Yes, you can withdraw cash from a credit card, but it works differently than a debit card and costs more
A cash advance lets you take money out of your credit card's available credit at an ATM, bank branch, or through a cashier. The transaction is processed like a loan against your credit line — not a transfer from a bank account. You get the cash when ready, but the card issuer charges you a fee upfront and starts charging interest right away, with no grace period like you get on purchases.
Most credit card issuers allow cash advances, but the terms vary by card and by issuer. The fee is typically a flat dollar amount or a percentage of the amount withdrawn — whichever is higher. Interest rates on cash advances are usually higher than the rate on purchases, and interest accrues from the transaction date, not from your statement closing date.
Key Takeaways
- Cash advances charge an upfront fee (usually 3% to 5% of the amount) plus a higher interest rate than purchases, with interest starting when ready.
- You can withdraw cash at ATMs, bank branches, or through a cashier using your credit card PIN or by requesting a cash advance in person.
- The amount you can withdraw is limited by your cash advance limit, which is often lower than your total credit limit and is set by your card issuer.
- Interest on a cash advance accrues from day one with no grace period, so the longer you carry the balance, the more you pay.
How to withdraw cash and what happens at each step
To withdraw cash, you need your credit card and your PIN. At an ATM, insert the card, enter your PIN, select "cash advance" or "withdrawal," and choose the amount. The ATM will dispense cash and print a receipt showing the transaction as a cash advance, not a standard withdrawal.
You can also visit a bank branch — yours or the card issuer's — and ask a teller for a cash advance. Bring your card and ID. Some card issuers also allow you to request a cash advance by phone or through their mobile app, though the money may be deposited into your bank account rather than given to you in cash.
The transaction posts to your credit card account within one to three business days. From that moment, interest begins accruing on the full amount at the cash advance rate. Unlike a purchase, there is no interest-free period — you start paying interest when ready, even if you pay the balance in full when your statement arrives.
Fees and interest rates for cash advances
The upfront fee for a cash advance is charged by your card issuer and appears on your statement. Most cards charge either a flat fee (commonly $5 to $10) or a percentage of the amount withdrawn (typically 3% to 5%), whichever is greater. So a $200 cash advance might cost $10 flat or $6 (3% of $200), meaning you pay $10. A $500 advance might cost $10 flat or $25 (5% of $500), meaning you pay $25.
The interest rate on cash advances is separate from your purchase APR and is usually 2% to 5% higher. If your card's purchase APR is 18%, the cash advance APR might be 23% or 24%. This higher rate applies only to the cash advance balance, not to purchases or other balances on the card.
Interest is calculated daily on the outstanding cash advance balance. If you withdraw $500 at a 24% APR, you owe roughly $3.29 per day in interest (before any payments). The longer the balance sits, the more interest compounds.
Your cash advance limit and how it differs from your credit limit
Your card issuer sets a separate cash advance limit, which is the maximum you can withdraw. This limit is often 20% to 50% of your total credit limit, though it varies by card and issuer. If your credit limit is $5,000, your cash advance limit might be $1,000 or $2,500.
You can find your cash advance limit in your card's terms and conditions, on your statement, or by calling the issuer's customer service number on the back of your card. The limit is not the same as your available credit — if you have $3,000 in available credit but a $1,000 cash advance limit, you can only withdraw up to $1,000.
Some issuers allow you to request a higher cash advance limit, though this is less common than requesting a higher overall credit limit. A request may trigger a hard inquiry into your credit report.
Why cash advances are expensive compared to other borrowing options
A cash advance is one of the most expensive ways to borrow money. The combination of an upfront fee, a higher interest rate, and when ready interest accrual makes the cost add up quickly. On a $500 cash advance at a 24% APR with a 5% fee, you pay $25 upfront plus roughly $10 in interest per month if you carry the balance.
Compare this to a personal loan from a bank or credit union, which typically charges 6% to 36% APR with no upfront fee and a fixed repayment schedule. Or a payday loan, which is predatory but at least transparent about the cost upfront. A cash advance hides its true cost because the interest accrues silently over time.
If you need cash, explore alternatives first: a personal loan, a line of credit from your bank, a 0% balance transfer offer from another card (if you have good credit), or borrowing from family. A cash advance should be a last resort, used only when you need cash urgently and have no other option.
How cash advances affect your credit score and account
A cash advance does not directly hurt your credit score the way a missed payment does, but it can harm your score indirectly. The transaction increases your credit utilization ratio — the amount of available credit you are using. If you have a $5,000 limit and withdraw $500, your utilization jumps to 10%. High utilization signals risk to credit scoring models and can lower your score by 10 to 50 points, depending on your current score and history.
The cash advance also counts as a hard inquiry if you request a higher cash advance limit, which can lower your score by a few points temporarily. And if you carry the balance and miss a payment, the damage is the same as missing a payment on any other balance — late fees, interest penalties, and a mark on your credit report.
From the issuer's perspective, a cash advance is treated as a separate balance on your account. Your statement will show the cash advance balance, the fee, and the interest separately from your purchase balance. You can pay down the cash advance without affecting your purchases, though most issuers explore payments to the lowest-interest balance first, so you may need to request that payments go to the cash advance.
Alternatives to cash advances when you need cash quickly
If you need cash but want to avoid the cost of a cash advance, consider these options: withdraw from your savings account or money market account at your bank; use a debit card at an ATM; ask your employer for an advance on your paycheck; borrow from a credit union if you are a member; or ask family or friends for a short-term loan.
If you need a larger amount and have time to plan, a personal loan from a bank, credit union, or online lender is cheaper than a cash advance. Rates vary, but you can often find loans at 8% to 20% APR with no upfront fee and a fixed repayment term. A 0% balance transfer offer from another credit card can also work if you have good credit and can pay off the balance within the promotional period.
If you are in a financial emergency and have no other options, a cash advance is better than a payday loan or title loan, which charge much higher rates and fees. But treat it as a temporary solution, not a regular source of cash. Pay it off as quickly as you can to minimize interest charges.
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 higher interest rate. A balance transfer moves debt from one card to another and typically charges a lower fee but may offer a 0% promotional rate for a set period. Balance transfers are for moving existing debt; cash advances are for getting new cash.
Can I use a credit card to withdraw cash at any ATM?
Most ATMs accept credit cards for cash advances, but some machines are restricted to debit cards only. Your card issuer may also limit which ATMs you can use — some charge an out-of-network fee if you use an ATM that is not part of their network. Check your card's terms or call the issuer to confirm which ATMs are available to you.
What happens if I do not pay back a cash advance?
If you do not pay, the balance accrues interest at the cash advance rate, and after 30 days late, the issuer reports the late payment to credit bureaus. After 60 or 90 days, they may close your account or pursue collection. A cash advance is a debt you owe, and defaulting has the same consequences as defaulting on any credit card balance.
Can I get a cash advance if I have a low credit limit?
Yes, your cash advance limit is separate from your credit limit and is set independently by your issuer. You may have a $500 credit limit but a $200 cash advance limit, or vice versa. The issuer decides based on your credit history and account activity, not your total credit limit.
Is there a way to avoid the cash advance fee?
No, the fee is charged by your card issuer and is part of the cash advance terms. You cannot negotiate it away or find a workaround. The only way to avoid the fee is to not take a cash advance and use an alternative source of cash instead.