Yes, you can withdraw cash on a credit card, but it costs more than a regular purchase
You can take cash out of an ATM using your credit card, but the bank treats it differently than a purchase. The transaction is called a cash advance, and it comes with its own fees and interest rate — usually higher than what you pay on regular purchases. The moment you withdraw the cash, interest starts accruing, with no grace period like you get on regular credit card spending.
Most credit cards allow cash advances, but some do not. Check your card's terms or call the number on the back to confirm yours does. If it does, you can withdraw at any ATM that displays your card's logo — Visa, Mastercard, American Express, or Discover.
Key Takeaways
- Cash advances charge a separate fee (usually 3 to 5 percent of the amount withdrawn) plus a higher interest rate than regular purchases.
- Interest on a cash advance begins when ready with no grace period, so the longer you carry the balance, the more you pay.
- Your credit card's cash advance limit may be lower than your overall credit limit, so you cannot necessarily withdraw your full available balance.
- Withdrawing cash on a credit card reports to your credit report as a cash advance, not a purchase, and can signal financial stress to lenders.
What fees and interest rates explore to cash advances
A cash advance typically costs you two things: an upfront fee and a higher interest rate. The upfront fee is usually between 3 and 5 percent of the amount you withdraw — so pulling out $500 might cost you $15 to $25 just to get the cash. Some cards charge a flat fee instead (like $5 or $10), but that is less common.
The interest rate on a cash advance is separate from your regular purchase rate and is almost always higher. If your card charges 18 percent on purchases, the cash advance rate might be 22 or 25 percent. This rate applies from the moment you withdraw the money — there is no 21-day grace period like there is for regular purchases. If you withdraw $500 and pay it back in 30 days, you will owe roughly $30 in interest on top of the $15 to $25 fee you already paid.
The only way to stop interest from accruing is to pay back the full cash advance balance. Paying your minimum payment does not stop the clock.
How cash advance limits work
Your credit card may have a separate cash advance limit that is lower than your overall credit limit. If your card has a $5,000 credit limit, your cash advance limit might be only $1,500 or $2,000. The bank sets this limit based on your credit history and account activity, and you cannot change it yourself.
You can call the number on the back of your card and ask what your cash advance limit is. Some card issuers let you lower your own limit through their website or app, but raising it usually requires a phone call and is not always approved. If you hit your cash advance limit, you cannot withdraw more until you pay down what you owe.
Where you can withdraw cash and what happens at different ATMs
You can withdraw cash at any ATM that displays your card's network logo. Visa and Mastercard work at most ATMs worldwide. American Express and Discover have smaller networks, so you may have fewer options, especially outside the United States.
Using an ATM outside your card issuer's network may trigger an additional fee — sometimes $2 to $3 on top of the cash advance fee your card already charges. Some ATMs also charge their own operator fee before you even complete the transaction. Always check the ATM screen for fee warnings before you confirm the withdrawal.
International ATM withdrawals carry the same cash advance fees plus a foreign transaction fee, which is usually 1 to 3 percent of the amount withdrawn. If you are traveling and need cash, this can become expensive quickly.
Why a cash advance affects your credit differently than a purchase
A cash advance appears on your credit report as a cash advance, not as regular spending. Credit reporting agencies and lenders see this distinction. Multiple cash advances or frequent cash advances can signal to lenders that you are short on cash and relying on credit to cover when ready needs — a sign of financial stress.
The cash advance also counts toward your credit utilization ratio, which is the percentage of your available credit you are using. If you have a $5,000 limit and withdraw $1,000 in cash, your utilization jumps to 20 percent. High utilization can lower your credit score, even if you pay the balance on time.
Alternatives to a credit card cash advance
If you need cash urgently, a cash advance is rarely the cheapest option. A personal loan from a bank or credit union typically charges 6 to 36 percent interest with no upfront fee, and interest does not start until you miss a payment. A payday loan charges much higher rates but gets money to you faster. A balance transfer to a card with a 0 percent introductory rate does not help you get cash, but it can lower the cost of existing debt.
If you have a regular bank account, the simplest option is to withdraw from your checking or savings account, which costs nothing. If you do not have a bank account, opening one takes about 15 minutes online or in person and gives you access to free cash withdrawals.
If you are in a genuine emergency and have no other options, a cash advance is available when ready. But treat it as a last resort, not a convenience. The fees and interest add up fast, and carrying a balance makes the debt harder to pay off.
How to pay back a cash advance quickly
Interest on a cash advance accrues daily, so the longer you carry the balance, the more you pay. If you withdraw $500 at a 25 percent interest rate, you owe about $3.42 per day in interest alone. After 30 days, that is over $100 in interest before you have paid down a single dollar of principal.
The fastest way to stop the bleeding is to pay back the full cash advance as soon as you can. Your credit card statement will show the cash advance separately from regular purchases, so you can track exactly how much you owe. Some cards let you make extra payments online or by phone without waiting for your statement due date.
If you cannot pay it all back at once, pay as much as you can toward the cash advance first, because it is accruing interest faster than regular purchases. Minimum payments are split between your cash advance and regular purchases, so paying only the minimum means the cash advance balance shrinks slowly.
Frequently Asked Questions
Can I use a credit card cash advance to pay another credit card bill?
Technically yes, but it is a bad idea. You would pay a cash advance fee and interest rate on money you are using to pay another card's interest and fees. You end up paying more to move debt around. If you are struggling with multiple card balances, a balance transfer or personal loan is cheaper.
Does a cash advance show up on my credit report?
Yes. It appears as a cash advance transaction, not a regular purchase. Lenders can see it, and it may affect how they view your creditworthiness. The balance counts toward your credit utilization and can lower your score if it is high.
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 offer a 0 percent introductory rate. A balance transfer does not give you cash — it only helps if you are paying off another card's balance.
Can I withdraw cash on a credit card if I have not used the card yet?
Yes, as long as your card is activated and you have available credit. You do not need to make a purchase first. However, the cash advance fee and interest rate explore when ready, regardless of whether you have used the card before.
What happens if I only pay the minimum on a cash advance?
Interest keeps accruing on the unpaid balance at the cash advance rate, which is usually 22 to 25 percent or higher. Minimum payments are small and mostly cover interest, so the principal shrinks slowly. You end up paying far more in interest than the amount you withdrew.