Yes, you can get cash back on most credit cards, but the method and limits depend on your card type and where you're trying to use it

Cash back means withdrawing money against your credit card balance at an ATM or over the counter at a store. It is not the same as a cash back reward (a percentage of purchases returned to your account). When you take cash back, you are borrowing money on your credit line, and interest charges begin immediately — even if your card normally offers an interest-free period on purchases.

The most common way to get cash back is at an ATM using your card's PIN. You can also request cash back when you pay with your card at a store checkout, though not all merchants offer this. Some cards limit how much you can withdraw per day or per transaction, and some charge a fee each time you do it.

Key Takeaways

  • Cash back on a credit card starts accruing interest immediately, even if purchases on the same card do not.
  • ATM withdrawals usually charge a fee (often $2 to $5 per transaction) plus a higher interest rate than regular purchases.
  • Store cash back (asking for money when you pay at checkout) is usually free but may not be available at all retailers.
  • Daily withdrawal limits vary by card and issuer, typically ranging from $200 to $500 per day.
  • Cash advances report to credit bureaus and can lower your credit score if they push your overall credit use too high.

ATM withdrawals and their costs

When you use an ATM to withdraw cash on your credit card, two fees usually apply. The ATM operator charges a surcharge (typically $2 to $5) for using their machine, and your card issuer charges a cash advance fee — usually 3 to 5 percent of the amount withdrawn, with a minimum of $5 to $10. If you withdraw $100, you might pay $5 to $10 in fees before you even leave the machine.

The interest rate on cash advances is almost always higher than the rate on purchases. While a purchase might carry an APR of 15 to 20 percent, a cash advance often runs 20 to 30 percent or higher. Interest starts accruing the day you withdraw the money — there is no grace period. If you withdraw $200 and pay it back in 30 days, you will owe roughly $15 to $25 in interest alone, on top of the initial fees.

Store cash back at checkout

Many retailers let you ask for cash back when you swipe or insert your credit card at the register. You tell the cashier an amount, they add it to your purchase total, and you receive the cash. This method usually has no fee from the card issuer, though the store may decline the request or set a limit (often $20 to $100).

Store cash back is cheaper than an ATM withdrawal because you avoid the ATM surcharge and the card issuer's cash advance fee. However, interest still starts immediately on the amount you withdraw. Not all stores offer it — small retailers, gas stations, and some online merchants do not. Always ask before assuming a store will provide it.

Daily limits and how they work

Your card issuer sets a cash advance limit, which is separate from your credit limit. You might have a $5,000 credit limit but only a $500 cash advance limit. Some issuers set the limit as a percentage of your credit limit (often 20 to 50 percent), while others use a fixed dollar amount.

Most cards also impose a daily withdrawal limit — the maximum you can take out in a single day, usually $200 to $500. If you need more cash, you must wait until the next day. These limits exist to reduce fraud risk and to discourage heavy cash advance use. You can contact your card issuer to ask about your specific limits, but they rarely increase them on request.

How cash advances affect your credit score

When you take a cash advance, the transaction reports to the credit bureaus as a separate account activity. The amount counts toward your overall credit utilization — the percentage of available credit you are using. If a cash advance pushes your total credit use above 30 percent, it can lower your credit score, even if you pay it back quickly.

Frequent cash advances can also signal financial stress to lenders, which may affect your score over time. If you are considering a mortgage, car loan, or other credit application in the near future, avoid cash advances if possible. The temporary score drop can cost you a higher interest rate on a much larger loan.

Alternatives to credit card cash advances

If you need cash urgently, a credit card cash advance is usually the most expensive option available. A personal loan from a bank or credit union typically carries a lower interest rate and fixed repayment terms. A payday loan is faster but often more expensive than a cash advance, so compare the total cost before choosing it.

If you have a debit card linked to a checking account, withdrawing from an ATM costs nothing and carries no interest. If you need a larger amount, asking family or friends for a short-term loan, negotiating a payment plan with a creditor, or contacting a local nonprofit credit counselor may be better options than borrowing on your credit card.

What happens if you cannot pay back a cash advance

If you do not pay back a cash advance, the interest compounds daily and the balance grows quickly. After 30 days of non-payment, most issuers report the debt to the credit bureaus, which damages your credit score. After 180 days (six months) of non-payment, the issuer may close your account and send the debt to a collection agency.

Once a debt goes to collections, the collector can sue you in small claims or civil court, depending on the amount. A judgment against you can result in wage garnishment or a bank account levy. The best approach is to contact your card issuer as soon as you know you cannot pay — some offer hardship programs that lower interest rates or allow you to pause payments temporarily.

Frequently Asked Questions

Is store cash back cheaper than an ATM withdrawal?

Yes. Store cash back usually has no fee from your card issuer, while ATM withdrawals charge both a surcharge (paid to the ATM operator) and a cash advance fee (paid to your card issuer). Interest starts on both, but store cash back saves you $5 to $10 per transaction. Not all stores offer it, so ask before assuming they will.

Can I use a credit card cash advance to pay off another debt?

Technically yes, but it is almost never a good idea. The interest rate on a cash advance is higher than most other debts, and you pay fees immediately. If you are trying to pay off a credit card or loan, using a cash advance to do so will cost you more money overall. A personal loan or balance transfer card would be cheaper.

What is the difference between a cash advance and a balance transfer?

A cash advance withdraws money from your credit line as cash. A balance transfer moves debt from one card to another. Balance transfers often have a lower interest rate (sometimes 0 percent for a promotional period) and no immediate interest, while cash advances charge interest from day one. Balance transfers are for moving existing debt; cash advances are for getting cash.

Will a cash advance hurt my credit score?

It can. The amount counts toward your credit utilization ratio, and if it pushes your total use above 30 percent, your score may drop. The effect is usually temporary — your score recovers once you pay it back. However, if you are applying for a mortgage or other major loan soon, avoid cash advances because even a small score drop can raise your interest rate.

Can I get a cash advance on a prepaid card or debit card?

No. Cash advances are only available on credit cards. Prepaid and debit cards draw from money you already have, so there is no credit line to borrow against. You can withdraw money from an ATM using a debit card, but that is not a cash advance — it is simply accessing your own funds, and it usually costs nothing or a small ATM fee.