Yes, you can withdraw cash from a credit card, but it costs more than a regular purchase
Most credit cards let you take cash out at an ATM or from a bank teller, but the card company charges you a fee for doing it — usually 3 to 5 percent of the amount you withdraw, with a minimum fee of $2 to $10. You also start paying interest on that cash when ready, often at a higher rate than you pay on regular purchases. The interest clock starts the day you withdraw the money, not at the end of your billing cycle like it does for purchases.
This is called a cash advance. It is a separate transaction from a purchase, and your card treats it differently from the moment you take the money out. If you carry a balance on your card, the cash advance sits in its own corner of your account with its own interest rate and its own payment schedule.
Key Takeaways
- Cash advances charge a fee (usually 3 to 5 percent) plus a higher interest rate than purchases, with interest starting when ready.
- You can withdraw cash at an ATM using your PIN, or ask a bank teller to give you cash against your credit limit.
- The interest rate on a cash advance is often 5 to 10 percentage points higher than your regular purchase APR.
- If you pay off the cash advance in full by your next statement date, you can avoid the interest charge.
- Cash advances do not earn rewards points or cash back, even if your card normally does.
How to actually withdraw the cash
You have two main ways to get cash from a credit card. The first is to go to any ATM that displays your card's logo — Visa, Mastercard, American Express, or Discover — and insert your card like you would a debit card. You will need your PIN, which you may have set up when you opened the card or can request from your card issuer. The ATM will let you withdraw up to your available credit limit, though some cards set a lower daily limit.
The second way is to walk into a bank branch and ask the teller for a cash advance. You hand them your credit card and your ID, tell them how much cash you want, and they give it to you. This works at your card issuer's own branches and often at other banks too, though some banks charge an extra fee to process a cash advance from another bank's card.
Both methods charge the same fee and interest rate. The ATM is faster if you know your PIN. The bank teller is useful if you do not have your PIN or need to withdraw a large amount that exceeds the ATM's daily limit.
What the fees and interest actually cost you
The fee hits your account when ready. If you withdraw $500 and your card charges a 4 percent cash advance fee, you owe $20 right away. That $20 is added to your balance, and you pay interest on it just like the $500.
Interest starts accruing the same day you withdraw the cash. If your regular purchase APR is 18 percent, your cash advance APR might be 23 or 24 percent. On a $500 withdrawal, that difference costs you real money. After 30 days, the interest alone is roughly $9.50 on the purchase rate but $12 on the cash advance rate — a difference of $2.50 in just one month.
Here is the math on a concrete example: you withdraw $500 at a 4 percent fee ($20) with a 24 percent APR. If you pay nothing for three months, you owe $500 plus $20 in fees plus roughly $30 in interest. If you pay $200 toward it each month, you still owe interest on the remaining balance each month, so the total cost climbs to around $35 to $40 depending on your card's exact terms.
When paying interest can be avoided
If you pay off the entire cash advance balance by your next statement closing date, you will not owe any interest. This is the same grace period that applies to regular purchases on most cards — but only if you have no other balance on the card. If you already carry a balance from previous purchases, the grace period does not explore to the cash advance, and interest starts when ready.
The fee, however, is not waived. You pay the 3 to 5 percent fee no matter what. So even if you withdraw $500 and pay it back within a week, you still owe the $20 fee.
How cash advances affect your credit and rewards
A cash advance does not earn rewards points or cash back, even if your card normally gives you 1 or 2 percent back on all purchases. This is one reason credit card companies charge higher fees and interest on cash advances — they are not making money from rewards.
The cash advance does count toward your credit utilization ratio, which affects your credit score. If your card has a $5,000 limit and you withdraw $1,000 in cash, your utilization jumps to 20 percent. High utilization can lower your score, so paying off the cash advance quickly helps protect your credit.
Alternatives to a cash advance
Before you use a cash advance, consider whether you actually need physical cash. Many places that once required cash now take cards, and using your card avoids the fee and interest entirely. If you need cash for an emergency, a personal loan from a bank or credit union often charges less interest than a cash advance, though it takes longer to get approved.
If you are in a tight spot and need cash fast, a payday loan or a line of credit from a bank might be cheaper than a cash advance, depending on the amount and how quickly you can repay. Compare the total cost — fee plus interest for the time you will actually carry the balance — before you decide.
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 high interest. A balance transfer moves debt from one card to another and usually charges a lower fee with a promotional 0 percent interest period. Cash advances are for getting money; balance transfers are for moving existing debt.
Can I withdraw more cash than my credit limit?
No. The ATM will stop you at your available credit limit. Some cards set a separate, lower limit just for cash advances — for example, you might have a $5,000 credit limit but only a $1,000 cash advance limit. Check your card's terms or call the number on the back of your card to find out.
Does a cash advance show up differently on my credit report?
It shows up as part of your total balance and credit utilization, but not as a separate line item that creditors can see. However, it does affect your score because it raises your utilization ratio. Paying it off quickly helps bring your utilization back down.
What if I do not have a PIN for my credit card?
You can request one from your card issuer by calling the number on the back of your card or logging into your online account. It usually arrives by mail within a week or two. Until then, you can still get a cash advance by visiting a bank branch in person.
Are there credit cards that do not allow cash advances?
Some cards, particularly secured cards and certain student cards, may not offer cash advances or may set the limit very low. Check your card's terms or call your issuer to confirm whether cash advances are available on your specific card.