The three ways to withdraw cash using your credit card
You can get cash from your credit card in three ways: at an ATM using your card's PIN, at a bank teller's window, or through a cash advance service at a store. ATM withdrawals are the fastest and most common. Bank tellers can withdraw larger amounts if you bring your card and ID. Some retailers offer cash back when you make a purchase, though this counts as a transaction rather than a cash advance.
All three methods charge you a fee and start accruing interest when ready — there is no grace period like there is for regular purchases. The interest rate on cash advances is typically higher than your standard purchase rate. You should only use a credit card for cash when you have no other option, because the cost adds up quickly.
Key Takeaways
- ATM withdrawals charge a fee (usually 3 to 5 percent of the amount) plus a flat fee from the ATM operator, and interest starts accruing the same day.
- Your credit card's cash advance limit may be lower than your overall credit limit, so you cannot necessarily withdraw your full available balance.
- Interest rates on cash advances are usually 2 to 5 percentage points higher than your purchase rate and compound daily.
- Bank tellers can withdraw cash directly from your credit card account if you bring your card and photo ID, which may have lower fees than ATM withdrawals.
- Paying back a cash advance takes longer because payments go toward your lowest-interest debt first, usually your regular purchases.
Using an ATM to withdraw cash
Find an ATM that displays your card's logo — Visa, Mastercard, American Express, or Discover. Insert your card and enter your PIN. Select "cash withdrawal" or "cash advance" from the menu. The ATM will show you the withdrawal fee before you confirm. Enter the amount you want and take your cash and receipt.
The fee structure works like this: your card issuer charges a percentage of the amount (usually 3 to 5 percent, with a minimum of $2 to $3) plus the ATM operator may charge an additional flat fee of $1 to $3. A $200 withdrawal might cost you $10 to $15 in fees alone. Interest begins accruing the moment you withdraw the cash, at your card's cash advance rate.
Check your card's terms before you go to the ATM. Your cash advance limit is often lower than your total credit limit — you might have a $5,000 limit overall but only be able to withdraw $1,000 in cash. If you try to withdraw more than your cash advance limit, the ATM will decline the transaction.
Withdrawing cash at a bank teller window
Go to any branch of your card issuer's bank or a bank that honors your card type. Bring your credit card and a photo ID. Tell the teller you want to withdraw cash against your credit card. The teller will process the transaction and hand you cash.
Bank teller withdrawals often have lower fees than ATM withdrawals — some issuers charge only a flat fee of $5 to $10 rather than a percentage. However, the teller may ask why you are withdrawing cash or set a limit on the amount. Interest still begins when ready and accrues at your cash advance rate. This method works best if you need a large amount and your card issuer has a branch near you.
Getting cash back at a store checkout
When you make a purchase at a grocery store, pharmacy, or other retailer, you can ask the cashier for cash back. Tell them the amount you want and they will add it to your total. You pay for the purchase plus the cash back amount on your credit card.
This is technically a purchase transaction, not a cash advance, so it may not trigger the higher cash advance interest rate — check your card's terms. However, you must make an actual purchase to use this method, and the amount is usually limited to $20 to $100 depending on the store. If you need cash without buying anything, this option does not work.
Understanding cash advance fees and interest
Cash advance fees are separate from your purchase fees. Your card issuer charges a percentage fee (typically 3 to 5 percent) or a flat fee (typically $5 to $10), whichever is greater. The ATM operator may charge an additional fee. These fees are added to your balance when ready.
The interest rate on cash advances is higher than your purchase rate. If your purchase APR is 18 percent, your cash advance APR might be 23 percent. Interest compounds daily and starts accruing the day you withdraw the cash — there is no grace period. A $500 cash advance at 23 percent APR costs about $9.58 in interest per month if you do not pay it down.
When you make a payment to your credit card, the payment goes toward your lowest-interest debt first. If you have both purchases and a cash advance, your payment pays off the purchase balance before it touches the cash advance. This means the cash advance sits and accrues interest for longer.
How to minimize the cost of a cash advance
Withdraw only what you need. Every dollar you withdraw costs you a fee plus daily interest. A $100 withdrawal costs less than a $500 withdrawal, even at the same percentage rate.
Pay it back as fast as you can. The longer the cash advance sits on your card, the more interest you pay. If you can pay it off within a week, the interest cost is manageable. If it sits for months, the interest can exceed the original fee.
Use a bank teller instead of an ATM if your card issuer has a branch nearby. Teller fees are often lower than ATM fees plus operator charges. Avoid ATMs in bars, casinos, and tourist areas — they charge the highest operator fees.
Consider whether a different source of cash would be cheaper. A personal loan, a line of credit, or even a payday loan (if your state allows it) might have lower interest rates than a credit card cash advance. Compare the total cost before you decide.
What happens if you cannot pay back the cash advance
If you do not pay back the cash advance, it stays on your card and accrues interest at your cash advance rate. Your minimum payment will increase. If you miss payments, your card issuer will report the missed payment to the credit bureaus, which will lower your credit score.
If the debt goes unpaid for long enough, your card issuer may close your account and send the debt to a collection agency. At that point, you may face calls from collectors and potential legal action. The longer you wait, the more interest and fees pile up.
If you are struggling to pay back a cash advance, contact your card issuer and ask about a hardship program or a lower interest rate. Some issuers will work with you if you reach out before you fall behind.
Frequently Asked Questions
Can I use a credit card cash advance to pay another credit card?
Yes, you can withdraw cash and use it to pay another card. However, this is expensive because you pay a cash advance fee plus a higher interest rate. You would be better off transferring the balance directly using a balance transfer offer, which typically has a lower fee and a promotional interest rate.
Does a cash advance hurt my credit score?
A single cash advance does not hurt your score. However, if the cash advance increases your overall credit utilization (the percentage of your total credit limit you are using), it may lower your score slightly. Missed payments on the cash advance will hurt your score significantly.
What is the difference between a cash advance and a balance transfer?
A cash advance gives you physical cash and charges a higher interest rate. A balance transfer moves debt from one card to another and often includes a promotional lower rate. Use a balance transfer to move existing debt between cards, and use a cash advance only when you need actual cash.
Can I withdraw cash from a credit card without a PIN?
At a bank teller window, yes — you only need your card and ID. At an ATM, you need your PIN. If you do not know your PIN, call your card issuer to set one up or reset it before you go to the ATM.
Is there a limit to how much cash I can withdraw?
Yes. Your card issuer sets a cash advance limit, which is often lower than your total credit limit. You also may hit daily withdrawal limits at ATMs, typically $300 to $500. Check your card's terms or call your issuer to find out your specific cash advance limit.