Yes, you can withdraw cash from a credit card, but it costs more than a regular purchase
You can take cash out of an ATM using your credit card, just as you would with a debit card. The transaction is called a cash advance. Your credit card issuer will approve it, the ATM will dispense the money, and the amount will appear on your credit card bill.
The catch is that cash advances are expensive. You pay an upfront fee (usually 3 to 5 percent of the amount withdrawn), interest starts accruing when ready at a higher rate than regular purchases, and there is no grace period. A $200 cash advance can cost $6 to $10 just to take it out, plus interest from day one.
Most people use cash advances only when they have no other option — they need cash urgently and have no access to their bank account or debit card. If you are considering a cash advance, it is worth exploring whether a personal loan, a balance transfer, or straightforward waiting until you can visit your bank would cost less.
Key Takeaways
- A cash advance is a withdrawal of cash from your credit card at an ATM, charged to your credit card balance like a purchase.
- Cash advances carry an upfront fee of 3 to 5 percent and a higher interest rate than regular purchases, with interest starting when ready.
- You can withdraw cash at most ATMs that display your card network's logo, up to your cash advance limit (which is usually lower than your credit limit).
- The transaction reports to credit bureaus and counts toward your credit utilization, which can lower your credit score.
- A personal loan or a trip to your bank to withdraw from savings is almost always cheaper than a cash advance.
How to withdraw cash from an ATM with your credit card
The process is straightforward. Insert your credit card into an ATM that displays your card network's logo (Visa, Mastercard, American Express, or Discover). Enter your PIN — the same one you use for debit transactions. Select "Withdrawal" or "Cash Advance" from the menu, enter the amount you want, and confirm the transaction.
The ATM will dispense the cash and print a receipt. The amount withdrawn will appear on your credit card statement within one to three business days, along with the cash advance fee. If you do not know your credit card PIN, call the number on the back of your card and ask the issuer to send it to you or reset it.
Not all ATMs accept credit cards — many are set up for debit cards only. Look for an ATM at a bank branch or a network ATM (such as Allpoint or MoneyPass) that explicitly states it accepts credit cards. Your card issuer's website usually has an ATM locator tool.
What fees and interest rates explore to cash advances
A cash advance fee is charged the moment you withdraw the money. This fee is typically 3 to 5 percent of the amount withdrawn, with a minimum fee of $2 to $5. On a $200 withdrawal, you would pay $6 to $10 just to take the cash out. Some cards charge a flat fee instead of a percentage; check your card's terms to know which applies to yours.
The cash advance interest rate is usually 2 to 5 percentage points higher than the rate on regular purchases. If your purchase APR is 18 percent, your cash advance APR might be 23 percent. Interest begins accruing on day one — there is no grace period like there is for purchases. If you carry the balance for even a week, the interest charges add up quickly.
A $200 cash advance at 5 percent fee ($10) plus 23 percent APR costs you $10 upfront. If you pay it back in one month, you will owe roughly $13.83 in interest. If you carry it for three months, interest alone will exceed $11. Compare this to a personal loan, which might charge 8 to 12 percent APR with no upfront fee — the math usually favors the loan.
Your cash advance limit versus your credit limit
Your credit card issuer sets a separate cash advance limit, which is usually lower than your overall credit limit. If your credit limit is $5,000, your cash advance limit might be $1,000 or $1,500. You cannot withdraw more than this limit, even if you have available credit remaining on your card.
You can find your cash advance limit in your card's terms and conditions, on your online account portal, or by calling the issuer. If you need to withdraw more than your limit allows, you can request an increase by calling customer service, though approval is not may provide.
The cash advance limit exists partly to protect you from overspending and partly to protect the issuer from the higher risk of cash advances. Because cash advances have higher fees and interest rates, issuers treat them as riskier than regular purchases.
How a cash advance affects your credit score
A cash advance is reported to credit bureaus as a transaction on your credit card account. It increases your credit utilization ratio — the percentage of your available credit you are using. If you have a $5,000 credit limit and you take a $500 cash advance, your utilization jumps to 10 percent (or higher if you have other balances).
Credit scoring models penalize high utilization. Keeping utilization below 30 percent is generally considered healthy; above 30 percent, your score can drop. A single cash advance may not cause a major dip, but if you carry the balance for several months, the ongoing high utilization will weigh on your score.
The impact is temporary. Once you pay off the cash advance, your utilization drops and your score can recover. However, the payment history for the cash advance itself is recorded, so if you miss a payment, that negative mark stays on your credit report for seven years.
Cheaper alternatives to a cash advance
Before you use a cash advance, consider these options:
Withdraw from your bank account. If you have a checking or savings account, visit a branch or use your debit card at an ATM. There is no fee and no interest. This is free and should be your first choice if you have access to your account.
Ask for a personal loan. Banks and credit unions offer personal loans at interest rates typically between 6 and 36 percent, depending on your credit. A personal loan has no upfront fee, interest does not start until you receive the money, and you have a fixed repayment schedule. For amounts over $300, a personal loan is usually cheaper than a cash advance.
Use a balance transfer. Some credit cards offer 0 percent APR on balance transfers for a limited time (usually 6 to 21 months). If you transfer a cash advance from one card to another, you avoid the high interest rate — though you still pay the transfer fee. This only works if you have access to another card and can pay off the balance before the promotional rate expires.
Borrow from family or friends. If possible, ask someone you trust to lend you the money. You can repay them on your own schedule, usually with no interest or fees.
Use a payday loan as a last resort. Payday loans have extremely high interest rates (often 400 percent APR or higher) and are generally more expensive than credit card cash advances. Use them only if no other option exists and you are certain you can repay within the loan term.
What happens if you cannot pay back a cash advance
If you do not pay back a cash advance, the balance carries over to the next billing cycle and interest continues to accrue at the cash advance rate. Your credit card issuer may increase your interest rate further if you miss a payment. After 30 days of non-payment, the missed payment is reported to credit bureaus and your credit score drops.
If the debt remains unpaid for 180 days (six months), the issuer may close your account and sell the debt to a collection agency. A collection account on your credit report can lower your score by 100 points or more and will remain on your report for seven years.
If you are struggling to repay a cash advance, contact your card issuer as soon as possible. Many issuers offer hardship programs that lower your interest rate or allow you to set up a payment plan. Addressing the problem early is far better than waiting for the debt to grow.
Frequently Asked Questions
Can I use a credit card cash advance to pay off another credit card?
Technically yes, but it is one of the most expensive ways to move debt. You would pay the cash advance fee, then the high cash advance interest rate, on top of the interest you already owe on the first card. A balance transfer (moving the debt directly from one card to another) or a personal loan costs far less.
Does a cash advance show up on my credit report?
The cash advance itself does not appear as a separate line item, but the balance does. It increases your credit utilization and is visible to lenders when they review your account. If you miss a payment on the cash advance, that missed payment is reported and damages your credit score.
What is the difference between a cash advance and a balance transfer?
A cash advance withdraws money from your credit card at an ATM. A balance transfer moves debt from one credit card to another. Cash advances have higher fees and interest rates; balance transfers often have a lower fee and may offer a promotional 0 percent APR period. Neither is cheap, but balance transfers are usually the better option if you are moving existing debt.
Can I get a cash advance from a credit card without a PIN?
Most ATMs require a PIN for credit card cash advances. If you do not have one, call your card issuer to request it. Some issuers can provide it over the phone; others mail it to you. A few banks allow cash advances at their branches without a PIN if you show a photo ID, but this is less common.
Will paying off a cash advance quickly help my credit score?
Yes. Paying off the balance quickly lowers your credit utilization and stops interest from accumulating. Your score will improve once the balance drops. However, if you missed any payments on the cash advance, that negative mark remains on your credit report for seven years, even after you pay it off.