Yes, you can withdraw cash with a credit card, but it costs more than a debit card and counts as a loan, not a purchase
A cash advance is a withdrawal of cash from an ATM or bank teller using your credit card. The money comes from your credit limit, not a savings account. You pay interest on the full amount when ready — usually a higher rate than your regular purchase APR — plus an upfront fee of 3 to 5 percent of the amount withdrawn. A $200 cash advance might cost you $6 to $10 in fees alone, plus interest that starts accruing the same day.
Most people use cash advances only when they have no other option: an ATM that takes only cash, a vendor who does not accept cards, or an emergency when their debit card is not available. The cost and the when ready interest make it an expensive way to access money.
Key Takeaways
- Cash advances charge a separate fee (usually 3 to 5 percent) plus a higher interest rate than purchases, with interest starting when ready.
- You can withdraw cash at most ATMs that display your card's logo, or ask a bank teller to process the advance in person.
- The amount you can withdraw is limited by your available credit and a separate cash advance limit set by your card issuer.
- Cash advances do not earn rewards points and count as a loan against your credit limit, reducing the credit available for purchases.
Where and how to withdraw cash with your credit card
You can withdraw cash at any ATM that displays your card's logo — Visa, Mastercard, American Express, or Discover. Insert your card, enter your PIN, select "cash advance" or "withdrawal" from the menu, and choose your amount. The ATM will dispense the cash and charge your card when ready.
If you do not know your PIN or prefer not to use an ATM, you can walk into any bank branch and ask a teller to process a cash advance. Bring your credit card and a photo ID. The teller will run the transaction and hand you cash. This method works even if the bank is not your card issuer — most banks will process cash advances for any major credit card.
Some credit cards allow you to request a cash advance by phone or through your online account portal, though the money is usually deposited to a linked bank account rather than given to you in hand. Check your card's website or call the number on the back to see if this option is available.
Fees and interest you will pay
Every cash advance comes with two costs. The cash advance fee is a percentage of the amount withdrawn, typically 3 to 5 percent with a minimum of $5 to $10. A $100 withdrawal might cost $3 to $5; a $500 withdrawal might cost $15 to $25. Some cards charge a flat fee instead of a percentage.
The cash advance APR is the interest rate applied to the balance. This rate is almost always higher than your purchase APR — often 5 to 10 percentage points higher. If your purchase rate is 18 percent, your cash advance rate might be 25 or 28 percent. Interest accrues from the day you withdraw the money, not from your next billing date. There is no grace period.
If you withdraw $200 at a 5 percent fee and 25 percent APR, you pay $10 in fees plus roughly $4 in interest for the first month if you do not pay it back when ready. Paying it back within a few days is much cheaper than carrying the balance.
Your cash advance limit and how it affects your credit
Your card issuer sets a cash advance limit separate from your overall credit limit. This limit is often 20 to 30 percent of your 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 $1,500. You cannot withdraw more than this amount, even if you have unused credit available.
The cash you withdraw counts against both your cash advance limit and your overall credit limit. If you withdraw $500 and your credit limit is $5,000, you now have $4,500 in available credit for purchases and other advances combined. This reduction stays in place until you pay back the $500.
A cash advance also affects your credit utilization ratio — the percentage of your available credit you are using. High utilization can lower your credit score, so a large cash advance can temporarily hurt your score even if you pay it back quickly.
How to pay back a cash advance
A cash advance payment goes toward your credit card balance like any other payment. Make a payment through your online account, by phone, by mail, or at an ATM. The payment reduces your balance and stops interest from accruing on that portion.
If you make only a minimum payment, the cash advance balance will take months or years to pay off because most of your payment goes toward interest rather than principal. Paying the full amount back as soon as possible is the only way to avoid the high interest cost.
Some cards allow you to pay cash advances separately from purchase balances, which can help you track the debt. Check your account or call your card issuer to see if this option is available on your card.
Alternatives to cash advances
If you need cash, a debit card withdrawal is almost always cheaper. You pay no fee and no interest — you are straightforward accessing your own money. If your debit card is not available, ask a friend or family member to lend you cash or pay a vendor directly with their card.
A personal loan from a bank or credit union usually has a lower interest rate than a cash advance, though it takes longer to process. If you know you will need cash regularly, this is a better long-term option.
A balance transfer to a card with a 0 percent introductory APR can reduce the cost of existing credit card debt, though it does not help you access cash. Some cards offer a low or zero fee for balance transfers during a promotional period.
If you are in an emergency and have no access to cash or credit, contact a local nonprofit credit counselor or your city's 211 service to learn about emergency information programs in your area.
Frequently Asked Questions
What is the difference between a cash advance and a purchase on a credit card?
A purchase is a transaction with a merchant that you can pay back interest-free during the grace period. A cash advance is a loan against your credit limit that charges a fee and interest starting when ready, with no grace period. Purchases also earn rewards points; cash advances do not.
Can I use a credit card to withdraw cash from my own bank account?
No. A credit card withdrawal is always a cash advance — a loan against your credit limit. To access your own money, use your debit card or visit your bank in person. If you do not have a debit card, ask your bank to issue one or set up a withdrawal at a teller window.
Will a cash advance hurt my credit score?
It can, temporarily. A large cash advance increases your credit utilization ratio, which can lower your score. The effect is usually small and goes away once you pay the balance back. However, if you carry the balance for months, the high utilization and missed payments will cause more significant damage.
What happens if I cannot pay back a cash advance?
The balance stays on your credit card and accrues interest at your cash advance APR. If you do not make at least the minimum payment, your account will be reported as late to the credit bureaus, which will damage your credit score. After 30 days, the card issuer may report the account as delinquent.
Can I get a cash advance from a credit card I do not have a PIN for?
Yes. Visit a bank teller in person with your card and photo ID, and they will process the advance without a PIN. You can also request a cash advance by phone or through your online account if your card issuer offers that option.