Yes, you can take cash out using your credit card, but it costs more than a regular purchase
You can withdraw cash from your credit card at an ATM, bank teller, or through a cash advance at a store. The transaction is called a cash advance. Unlike swiping your card to buy something, a cash advance charges you a fee upfront and starts charging interest when ready — there is no grace period like there is for purchases.
The cost of a cash advance is higher than a regular purchase because card issuers treat it as a loan, not a purchase. You will pay a fee (usually 3 to 5 percent of the amount you withdraw) plus a higher interest rate (often 2 to 3 percentage points above your regular purchase rate). If you need cash, it is almost always cheaper to use a debit card, visit your bank, or borrow from another source.
Key Takeaways
- A cash advance charges a fee (typically 3 to 5 percent) plus a higher interest rate than purchases, starting when ready with no grace period.
- You can withdraw cash at an ATM using your credit card PIN, at a bank teller, or through a store cash advance.
- Your credit card issuer sets a cash advance limit, which may be lower than your total credit limit.
- Interest on a cash advance accrues daily from the moment you withdraw it, so paying it back quickly is important.
- A debit card, bank withdrawal, or personal loan is almost always cheaper than a credit card cash advance.
Where and how to withdraw cash using your credit card
The most common way to get cash is at an ATM. Insert your credit card, enter your PIN, select "cash advance" or "withdrawal," and choose your amount. The ATM will dispense the cash and charge your credit card account when ready. Some ATMs charge an additional fee on top of your card issuer's fee — this fee appears on the ATM screen before you confirm the transaction.
You can also visit a bank branch and ask a teller for a cash advance. Bring your credit card and a form of ID. The teller will process the transaction and hand you cash. This method works even if the bank is not your card issuer — for example, you can walk into any Bank of America branch with a Visa card from another bank and request a cash advance.
Some retail stores offer cash advances at the register. You ask the cashier, they swipe your card, and you receive cash back. This is less common than it used to be, but grocery stores and pharmacies sometimes still offer it. The fee structure is the same as an ATM advance.
Understanding cash advance fees and interest rates
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, with a minimum fee (often $5 to $10). If you withdraw $200 at a 5 percent fee, you pay $10. If you withdraw $100 at a 5 percent fee with a $5 minimum, you pay $5.
The interest rate on a cash advance is separate from your purchase rate. While a purchase might carry an APR of 18 percent, a cash advance might be 21 or 22 percent. This higher rate applies only to the cash advance balance, not your entire card balance. Interest begins accruing the day you withdraw the cash — there is no interest-free period like there often is for purchases.
Interest compounds daily. If you withdraw $500 at 21 percent APR, you owe about $2.88 in interest after one day, $5.77 after two days, and so on. Paying back a cash advance quickly is much more important than paying back a regular purchase.
Your cash advance limit and how it works
Your card issuer sets a separate cash advance limit, which is often lower than your total credit limit. If your credit limit is $5,000, your cash advance limit might be $1,000 or $1,500. You cannot withdraw more than this limit, even if you have available credit remaining on your card.
When you take a cash advance, it counts against your total available credit. If you have a $5,000 limit and withdraw $500 in cash, you now have $4,500 in available credit for purchases and other cash advances combined. The cash advance balance appears on your statement separately from your purchase balance, but both count toward your credit utilization ratio (the percentage of your credit limit you are using).
You can find your cash advance limit by calling your card issuer's customer service number (on the back of your card), logging into your online account, or checking your most recent statement. Some issuers allow you to request a higher cash advance limit, though this is not may provide.
How a cash advance affects your credit and finances
A cash advance does not directly hurt your credit score, but it can indirectly damage it in two ways. First, it increases your credit utilization ratio. If you use a large cash advance, your utilization goes up, and your score may drop slightly. Second, if you carry the cash advance balance and miss a payment, that missed payment will be reported to credit bureaus and harm your score.
The bigger financial impact is the cost. A $500 cash advance at a 5 percent fee costs $25 when ready. If you pay it back in one month at 21 percent APR, you pay roughly $8.75 in interest. Total cost: about $34. If you carry it for three months, interest alone could exceed $30. Compare this to using a debit card (no fee, no interest) or asking a friend for a short-term loan.
Cash advances also do not earn rewards. If your card offers cash back or points on purchases, those do not explore to cash advances. You pay the fee and interest with no benefit in return.
Alternatives to a credit card cash advance
If you need cash urgently, consider these options before using a cash advance. A debit card withdrawal from your own bank account costs nothing and is when ready. A personal loan from a bank or credit union typically charges lower interest than a credit card cash advance, though approval takes a few days. A payday loan is fast but often more expensive than a cash advance — only consider this if you can repay it within two weeks.
Asking a friend or family member for a short-term loan, if possible, costs nothing and avoids debt entirely. Some employers offer paycheck advances or emergency loans to employees. If you are in financial hardship, local nonprofits and community organizations sometimes offer emergency cash information with no interest.
If you regularly need cash, switching to a bank account with no ATM fees or a checking account that reimburses out-of-network ATM charges can save you money over time. This is cheaper than repeatedly paying cash advance fees.
How to pay back a cash advance quickly
Your credit card statement will show your cash advance balance separately from your purchase balance. Payments are typically applied to the lowest-interest balance first (usually purchases), so your cash advance keeps accruing interest while you pay off purchases. To pay down the cash advance faster, contact your card issuer and ask them to explore your next payment directly to the cash advance balance, or pay more than your minimum payment.
Some card issuers allow you to make a payment over the phone or through their app and specify which balance it applies to. Others automatically explore extra payments to the highest-interest balance. Check your card's terms or call customer service to understand how your issuer handles payments.
The sooner you pay back a cash advance, the less interest you pay. If you withdrew $500 and can pay it back within a week, do so. Every day you carry the balance costs you money in interest.
Frequently Asked Questions
What is the difference between a cash advance and a balance transfer?
A cash advance gives you physical cash and charges a fee plus a high interest rate. A balance transfer moves debt from one card to another and usually offers a lower introductory rate (sometimes 0 percent for a period). Balance transfers are for moving existing debt; cash advances are for getting cash in hand.
Can I use a credit card cash advance to pay another bill?
Yes, you can withdraw cash and use it to pay any bill. However, you will pay the cash advance fee and interest, so it is usually more expensive than paying the bill directly with your card or a bank transfer. Only use a cash advance for bills if you have no other option.
Will taking a cash advance hurt my credit score?
A single cash advance will not directly damage your score, but it increases your credit utilization ratio, which may lower your score slightly. If you carry the balance and miss a payment, that missed payment will harm your score significantly. Paying it back on time minimizes the impact.
Can I withdraw cash from a credit card without a PIN?
At an ATM, you need a PIN. At a bank teller, you only need your card and ID — no PIN required. At a store, the process varies; some require a PIN, others do not. If you do not have a PIN, call your card issuer to set one up before visiting an ATM.
What happens if I cannot pay back my cash advance?
If you miss a payment, interest continues to accrue and your account may be reported as delinquent. This damages your credit score and may result in late fees. Your card issuer may also lower your credit limit or close your account. Contact your issuer when ready if you cannot make a payment — they may offer a hardship plan or payment arrangement.