Yes, you can get cash back with most credit cards, but it costs money and works differently than a debit card

When you use a credit card to get cash back at a store checkout or ATM, you are borrowing money from your card issuer, not withdrawing your own funds. The transaction counts as a purchase on your credit card balance, which means you start paying interest on it immediately — even if you normally pay your full balance each month and avoid interest charges. Most credit cards charge a fee for cash withdrawals, usually between 3% and 5% of the amount you withdraw, on top of the interest.

Getting cash with a debit card is free or nearly free because you are taking your own money out of your bank account. Getting cash with a credit card is expensive because you are borrowing. The difference matters if you are thinking about using a credit card as a way to get cash when you need it.

Key Takeaways

  • Credit card cash withdrawals charge both an upfront fee (typically 3% to 5%) and interest that starts accruing immediately, unlike regular purchases.
  • Interest on cash advances does not have a grace period — you pay it from day one, even if you normally pay your full balance monthly.
  • ATM withdrawals and over-the-counter cash back at stores both count as cash advances and carry the same fees and interest rates.
  • Using a credit card to get cash is most expensive when you carry a balance, and least expensive when you can pay it back within days.

How the fees and interest work on cash advances

When you withdraw cash using a credit card, your card issuer charges you a cash advance fee at the moment of withdrawal. This fee is a percentage of the amount you take out — typically 3%, 4%, or 5%, with a minimum dollar amount (often $3 to $10). So if you withdraw $200 and your card charges a 4% fee, you pay $8 immediately, and your credit card balance goes up to $208.

On top of the fee, you also pay interest on the cash advance. The interest rate for cash advances is usually higher than the rate for regular purchases — often 2% to 5% higher. If your card charges 18% interest on purchases, it might charge 22% or 23% on cash advances. Unlike regular purchases, there is no grace period: interest starts accruing the day you withdraw the cash, even if you normally pay your full balance and pay zero interest on purchases.

If you withdraw $200 with a 4% fee and 22% annual interest rate, and you pay it back after 30 days, you will pay roughly $8 in fees plus $11 in interest — a total of about $19 to borrow $200 for a month. That is much more expensive than a payday loan at many lenders, and far more expensive than using a debit card or asking for cash back from a purchase.

Where you can get cash with a credit card

You can withdraw cash at an ATM using your credit card's PIN, just as you would with a debit card. The ATM will charge the cash advance fee and start accruing interest immediately. Some ATMs also charge an additional operator fee (usually $2 to $3) on top of your card issuer's fee, so you may pay two fees at once.

You can also ask for cash back at a store checkout when you make a purchase with your credit card. This counts as a cash advance, not a regular purchase, so the same fees and interest apply. The difference is that you are not paying an ATM operator fee, so your only costs are the card issuer's cash advance fee and interest.

Some credit card issuers offer balance transfer checks — checks you can write against your credit line. These also count as cash advances and carry the same fees and interest rates. Read the fine print on your card's terms to see whether your issuer offers them and what the terms are.

Why the interest rate is higher for cash advances

Card issuers charge more for cash advances because they see the risk differently. When you make a regular purchase, the merchant guarantees the transaction and the card issuer can dispute it if something goes wrong. When you withdraw cash, there is no merchant and no dispute protection — you have the money in your hand, and the card issuer has no way to verify what you did with it or recover it if you do not pay.

The higher interest rate and upfront fee are the card issuer's way of pricing that risk. It also discourages people from using credit cards as a cash machine, which card issuers do not want because it increases default risk and reduces the profit they make from merchant fees.

When it makes sense to use a credit card for cash

Using a credit card to get cash is rarely the cheapest option, but there are a few situations where it might make sense. If you are traveling internationally and your debit card does not work, a credit card cash advance might be your only option — in that case, the fee and interest are the cost of access, not a choice between alternatives.

If you have a very low cash advance fee (some cards charge 1% or 2%) and you can pay the cash back within a few days, the total cost might be lower than a payday loan or other short-term borrowing. But this only works if you actually pay it back quickly — if you carry the balance, the interest will add up fast.

For most everyday situations — needing cash at a store, at an ATM, or to pay someone — using a debit card, asking for cash back from a regular purchase, or withdrawing from an ATM using your bank account is cheaper and simpler than using a credit card.

How a cash advance affects your credit score

A cash advance shows up on your credit report as a separate transaction from your regular purchases, but it counts toward your total credit card balance. If you withdraw $200 and your credit limit is $1,000, your credit utilization goes up to 20% (or higher if you had an existing balance). High credit utilization can lower your credit score, especially if you are close to your limit.

The cash advance itself does not hurt your score more than a regular purchase would, but carrying a balance on the cash advance — or any balance — will lower your score over time. Paying it off quickly keeps the damage minimal.

Frequently Asked Questions

Do I pay interest on cash back from a regular purchase?

No. When you ask for cash back at a store checkout as part of a regular purchase, that cash back is treated as part of the purchase and gets the same grace period. If you pay your full balance by the due date, you pay no interest on the cash back. Cash advances at ATMs or through balance transfer checks are different — those charge interest from day one.

What is the difference between cash back and a cash advance?

Cash back at checkout is part of a regular purchase and gets a grace period. A cash advance is a separate transaction — at an ATM, through a balance transfer check, or sometimes at a store if you ask for more cash than your purchase amount — and charges interest and fees immediately.

Can I use a credit card to withdraw cash from my own bank account?

No. A credit card is a line of credit, not access to a bank account. Any cash you get with a credit card is borrowed money, not your own funds. To withdraw your own money, use a debit card or visit your bank in person.

Will getting a cash advance hurt my credit score?

A cash advance can lower your score if it increases your credit utilization significantly or if you carry a balance on it. The impact is temporary and recovers as you pay down the balance. Paying off the cash advance quickly minimizes the damage.

What if my credit card does not have a PIN?

You can still get cash back at a store checkout by asking the cashier. You cannot use an ATM without a PIN, but you can call your card issuer to request one, or use a different payment method to get cash.