Getting cash from a credit card is possible but costs more than a regular purchase
You can withdraw cash using your credit card at an ATM, through a bank teller, or by requesting cash back at a store checkout. The transaction is called a cash advance. Unlike a purchase, a cash advance charges you a fee upfront — usually 3 to 5 percent of the amount withdrawn — and the interest rate is higher than your regular purchase rate. Interest starts accruing when ready, with no grace period. Most people use cash advances only when they have no other option, because the cost adds up quickly.
The total cost depends on how long you carry the balance. A $500 cash advance with a 4 percent fee costs $20 upfront. If you pay it back within a week, that may be your only charge. If you carry it for three months at a 22 percent annual rate, you will owe roughly $27 in interest on top of the fee — a total cost of $47. The longer you hold the cash, the more expensive it becomes.
Key Takeaways
- Cash advances charge an upfront fee of 3 to 5 percent plus a higher interest rate than purchases, with no grace period.
- You can get cash at an ATM, from a bank teller, or by requesting cash back at a store, depending on your card and bank.
- Your credit card issuer sets a separate cash advance limit, which may be lower than your overall credit limit.
- The total cost of a cash advance grows daily, so paying it back as soon as possible reduces what you owe.
How to withdraw cash at an ATM
Insert your credit card into any ATM that displays your card's logo — Visa, Mastercard, American Express, or Discover. Enter your PIN. Select "Withdraw Cash" or "Cash Advance" from the menu. Choose the amount you want. The ATM will show you the fee before you confirm. Complete the transaction and take your cash and receipt.
Not all ATMs accept credit cards; most are set up for debit cards only. If the machine rejects your card, try a different ATM or visit a bank branch instead. Some ATMs charge an additional operator fee on top of your card issuer's fee — this will appear on the screen before you confirm. Always check the fee disclosure before you complete the withdrawal.
Getting cash from a bank teller or branch
Walk into any branch of your card issuer's bank or a partner bank and tell the teller you want a cash advance on your credit card. Bring your card and a photo ID. The teller will process the transaction, show you the fee, and hand you the cash. This method works even if you do not have a checking account at that bank.
Some card issuers allow you to request a cash advance by phone or through their mobile app, and the money is deposited into your bank account within one to three business days. Check your card's terms or call the number on the back of your card to see if this option is available to you. This route is slower than an ATM but avoids ATM operator fees.
Requesting cash back at checkout
At a grocery store, pharmacy, or other retailer that offers cash back, you can ask the cashier for cash back on your credit card during checkout. This is the cheapest way to get cash because many retailers do not charge a fee — only your card issuer's cash advance fee applies. The amount is added to your total bill.
Not all stores accept credit cards for cash back; most require a debit card. Ask the cashier whether your credit card is accepted before you reach the register. The amount you can withdraw is usually capped at $20 to $100 per transaction, depending on the store's policy. If you need more cash, you can make multiple transactions at different stores or use an ATM instead.
Understanding cash advance limits and fees
Your credit card issuer sets a cash advance limit separate from your regular credit limit. This limit is often 20 to 30 percent of your total credit limit, but it varies by card and issuer. You can find your cash advance limit in your card agreement, online account portal, or by calling the number on the back of your card.
The fee structure for a cash advance typically includes an upfront fee of 3 to 5 percent of the amount withdrawn, charged when ready. Your interest rate for the cash advance is usually 2 to 5 percentage points higher than your purchase rate. Interest accrues daily from the moment you withdraw the cash, with no grace period — even if you pay your full statement balance by the due date, the cash advance interest still charges.
Example: If you withdraw $500 with a 4 percent fee and a 22 percent annual interest rate, you pay $20 upfront. If you carry the balance for 30 days before paying it back, you owe an additional $9 in interest, for a total cost of $29. If you carry it for 90 days, the interest grows to roughly $27, making your total cost $47.
How interest and repayment work
When you make a payment on your credit card, the issuer applies it to your lowest-interest debt first — usually purchases — and your cash advance balance sits in the background accruing interest at the higher rate. This means paying your statement on time does not stop cash advance interest from growing. To stop the interest, you must pay off the cash advance balance itself.
Pay your cash advance back as quickly as you can. The longer you carry the balance, the more interest you owe. If you can pay it back within a few days, the total cost stays low. If you carry it for months, the interest can exceed the original fee you paid. Some card issuers let you specify that a payment goes toward your cash advance first — call and ask if this option is available on your card.
Alternatives to cash advances
Before you take a cash advance, consider whether another option costs less. If you need cash for an emergency, a personal loan from a bank or credit union often has a lower interest rate and no upfront fee. If you need cash for a purchase, use your debit card or a payment app instead of your credit card. If you are short on money, contact your creditors or service providers to ask about payment plans or hardship programs.
If you regularly need cash, a debit card or a checking account with ATM access is cheaper than repeated cash advances. If you use cash advances often, it may signal that your expenses are outpacing your income — in that case, a budget review or conversation with a financial counselor can help you understand where your money is going.
Frequently Asked Questions
Does a cash advance hurt my credit score?
A cash advance itself does not directly hurt your score, but carrying a high balance does. If your cash advance pushes your total credit card balance above 30 percent of your limit, your credit utilization ratio rises and your score may drop. Paying the balance off quickly keeps utilization low and minimizes the damage.
Can I use a cash advance to pay another credit card?
Technically yes, but it is expensive. You pay the cash advance fee and high interest rate on the withdrawn cash, then pay interest again on the other card. This creates a cycle of fees and interest. If you are juggling multiple cards, a balance transfer or personal loan is usually cheaper.
What happens if I exceed my cash advance limit?
The ATM or teller will decline the transaction if you try to withdraw more than your limit allows. You cannot override this limit. If you need more cash, you must wait until you pay down your existing cash advance balance, or you can request a limit increase from your card issuer.
Is there a grace period for cash advances like there is for purchases?
No. Interest on a cash advance starts accruing the day you withdraw it, even if you pay your full statement balance by the due date. This is one of the main reasons cash advances are expensive — you have no interest-free window.
Can I get a cash advance on a prepaid card or secured card?
Most prepaid cards and secured cards do not allow cash advances. Check your card agreement or contact your issuer to confirm. If cash advances are not available, you can withdraw money using your debit card or visit your bank to withdraw from your account directly.