The three ways to withdraw cash from a credit card
You can get cash from a credit card in three ways: a cash advance at an ATM using your PIN, a cash advance over the counter at a bank, or a balance transfer to your checking account. All three treat the money as a loan against your credit limit, not a purchase. That distinction matters because cash advances charge higher interest rates than regular purchases, start accruing interest when ready with no grace period, and often include an upfront fee of 3 to 5 percent of the amount withdrawn.
The most common method is the ATM cash advance. You insert your card, enter your PIN, and withdraw up to your cash advance limit — which is usually lower than your credit limit and varies by card issuer. Some cards set it at 20 to 30 percent of your total credit limit; others set a fixed dollar amount like $500 or $1,000. You find out your specific limit by calling the card issuer or checking your online account.
The second method is asking a bank teller for a cash advance. You present your credit card and request cash; the teller processes it like a withdrawal. This method works at banks that issued your card and sometimes at other banks, though fees may be higher at banks that did not issue your card.
The third method — balance transfer to checking — is less common but available from some issuers. You request a transfer from your credit card to your bank account through the card issuer's website or app. This avoids the ATM fee but still charges the cash advance interest rate and may include a separate transfer fee.
Key Takeaways
- Cash advances charge interest when ready with no grace period, unlike purchases, and the interest rate is typically 5 to 10 percentage points higher than your purchase APR.
- Most cards charge an upfront fee of 3 to 5 percent of the cash amount, so withdrawing $500 costs $15 to $25 before any interest accrues.
- Your cash advance limit is usually much lower than your credit limit and is set by your card issuer; you can find it by calling customer service or checking your account online.
- Interest on a cash advance begins accruing the day you withdraw it, so the total cost grows quickly if you carry the balance beyond a few days.
How much a cash advance actually costs
The fee structure for a cash advance has two parts: an upfront fee and interest. The upfront fee is typically 3 to 5 percent of the amount withdrawn, charged when ready. A $500 cash advance at 4 percent costs $20 in fees alone. Some cards cap the fee at a flat amount like $10, which makes small withdrawals cheaper; others set a minimum fee like $5, which makes very small withdrawals more expensive proportionally.
Interest begins accruing the same day you withdraw the cash. The cash advance APR varies by card but is usually 5 to 10 percentage points higher than your purchase APR. If your purchase rate is 18 percent, your cash advance rate might be 25 percent. On a $500 advance at 25 percent APR, you pay roughly $10 in interest for every 30 days you carry the balance. Paying it back within a week costs far less than carrying it for a month.
Compare this to a credit card purchase: you pay no interest if you pay the full balance by the due date, typically 21 to 25 days after the statement closes. A cash advance has no grace period, so interest starts when ready. This is why a cash advance should be a last resort, not a routine way to access money.
Finding your cash advance limit and PIN
Your cash advance limit is separate from your credit limit. To find it, log into your card issuer's website or mobile app and look for account details or cash advance information. If you cannot find it online, call the customer service number on the back of your card and ask for your cash advance limit. The representative will tell you the exact amount you can withdraw.
Your PIN is the four-digit code you use at an ATM. If you have never set one, you will need to create it before you can withdraw cash. Most card issuers let you set your PIN online through their website or app. Some require you to call customer service to set it over the phone. A few older cards have a PIN printed on a document that came with the card; if you have lost it, you can reset it the same way.
Once you have your PIN, you can use it at any ATM that accepts your card's network — Visa, Mastercard, American Express, or Discover. ATMs at your own bank typically charge no fee, but ATMs at other banks charge a fee of $2 to $5 per transaction, on top of the cash advance fee your card issuer charges.
When a cash advance makes sense
A cash advance is rarely the cheapest way to get cash, but it can be the only way in specific situations. If you need cash urgently and have no other source — no savings, no access to a personal loan, no friends or family to borrow from — a short-term cash advance costs less than alternatives like payday loans or overdraft fees. A payday loan typically costs 400 percent APR or more; a cash advance at 25 percent APR is cheaper, even with the upfront fee.
A cash advance also makes sense if you need cash for a very short time — a few days to a week. The interest accrues daily, so the total cost stays low if you repay quickly. If you withdraw $500 at 25 percent APR and repay it in five days, you pay roughly $1.70 in interest plus the upfront fee. That is expensive compared to free, but cheap compared to carrying the balance for a month.
A cash advance does not make sense if you are using it to fund regular spending, to pay off other debts, or to cover a shortfall you expect to last weeks or months. In those cases, the interest and fees compound quickly, and you are better off exploring a personal loan, a line of credit, or a balance transfer to a 0 percent APR card if you have the credit score to may have access to.
Alternatives to a credit card cash advance
If you need cash but want to avoid the high fees and interest of a cash advance, several alternatives exist depending on your situation and credit score. A personal loan from a bank or online lender typically charges 6 to 36 percent APR with no upfront fee, and you receive the money in your checking account within one to three business days. The interest rate depends on your credit score, income, and debt-to-income ratio. A personal loan is cheaper than a cash advance if you need the money for more than a few weeks.
A balance transfer to a 0 percent APR card is another option if you have good credit. Some cards offer 0 percent APR on balance transfers for 6 to 21 months, though they charge an upfront fee of 3 to 5 percent. If you transfer $500 at 3 percent, you pay $15 upfront but zero interest for the promotional period. This works only if you can pay off the balance before the promotional rate ends, because the regular APR kicks in after that.
A line of credit from your bank or a credit union is often cheaper than a cash advance if you are an existing customer. Lines of credit typically charge lower interest rates than credit cards and have no upfront fee. You draw only what you need and pay interest only on the amount you use. If you have a relationship with a bank or credit union, ask whether they offer a personal line of credit.
How cash advances affect your credit score
A cash advance does not directly damage your credit score the way a missed payment does, but it can harm your score indirectly. When you take a cash advance, your credit utilization — the percentage of your available credit you are using — increases when ready. If your credit limit is $5,000 and you withdraw $500 in cash, your utilization jumps from 0 to 10 percent. Credit scores penalize high utilization, so your score may drop a few points.
The damage is temporary if you repay the cash advance quickly. Once you pay it back, your utilization drops and your score recovers. However, if you carry the cash advance balance for weeks or months, your utilization stays high and your score stays depressed. Additionally, if the cash advance causes you to miss a payment on the card, that missed payment stays on your credit report for seven years and causes serious damage to your score.
The bigger risk is behavioral: taking a cash advance can signal that you are short on cash, which may lead to carrying higher balances overall and missing payments. Lenders see this pattern in your credit report and may lower your credit limit or close your account. To protect your score, treat a cash advance as a true emergency tool, not a regular source of spending money.
Frequently Asked Questions
Can I take a cash advance if I have reached my credit limit?
No. Your cash advance limit is part of your total credit limit, not separate from it. If you have used $4,500 of a $5,000 limit, your available cash advance limit is reduced by that amount. You can only withdraw cash up to your remaining available credit.
What happens if I do not repay a cash advance?
The balance rolls over to your next statement with interest and fees added. If you continue not to pay, the balance grows, your credit score drops, and after 30 days of non-payment the card issuer may report it to credit bureaus. After 180 days of non-payment, the issuer typically closes the account and may send it to a collection agency.
Can I use a cash advance to pay another credit card?
Technically yes, but it is almost always a bad idea. You pay the cash advance fee and interest rate on the money, then use it to pay another card's balance. You end up paying more in fees and interest than if you had straightforward paid the other card directly. The only exception is if the other card has a much higher interest rate and you plan to repay the cash advance very quickly.
Do I have to use an ATM, or can I get cash at a store?
Most retailers do not offer cash advances on credit cards. Some grocery stores and pharmacies may offer cash back when you make a purchase with a debit card, but not with a credit card. Your options are ATMs and bank tellers. ATMs are faster but may charge a fee; bank tellers are slower but sometimes charge no fee if you use your card issuer's bank.
Will my card issuer let me know my cash advance limit before I try to withdraw?
No. You have to find out your limit by checking your account online, calling customer service, or attempting a withdrawal. Some card issuers do not set a specific cash advance limit; instead, they allow you to withdraw up to your available credit. Check your account details or call to confirm how your card works.