You can withdraw cash from a credit card at an ATM, but it costs more than a regular debit card withdrawal
Taking money off a credit card means getting cash from your available credit balance. You do this at an ATM using your credit card and PIN, the same way you would with a debit card. The money comes from your credit limit, not from a bank account, so you are borrowing it when ready — you will owe it back with interest and fees.
This is different from a debit card withdrawal, which pulls from money you already have. Credit card cash withdrawals are called cash advances, and they are expensive. Most cards charge a fee (usually 3 to 5 percent of the amount withdrawn) plus a higher interest rate than regular purchases, often 20 to 30 percent or more. Interest starts accruing right away, with no grace period like you get on regular purchases.
Key Takeaways
- Cash advances from a credit card charge an upfront fee of 3 to 5 percent plus a higher interest rate than purchases, with no grace period.
- You withdraw cash at any ATM that accepts your card, but the ATM operator may also charge you a fee on top of your card's fee.
- The money you withdraw counts against your available credit and must be repaid like any other credit card balance.
- Most people should avoid cash advances unless they have no other option, because the cost adds up quickly even for small amounts.
How to withdraw cash at an ATM with your credit card
Find an ATM that displays your card's logo — Visa, Mastercard, American Express, or Discover. Insert your card, enter your PIN, and select "Withdrawal" or "Cash Advance." Choose your amount and confirm. The ATM will dispense the cash and return your card.
You can use ATMs at your card issuer's bank branches (often free) or at other banks and independent ATMs (often charged a fee by the ATM operator on top of your card's cash advance fee). Check your card's terms to see if your issuer charges extra for out-of-network ATM use.
What fees and interest you will pay
Your credit card company charges a cash advance fee, typically 3 to 5 percent of the amount withdrawn. On a $200 withdrawal, that is $6 to $10 right away. Some cards charge a flat fee instead (like $10 per withdrawal) — check your card agreement to know which applies to yours.
Interest on the cash advance starts the day you withdraw it. There is no grace period like there is on regular purchases. If your card's cash advance rate is 25 percent and you withdraw $200, you will owe roughly $4.17 in interest after one month if you do not pay it back. The interest rate for cash advances is usually higher than the rate for purchases on the same card.
An ATM operator may also charge you a fee for using their machine — often $2 to $3. This is separate from your card issuer's fee and goes to the bank or network that owns the ATM, not to your credit card company.
Other ways to get cash without a credit card cash advance
If you need cash, consider these lower-cost options first. A debit card withdrawal at your bank's ATM is free and costs nothing in interest. A personal loan from a bank or credit union usually has a lower interest rate than a credit card cash advance, though you will need to be approved and wait a few days for the money.
Some employers offer paycheck advances or earned wage access programs that let you withdraw part of your paycheck early, often with no fee. Ask your HR or payroll department if this is available to you. A line of credit from your bank is another option if you have one set up — it usually has a lower rate than a cash advance.
If you are in a true emergency and have no other option, a cash advance is faster than a loan, but the cost is high. Use it only if you can pay it back within a few weeks.
How a cash advance affects your credit score
A cash advance does not directly hurt your credit score the way a late payment does. However, it increases your credit utilization — the percentage of your available credit you are using. If you normally use 30 percent of your $5,000 limit and you take a $1,000 cash advance, you are now using 26 percent of your limit. High utilization can lower your score slightly.
The bigger risk is that a cash advance makes it harder to pay down your balance, because you are paying interest from day one. If you carry the balance for months, the interest charges add up and your utilization stays high, which keeps your score lower for longer.
How to pay back a credit card cash advance
A cash advance payment works like any other credit card payment. You can pay online through your card issuer's website or app, by phone, by mail, or in person at a branch. The payment goes toward your total balance, but credit card companies typically explore payments to the lowest-interest debt first — so your payment will cover regular purchases before it covers the cash advance.
If you want to pay off the cash advance specifically, contact your card issuer and ask them to explore your payment to the cash advance balance. Some issuers will do this; others will not. Either way, pay as much as you can as soon as you can, because the interest rate is high and compounds daily.
When a cash advance might make sense
A cash advance is rarely the best choice, but there are narrow situations where it is the fastest option. If you need cash for an emergency and have no access to a debit account, no credit union line of credit, and no friends or family who can lend you money, a cash advance gets you cash in minutes.
The key is to pay it back quickly — within a week or two if possible. A $200 cash advance paid back in one week costs roughly $6 to $10 in fees plus $1 to $2 in interest. The same $200 borrowed for three months costs $6 to $10 in fees plus $12 to $15 in interest. The longer you carry it, the worse the deal becomes.
Frequently Asked Questions
Can I take out more cash than my available credit?
No. You can only withdraw up to your available credit balance. If your limit is $5,000 and you have already charged $3,500, you can withdraw up to $1,500. Some cards set a separate, lower cash advance limit — check your card agreement or call your issuer to find out yours.
Does a cash advance show up differently on my credit report?
A cash advance appears on your credit card statement and counts toward your total balance, but it does not show up as a separate item on your credit report. Your credit report shows your total credit card balance and payment history, not the type of transaction.
What if I cannot pay back the cash advance?
If you miss a payment, your card issuer will charge a late fee and report the missed payment to credit bureaus, which will lower your score. The interest will keep accruing. Contact your issuer as soon as you know you cannot pay — some offer hardship programs or payment plans, though these vary by card.
Can I use a credit card cash advance to pay another credit card?
Technically yes, but it is a bad idea. You are paying a cash advance fee and high interest rate to move money from one card to another. If you are trying to pay down debt, look into a balance transfer card instead, which usually has a lower or zero introductory rate.
Is there a limit to how much I can withdraw in one day?
Yes. ATMs have daily withdrawal limits, usually $300 to $500, set by your card issuer or the ATM operator. You can make multiple withdrawals up to your available credit, but each one will be subject to the daily limit and will charge a separate fee.