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 line, not a separate bank account. Your card issuer treats it as a loan you owe when ready, and charges you interest and fees from day one — there is no grace period like there is for regular purchases.
Most people should avoid cash advances unless they have no other option. The fees are steep, the interest rate is usually higher than your regular purchase rate, and the interest starts accruing right away. If you need cash, using a debit card, visiting your bank branch, or borrowing from someone you know will almost always cost you less.
Key Takeaways
- Cash advances charge a fee (usually 3 to 5 percent of the amount) plus a higher interest rate than regular purchases, with interest starting when ready.
- You can withdraw cash at any ATM that displays your card's logo, or ask a cashier at most stores for cash back when you make a purchase.
- Your credit card statement will show the cash advance separately from regular purchases, and you will owe the full amount plus interest on your next bill.
- Some credit cards do not allow cash advances at all, or cap the amount you can withdraw based on your credit limit.
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, then choose your amount.
The ATM will show you the fee before you confirm. Read it. Most ATMs charge a flat fee ($2 to $5) on top of what your card issuer charges. Your card issuer will add its own fee — typically 3 to 5 percent of the amount withdrawn — when the transaction posts to your account. If you withdraw $200, you might pay $6 to $10 in fees before interest even starts.
The ATM will dispense the cash and print a receipt. Keep the receipt and check your credit card statement a few days later to confirm the amount and fees posted correctly.
Getting cash back at a store
When you make a purchase at a grocery store, pharmacy, or other retailer, you can ask the cashier for cash back. Hand them your credit card along with your purchase, and tell them how much cash you want back. They will ring it up as part of your transaction.
This method usually has a lower fee than an ATM — sometimes no fee from the store itself — but your card issuer will still charge its cash advance fee and interest. The amount will appear on your statement as a cash advance, not as part of your purchase, so the interest clock starts when ready.
Not all stores offer this service, and some have limits on how much cash back they will give. Call ahead if you are unsure, or ask the cashier before you hand over your card.
What fees and interest you will pay
A cash advance costs money in three ways. First, the ATM or store may charge a transaction fee ($2 to $5, or sometimes a percentage). Second, your card issuer charges a cash advance fee, usually 3 to 5 percent of the amount you withdraw. Third, interest starts accruing when ready at a rate that is typically 2 to 5 percentage points higher than your regular purchase APR.
Unlike regular purchases, there is no grace period. If your regular APR is 18 percent and your cash advance APR is 23 percent, you start paying 23 percent interest the moment the cash leaves the ATM. A $200 withdrawal could cost you $10 to $15 in fees alone, plus $3 to $4 in interest by the time your statement arrives.
Check your credit card agreement or call your issuer to find out your specific cash advance fee and APR. These numbers vary by card and by issuer, and some cards do not allow cash advances at all.
How a cash advance appears on your statement
Your credit card statement will list the cash advance separately from your regular purchases. It will show the date, the amount, and the fee charged by your issuer. Interest will appear as a separate line item under "Finance Charges" or "Interest Paid."
The cash advance counts toward your credit limit. If your limit is $2,000 and you withdraw $300 in cash, you have $1,700 left to spend on regular purchases. The cash advance also counts as a balance on your account, so it will affect your credit utilization ratio — the percentage of your available credit that you are using. High utilization can lower your credit score.
When you make a payment, your issuer will explore it to your lowest-interest balance first (usually regular purchases), which means the cash advance balance sits and accrues interest longer. Pay the cash advance off as quickly as you can to minimize the total interest you owe.
Limits on how much you can withdraw
Your card issuer sets a cash advance limit, which is often lower than your overall credit limit. You might have a $5,000 credit limit but only be able to withdraw $1,000 in cash. Some cards set the limit at 20 to 50 percent of your credit limit; others have a flat dollar cap.
You can find your cash advance limit in your credit card agreement, on your issuer's website, or by calling customer service. If you try to withdraw more than your limit, the ATM will decline the transaction. You cannot exceed this limit even if you have available credit for regular purchases.
Some issuers allow you to request a higher cash advance limit, but this is not common. Most treat it as a fixed restriction on your account.
Alternatives to a credit card cash advance
Before you use a cash advance, consider these lower-cost options. A debit card withdrawal from your own bank account costs nothing or a small ATM fee. A visit to your bank branch is free. A personal loan from a bank or credit union usually has a lower interest rate than a cash advance. Borrowing from a friend or family member costs nothing if they do not charge interest.
If you need cash regularly, opening a basic checking account at a bank or credit union gives you free ATM access and no fees for withdrawals. If you are in a true emergency and have no other way to get cash, a cash advance is better than nothing — but it should be a last resort, not a habit.
Frequently Asked Questions
Can I use my credit card to withdraw cash from my own bank's ATM?
No. Your credit card is not connected to a bank account, so you cannot withdraw from your own funds. You can only use a credit card to borrow money as a cash advance. If you have a debit card linked to a checking account at the same bank, use that instead — it will be free.
What happens if I do not pay back the cash advance?
The balance will stay on your credit card and accrue interest every month. If you miss payments, your issuer will charge late fees, your interest rate may increase, and the missed payments will damage your credit score. The debt will not go away unless you pay it off or the account is closed.
Does a cash advance hurt my credit score?
A single cash advance does not directly hurt your score, but it increases your credit utilization (the percentage of your limit you are using), which can lower your score temporarily. Repeated cash advances or a high cash advance balance that you carry for months will have a larger negative effect.
Can I get a cash advance if my credit card is maxed out?
No. A cash advance counts against your credit limit, so you need available credit to withdraw cash. If you have used your entire limit, you cannot take a cash advance until you pay down the balance.
Is there a way to avoid the cash advance fee?
Not if you use your credit card. The fee is built into the product. Your only option is to use a different method to get cash — a debit card, a bank visit, or a personal loan — or to avoid getting cash in the first place.