Yes, you can withdraw cash from a credit card, but it works differently than a debit card and costs more
You can take cash out of an ATM using your credit card, but the transaction is treated as a cash advance rather than a regular purchase. The moment you withdraw the money, your credit card company charges you a fee — usually 3% to 5% of the amount — and starts charging interest on that cash when ready, often at a higher rate than your regular purchase APR. There is no grace period like there is for purchases. If you withdraw $200, you might pay $6 to $10 in fees alone, plus interest starting that day.
Most credit cards allow cash advances, but the limit is often lower than your overall credit limit. A card with a $5,000 limit might only let you withdraw $1,500 in cash. You find your cash advance limit by checking your card's terms, calling the number on the back of your card, or logging into your online account.
Key Takeaways
- Cash advances charge a fee of 3% to 5% upfront, plus interest that begins accruing when ready with no grace period.
- The interest rate on cash advances is typically 2% to 5% higher than your regular purchase APR and varies by card and issuer.
- Your cash advance limit is usually much lower than your total credit limit and must be checked with your card issuer.
- ATMs, bank tellers, and convenience stores all allow cash advances, but fees vary depending on where you withdraw.
Where you can withdraw cash and what each option costs
You can withdraw cash from your credit card at an ATM, at a bank teller window, or sometimes at a convenience store. ATMs owned by your card issuer (the bank that issued your card) typically charge only the credit card company's cash advance fee — no additional ATM fee. An ATM from a different bank or network usually adds a second fee on top of the cash advance fee, ranging from $1 to $3 per transaction.
Withdrawing cash at a bank teller window often costs the same as an ATM but gives you the option to ask questions about your account. Convenience stores and grocery stores that offer cash back do not accept credit cards for that service — only debit cards. Some credit card companies partner with specific ATM networks to waive the ATM fee, so check your card's terms to see if you have that benefit.
How the fees and interest add up over time
A $300 cash advance on a typical credit card might cost you $9 to $15 in upfront fees, depending on whether you use your issuer's ATM or another bank's. If your cash advance APR is 24% and you pay back the $300 over three months, you will pay roughly $18 in interest on top of the fee. Total cost: $27 to $33 for borrowing $300 for three months.
The longer you carry the balance, the more interest compounds. If you take six months to pay back that $300, interest alone could reach $36 or more. This is why cash advances are expensive compared to regular purchases: the fee hits when ready, interest starts right away, and the rate is higher. For comparison, a $300 purchase on the same card at 18% APR with a grace period costs you nothing if you pay it off within the grace period, and only interest if you carry it longer.
When a cash advance makes sense and when it does not
A cash advance makes sense only in specific situations: you need cash for an emergency and have no other way to get it, you have a very low cash advance APR (some cards offer 0% for a limited time), or you can pay it back within days rather than weeks. If you are considering a cash advance to cover a regular expense or to avoid using a debit card, stop and reconsider — the fees and interest make it an expensive way to borrow.
Do not use a cash advance to pay off other debts unless the cash advance APR is significantly lower than what you owe elsewhere. Do not use it to fund spending you cannot otherwise afford. If you need cash regularly, a debit card, a checking account with ATM access, or a personal loan from a bank or credit union will cost you far less.
How cash advances affect your credit score and available credit
A cash advance reduces your available credit when ready, just like a purchase does. If you have a $5,000 limit and withdraw $500 in cash, your available credit drops to $4,500. This affects your credit utilization ratio — the percentage of your total credit limit you are using — which makes up about 30% of your credit score. High utilization can lower your score, even if you pay the balance on time.
The cash advance itself does not show up differently on your credit report than a regular purchase, but the higher balance and the interest charges make it harder to pay down quickly. If you carry a cash advance balance for months, your utilization stays high and your score stays depressed. Paying it off fast is the only way to minimize the damage.
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, ask your employer for an advance on your paycheck, borrow from a friend or family member, or take out a personal loan from a bank or credit union. A personal loan typically has a lower interest rate than a credit card cash advance and a fixed repayment schedule, making it easier to budget.
If you are in a true emergency and have no savings, a credit card cash advance is faster than a personal loan process, but it is also more expensive. Some nonprofits and community organizations offer emergency cash information or loans at low or no interest — search your city or county website for local resources. A payday loan is another option but usually costs even more than a cash advance, so compare the fees and rates before choosing.
How to minimize the cost if you do take a cash advance
If you have decided a cash advance is necessary, take these steps to keep the cost as low as possible. First, withdraw only what you need — every dollar you withdraw costs you a fee and interest. Second, use an ATM owned by your card issuer to avoid stacking fees. Third, pay it back as fast as you can; every day you carry the balance, interest accrues at the higher cash advance rate.
Some credit cards offer promotional cash advance rates — 0% for a set number of months — if you transfer a balance or meet a spending requirement. Check your card's current offers before withdrawing. If you have multiple credit cards, compare their cash advance fees and APRs and use the cheapest one. Finally, make the cash advance payment a priority in your budget; do not let it sit while you pay other bills.
Frequently Asked Questions
Can I use a credit card to withdraw cash at any ATM?
Yes, you can use your credit card at most ATMs that display your card's network logo (Visa, Mastercard, American Express, or Discover). ATMs owned by your card issuer usually charge only the cash advance fee, while ATMs from other banks add an extra fee. Check your card's terms to see if your issuer waives fees at certain ATM networks.
What is the difference between a cash advance and a balance transfer?
A cash advance is money you withdraw in cash from an ATM or bank, while a balance transfer moves debt from one credit card to another. Cash advances charge a fee and interest when ready with no grace period. Balance transfers sometimes offer a 0% introductory rate for several months, making them cheaper if you are moving existing debt, but they do not give you cash.
Will a cash advance hurt my credit score?
A cash advance can lower your score because it increases your credit utilization ratio — the amount of your credit limit you are using. The higher your utilization, the lower your score. Paying off the cash advance quickly brings your utilization back down and helps your score recover. The cash advance itself does not appear separately on your credit report.
Can I withdraw more cash than my cash advance limit?
No. Your cash advance limit is set by your credit card issuer and is separate from your overall credit limit. If your cash advance limit is $1,500, you cannot withdraw more than that, even if your total credit limit is higher. You can contact your issuer to request a higher cash advance limit, but they may or may not grant it.
Do I have to pay interest on a cash advance if I pay it back right away?
You will still pay the upfront fee (3% to 5%), but you can avoid most of the interest by paying back the cash advance within a few days. Interest accrues daily starting the day you withdraw, so the sooner you repay, the less interest you owe. Unlike purchases, there is no grace period, so interest starts when ready.