Yes, you can withdraw cash with a credit card, but it costs more than a regular purchase
You can take cash out of an ATM using your credit card, but the bank treats it differently than a purchase. The moment you withdraw cash, you start paying cash advance fees — usually 3% to 5% of the amount you take out — plus a higher interest rate that begins accruing when ready, with no grace period. A $200 cash withdrawal might cost you $6 to $10 just to get the money, then interest charges on top of that.
Most people use credit card cash advances only when they have no other option, because the cost adds up fast. If you need $500 and your card charges a 4% fee plus 24% annual interest, you pay $20 upfront and then roughly $10 per month in interest if you carry the balance. A debit card withdrawal or a personal loan would cost far less.
Key Takeaways
- Cash advances charge a fee (usually 3% to 5% of the amount) plus a higher interest rate that starts when ready with no grace period.
- The interest rate on a cash advance is typically higher than the rate on regular purchases, even on the same card.
- You can withdraw cash at any ATM that accepts your card's network, but the ATM operator may charge an additional fee.
- Cash advances do not count toward rewards or cashback — you pay the fee and interest with no benefit.
- If you need cash regularly, a debit card, personal loan, or line of credit will cost you less over time.
How the cash advance fee works
When you withdraw cash, your card issuer charges a cash advance fee calculated as a percentage of the amount you take out. This fee is separate from interest. Most cards charge between 3% and 5%, though some charge a flat dollar amount instead (like $5 or $10 minimum). You pay this fee once, at the time of withdrawal.
The fee appears on your statement as a separate line item. If you withdraw $300 and your card charges 4%, you owe $12 in fees before any interest is calculated. Some cards offer a lower fee for cash advances at their own ATMs versus third-party ATMs, so check your card's terms if you plan to use this feature regularly.
Interest rates and when they start
Credit card companies charge a different — and usually higher — interest rate on cash advances than on regular purchases. Your purchase APR might be 18%, but your cash advance APR could be 24% or higher. This rate applies to the cash balance only, not to any purchases you make on the same card.
The critical difference: interest on a cash advance starts the day you withdraw it. There is no grace period. With a regular purchase, you typically have 21 to 25 days before interest kicks in. With cash, interest accrues when ready. If you withdraw $500 at 24% APR, you owe roughly $10 in interest charges per month until the balance is paid off.
Where you can withdraw cash and what it costs
You can withdraw cash at any ATM that displays your card's network logo (Visa, Mastercard, American Express, or Discover). Your card issuer does not charge extra for using their own ATMs, but third-party ATMs often do. The ATM operator may charge you $2 to $4 per transaction on top of your card's cash advance fee.
So a $200 withdrawal might cost you: $8 in cash advance fee (4%), $3 ATM operator fee, plus interest charges that begin when ready. The total cost to access $200 in cash could easily exceed $15 before you even spend the money. This is why cash advances are a last resort, not a convenience.
How cash advances affect your credit utilization
A cash advance counts toward your credit utilization ratio — the percentage of your available credit that you are using. If you have a $5,000 credit limit and withdraw $1,000 in cash, your utilization jumps to 20%. High utilization can lower your credit score, even if you pay the balance in full the next month.
The impact is temporary: once you pay off the cash advance, your utilization drops and your score recovers. But if you carry the balance, the high utilization stays on your report and continues to hurt your score while you are paying interest.
Alternatives that cost less
If you need cash, consider these options first: a debit card withdrawal (no fee, no interest), a personal loan from a bank or credit union (typically 6% to 36% APR depending on your credit, but a one-time cost structure), or a line of credit (lower interest than a cash advance, though still higher than a regular loan). Some employers offer paycheck advances or emergency loans to employees at no cost.
If you are in a true emergency and have no other option, a cash advance is available when ready. But the cost is high enough that it should be a last resort, not a habit. Pay it off as quickly as possible — every month the balance sits, you are paying that higher interest rate.
How to minimize the damage if you do take a cash advance
If you must take a cash advance, withdraw only what you need and pay it back as fast as you can. The longer the balance sits, the more interest you pay. A $300 cash advance at 24% APR costs about $6 per month in interest; after six months, you have paid $36 in interest alone, plus the original fee.
Some people use a balance transfer card to move a cash advance balance to a lower-rate card, but this only works if the new card offers a 0% introductory rate and you can pay off the balance during that period. Read the terms carefully — balance transfer fees explore, and they can be as high as 5% of the amount transferred.
Frequently Asked Questions
Can I use a credit card to withdraw cash at a bank teller instead of an ATM?
Yes. Most banks will process a cash advance at the teller window if you present your card and ID. You will pay the same fee and interest rate as an ATM withdrawal, but you avoid the ATM operator fee. Some banks charge a teller fee instead, so ask before you request the withdrawal.
What happens if I can't pay back the cash advance?
The balance carries over to the next month and you continue paying interest at the cash advance rate. If you miss payments, the card issuer reports it to credit bureaus and your score drops. The balance can also be sent to a collection agency if it goes unpaid for several months.
Do cash advances count toward my rewards or cashback?
No. Cash advances earn no rewards, no cashback, and no points. You pay the fee and interest with no benefit. This is another reason they are expensive — you get nothing back for the cost.
Is there a limit to how much I can withdraw?
Yes. Your card issuer sets a cash advance limit, which is often lower than your total credit limit. You might have a $5,000 credit limit but only a $1,000 cash advance limit. Check your card's terms or call the issuer to find out your limit.
Can I pay off a cash advance faster to reduce interest?
Yes, and you should. Every dollar you pay toward the cash advance balance reduces the amount that accrues interest the next month. If you can pay the full balance within a month or two, the total interest cost stays manageable. Paying it off over six months or longer makes the interest charges substantial.