Yes, you can get cash back with most credit cards, but the method and cost depend on the card type and where you use it
The most common way to get cash back is at a checkout counter when you make a purchase. You tell the cashier how much cash you want, they add it to your bill, and the amount is charged to your card along with your purchase. This costs nothing extra — there is no fee beyond what you already owe.
A second option is to visit an ATM and use your card to withdraw cash directly. Many credit cards charge a fee for this, often 3 to 5 percent of the amount withdrawn, plus a flat fee of $2 to $5. Some cards charge only one or the other. A few cards with premium annual fees waive ATM fees entirely, but this is rare.
The third option is a cash advance from your bank or credit card issuer. You visit a branch or call the card company and request a cash advance. This almost always carries a fee — typically 3 to 5 percent — and the interest rate on a cash advance is usually higher than the rate on regular purchases, sometimes starting immediately with no grace period.
Key Takeaways
- Cashback at checkout is free and the simplest way to get cash from a credit card.
- ATM withdrawals with a credit card usually cost 3 to 5 percent plus a flat fee, and interest begins accruing immediately.
- Cash advances from your bank carry fees and higher interest rates than regular purchases.
- Debit cards, not credit cards, are designed for ATM withdrawals and typically cost less or nothing.
- Check your card's terms to learn which fees apply to your specific card before you withdraw.
Why cashback at checkout is the cheapest option
When you ask for cashback during a purchase, the store's register adds the amount to your total bill. You pay it off the same way you pay the rest of your purchase — through your credit card statement. Because there is no separate transaction, there is no separate fee.
This works at most grocery stores, pharmacies, gas stations, and retail chains. Some smaller stores or restaurants do not offer it, so it is worth asking before you assume it is available. The limit is usually $20 to $100 per transaction, depending on the store's policy.
The only cost is the interest you pay if you carry a balance on your card. If you pay your full statement balance by the due date, you owe nothing beyond the cash itself.
How ATM withdrawals work and what they cost
Using a credit card at an ATM is straightforward: insert the card, enter your PIN, and select the amount. The cash comes out, and the charge appears on your statement. But the fees are where credit cards differ sharply from debit cards.
Most credit card companies charge a cash advance fee of 3 to 5 percent of the amount withdrawn. If you withdraw $200, you might pay $6 to $10 just for the withdrawal. Some cards add a flat fee of $2 to $5 on top of the percentage. A few premium cards waive these fees, but you usually pay an annual fee for the card itself.
Interest on a cash advance begins accruing immediately — there is no grace period like there is for regular purchases. The interest rate is also higher, often 2 to 5 percentage points above your regular purchase rate. If your purchase APR is 18 percent, your cash advance APR might be 23 percent.
If you need cash regularly, a debit card linked to your checking account is almost always cheaper. Debit cards typically have no fee for ATM withdrawals, or a small fee of $1 to $2 at out-of-network ATMs.
Cash advances from your bank or card issuer
A cash advance is a loan against your credit limit. You contact your card issuer — by phone, online, or at a branch — and request a specific amount of cash. The issuer gives you the money, and the full amount is charged to your card immediately.
Cash advances carry the same fees and interest rates as ATM withdrawals: a 3 to 5 percent fee, sometimes plus a flat fee, and a higher interest rate with no grace period. They are useful only in rare situations where you need a large amount of cash and cannot wait for a check to clear or a bank transfer to process.
Because of the cost, cash advances should be a last resort. If you are regularly taking cash advances, it usually signals that you are spending more than you can afford to pay back, which will damage your credit score and cost you far more in interest over time.
What happens to your credit score when you take cash back
Cashback at checkout does not affect your credit score at all. It is treated as a regular purchase and reported to credit bureaus the same way.
ATM withdrawals and cash advances are reported differently. They count as a cash advance on your credit report, which signals to lenders that you are borrowing against your credit limit rather than making a purchase. This does not immediately lower your score, but it does increase your credit utilization — the percentage of your available credit that you are using. High utilization can lower your score by 10 to 50 points, depending on how much you withdraw.
If you carry a balance on a cash advance and pay interest, the damage compounds. Lenders see cash advances as riskier than regular purchases, so frequent cash advances can make it harder to get approved for loans or new credit cards.
Comparing credit cards to debit cards for cash access
If your main goal is to access cash, a debit card is almost always the better choice. Debit cards are designed for ATM withdrawals and typically cost nothing or very little. Many banks offer free ATM access at their own branches and at partner networks, and out-of-network fees are usually $1 to $2.
Credit cards charge 3 to 5 percent for the same service, plus interest if you do not pay the balance immediately. The only advantage of using a credit card for cash is if you are building credit history or earning rewards on the transaction — but most credit cards do not award rewards on cash advances.
If you do not have a debit card, opening a checking account with a bank or credit union is faster and cheaper than relying on credit card cash withdrawals.
When you might need cash from a credit card
Most situations where you need cash can be handled without a credit card. If you need to pay a bill, you can write a check or set up an online transfer. If you need cash for daily spending, a debit card or ATM withdrawal from your checking account is cheaper. If you are traveling and need cash in a foreign country, a debit card with no foreign transaction fees is usually better than a credit card cash advance.
The rare situations where a credit card cash advance makes sense are emergencies where you have no other access to funds — your debit card is lost, your bank is closed, and you need cash immediately. Even then, cashback at a store is preferable if you can make a purchase.
If you find yourself regularly taking cash advances, that is a sign to review your budget. Carrying a balance on a credit card costs far more than the interest on a loan or line of credit, and cash advances cost even more.
Frequently Asked Questions
Can I get cashback if I do not make a purchase?
No. Cashback at checkout requires you to buy something. If you only want cash, you need to use an ATM or request a cash advance from your bank. Both carry fees and higher interest rates than regular purchases.
Do I earn rewards points on cashback or cash advances?
Cashback at checkout is treated as a regular purchase, so you earn rewards if your card offers them. Cash advances and ATM withdrawals almost never earn rewards — most card issuers exclude them from rewards programs.
What is the difference between cashback and a cash advance?
Cashback is cash you receive when you make a purchase at checkout — it is free and treated like a regular purchase. A cash advance is a loan against your credit limit that you request separately, and it carries fees and higher interest rates.
Will getting cashback hurt my credit score?
No. Cashback at checkout is a regular purchase and does not affect your score. Cash advances and ATM withdrawals can raise your credit utilization and lower your score if the amount is large.
Can I use any credit card to get cashback at checkout?
Most credit cards allow cashback at checkout, but some store-branded cards or very basic cards may not. Check your card's terms or ask the cashier before you assume it is available. The store's policy also matters — not all stores offer cashback.