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 using your credit card. The money comes from your credit line, not a savings account. You pay interest on it when ready — usually a higher rate than your regular purchase APR — plus an upfront fee of 3% to 5% of the amount withdrawn. A $200 cash advance might cost you $6 to $10 just to get the cash, then interest starts accruing the same day with no grace period.
Most credit cards allow cash advances, but the terms vary by card and issuer. Some cards charge a flat fee instead of a percentage. Others charge both. The interest rate is almost always higher than what you pay on purchases, and it starts accumulating when ready — there is no interest-free period like there often is for regular charges.
Key Takeaways
- Cash advances charge an upfront fee (usually 3% to 5%) plus a higher interest rate than purchases, with interest starting the day you withdraw.
- You can get a cash advance at any ATM that accepts your card, at a bank teller, or sometimes at a store checkout, depending on your card and issuer.
- Your cash advance limit is often lower than your credit limit and is set separately by your card issuer.
- If you need cash regularly, a debit card or ATM withdrawal from your own account costs nothing and should be your first choice.
Where you can withdraw cash with a credit card
You can withdraw cash at any ATM that displays your card's logo — Visa, Mastercard, American Express, or Discover. The ATM will ask whether you want a cash advance or a balance transfer; select cash advance. Some ATMs charge an additional operator fee on top of your card's cash advance fee, so you may pay twice.
You can also get a cash advance at a bank teller by showing your card and asking for cash. Banks that issued your card usually do this for free (no operator fee), but banks that did not issue it may charge you. Some retail stores allow cash advances at checkout, though this is less common now. Always ask what the total cost will be before you proceed.
Fees and interest rates for cash advances
The cost of a cash advance has two parts: the upfront fee and the interest. The upfront fee is charged once, when you withdraw. It is usually 3% to 5% of the amount withdrawn, though some cards charge a flat fee like $5 or $10. A $300 cash advance with a 4% fee costs $12 when ready.
Interest starts accruing the same day you withdraw, at a rate that is typically 2% to 5% higher than your purchase APR. If your card charges 18% APR on purchases, the cash advance rate might be 23% or 24%. Unlike purchases, there is no grace period — interest begins right away. If you carry the balance for a month, you will owe interest on top of the fee.
Check your card's terms or call the issuer to find out your specific cash advance fee and APR. These are usually listed in your cardholder agreement or on the issuer's website.
Your cash advance limit versus your credit limit
Your cash advance limit is separate from your overall credit limit. If your credit limit is $5,000, your cash advance limit might be $1,000 or $1,500. The issuer sets this lower limit to reduce risk. You cannot withdraw more than your cash advance limit, even if you have available credit remaining.
You can contact your card issuer to ask what your cash advance limit is. Some issuers allow you to request a higher limit, but many do not. If you need more cash than your limit allows, you will have to use another method — a personal loan, a line of credit, or a debit card withdrawal from your own account.
How a cash advance affects your credit and payments
A cash advance counts as a balance on your credit card, just like a purchase does. It shows up on your statement and is included in your credit utilization ratio — the percentage of your total credit limit that you are using. A large cash advance can raise your utilization and lower your credit score slightly, even if you pay it back quickly.
When you make a payment to your credit card, the issuer applies it to your lowest-interest balance first. This means if you have both purchases (at 18% APR) and a cash advance (at 24% APR), your payment goes toward the purchase first, and the cash advance keeps accruing interest longer. Pay the cash advance balance off as fast as you can to avoid this trap.
When a cash advance makes sense and when it does not
A cash advance is expensive and should be a last resort. It makes sense only if you need cash urgently and have no other option — for example, if an ATM is broken and you need cash to pay for something that day. Even then, pay it back within a few days to minimize interest.
A cash advance does not make sense if you are using it to fund regular spending, to pay off other debts, or to get cash for a purchase you could make with the card itself. In those cases, you are paying fees and interest for no benefit. If you regularly need cash, use a debit card linked to your checking account instead — there is no fee and no interest.
Alternatives to a credit card cash advance
If you need cash, consider these options first: withdraw from your own bank account using a debit card or ATM (free), ask for cash back at a store when you make a purchase with your debit card (free), or use a peer-to-peer payment app like Venmo or PayPal to send money to someone who can give you cash (usually free). All of these cost nothing.
If you need a larger amount and do not have it in savings, a personal loan from a bank or credit union usually has a lower interest rate than a credit card cash advance. Some credit unions offer small loans at rates as low as 6% to 12% APR. A payday loan is faster but much more expensive — avoid it unless you are certain you can repay it within two weeks.
Frequently Asked Questions
Can I use a credit card to withdraw cash at any ATM?
You can use any ATM that displays your card's logo — Visa, Mastercard, American Express, or Discover. Some ATMs charge an operator fee in addition to your card's cash advance fee. Bank ATMs that issued your card usually do not charge an operator fee, but ATMs at other banks or in stores often do.
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 high interest rate. A balance transfer moves debt from one card to another and may have a lower introductory rate. Both are expensive, but a balance transfer is sometimes cheaper if you are moving existing debt and the new card offers a 0% introductory period.
Will a cash advance hurt my credit score?
A cash advance can lower your score slightly because it raises your credit utilization ratio — the percentage of your credit limit you are using. The effect is usually small and temporary. Paying it off quickly will bring your score back up faster than carrying the balance.
Can I get a cash advance if I have a low credit limit?
Your cash advance limit is set separately and is usually lower than your credit limit. Even if your credit limit is $5,000, your cash advance limit might be $500 or $1,000. Contact your issuer to find out your specific limit. Some issuers allow you to request an increase, but many do not.
What happens if I cannot pay back a cash advance?
If you do not pay it back, the balance stays on your card and interest keeps accruing at the higher cash advance rate. This can damage your credit score and lead to late fees and collection action. If you are struggling to pay, contact your card issuer to discuss a payment plan or hardship program.