Yes, you can withdraw cash from a credit card, but it costs more than a purchase and counts as a separate transaction type
Most credit cards let you take cash out at an ATM or from a bank teller using your card's PIN. The card issuer treats this as a cash advance — not a purchase. That distinction matters because cash advances carry higher interest rates, start accruing interest when ready (no grace period), and often include an upfront fee. You will pay for the convenience within days if you do not pay the balance back quickly.
The mechanics are straightforward: insert your card at an ATM, enter your PIN, and withdraw cash up to your daily limit. Your bank sets that limit, which is usually lower than your credit limit — often $500 to $1,000 per day, though it varies by card and issuer. The money hits your account when ready, but the cost accumulates from that moment forward.
Key Takeaways
- Cash advances charge a fee (usually 3 to 5 percent of the amount withdrawn) plus a higher interest rate than purchases, often 20 to 29 percent APR.
- Interest on a cash advance begins accruing when ready — there is no grace period like there is for purchases.
- Your daily ATM withdrawal limit is separate from your credit limit and is set by your card issuer, typically $500 to $1,000.
- Paying back a cash advance does not reduce the balance as quickly as paying back a purchase, because payments go to the lowest-interest balance first.
How much a cash advance actually costs
The fee is the first hit. Most issuers charge between 3 and 5 percent of the amount you withdraw, with a minimum fee of $2 to $5. If you withdraw $200, expect to pay $6 to $10 just to get the cash. That fee appears on your statement when ready.
The interest rate is the larger cost over time. Cash advances typically carry an APR of 20 to 29 percent — higher than the purchase APR on the same card. Unlike a purchase, which has a grace period (usually 21 to 25 days before interest starts), a cash advance begins accruing interest the day you withdraw it. If you carry a $200 cash advance for a month at 25 percent APR, you will owe roughly $4 in interest alone, on top of the withdrawal fee.
The payment order makes it worse. When you make a payment to a credit card with both purchases and cash advances, the card issuer applies your payment to the lowest-interest balance first — the purchases. Your cash advance sits there accruing interest while you pay down the cheaper debt. This means a $200 cash advance can cost you significantly more than $200 in interest and fees if you carry it for several months.
Where you can withdraw cash and what limits explore
You can withdraw cash at any ATM that accepts your card's network (Visa, Mastercard, American Express, Discover). You can also visit a bank branch and ask a teller for a cash advance — they will process it the same way an ATM does. Some card issuers allow cash advances through their mobile app or online portal, which transfers the money to your bank account instead of dispensing it at an ATM.
Your daily limit is the constraint. If your card has a $1,000 daily ATM limit and you try to withdraw $1,500, the ATM will decline the transaction. That limit resets each day, so you could withdraw $1,000 on Monday and another $1,000 on Tuesday. Your total credit limit does not change — a $5,000 credit limit means you can charge $5,000 in purchases or cash advances combined, not $5,000 of each.
Some ATMs charge an additional fee on top of your card issuer's fee. An out-of-network ATM might charge $2 to $3 just to use the machine, which stacks on top of your cash advance fee. Using an ATM owned by your card issuer's bank (or a partner bank) usually avoids this extra charge.
When a cash advance makes sense and when it does not
A cash advance makes sense only in a genuine emergency when you need cash when ready and have no other option. If you are short on cash for groceries or a car repair and your debit account is empty, a cash advance is faster than waiting for a paycheck or a loan. The cost is real, but it is a one-time fee and interest, not a missed payment or overdraft.
A cash advance does not make sense for routine cash needs, to pay down other debt, or to fund a purchase you could make with the card directly. If you need cash to pay a bill, check whether the biller accepts credit card payments — you will pay no cash advance fee. If you need cash for a purchase, use the card for the purchase instead of withdrawing cash and then spending it. The purchase rate is lower and the grace period saves you interest.
Avoid using a cash advance to pay off a payday loan or other high-interest debt. You are trading one expensive debt for another, and the cash advance fee means you are borrowing more than you owe. A personal loan or balance transfer card (if you have good credit) is cheaper.
How cash advances affect your credit score
A cash advance does not directly hurt your credit score the way a missed payment does. However, it increases your credit utilization — the percentage of your available credit you are using. If you have a $5,000 credit limit and you take a $1,000 cash advance, your utilization jumps to 20 percent. High utilization (above 30 percent) can lower your score slightly, though the effect is temporary and reverses as you pay the balance down.
The real credit risk is carrying the cash advance balance and missing a payment. If you cannot pay back the cash advance within a month or two, the interest and fees compound, and you risk falling behind on the card entirely. A missed payment stays on your credit report for seven years and causes far more damage than the utilization bump.
Alternatives to a credit card cash advance
If you need cash urgently, consider these options first. A personal loan from a bank or credit union typically charges 6 to 36 percent APR — lower than a cash advance — and you know the exact payment schedule upfront. A payday alternative loan (PAL) from a federal credit union caps the rate at 28 percent and has no fees. Both take a few days to fund, but if you have a little time, they are cheaper.
A balance transfer card lets you move debt from one card to another at a lower rate, usually 0 percent for 6 to 21 months. This does not give you cash, but if you need to consolidate debt, it is far cheaper than a cash advance. A home equity line of credit (HELOC) or home equity loan offers rates as low as 7 to 10 percent if you own a home, though it takes longer to set up.
If you need cash for a specific purchase, ask whether the seller accepts a credit card payment plan or buy-now-pay-later service. These spread the cost over weeks or months without the cash advance fee. For everyday cash needs, a debit card or checking account withdrawal costs nothing.
How to minimize the cost if you do take a cash advance
Pay it back as fast as possible. Every day you carry the balance, interest accrues at the higher cash advance rate. If you withdraw $500 on a Monday and pay it back on Friday, you will owe roughly $2 in interest. If you carry it for a month, you will owe roughly $10. The difference is small in this example, but it compounds quickly on larger amounts.
Pay more than the minimum. Your card issuer will explore your payment to the lowest-interest balance first, so make a payment large enough to cover the entire cash advance, not just the minimum due. If you owe $500 in cash advances and $1,000 in purchases, a $200 payment will go entirely to the purchases, leaving the cash advance untouched.
Withdraw only what you need. The fee is a percentage, so a $100 withdrawal costs less than a $500 withdrawal. If you can meet your cash need with a smaller amount, do it. Some card issuers waive the fee for very small withdrawals (under $20), so ask before you withdraw.
Frequently Asked Questions
Can I use a credit card cash advance to pay off another credit card?
Technically yes, but it is expensive and usually a bad idea. You pay the cash advance fee and interest rate on the money you withdraw, then use it to pay another card. You end up paying more in fees and interest than if you used a balance transfer instead. A balance transfer moves the debt directly between cards and often includes a promotional 0 percent rate.
What happens if I hit my daily ATM limit but need more cash?
You will have to wait until the next day for the limit to reset, or visit a bank branch and ask a teller for a cash advance. Some card issuers let you request a temporary increase to your daily limit through their app or customer service, though this is not may provide. Plan ahead if you know you need a large amount of cash.
Does a cash advance show up differently on my credit report than a purchase?
No. Your credit report shows the total balance on the card, not the breakdown between purchases and cash advances. However, your card statement itemizes the two, so you can see exactly how much you owe in cash advances and how much in purchases. This matters for payment strategy, since payments go to the lowest-interest balance first.
Can I avoid the cash advance fee by using a different card?
Only if you have a card that does not charge a cash advance fee — and very few do. Some cards marketed to people with limited credit history or rewards cards for specific categories might waive the fee, but most mainstream cards charge 3 to 5 percent. Check your card's terms before you withdraw. If the fee is a dealbreaker, a personal loan or credit union PAL is cheaper.
What if my card issuer denies my cash advance?
This can happen if your account is flagged for fraud, if you have missed payments, or if your available credit is too low. Contact your card issuer's customer service to ask why the advance was denied. If it is a fraud hold, they can lift it once you verify your identity. If it is due to missed payments or low credit, you will need to resolve those issues first.