You can withdraw cash from a Capital One credit card, but it costs you money and works differently than a debit card withdrawal
Capital One credit cards let you take cash out of an ATM or ask a bank teller for cash back — this is called a cash advance. The moment you withdraw the money, Capital One charges you a fee (usually 3% of the amount, with a minimum of $3 to $10) and starts charging you interest right away. Unlike a purchase, which may have a grace period before interest kicks in, a cash advance begins accruing interest the same day you take it out. There is no waiting period.
The interest rate on a cash advance is almost always higher than the rate on regular purchases. If your card charges 18% APR on purchases, the cash advance rate might be 24% or 27%. This combination — an upfront fee plus a higher interest rate — makes a cash advance an expensive way to borrow money.
Key Takeaways
- Capital One charges a cash advance fee (typically 3% of the amount withdrawn) plus a higher interest rate than your purchase rate, starting when ready.
- You can withdraw cash at any ATM that accepts Visa or Mastercard, or ask a bank teller for cash back at a bank branch.
- The interest on a cash advance begins accruing the day you withdraw it, with no grace period like you get on purchases.
- If you need cash, a personal loan or a balance transfer from another card may cost less than a cash advance.
How to withdraw cash from your Capital One card
The mechanics are straightforward. Go to any ATM that displays the Visa or Mastercard logo (depending on which Capital One card you have), insert your card, enter your PIN, and select the cash withdrawal option. The ATM will show you the amount you can withdraw — this is your cash advance limit, which is usually lower than your credit limit. You might have a $5,000 credit limit but only a $1,500 cash advance limit.
If you prefer not to use an ATM, you can walk into any bank branch and ask a teller for a cash advance. Bring your Capital One card and your ID. The teller will process the transaction the same way an ATM does, and the same fees and interest rates explore.
Some Capital One cardholders can also request a cash advance by phone or through the Capital One mobile app or website, though this option is not available on all card types. Check your account online or call the number on the back of your card to see if this option is available to you.
What fees and interest you will pay
Every cash advance comes with two costs. The first is the cash advance fee, charged at the time you withdraw the money. Capital One typically charges 3% of the amount withdrawn, with a minimum fee of $3 and a maximum that varies by card. If you withdraw $500, you pay $15. If you withdraw $100, you pay $3.
The second cost is interest, which starts accruing when ready. There is no grace period. If your cash advance rate is 24% APR and you withdraw $500 on January 1st, you are paying interest every single day until you pay it back, even if you pay the full balance on your next statement. The interest compounds daily, so the longer you carry the balance, the more you owe.
To see your exact cash advance fee and interest rate, log into your Capital One account online or call the customer service number on your card. The rates and fees are also listed in your card's terms and conditions, which you can request from Capital One or view on their website.
Why a cash advance is usually expensive
A cash advance is one of the most costly ways to borrow money on a credit card. A $500 cash advance might cost you $15 upfront, plus $10 in interest over a month if you carry the balance. That is $25 in costs on a $500 loan — a 5% cost for one month alone. Over a year, the cost becomes much steeper.
Compare this to other borrowing options. A personal loan from a bank or credit union might charge 10% to 15% APR with no upfront fee. A balance transfer to a 0% APR card (if you may have access to) costs nothing for the first 6 to 21 months, depending on the card. Even a payday loan, which is generally expensive, may cost less than a cash advance if you pay it back quickly.
The only time a cash advance makes sense is when you have an when ready need for cash and no other option available — and even then, you should pay it back as fast as you can to minimize the interest.
How cash advances affect your credit and account
A cash advance shows up on your credit report as a separate transaction from your regular purchases. It counts toward your credit utilization — the percentage of your available credit that you are using. If you have a $5,000 credit limit and take a $1,000 cash advance, your utilization jumps to 20%, which can lower your credit score slightly.
The cash advance also counts as a balance on your account. When you make a payment to your Capital One card, the payment is typically applied first to purchases, then to balance transfers, and finally to cash advances. This means if you have both a purchase and a cash advance balance, paying your statement balance in full may not pay off the cash advance. You need to pay enough to cover the cash advance separately, or it will continue to accrue interest.
Alternatives to a cash advance
Before you withdraw cash from your credit card, consider these options. If you need cash for an emergency, ask friends or family to lend you money interest-free. If you need cash for a planned expense, save up over time or use your debit card instead.
If you need to borrow money, a personal loan from a bank, credit union, or online lender usually has a lower interest rate than a cash advance and no upfront fee. You may also be able to transfer a balance from your Capital One card to another credit card offering a 0% APR promotional period, though this works best if you are moving a purchase balance rather than a cash advance (most cards do not offer 0% rates on balance transfers from cash advances).
If you are in a financial crisis and need cash urgently, contact a nonprofit credit counselor through the National Foundation for Credit Counseling (NFCC). They can help you explore options you might not have considered and create a plan to avoid high-cost borrowing.
Frequently Asked Questions
What is the difference between a cash advance and a regular purchase on my Capital One card?
A purchase is charged to your card when you buy something, and you usually get a grace period before interest starts (often 21 to 25 days). A cash advance is money you withdraw, and interest starts the day you take it out. Cash advances also have a higher interest rate and an upfront fee, while purchases have neither.
Can I use my Capital One card to withdraw cash at any ATM?
You can use any ATM that displays the Visa or Mastercard logo. Some ATMs charge an additional fee (called a surcharge) on top of Capital One's cash advance fee — this fee comes from the ATM operator, not Capital One. You can usually avoid surcharges by using ATMs from your own bank or a bank in the same network as your bank.
If I pay off my cash advance right away, do I still pay interest?
Yes. Interest on a cash advance starts accruing the day you withdraw it. If you withdraw $500 on Monday and pay it back on Tuesday, you still owe one day of interest. The fee is charged upfront, so you pay that no matter what. This is why paying back a cash advance as quickly as possible is important.
Does taking a cash advance hurt my credit score?
A cash advance can lower your score slightly because it increases your credit utilization ratio. It also shows up as a separate type of transaction on your credit report. The impact is usually small if you pay it back quickly, but it is one more reason to avoid cash advances unless you have no other option.
What happens if I do not pay back my cash advance?
If you do not pay your cash advance, it becomes part of your credit card balance. Interest continues to accrue, and if you miss payments, Capital One will report the missed payment to the credit bureaus, which will damage your credit score. Eventually, Capital One may close your account or send your debt to a collection agency.