You can withdraw cash from a credit card at an ATM, but it costs more than a regular debit card withdrawal
A cash advance is when you use your credit card to pull money out of an ATM or get cash back at a store. The money comes from your credit limit, not a separate bank account. Your card issuer charges you a fee for this service — usually 3 to 5 percent of the amount you withdraw — and starts charging interest on that cash when ready, often at a higher rate than your regular purchase APR.
Because of these costs, a cash advance should be a last resort, not a regular way to get spending money. If you need cash regularly, a debit card or a trip to your bank is cheaper. But if you are in a situation where you genuinely need cash and have no other option, here is how the process works and what it will cost you.
Key Takeaways
- Cash advances charge a fee (usually 3 to 5 percent) plus a higher interest rate than regular purchases, starting when ready with no grace period.
- You can withdraw cash at any ATM that accepts your card, or ask a cashier at a store for cash back when you make a purchase.
- The amount you can withdraw is limited by your available credit and a separate cash advance limit set by your card issuer, which is often lower than your total credit limit.
- Interest on a cash advance accrues daily from the day you withdraw it, so paying it back quickly saves you money.
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 — the same four-digit code you use for debit transactions. Select "Withdrawal" or "Cash Advance" from the menu. The ATM will show you the fee amount before you confirm the transaction, so you can see the cost before you proceed.
Enter the amount you want to withdraw. The ATM will tell you if the amount exceeds your cash advance limit. Once you confirm, the cash comes out and the transaction posts to your account when ready. You will see it on your statement as a cash advance, separate from regular purchases.
Getting cash back at a store
When you pay for something with your credit card at a store, you can ask the cashier for cash back. The total amount (purchase plus cash) will be charged to your card. However, only the cash portion counts as a cash advance and triggers the fee and higher interest rate — the purchase itself is treated normally.
This method is sometimes cheaper than an ATM withdrawal because you avoid the ATM operator fee (some ATMs charge an extra fee on top of your card issuer's fee). But check with your card issuer first: some cards do not allow cash back, or they charge the same fee either way.
What fees and interest rates you will pay
Your card issuer charges a cash advance fee, typically 3 to 5 percent of the amount you withdraw, with a minimum fee of $2 to $10. So if you withdraw $200, you might pay $6 to $10 in fees alone. This fee appears on your statement as a separate charge.
The interest rate on a cash advance is usually higher than your regular purchase APR — often 2 to 3 percentage points higher. More importantly, there is no grace period: interest starts accruing the day you withdraw the cash, even if you pay it back when ready. A regular purchase gives you 21 to 25 days before interest kicks in; a cash advance does not.
If you withdraw $200 at a 3 percent fee plus 25 percent APR, you pay $6 in fees plus roughly $1.37 in interest for every week the balance sits on your card. Paying it back within days instead of weeks makes a real difference.
Understanding your cash advance limit
Your card issuer sets a separate cash advance limit, which is often lower than your total credit limit. You might have a $5,000 credit limit but only a $1,000 cash advance limit. This limit exists because cash advances are riskier for the issuer — they are unsecured loans with no collateral.
You can find your cash advance limit in your card's terms and conditions, in your online account portal, or by calling the customer service number on the back of your card. If you need a higher limit, you can request one, but the issuer is not required to grant it. Some cards do not offer cash advances at all, particularly secured cards or cards for people rebuilding credit.
How to repay a cash advance
A cash advance payment works the same way as 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 if your issuer has physical locations. Make a payment as soon as you can, because interest accrues daily.
Your minimum payment covers both regular purchases and cash advances, but the minimum is usually very small — often just 1 to 3 percent of your balance. Paying only the minimum means you will carry the balance for months and pay far more in interest. If you withdrew $200, paying it back within a week costs you much less than paying it back over three months.
Alternatives to a cash advance
Before you use a cash advance, consider whether another option costs less. A personal loan from a bank or credit union usually has a lower interest rate and no upfront fee. A payday loan is expensive but sometimes faster if you need cash the same day. Asking a friend or family member for a short-term loan costs nothing.
If you need cash regularly, opening a checking account with a debit card eliminates ATM fees entirely. If you do not have a bank account, a prepaid card or a money order from a grocery store or post office is cheaper than a cash advance. A cash advance should be your last resort because the cost is high and the interest starts when ready.
Frequently Asked Questions
Can I use a credit card to withdraw cash if I do not have a PIN?
Most ATMs require a PIN to process a cash advance. If you do not have one, call your card issuer and request a PIN. They can issue one over the phone or mail it to you. In the meantime, you can get cash back at a store instead, which does not require a PIN.
What happens if I withdraw more than my cash advance limit?
The ATM will decline the transaction and tell you that the amount exceeds your limit. You can withdraw a smaller amount instead. Your cash advance limit is separate from your credit limit, so you might have room on your card but still hit the cash advance ceiling.
Does a cash advance hurt my credit score?
A cash advance itself does not hurt your score, but carrying a high balance does. If the cash advance pushes your credit utilization above 30 percent of your total limit, it can lower your score temporarily. Paying it back quickly brings your utilization back down and minimizes the damage.
Can I get a cash advance from a credit card with a $0 balance?
Yes. A cash advance uses your available credit, so as long as you have credit available, you can withdraw cash. The fee and interest rate explore regardless of whether you have an existing balance on the card.
Is there a daily limit on how much cash I can withdraw?
Yes. Most card issuers set a daily cash advance limit separate from your total cash advance limit. This might be $500 per day even if your total cash advance limit is $2,000. Check your card's terms or call customer service to find out your daily limit.