Yes, you can withdraw cash on a credit card, but it costs more than a regular purchase
You can pull cash directly from 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 treats it differently from a purchase: they charge an upfront fee, start charging interest when ready (with no grace period), and the interest rate is usually higher than your regular purchase APR.
Most credit cards allow cash advances, but the terms vary by card and issuer. Before you use this feature, you need to know what it will cost you and what your limit is — because your cash advance limit is often lower than your credit limit.
Key Takeaways
- A cash advance fee is typically 3 to 5 percent of the amount you withdraw, charged when ready when you take the cash out.
- Interest on a cash advance starts accruing the day you withdraw it, with no grace period like you get on purchases.
- The APR for cash advances is usually 2 to 5 percentage points higher than your purchase APR.
- Your cash advance limit is often much lower than your credit limit — sometimes $500 or $1,000 even if your card limit is $5,000.
- You can find your cash advance limit and current terms in your cardholder agreement or by calling the number on the back of your card.
What fees and interest you pay on a cash advance
The cost of a cash advance has two parts: an upfront fee and interest that starts right away.
The cash advance fee is a percentage of the amount you withdraw — typically 3 to 5 percent, though some cards charge a flat fee (like $10) if that is higher. If you withdraw $500 and your fee is 4 percent, you pay $20 when ready. That $20 is added to your credit card balance.
The cash advance APR is the interest rate applied to the balance. It is almost always higher than your purchase APR. If your purchase APR is 18 percent, your cash advance APR might be 23 percent. Interest begins accruing the moment you withdraw the cash — there is no grace period. If you carry the balance for 30 days, you owe interest for all 30 days.
To see the exact fee and APR for your card, check your cardholder agreement (usually available online through your card issuer's website) or call the customer service number on the back of your card.
How to withdraw cash at an ATM with your credit card
The process is straightforward, but you need to know your PIN first. If you have never used your credit card at an ATM, you may need to set a PIN through your card issuer's website or app, or by calling customer service.
Once you have your PIN:
- Insert your credit card into an ATM (most ATMs accept credit cards, though some are debit-only).
- Select "Cash Advance" or "Withdrawal" — the exact wording varies by ATM.
- Enter your PIN.
- Enter the amount you want to withdraw.
- Confirm the transaction and collect your cash and receipt.
The ATM may also charge you a fee on top of your card issuer's fee. This is called a convenience fee or ATM fee, typically $2 to $5, and it is charged by the ATM operator (often a bank or ATM network), not your card issuer. You will see this fee on your receipt.
Your cash advance limit is usually much lower than your credit limit
Credit card issuers set a separate limit for cash advances. This limit is often 20 to 50 percent of your total credit limit. If your credit limit is $5,000, your cash advance limit might be $1,000 or $1,500.
You can find your cash advance limit in your cardholder agreement, on your online account dashboard, or by calling customer service. Knowing this limit before you go to the ATM prevents you from being declined at the machine.
Your cash advance limit is independent of your available credit. If you have $2,000 available to spend but your cash advance limit is $500, you can only withdraw $500 in cash.
When a cash advance makes sense and when it does not
A cash advance is expensive and should be a last resort. The combination of an upfront fee, a higher interest rate, and no grace period means you start losing money when ready.
A cash advance may make sense if you need cash urgently and have no other option — for example, if an ATM is broken and you need to pay for something in cash right now. In that case, the fee and interest are the cost of solving an when ready problem.
A cash advance does not make sense if you are trying to move money around or if you need cash for everyday spending. A better option is to withdraw cash from your own bank account using your debit card, or to ask a merchant if they offer cash back with a purchase. Both are free or nearly free.
If you are considering a cash advance to pay off debt or cover an emergency expense, look first at whether your card offers a balance transfer option (which may have a lower fee) or whether you have access to a personal loan or line of credit with a lower rate.
How a cash advance affects your credit score
A cash advance does not directly hurt your credit score in the moment you take it. However, it does increase 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 score.
If you carry the cash advance balance and miss a payment, that will damage your score. If you pay it off quickly, the impact on utilization is temporary and your score will recover once the balance drops.
Alternatives to a cash advance
Before you use a cash advance, consider these options:
- Withdraw from your bank account. Use your debit card at your bank's ATM or a partner ATM in your bank's network. This is free or costs only a small fee if you use an out-of-network ATM.
- Ask for cash back at a store. When you make a purchase with a debit card or credit card, many retailers will give you cash back at no charge.
- Use a balance transfer. If you need to move money between accounts, a balance transfer (moving a balance from one card to another) may have a lower fee than a cash advance, though it still costs money.
- Borrow from a friend or family member. If possible, this costs nothing.
- Take out a personal loan. If you need a larger amount, a personal loan from a bank or credit union often has a lower rate than a cash advance.
Frequently Asked Questions
Can I use a credit card cash advance to pay off another credit card?
Technically yes, but it is a bad idea. You would pay a cash advance fee (3 to 5 percent), a higher interest rate, and no grace period — all to move money from one card to another. A balance transfer is a better option if you want to move a balance between cards, because the fee is often lower and you may get an introductory 0 percent APR period.
What happens if I withdraw more than my cash advance limit?
The ATM will decline the transaction. You cannot withdraw more than your limit, just as you cannot charge more than your credit limit on a purchase. If you need more cash, you would have to make a second withdrawal after paying down the first one.
Do I have to pay back a cash advance faster than regular purchases?
No. Your entire credit card balance — purchases, cash advances, and fees — is due by your statement due date. However, because interest on a cash advance starts when ready and at a higher rate, it costs you more the longer you carry it. Paying it off as quickly as possible saves you money.
Can I get a cash advance if I have a 0 percent APR promotional offer?
No. The 0 percent offer applies only to purchases (or sometimes balance transfers). Cash advances are charged the regular cash advance APR from day one, even if you have an active 0 percent promotion on your card.
Is there a way to avoid the cash advance fee?
Not through your credit card issuer. The fee is built into the cash advance feature. Your only option is to avoid using a cash advance altogether and use your debit card, ask for cash back, or find another way to get cash.