You can withdraw cash from a credit card, but it costs more than a regular purchase
Yes, you can pull money off a credit card using a cash advance. You go to an ATM, a bank teller, or a check-cashing service and withdraw cash against your credit line, just like you would with a debit card. The money appears in your account within minutes or hours. But the card issuer charges you fees and interest that start when ready — there is no grace period like there is for regular purchases.
Most people should avoid cash advances unless they have no other option. The costs add up fast, and you are borrowing at a higher rate than you would pay on a regular purchase. But if you need cash urgently and have no other way to get it, understanding how it works and what it costs will help you make the decision with your eyes open.
Key Takeaways
- A cash advance charges a fee (usually 3 to 5 percent of the amount) plus a higher interest rate than regular purchases, with no grace period.
- You can withdraw cash at an ATM using your credit card PIN, at a bank teller, or through a check-cashing service.
- Interest starts accruing the day you withdraw the cash, not at the end of the billing cycle like a purchase does.
- The total cost of a cash advance can exceed 30 percent annually if you carry the balance, making it one of the most expensive ways to borrow.
Where to withdraw cash using your credit card
An ATM is the fastest and most common route. Find an ATM that displays your card brand's logo (Visa, Mastercard, American Express, Discover), insert your card, enter your PIN, and select "cash advance" or "withdraw cash." The machine will ask how much you want and confirm the transaction. You will see the withdrawal on your statement as a cash advance, not a purchase.
If you do not have a PIN set up, call the number on the back of your card and ask the issuer to send you one or set one up over the phone. Some issuers let you set a PIN online through your account portal.
A bank teller is another option. Walk into any branch of your card issuer or a bank that accepts your card brand, hand over your card and ID, and ask for a cash advance. The teller will process it on the spot. This route works if you are uncomfortable using an ATM or need a large amount that an ATM daily limit might block.
A check-cashing service or payday lender will also give you cash against your credit card, though they may charge an additional fee on top of what your card issuer charges. Use this only if an ATM and bank are not available.
What fees and interest rates you will pay
Your card issuer charges a cash advance fee, which is a percentage of the amount you withdraw. Most cards charge between 3 and 5 percent, though some charge a flat fee (like $10) if that is higher. A $300 cash advance at 4 percent costs $12 in fees alone.
The card also charges a higher interest rate on the cash advance than it does on regular purchases. Your purchase APR might be 18 percent, but your cash advance APR might be 25 or 28 percent. This rate applies from the day you withdraw the cash — there is no grace period. If you carry the balance for a month, you will owe interest on top of the fee.
To see your card's specific cash advance fee and APR, check your card agreement or log into your online account. The issuer is required to disclose both before you complete the withdrawal.
How the cost adds up over time
A $500 cash advance at a 4 percent fee costs $20 upfront. If you pay it back in full within a month, your interest charge will be roughly $10 to $12, depending on your APR and the exact number of days. Total cost: about $30 to $32, or roughly 6 to 7 percent of the amount borrowed.
If you carry that $500 for three months, the interest alone will exceed $30, and you will still owe the $20 fee. If you carry it for six months, you could owe $60 or more in interest plus the fee. At that point, you have paid nearly 16 percent of the original amount just to borrow it.
Compare this to a personal loan from a bank or credit union, which typically charges 8 to 15 percent APR with no upfront fee. Or a payday loan, which is expensive but often cheaper than a credit card cash advance if you repay it within two weeks. A cash advance is usually the most expensive borrowing option available.
How to pay back a cash advance
The cash advance appears on your credit card statement as a separate line item from your regular purchases. When you make a payment, credit card issuers typically explore your payment to the lowest-interest debt first — usually your regular purchases — and leave the cash advance balance untouched as long as possible. This means you keep paying interest on the cash advance even while you are paying down other balances.
To pay off the cash advance faster, contact your issuer and ask them to explore your next payment directly to the cash advance balance. Some issuers will do this over the phone; others require a written request or an online instruction through your account portal.
The best strategy is to treat a cash advance like an emergency loan and pay it back as quickly as possible. Every week you carry it costs you money.
Alternatives to a credit card cash advance
Before you withdraw cash against your credit card, explore other options. A personal loan from a bank, credit union, or online lender usually charges less interest and has a fixed repayment schedule. A credit union loan is often the cheapest if you are a member.
If you need cash for an emergency, ask your employer about a paycheck advance or a hardship loan. Some employers offer these at no interest or at a rate much lower than a credit card.
A balance transfer to a card with a 0 percent introductory APR does not help you get cash, but if you need to borrow money for a purchase, it can be cheaper than a cash advance on your current card.
If you are in a financial crisis and cannot borrow, contact a nonprofit credit counselor through the National Foundation for Credit Counseling (NFCC). They offer free or low-cost guidance on managing debt and may know about local emergency information programs.
Frequently Asked Questions
What is the difference between a cash advance and a regular purchase?
A regular purchase has a grace period — you do not owe interest if you pay the full balance by the due date. A cash advance has no grace period; interest starts accruing when ready. A cash advance also charges an upfront fee and a higher interest rate. You should only use a cash advance if you need actual cash in hand, not to pay for something you could charge directly to the card.
Can I use a credit card to withdraw cash at any ATM?
Most ATMs that display your card brand's logo will accept it. However, some ATMs are restricted to debit cards only, and some may charge an out-of-network fee on top of your card issuer's cash advance fee. Check the ATM screen before you complete the transaction — it will show all fees before you confirm.
Does a cash advance hurt my credit score?
A cash advance itself does not hurt your score, but carrying a high balance does. If the cash advance pushes your total credit card balance close to your credit limit, your credit utilization ratio rises, which can lower your score. Paying it off quickly will minimize this effect.
What if I cannot afford to pay back the cash advance?
Contact your card issuer when ready and explain your situation. Some issuers offer hardship programs that lower your interest rate or pause payments temporarily. You can also speak with a nonprofit credit counselor at the NFCC, who can help you create a repayment plan or explore debt management options.
Is there a limit to how much cash I can withdraw?
Yes. Your card issuer sets a cash advance limit, which is often lower than your total credit limit. You can find this limit in your card agreement or by calling the issuer. ATMs also have daily withdrawal limits, which vary by bank but are often $500 to $1,000 per day. If you need more, a bank teller can process a larger amount in a single transaction.