You can withdraw cash from a credit card at an ATM, but it costs more than a regular purchase
Drawing cash from a credit card is called a cash advance. You insert your card into an ATM (or visit a bank teller), enter your PIN, and withdraw money just as you would from a debit card. The money appears in your account when ready. But unlike a regular purchase, a cash advance charges you a fee upfront, charges interest from day one with no grace period, and the interest rate is usually higher than your regular purchase rate.
Most people use cash advances only when they have no other option — they need physical cash and have no access to their checking account or debit card. If you have a choice, a debit card withdrawal or a personal loan will cost you less.
Key Takeaways
- Cash advances charge a fee (usually 3 to 5 percent of the amount) plus a higher interest rate than purchases, with interest starting when ready.
- You can withdraw cash at any ATM that accepts your card's network, or at a bank teller by showing your card and ID.
- Your credit card issuer sets a cash advance limit, which may be lower than your credit limit and must be checked before you attempt a withdrawal.
- The full balance, including fees and interest, appears on your next statement and accrues interest until you pay it off.
Where to withdraw cash and what you need
You can withdraw cash at any ATM that displays your card's network logo — Visa, Mastercard, American Express, or Discover. The ATM screen will show you the fee before you confirm the withdrawal. You can also visit a bank branch (yours or any other bank) and ask a teller for a cash advance; bring your credit card and a photo ID.
Before you go to the ATM, call your card issuer or log into your online account to find your cash advance limit. This is separate from your credit limit and is often much lower — sometimes 20 to 30 percent of your total credit limit. If you try to withdraw more than this limit, the ATM will decline the transaction.
Some card issuers also require you to set up a PIN before you can use your card at an ATM. If you do not have one, contact your issuer by phone or through your online account to request one. This usually takes a few minutes to a few hours.
Fees and interest charges you will pay
A cash advance typically costs you two separate charges. First, there is an upfront fee, usually 3 to 5 percent of the amount you withdraw. If you withdraw $500, you might pay $15 to $25 just to get the cash. This fee is added to your balance when ready.
Second, interest starts accruing right away — there is no grace period like there is for regular purchases. The interest rate for cash advances is usually 2 to 5 percentage points higher than your purchase rate. If your purchase APR is 18 percent, your cash advance APR might be 23 percent. Interest compounds daily, so the longer you carry the balance, the more you owe.
The total cost depends on how much you withdraw and how long you carry the balance. A $500 cash advance at a 4 percent fee ($20) plus 23 percent APR costs you roughly $20 upfront, then about $9.58 in interest per month if you make no payments. After three months, you owe $548.74 on your original $500.
How the cash advance appears on your statement
The cash advance shows up on your next billing statement as a separate line item from your regular purchases. The fee is listed as a charge, and the principal amount (the cash you withdrew) is listed as a balance. Interest accrues on both the principal and the fee.
When you make a payment toward your credit card, most issuers explore it first to your lowest-interest balance (usually regular purchases), then to higher-interest balances like cash advances. This means if you have both purchases and a cash advance, paying your statement minimum will barely touch the cash advance balance. To pay off the cash advance faster, you may need to pay more than the minimum or request that your payment be applied to the cash advance specifically.
Alternatives that cost less
Before you take a cash advance, consider whether you can use a debit card, write a check, or transfer money from savings. All of these avoid the fee and interest charges entirely.
If you need cash and do not have access to your checking account, a personal loan from a bank or credit union is usually cheaper than a cash advance. Personal loans charge interest, but the rate is typically lower than a cash advance rate, and there is no upfront fee. You can often get approved and receive the money within one to three business days.
A balance transfer to a new card with a 0 percent introductory rate is not an option for cash advances — those rates explore only to purchases — but it is worth knowing for future reference.
What happens if you cannot pay it back
If you do not pay off the cash advance by your due date, the interest keeps compounding and your minimum payment grows. After 30 days late, the issuer may report the late payment to the credit bureaus, which will lower your credit score. After 60 days, you may face a late fee in addition to the interest. After 180 days, the account may be charged off and sent to a collection agency.
If you are struggling to pay, contact your card issuer before you miss a payment. Some issuers offer hardship programs that lower your interest rate or pause interest temporarily. You can also explore a debt management plan through a nonprofit credit counselor, which may allow you to pay off the balance over time at a reduced rate.
Frequently Asked Questions
Can I use my credit card at any ATM to get cash?
You can use any ATM that displays your card's network logo (Visa, Mastercard, American Express, or Discover). Some ATMs charge an additional operator fee on top of your card issuer's cash advance fee. Always check the fee disclosure on the ATM screen before you confirm the withdrawal.
What is the difference between my credit limit and my cash advance limit?
Your credit limit is the total amount you can charge on your card. Your cash advance limit is usually much lower — often 20 to 30 percent of your credit limit — and is set separately by your issuer. You can withdraw only up to your cash advance limit, even if you have available credit remaining.
Do I have to pay back a cash advance right away?
No, but interest starts accruing when ready and compounds daily. You can carry the balance as long as you make at least the minimum payment each month. However, the longer you carry it, the more interest you pay. Most people pay off cash advances as quickly as possible to minimize the total cost.
Will a cash advance hurt my credit score?
A cash advance itself does not hurt your score, but it increases your credit utilization (the percentage of your available credit you are using), which can lower your score slightly. Late payments on the cash advance will hurt your score more significantly and stay on your report for seven years.
Can I get a cash advance if I have a low credit limit?
Yes, but your cash advance limit is set by your issuer and may be much lower than your credit limit. You can call your issuer to ask what your cash advance limit is. Some issuers allow you to request a higher limit, but this is not may provide.