advance accrues daily and is not subject to a grace period, so you pay interest from day one even if you pay the full balance at the end of the month.
- You can withdraw cash at any ATM that accepts your card's network (Visa, Mastercard, American Express, or Discover), but the ATM operator may charge an additional fee.
- The amount you can withdraw is limited by your credit card's cash advance limit, which is often lower than your overall credit limit and is set by your issuer.
How to withdraw cash at an ATM
Insert your credit card into an ATM that displays your card's logo (Visa, Mastercard, American Express, or Discover). Select "Withdrawal" or "Cash Advance" from the menu. Enter the amount you want to withdraw, then enter your PIN. The ATM will dispense the cash and print a receipt.
If you do not know your credit card PIN, call the customer service number on the back of your card and ask to set one up or reset the one you have. Some issuers allow you to set a PIN online through your account portal. You cannot withdraw cash without a PIN, even if you can use the card to make purchases.
Not all ATMs accept credit cards. Most ATMs at banks and credit unions do, as do many standalone ATMs in convenience stores and gas stations. If an ATM rejects your card, try another one or visit a bank branch and ask the teller to process a cash advance for you.
What fees and interest rates you will pay
Your credit card issuer charges a cash advance fee, which is a percentage of the amount you withdraw. This fee ranges from 3 to 5 percent on most cards, though some cards charge a flat fee (such as $5 or $10) instead. The fee is added to your balance when ready.
The cash advance interest rate is almost always higher than the rate on regular purchases. While a purchase might carry an interest rate of 15 to 20 percent, a cash advance might be charged at 20 to 25 percent or higher. This rate varies by card and by your creditworthiness.
Unlike purchases, cash advances do not have a grace period. Interest starts accruing the moment you withdraw the money, even if you pay the full balance when your bill arrives. If you withdraw $300 at a 5 percent fee and 22 percent interest rate, you will owe $315 in fees plus interest that grows every day until you pay it off.
Some ATM operators also charge a surcharge for using their machine, typically $2 to $3. This fee goes to the ATM owner, not your credit card issuer, and appears on your receipt separately.
Your cash advance limit versus your credit limit
Your credit card issuer sets a separate cash advance limit that is often much lower than your overall credit limit. If your credit limit is $5,000, your cash advance limit might be only $1,000 or $1,500. You cannot withdraw more than this limit, even if you have available credit remaining.
You can find your cash advance limit in your online account portal, on your monthly statement, or by calling customer service. If you need to withdraw more than your limit allows, you can ask your issuer to increase it, though they are not required to do so.
Each withdrawal counts against your cash advance limit. If you withdraw $500 and then pay it back, that $500 becomes available again. However, the fees and interest you paid do not reduce the limit — they are separate charges added to your balance.
When a cash advance makes sense
A cash advance is rarely the best choice, but there are narrow situations where it might be necessary. If you need cash urgently and have no access to a debit card, ATM, or bank branch, a credit card cash advance is faster than waiting for a personal loan or payday loan to be approved.
If you have a 0 percent introductory rate on your credit card and that rate applies to cash advances (which is rare), a cash advance might be worth considering for a short-term need. Check your card's terms to confirm whether the 0 percent rate covers cash advances — most do not.
In almost all other cases, you should look for an alternative first. Borrowing from a friend or family member, using a debit card, visiting your bank for a withdrawal, or taking out a personal loan will cost you less money and less stress.
How a cash advance affects your credit score
A cash advance does not directly hurt your credit score, but it can indirectly damage it. The withdrawal increases your credit card balance, which raises your credit utilization ratio — the percentage of your available credit that you are using. A higher utilization ratio can lower your credit score.
If you carry the cash advance balance for several months, you will pay substantial interest, and your balance will grow. This prolonged high utilization will continue to weigh on your score. Paying off the cash advance quickly is the best way to minimize the damage.
The cash advance itself does not appear separately on your credit report — it shows up as part of your credit card balance. However, if you miss a payment on the cash advance, that missed payment will be reported and will hurt your score significantly.
Alternatives to a credit card cash advance
If you need cash, explore these options before using a credit card cash advance. A debit card withdrawal at your bank or an ATM in your bank's network is free or low-cost and does not charge interest. A personal loan from a bank or credit union usually has a lower interest rate than a credit card cash advance, though approval takes a few days.
A payday loan is fast but very expensive — often charging 400 percent annual interest or more — so it is only slightly better than a cash advance in an emergency. A line of credit from your bank, if you have one, typically charges less interest than a cash advance. Borrowing from a friend or family member costs nothing but requires a conversation and a clear repayment plan.
If you are in a financial crisis and need cash regularly, the real solution is to build an emergency fund or to talk to a nonprofit credit counselor about your options. Many nonprofits offer free or low-cost counseling and can help you create a plan to avoid high-cost borrowing in the future.
Frequently Asked Questions
Can I use a credit card to withdraw cash at a bank teller?
Yes. Walk into any bank branch and ask the teller to process a cash advance on your credit card. You will need to show your card and a photo ID. The teller will charge the same fee and interest rate as an ATM would, and the transaction will appear on your credit card bill the same way.
What happens if I do not pay back a cash advance?
The balance will grow as interest accrues daily. If you miss a payment, your issuer will report it to the credit bureaus, and your credit score will drop. Your issuer may also charge a late fee and increase your interest rate. Eventually, the issuer can sue you or send the debt to a collection agency.
Does a cash advance count toward my credit limit?
Yes. The amount you withdraw is subtracted from your available credit when ready. If you have a $5,000 credit limit and withdraw $500 in cash, you will have $4,500 in available credit remaining until you pay back the $500 plus fees and interest.
Can I get a cash advance on a secured credit card?
Most secured credit cards allow cash advances, though the limit is often very low — sometimes just $100 or $200. Check your card's terms or call customer service to confirm whether cash advances are available and what your limit is.
Is there a way to avoid the cash advance fee?
No. The fee is set by your issuer and is charged automatically when you withdraw cash. You cannot negotiate it away or waive it. The only way to avoid the fee is to not withdraw cash from your credit card.