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 when ready at most ATMs, and the money appears in your account within minutes. However, a cash advance is not the same as a purchase — your card issuer charges you a fee upfront, charges interest when ready (not after a grace period), and the interest rate is usually much higher than your regular purchase rate.
Most people use cash advances only when they have no other option, because the cost adds up quickly. If you need cash regularly, a debit card or a trip to your bank is almost always cheaper.
Key Takeaways
- Cash advances charge a fee (usually 3 to 5 percent of the amount) plus a higher interest rate than purchases, with interest starting when ready.
- You can withdraw cash at any ATM that displays your card's logo, or at a bank teller window by asking for a cash advance.
- Your credit card company sets a separate cash advance limit, which may be lower than your overall credit limit.
- The transaction counts as a balance on your credit card and affects your credit utilization ratio.
What fees and interest rates you will pay
A cash advance typically costs you two things: a one-time fee and daily interest. The fee is usually between 3 and 5 percent of the amount you withdraw — so a $200 cash advance might cost $6 to $10 just to take it out. Some cards charge a flat fee instead (for example, $5 or $10 per transaction), which is cheaper if you withdraw a small amount but more expensive if you withdraw a large one.
Interest starts accruing the moment you withdraw the cash. Unlike a purchase, which may have a grace period of 20 to 25 days before interest kicks in, a cash advance begins charging interest when ready. The interest rate for cash advances is also higher — often 5 to 10 percentage points above your regular purchase rate. If your purchase rate is 18 percent, your cash advance rate might be 25 percent or higher. Check your card's terms or call the number on the back of your card to find out your specific cash advance fee and rate.
Where you can withdraw cash and how much
You can withdraw cash at any ATM that displays your card's logo — Visa, Mastercard, American Express, or Discover. You insert your card, enter your PIN, select "cash advance" or "withdrawal," and choose your amount. The ATM will show you the fee before you confirm, so you can decide whether to proceed.
You can also walk into any bank branch (not necessarily your own bank) and ask the teller for a cash advance. The teller will swipe your card, verify your identity, and hand you cash. This method is slower but sometimes charges a lower fee than an ATM.
Your credit card issuer sets a separate cash advance limit, which is different from your overall credit limit. This limit might be $500, $1,000, or higher depending on your card and credit history. You cannot withdraw more than this limit in a single transaction or over a period of time. If you need to know your cash advance limit, log into your online account or call the customer service number on your card.
How a cash advance affects your credit and account
A cash advance is treated as a balance on your credit card, just like a purchase. It counts toward your credit utilization ratio — the percentage of your total credit limit that you are using at any given time. If your credit limit is $5,000 and you take a $500 cash advance, your utilization jumps to 10 percent. High utilization can lower your credit score, so taking a large cash advance can hurt your score temporarily.
The cash advance balance also appears on your monthly statement separately from purchases. You will see the principal amount, the fee, and the interest charged. When you make a payment, your card issuer applies it to the balance in a specific order — usually purchases first, then cash advances — so paying off a cash advance can take longer if you also have purchases on the card.
Alternatives that cost less
Before you take a cash advance, consider whether another option would be cheaper. If you have a debit card linked to a checking account, withdrawing from an ATM costs nothing or a small fee (usually $1 to $3 if you use an out-of-network ATM). If you have a bank account, you can visit a branch and withdraw cash for free. If you need cash for a purchase, many retailers will let you get cash back when you pay with a debit card, also for free.
If you do not have a debit card or bank account, a cash advance may be your only option. In that case, withdraw only what you need and pay it back as quickly as possible to minimize interest charges.
How to pay back a cash advance
A cash advance balance works like any other credit card balance. You can pay it in full when your statement arrives, or you can pay the minimum amount due and carry the rest forward. However, because the interest rate is high, carrying a balance is expensive. If you took a $500 cash advance at 25 percent interest and paid only the minimum, you could end up paying $100 or more in interest alone before the balance is gone.
The fastest way to reduce the cost is to pay more than the minimum each month. If you can pay the full amount within one or two months, the total interest will be much lower. Some people take a cash advance, pay it back when ready from their next paycheck, and accept the fee as the cost of a short-term loan.
Cash advances and your credit card terms
Not all credit cards allow cash advances. Some cards, particularly rewards cards or cards designed for specific purposes, may not offer this feature. Check your card's terms or log into your account to see whether cash advances are available to you. If you have a secured credit card or a card with a very low credit limit, your cash advance limit may be zero or very small.
If you are explore for a new credit card and think you might need a cash advance, ask about the cash advance fee and interest rate before you explore. Some cards charge lower fees or offer promotional rates for cash advances during the first few months, though this is rare.
Frequently Asked Questions
What is the difference between a cash advance and a regular purchase?
A purchase has a grace period (usually 20 to 25 days) before interest starts, but a cash advance charges interest when ready. A cash advance also charges an upfront fee and a higher interest rate. Both count as balances on your card, but they are tracked separately on your statement.
Can I use a credit card cash advance to pay another credit card?
Technically yes, but it is very expensive. You would pay the cash advance fee, the high interest rate, and then use that cash to pay another card's balance. Most people should avoid this unless they have no other way to make a payment.
Will a cash advance hurt my credit score?
It can, because it increases your credit utilization ratio. The impact is usually temporary — your score recovers once you pay the balance down. However, if you carry the cash advance for a long time, the high interest charges can make it harder to pay off, which keeps your utilization high and your score lower.
What happens if I do not pay back a cash advance?
The balance stays on your credit card and interest continues to accrue. If you miss payments, your card issuer may charge late fees, raise your interest rate, and report the missed payment to credit bureaus, which damages your credit score. The debt can also be sent to a collection agency.
Is there a limit to how much cash I can withdraw?
Yes. Your card issuer sets a cash advance limit, which is separate from your overall credit limit. This limit varies by card and your credit history. You can find your cash advance limit by logging into your account or calling the number on the back of your card.