Getting cash from your credit card is possible, but it costs more than a regular purchase
You can withdraw cash using your credit card at an ATM, bank teller, or through a cash advance at a store. The transaction is called a cash advance, and your card issuer treats it differently from a purchase — you pay interest when ready, there is no grace period, and you often pay an upfront fee. Most people use this only when they have no other option, because the cost adds up quickly.
The three main ways to get cash are: using an ATM with your credit card PIN, asking a bank teller to process a cash advance, or requesting cash back at a store checkout. Each method charges the same interest and fees, so the choice comes down to what is available to you right now.
Key Takeaways
- Cash advances charge interest from the day you withdraw the money, with no grace period like purchases have.
- You will pay a cash advance fee, usually 3 to 5 percent of the amount withdrawn, on top of interest charges.
- Your credit card's cash advance limit is often lower than your spending limit and is set by your card issuer.
- The interest rate for cash advances is typically higher than the rate for purchases on the same card.
- Paying back the cash advance as soon as possible reduces the total interest you owe.
Using an ATM to withdraw cash
Find an ATM that accepts your card's network — Visa, Mastercard, American Express, or Discover — and insert your card. Enter your PIN (the same one you use at a bank ATM). Select "cash advance" or "withdraw cash" from the menu. The ATM will show you the amount you can withdraw, which is your cash advance limit. Enter the amount and complete the transaction.
The ATM will charge a fee for the withdrawal — this is separate from your card issuer's cash advance fee. ATM operators charge $2 to $5 per transaction, and your card issuer adds its own fee on top. You will see both fees on your credit card statement.
Getting cash from a bank teller
Walk into any bank branch that accepts your card's network and tell the teller you want a cash advance. Bring your credit card and a form of ID. The teller will process the transaction, charge you the cash advance fee, and hand you the cash. This method avoids the ATM operator fee, so you only pay your card issuer's fee.
Not all banks process cash advances for cards they did not issue. Call ahead to confirm the branch accepts your card type, or visit your own card issuer's branch if you have one nearby.
Requesting cash back at checkout
When you make a purchase at a store, gas station, or grocery store, you can ask for cash back at the register. Tell the cashier you want to add cash to your purchase total. This counts as a cash advance, not a debit transaction, so you pay the same interest and fees as an ATM withdrawal. The advantage is that you avoid the ATM operator fee.
The amount you can request varies by store — some allow up to $100, others up to $500. Ask the cashier what the limit is before you complete your purchase.
Understanding cash advance fees and interest rates
Your card issuer charges a cash advance fee at the time you withdraw the money. This is usually 3 to 5 percent of the amount withdrawn, with a minimum fee of $5 to $10. A $200 cash advance at 4 percent costs $8 in fees alone. This fee appears on your statement as a separate charge.
Interest on a cash advance starts accruing when ready — there is no grace period like there is for purchases. If your card's purchase APR is 18 percent and your cash advance APR is 22 percent (which is common), you pay the higher rate from day one. On a $200 advance, that is roughly $3.67 in interest per month if you do not pay it back.
Your card issuer sets a cash advance limit that is separate from your credit limit. You might have a $5,000 spending limit but only a $1,000 cash advance limit. Check your card's terms or call the issuer to find out your limit before you go to the ATM.
How cash advances affect your credit and account
A cash advance counts as a balance on your credit card, just like a purchase does. It appears on your credit report and affects your credit utilization ratio — the amount of credit you are using compared to your total limit. If you have a $5,000 limit and a $1,000 cash advance, your utilization jumps to 20 percent, which can lower your credit score slightly.
Cash advances also do not earn rewards points or cash back, even if your card offers them for purchases. You pay the fee and interest with no benefit in return. This is another reason to avoid cash advances unless you truly need the cash.
Paying back a cash advance quickly
Your credit card statement will show the cash advance as a separate line item from purchases. When you make a payment, the card issuer applies it to the balance in a specific order set by law: first to the highest-interest balance (usually the cash advance), then to lower-interest balances. This means your payment goes toward the cash advance first, which is what you want.
Pay as much as you can toward the cash advance as soon as possible. Every day you carry the balance, interest compounds. A $200 cash advance at 22 percent APR costs about $0.12 per day in interest. Over 30 days, that is $3.60 in interest alone, plus the initial $8 fee. Paying it back within a week cuts that cost in half.
Frequently Asked Questions
Can I get a cash advance if I have a low credit limit?
Your cash advance limit is set separately from your credit limit and is usually lower. Even with a $500 credit limit, you might only be able to withdraw $100 to $200 in cash. Call your card issuer to find out your specific cash advance limit.
What happens if I try to withdraw more than my cash advance limit?
The ATM or teller will decline the transaction and tell you the amount exceeds your limit. You can try again with a smaller amount, or you can contact your card issuer to request a temporary increase to your cash advance limit (though they may decline).
Is there a difference between a cash advance and a balance transfer?
Yes. A cash advance is cash you withdraw from an ATM or teller. A balance transfer moves debt from one card to another. Cash advances charge higher fees and interest rates than balance transfers, and they start accruing interest when ready.
Do I have to pay back a cash advance before I can use my card again?
No. You can continue to use your card for purchases while you carry a cash advance balance. However, any new purchases will accrue interest at the purchase rate, and your payment will go toward the cash advance first. It is better to pay off the cash advance before making new purchases.
What if I cannot afford to pay back the cash advance right away?
Contact your card issuer and explain your situation. Some issuers offer hardship programs that lower your interest rate or pause fees temporarily. You can also look into a personal loan from a bank or credit union, which often has a lower interest rate than a credit card cash advance.