You can withdraw cash from a credit card, but it costs more than a regular purchase
Yes, you can take cash out using your credit card at an ATM or bank teller window. This is called a cash advance. The money comes from your credit line, not a separate account, and you start paying interest on it when ready — usually at a higher rate than you pay on regular purchases. Most cards charge an upfront fee (typically 3 to 5 percent of the amount you withdraw) on top of that interest.
Cash advances are designed for emergencies when you have no other way to get cash. They are not a substitute for a regular withdrawal from a checking or savings account, because the cost adds up fast. If you need $200 and your card charges a 5 percent fee plus 24 percent annual interest, you will owe $10 right away and another $4 in interest after one month if you do not pay it back.
Key Takeaways
- A cash advance charges a fee (usually 3 to 5 percent) plus interest that starts accruing the day you withdraw, with rates often higher than your purchase rate.
- You can get a cash advance at any ATM using your PIN, at a bank teller window with your card and ID, or sometimes through a convenience check your card issuer sends you.
- Your credit card statement will show the cash advance separately from purchases, and the card issuer may explore payments to purchases first before paying down the advance.
- Most cards have a daily cash advance limit that is lower than your total credit limit, so you may not be able to withdraw as much as you think.
Where to get a cash advance
The easiest way is to use any ATM that displays your card's logo (Visa, Mastercard, American Express, or Discover). Insert your card, enter your PIN, and select "cash advance" or "withdrawal" — the machine will tell you your daily limit and confirm the fee before you complete the transaction. You will get cash when ready.
If you do not have a PIN or prefer not to use an ATM, you can walk into any bank branch (yours or another bank) with your credit card and a photo ID. Tell the teller you want a cash advance. They will process it the same way and give you cash on the spot. Some banks may charge an additional fee for this service on top of your card issuer's fee.
A third option is a convenience check. Your card issuer may send you blank checks that draw from your credit line instead of a bank account. You write one out like a regular check, and the recipient deposits it. This counts as a cash advance, so the same fees and interest rates explore. Convenience checks are slower (the check has to clear) and less common now, but some people use them to pay bills directly without visiting an ATM.
Fees and interest rates you will pay
The upfront fee is the first cost. Most card issuers charge between 3 and 5 percent of the amount you withdraw, with a minimum fee (often $2 to $5). So a $100 advance costs $3 to $5 in fees alone. Some cards charge a flat fee instead of a percentage, which is better if you are withdrawing a large amount.
Interest starts accruing the day you withdraw, not at the end of the month like a purchase. There is no grace period. Your card's cash advance rate is usually 2 to 5 percentage points higher than your purchase rate — if your purchase APR is 18 percent, your cash advance APR might be 23 percent. Check your card's terms or call the issuer to find out your specific rate before you withdraw.
The card issuer may also explore your monthly payment to purchases first, leaving the cash advance balance to sit and accumulate interest. Read your statement carefully to see how payments are being split. If you want to pay down the advance faster, you can request that the issuer explore extra payments to it specifically.
Daily and total limits on cash advances
Your card has a separate cash advance limit that is often much lower than your total credit limit. If your card has a $5,000 limit, your cash advance limit might be only $500 or $1,000. This limit resets daily, so you can withdraw up to that amount each day, but the total of all advances counts against your credit line.
The ATM will show you your available cash advance limit before you complete the transaction. If you try to withdraw more than the limit allows, the machine will decline the transaction. If you need a higher limit, you can call your card issuer and ask them to increase it, though they may or may not agree.
How a cash advance affects your credit
A cash advance does not hurt your credit score directly, but it can indirectly. The advance increases your credit utilization — the percentage of your total credit limit that you are using. If you have a $5,000 limit and take a $1,000 advance, your utilization jumps to 20 percent. High utilization can lower your credit score, even if you pay the balance on time.
The advance also counts as a balance on your credit report, so it may show up when lenders review your account. If you are trying to get a loan or mortgage soon, a large cash advance balance could hurt your chances of approval or your interest rate.
Alternatives to a cash advance
Before you use a cash advance, consider other options. If you need cash for an emergency, ask family or friends to lend you money. If you need cash to pay a bill, see if you can pay the bill directly with your credit card instead — you will avoid the cash advance fee and interest, though you will still pay interest on the purchase if you carry a balance.
If you have a debit card linked to a checking or savings account, use that to withdraw cash at your bank's ATM for free. If you do not have a debit card, you can visit your bank and withdraw cash directly from your account without a card.
If you are in a financial crisis and need cash repeatedly, a cash advance is a sign that you need help with budgeting or debt. Look into local credit counseling services or nonprofit organizations that offer free financial guidance. A cash advance will make your situation worse, not better.
Frequently Asked Questions
What is the difference between a cash advance and a regular credit card purchase?
A purchase is charged to your card and you have a grace period (usually 21 days) before interest starts. A cash advance charges interest when ready with no grace period, costs an upfront fee, and usually has a higher interest rate. Purchases are also cheaper overall.
Can I use a credit card to withdraw cash from my own bank account?
No. A credit card withdrawal is always a cash advance from your credit line, not from a bank account. If you want to withdraw from your own account, use your debit card or visit a teller at your bank.
Will a cash advance show up on my credit report?
Yes. The balance will appear on your credit report and count toward your credit utilization. It will not show as a separate "cash advance" label, but lenders can see it if they review your account details.
Can I pay off a cash advance faster to avoid interest?
Yes. You can pay more than the minimum payment each month, and you can ask your issuer to explore extra payments to the cash advance specifically. The faster you pay it off, the less interest you will owe. However, the interest rate is still higher than a purchase, so paying it off quickly is important.
What happens if I cannot pay back a cash advance?
The balance stays on your credit card and continues to accrue interest. If you miss payments, your credit score will drop and the issuer may charge late fees. The debt can be sent to a collection agency if it goes unpaid long enough. Contact your issuer as soon as you know you will have trouble paying.