You can withdraw cash from a credit card at an ATM, but it costs more than a regular purchase and starts charging interest when ready
A cash advance is a withdrawal of money from your credit card account, usually at an ATM or bank teller window. Unlike a purchase, which gives you a grace period before interest kicks in, a cash advance begins accruing interest the moment you take the money out. You also pay an upfront fee — typically 3 to 5 percent of the amount withdrawn, with a minimum fee of $5 to $10. Because of these costs, a cash advance should be a last resort, not a regular way to get spending money.
The mechanics are straightforward: you insert your credit card into an ATM, enter your PIN, and withdraw cash up to your available credit limit. Some banks also let you request a cash advance at a teller window. But the financial consequences are steep enough that you should understand exactly what you are paying before you do it.
Key Takeaways
- Cash advances charge an upfront fee of 3 to 5 percent plus interest that begins accruing when ready, making them significantly more expensive than regular credit card purchases.
- Your cash advance limit may be lower than your overall credit limit, and your card issuer sets this separately.
- Interest rates on cash advances are typically higher than purchase rates and do not benefit from a grace period.
- ATMs owned by your card issuer usually charge no ATM fee, but out-of-network ATMs add another $2 to $4 on top of the cash advance fee.
The fees and interest that make cash advances expensive
When you take a cash advance, you pay two costs upfront: the cash advance fee and the interest that starts accruing when ready. The cash advance fee is a percentage of the amount you withdraw, set by your card issuer. Most cards charge between 3 and 5 percent, though some charge a flat fee instead. A $300 cash advance at 4 percent costs $12 before you even leave the ATM.
Interest on a cash advance typically runs 2 to 3 percentage points higher than your purchase APR. If your card charges 18 percent on purchases, the cash advance rate might be 21 percent. Unlike a purchase, there is no grace period — interest starts accruing on day one. That $300 advance at 21 percent annual interest costs about $5.25 in interest after one month if you do not pay it back.
If you use an out-of-network ATM, you also pay an ATM operator fee on top of everything else — usually $2 to $4. Using your card issuer's own ATM network avoids this extra charge. Check your card's website or app to find in-network ATMs near you.
How to find your cash advance limit and PIN
Your cash advance limit is separate from your overall credit limit. A card issuer might give you a $5,000 credit limit but only a $1,500 cash advance limit. You can find your cash advance limit by logging into your online account, calling the customer service number on the back of your card, or checking your most recent statement.
To withdraw cash at an ATM, you need a PIN. If you do not have one, you can set one up through your card issuer's website or app, or by calling customer service. Some issuers mail a PIN automatically when you open the account; others require you to create one yourself. Setting up a PIN takes a few minutes and is free.
If you forget your PIN, you can reset it online or by phone. You cannot use your credit card at an ATM without a PIN — the machine will not let you proceed.
Where you can withdraw cash from a credit card
ATMs are the most common place to take a cash advance. Any ATM that displays your card's logo (Visa, Mastercard, American Express, Discover) should accept it. In-network ATMs — those owned by your card issuer or a partner bank — usually charge no ATM fee. Out-of-network ATMs charge an operator fee on top of your cash advance fee.
Many banks also allow you to request a cash advance at a teller window. Walk into a branch, tell the teller you want a cash advance on your credit card, and provide your card and ID. The teller will process it the same way as an ATM withdrawal, and you will pay the same fees and interest. This option is useful if you need a large amount or prefer not to use an ATM.
Some credit card issuers also offer balance transfer checks — checks linked to your credit card account that you can write to yourself or deposit into a bank account. These function as cash advances and carry the same fees and interest rates. Check your card's website or call customer service to see if this option is available.
How a cash advance affects your credit score
Taking a cash advance does not directly damage your credit score, but it can indirectly harm it in two ways. First, a cash advance increases your credit utilization — the percentage of your available credit you are using. If you have a $5,000 limit and take a $1,000 cash advance, your utilization jumps to 20 percent. High utilization signals risk to credit scoring models and can lower your score by a few points.
Second, if you carry the cash advance balance and miss payments, that missed payment will appear on your credit report and hurt your score significantly. The cash advance itself does not show up as a separate item — it is just part of your credit card balance — but the payment history does.
To minimize the impact, pay back the cash advance as quickly as possible. This lowers your utilization and prevents missed payments.
Alternatives to a cash advance
If you need cash urgently, a cash advance is rarely the best option. A personal loan from a bank or credit union typically charges lower interest and no upfront fee. If you have good credit, you might may have access to for a rate of 8 to 12 percent, significantly cheaper than a credit card cash advance at 21 percent plus a 4 percent fee.
A payday loan is faster but usually more expensive than a cash advance, so it is not a better choice. A line of credit from your bank, if you have one, is often cheaper than a cash advance and does not carry an upfront fee. Some employers offer paycheck advances or emergency loans to employees — worth asking about if you are in a tight spot.
If you need cash for everyday spending, using your debit card or withdrawing from your bank account costs nothing. If you do not have a bank account, a prepaid card or check-cashing service is cheaper than a cash advance, though not free.
What happens if you cannot pay back a cash advance
If you carry a cash advance balance without paying it off, interest compounds daily. A $500 cash advance at 21 percent interest costs about $8.75 per month in interest alone. After six months of no payments, you owe roughly $550 — the original $500 plus $50 in interest and fees.
If you miss payments, your card issuer will report the missed payment to the credit bureaus after 30 days. After 60 days, the missed payment appears on your credit report. After 180 days, the card issuer may charge off the debt — meaning they write it off as a loss and may sell it to a debt collector. A charge-off stays on your credit report for seven years and severely damages your credit score.
If you are struggling to pay back a cash advance, contact your card issuer when ready. Some issuers offer hardship programs that lower your interest rate or waive fees temporarily. This is not may provide, but asking costs nothing.
Frequently Asked Questions
Can I use a credit card to withdraw money from my bank account?
No. A credit card is a line of credit, not a debit card linked to a bank account. You can only withdraw cash from a credit card as a cash advance, which charges fees and interest. If you want to withdraw from your bank account, use your debit card or visit your bank's ATM.
Is there a way to get cash from a credit card without paying a fee?
Not through a cash advance. Every card issuer charges a cash advance fee. Some cards offer 0 percent introductory rates on purchases, but these do not explore to cash advances. A personal loan or line of credit from a bank is a cheaper way to borrow cash.
What is the difference between a cash advance and a balance transfer?
A cash advance gives you physical cash and charges interest when ready. A balance transfer moves debt from one card to another and may offer a 0 percent introductory period. Balance transfers are for moving existing debt; cash advances are for getting new cash. Both charge fees, but balance transfer fees are usually lower.
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 plus interest on the cash advance, then use that cash to pay another card. You end up paying more in fees and interest than if you had just paid the other card directly. Most card issuers also flag this as a cash-like transaction and may charge cash advance fees even if you are paying another bill.
How long does it take to get a cash advance?
At an ATM, it is when ready — you get the cash when ready. At a bank teller window, it takes a few minutes. The cash advance posts to your credit card account when ready, and interest starts accruing right away. You do not have a grace period like you do with purchases.