You can withdraw cash from a credit card at an ATM, but it costs more than a regular purchase
Taking cash out of a credit card is called a cash advance. You go to an ATM, insert your credit card, enter your PIN, and withdraw money just like you would from a debit card or bank account. The money appears in your hand when ready, but the card issuer charges you fees and interest right away — often much higher than what you pay on regular purchases.
Most credit cards allow cash advances, but the terms vary by card and issuer. Before you do this, you should know exactly what it will cost you and what your other options are, because a cash advance is usually the most expensive way to get money from a credit card.
Key Takeaways
- A cash advance charges a fee (typically 3 to 5 percent of the amount) plus a higher interest rate than regular purchases, starting when ready with no grace period.
- You can withdraw cash at any ATM that displays your card's logo, up to a daily limit set by your card issuer (often $500 to $1,000).
- Interest on a cash advance begins accruing the day you withdraw it, not at the end of your billing cycle like a purchase would.
- Alternatives like balance transfers, personal loans, or borrowing from friends or family are usually cheaper than a cash advance.
Where to withdraw cash and what the limits are
You can withdraw cash at any ATM that displays your card's logo — Visa, Mastercard, American Express, or Discover. Walk up to the machine, insert your card, select "cash advance" or "withdrawal" (the exact wording varies), enter your PIN, and choose your amount. The ATM will dispense the cash and print a receipt.
Your card issuer sets a cash advance limit, which is usually lower than your overall credit limit. This limit is often $500 to $1,000, but it depends on your card and your credit history. You can find your cash advance limit in your card's terms and conditions, in your online account, or by calling the number on the back of your card. You also have a daily withdrawal limit — typically $500 to $1,000 per day — so if you need more than that, you will need to make multiple withdrawals on different days.
The fees and interest you will pay
A cash advance comes with two when ready costs: a cash advance fee and a higher interest rate. The fee is usually 3 to 5 percent of the amount you withdraw, with a minimum of $5 to $10. So if you withdraw $500, you might pay $15 to $25 in fees alone. That fee appears on your next statement.
The interest rate on a cash advance is almost always higher than the rate on regular purchases — often 5 to 10 percentage points higher. If your purchase APR is 18 percent, your cash advance APR might be 25 percent or more. Unlike a purchase, there is no grace period: interest starts accruing the moment you withdraw the cash, not at the end of your billing cycle. This means you are paying interest every single day until the balance is paid off.
The total cost adds up fast. A $500 cash advance at a 5 percent fee ($25) plus 25 percent APR costs you $25 upfront, then roughly $10 per month in interest if you pay it back over six months. Over a year, you could pay $60 or more in interest alone.
How to set up your PIN before you need it
To withdraw cash at an ATM, you need a PIN (personal identification number) for your credit card. Many people do not set one up until they need it, which can delay things. You can set up or reset your PIN before you ever go to an ATM.
Log into your online account with your card issuer and look for a "PIN" or "ATM PIN" option, usually under account settings or security. You can also call the number on the back of your card and ask customer service to set one up for you — they will either assign you a temporary PIN or let you choose one. Some issuers send a PIN in the mail when you first get the card, so check your welcome materials. Once it is set, you can use it at any ATM.
Cheaper alternatives to a cash advance
Before you take a cash advance, consider whether one of these options would cost you less money. A balance transfer to a card with a 0 percent introductory rate can be cheaper if you need the money to stay on the card for a while, though you will still pay a transfer fee (usually 3 to 5 percent). A personal loan from a bank or credit union often has a lower interest rate than a cash advance, especially if you have decent credit. A payday loan is expensive but may be cheaper than a cash advance if you can pay it back within two weeks.
If you need cash for an emergency, borrowing from family or friends, asking your employer for an advance on your paycheck, or selling something you own are all free or nearly free. A cash advance should be your last resort, not your first choice.
What happens if you cannot pay back the cash advance
If you do not pay back the cash advance in full, the balance rolls over to your next billing cycle and you keep paying interest at the higher cash advance rate. The interest compounds, meaning you pay interest on top of interest. If you miss a payment, you will face late fees and your credit score will drop.
If the balance stays unpaid for months, your card issuer may freeze your account or close it. The debt can be sold to a collection agency, which will contact you to demand payment. At that point, the original cash advance fee and interest are the least of your problems — you are dealing with collection calls and damage to your credit that can last seven years.
How cash advances show up on your statement and credit report
A cash advance appears as a separate line item on your credit card statement, distinct from your regular purchases. It shows the amount withdrawn, the fee charged, and the interest accrued. The balance is included in your total credit card balance and counts toward your credit utilization ratio — the percentage of your available credit that you are using. A high utilization ratio can lower your credit score.
The cash advance itself does not appear on your credit report as a separate entry, but the credit card balance does. If you carry a balance month to month, that shows up in your credit history and can affect your score. Paying off the cash advance as quickly as possible helps minimize the damage.
Frequently Asked Questions
Can I use my credit card to withdraw cash at a bank teller instead of an ATM?
Yes. Walk into any bank branch that accepts your card's network (Visa, Mastercard, etc.) and ask the teller for a cash advance. You will need your card and ID. The fee and interest rate are the same as an ATM withdrawal, so there is no advantage to doing it this way unless the ATM is broken or unavailable.
What is the difference between a cash advance and a balance transfer?
A cash advance gives you physical cash but charges a higher interest rate and fee. A balance transfer moves debt from one card to another and may offer a 0 percent introductory rate, but you cannot get cash — the money stays on the card. Balance transfers are usually cheaper if you need time to pay off the balance.
Will a cash advance hurt my credit score?
A cash advance itself does not hurt your score, but carrying a high balance does. If you withdraw $500 and pay it back within a few days, the impact is minimal. If you carry the balance for months, your credit utilization goes up and your score drops. Paying it off quickly is the best way to minimize damage.
Can I take a cash advance from a credit card I just opened?
Usually yes, but some issuers restrict cash advances on new accounts for the first 30 to 90 days. Check your card's terms or call customer service to confirm. Even if you can take a cash advance when ready, the fees and interest make it expensive, so avoid it if you can.
What happens if I hit my cash advance limit?
The ATM will decline your withdrawal and tell you that you have reached your limit. You cannot withdraw more than your card issuer allows. You can call the issuer to ask if they will increase your cash advance limit, but they are not required to do so. Waiting until the balance is paid down is the only way to withdraw more.