Yes, you can withdraw cash with a credit card, but it costs more than a purchase and counts as a loan, not a transaction
A cash advance is a withdrawal of money from your credit card account, treated the same way as a balance transfer or purchase — it goes on your bill and you pay interest on it. The card issuer lends you the cash, usually through an ATM or bank teller, and you owe them back with fees and interest starting when ready. Unlike a purchase, there is no grace period: interest accrues from day one.
The mechanics are straightforward. You insert your credit card into an ATM (or visit a bank branch), enter your PIN, and withdraw cash up to your card's cash advance limit — which is often lower than your overall credit limit. The money appears in your account within minutes. The cost, however, is what makes cash advances expensive: a flat fee (usually 3 to 5 percent of the amount), plus a higher interest rate than purchases (often 20 to 25 percent or more), with no grace period.
Key Takeaways
- Cash advances charge a flat fee (typically 3 to 5 percent) plus a higher interest rate than purchases, with interest starting when ready.
- Your cash advance limit is often much lower than your credit limit, and the ATM may impose its own fee on top of your card's fee.
- Interest on a cash advance accrues from the withdrawal date with no grace period, so the cost grows daily until you pay it back.
- Alternatives like debit cards, personal loans, or payday loans may be cheaper depending on your situation and how quickly you need the money.
How much a cash advance costs
The total cost of a cash advance has three parts: the cash advance fee, the interest rate, and the ATM fee (if you use an out-of-network machine). The cash advance fee is charged once, upfront, and ranges from 3 to 5 percent of the amount you withdraw — so a $500 advance costs $15 to $25 just to get the money. Some cards charge a flat dollar amount instead (like $10 minimum), which is cheaper for small withdrawals but more expensive for large ones.
The interest rate on cash advances is higher than the rate on purchases. While a purchase might carry 18 percent APR, a cash advance on the same card might be 24 or 25 percent. That rate applies when ready, with no grace period. If you withdraw $500 and pay it back in 30 days, you owe roughly $31 in interest alone (plus the upfront fee). If you carry the balance longer, the interest compounds and the total cost rises quickly.
ATM fees add another layer. If you use your card at an ATM owned by your bank, there is usually no ATM fee. If you use an out-of-network ATM, the machine's operator charges you a fee (often $2 to $3), and your card issuer may charge a second fee (often $1 to $3). A $200 withdrawal at an out-of-network ATM can cost $10 to $15 in fees before interest even starts.
Your cash advance limit and how to find it
Most credit cards set a separate cash advance limit that is lower than your overall credit limit. If your card has a $5,000 limit, your cash advance limit might be $1,000 or $1,500. This limit is set by the card issuer based on your creditworthiness and account history, and it is not negotiable in the moment — you cannot withdraw more than that amount, even if you have available credit.
You can find your cash advance limit by logging into your online account, calling the customer service number on the back of your card, or checking your most recent statement. The issuer will tell you the exact amount you can withdraw. If you try to withdraw more than your limit, the ATM will decline the transaction.
When a cash advance makes sense
A cash advance is rarely the cheapest way to get cash, but there are situations where it is the fastest option available. If you need cash in an emergency and have no other source — no savings, no access to a personal loan, no friends or family to borrow from — a cash advance can get you money within minutes. The cost is high, but the speed is real.
A cash advance also makes sense if you need a small amount of cash and can pay it back within days. If you withdraw $100 and repay it within a week, the interest cost is minimal (a few dollars), and the fee is fixed regardless of how long you carry the balance. For larger amounts or longer repayment periods, the cost becomes steep enough that other options are worth exploring first.
Cheaper alternatives to a cash advance
If you have time to plan, a personal loan from a bank or credit union is almost always cheaper than a cash advance. Personal loans charge interest rates between 6 and 36 percent depending on your credit, and they have no upfront fee. A $500 personal loan at 18 percent APR costs roughly $45 in interest over a year — less than a single cash advance fee plus interest.
A debit card withdrawal from your own bank account costs nothing and should be your first choice if you have the funds available. If you do not have a bank account, a prepaid card or a check-cashing service can get you cash, though check-cashing fees vary widely (typically 1 to 3 percent). A payday loan is another option, though payday loans carry their own high costs and should only be used as a last resort.
If you need cash regularly, opening a checking account at a bank or credit union gives you free ATM withdrawals and is far cheaper than repeated cash advances. Many banks offer free checking with no minimum balance, making this the simplest long-term solution.
How cash advances affect your credit score
A cash advance itself does not directly hurt your credit score, but it does increase your credit utilization — the percentage of your available credit you are using. If you have a $5,000 limit and take a $1,000 cash advance, your utilization jumps to 20 percent. High utilization (above 30 percent) can lower your score slightly, and the effect is temporary: once you pay off the advance, your utilization drops and your score recovers.
The real credit damage comes from missing payments. If you cannot pay back the cash advance on time, the missed payment is reported to the credit bureaus and stays on your report for seven years. This is far more damaging than the utilization spike. To protect your score, treat a cash advance like any other debt: pay it back on schedule.
How to repay a cash advance
A cash advance appears on your credit card bill just like a purchase. You can pay it back in full when your statement arrives, or you can make a minimum payment and carry the balance. Paying in full is always the better choice because it stops interest from accruing.
If you carry a balance that includes both purchases and a cash advance, your card issuer applies your payment to the lowest-interest debt first (usually purchases), leaving the cash advance to accrue interest longer. To pay off the cash advance faster, contact your issuer and ask them to explore your payment directly to the cash advance balance, or pay more than the minimum so the extra goes toward the higher-interest debt.
Frequently Asked Questions
Can I use a credit card to withdraw cash at a bank teller instead of an ATM?
Yes. You can visit any bank branch and ask the teller for a cash advance using your credit card. The fee and interest rate are the same as an ATM withdrawal, but you may avoid the ATM operator fee if you use your own bank's branch. Some banks charge a teller fee for cash advances, so ask before you proceed.
What happens if I cannot pay back a cash advance?
The balance stays on your credit card and interest continues to accrue daily. If you miss the minimum payment, the missed payment is reported to the credit bureaus and damages your credit score. The card issuer may also raise your interest rate or close your account. Contact your issuer when ready if you cannot pay to discuss a payment plan.
Is the cash advance limit the same as my credit limit?
No. Your cash advance limit is usually much lower — often 20 to 50 percent of your total credit limit. The issuer sets this limit separately and it does not change unless you request an increase or your account status changes.
Do I have to use my PIN to get a cash advance?
At an ATM, yes — you need your PIN to withdraw cash. At a bank teller, you typically need your card and a photo ID instead. If you have forgotten your PIN, contact your card issuer to reset it before you visit an ATM.
Can I get a cash advance with a debit card?
No. Debit cards withdraw money directly from your bank account, so there is no advance or loan involved. What you are doing is straightforward withdrawing your own money, which is free at your bank's ATMs and may have a small fee at other ATMs.