Yes, you can withdraw cash from a credit card, but it works differently than a debit card and costs more
Most credit cards let you take out cash at an ATM, bank teller, or through a cash advance at a store. The transaction is called a cash advance. Unlike a debit card withdrawal, which pulls from money you already have, a cash advance borrows against your credit limit and starts charging interest immediately — usually at a higher rate than your regular purchase APR. There is no grace period like there is for purchases.
The cost of a cash advance includes an upfront fee (typically 3 to 5 percent of the amount withdrawn) plus daily interest from the moment you take the money out. If you withdraw $200, you might pay $6 to $10 just to get it, then interest on top of that starting right away. This makes cash advances one of the most expensive ways to borrow money on a credit card.
Key Takeaways
- Cash advances charge a separate fee (usually 3 to 5 percent) plus a higher interest rate than purchases, with no grace period.
- You can withdraw cash at an ATM using your credit card PIN, at a bank teller with your card and ID, or sometimes at a store checkout.
- Interest starts accruing the day you take the cash, so the longer you carry the balance, the more you pay.
- Your credit card company sets a cash advance limit, which may be lower than your total credit limit.
Where and how to get cash from your credit card
The most common method is an ATM withdrawal. You insert your credit card, enter your PIN (which you may need to set up first if you have never done a cash advance), and withdraw up to your cash advance limit. The ATM will show you the fee before you confirm the transaction.
You can also go to a bank teller and ask for a cash advance. Bring your credit card and a photo ID. The teller will process it the same way an ATM does, but you can withdraw larger amounts and avoid ATM fees in some cases — though the cash advance fee itself still applies.
Some retailers let you get cash back at checkout, though this is less common with credit cards than with debit cards. Ask the cashier whether they accept credit card cash advances; many do not.
Fees and interest rates for cash advances
The upfront fee is non-negotiable and appears on your statement as a separate charge. It ranges from 3 to 5 percent of the amount withdrawn, though some cards charge a flat minimum fee (like $5 or $10) if the percentage would be smaller. A $100 withdrawal might cost $5 to $10 in fees alone.
The interest rate on cash advances is almost always higher than the rate on purchases. While a purchase APR might be 15 to 20 percent, a cash advance APR is often 20 to 30 percent or more. This rate applies from day one — there is no 21-day grace period like most cards offer for purchases. If you carry a $200 cash advance for a month at 25 percent APR, you will pay roughly $4 in interest on top of the initial fee.
The total cost adds up fast. A $500 cash advance at 4 percent fee plus 25 percent APR costs you $20 upfront, then about $10 in interest per month if you do not pay it back immediately.
Your cash advance limit versus your credit limit
Your credit card company sets a separate cash advance limit, which is often lower than your total credit limit. If your credit limit is $5,000, your cash advance limit might be only $1,000 or $1,500. You can find this limit in your card's terms and conditions, in your online account, or by calling the card issuer.
If you try to withdraw more than your cash advance limit, the ATM or teller will decline the transaction. Requesting a higher cash advance limit is possible but not may provide — the card issuer reviews your account and may or may not approve an increase.
How cash advances affect your credit and account
A cash advance counts toward your credit utilization, which is the percentage of your available credit you are using. If you have a $5,000 limit and take a $500 cash advance, your utilization jumps to 10 percent. High utilization can lower your credit score, even if you pay the balance on time.
The cash advance also appears on your credit report as a separate transaction type, which some lenders view differently than regular purchases. It signals that you needed immediate cash, which can be a red flag to future creditors.
Paying back a cash advance works the same as paying back any credit card balance: you make a payment toward your account. However, if you have both purchases and a cash advance balance, your payment may be applied to the purchase first (depending on your card's terms), leaving the cash advance to accrue interest longer.
Alternatives to credit card cash advances
If you need cash urgently, a cash advance is rarely the cheapest option. A personal loan from a bank or credit union typically charges 6 to 36 percent APR with no upfront fee, making it cheaper than a credit card cash advance in most cases. The downside is that approval takes a few days.
A payday loan is faster but far more expensive — fees can equal 400 percent APR or more. Avoid this unless you have no other option and can repay within two weeks.
If you have a home equity line of credit (HELOC) or can borrow from a friend or family member, those are usually cheaper than a cash advance. Some employers offer paycheck advances with little or no fee.
If you need cash for an emergency expense, check whether the expense itself can be paid by credit card instead — paying a medical bill or utility bill directly with your card avoids the cash advance fee and interest rate.
Frequently Asked Questions
Can I use my credit card PIN at any ATM?
Most ATMs accept credit cards, but not all. ATMs at your card issuer's bank usually work. Independent ATMs and those at other banks may decline your card or charge an additional fee. Always check the ATM screen for the cash advance fee before you confirm the withdrawal.
What happens if I cannot pay back a cash advance?
The balance stays on your account and interest keeps accruing. If you miss payments, your credit score drops and the card issuer may raise your interest rate or close your account. After 180 days of non-payment, the debt may be sold to a collection agency.
Is there a grace period for cash advances like there is for purchases?
No. Interest on a cash advance starts the day you withdraw it. There is no grace period, so even if you pay it back within a few days, you will owe interest for those days.
Can I get a cash advance if I am near my credit limit?
Only if your cash advance limit has room. Your cash advance limit is separate from your purchase limit. If your cash advance limit is $1,000 and you have already used $900 of it, you can only withdraw $100 more, even if your total credit limit has room.
Do all credit cards offer cash advances?
Most do, but not all. Some cards designed for people rebuilding credit may not offer cash advances. Check your card's terms or contact your issuer to confirm whether cash advances are available on your account.