Yes, you can withdraw cash using a credit card, but it costs more than a regular purchase
You can get cash from a credit card at an ATM, bank teller, or through a cash advance at a store. The transaction is called a cash advance. Unlike swiping your card to buy something, a cash advance charges you a fee upfront — usually 3 to 5 percent of the amount you withdraw — plus a higher interest rate that starts accruing immediately, with no grace period.
The catch: interest on a cash advance begins the day you withdraw it, not at the end of your billing cycle like a purchase does. This means even if you pay off the full balance when your statement arrives, you will owe interest on that cash for every single day you held it.
Key Takeaways
- Cash advances charge an upfront fee (typically 3 to 5 percent) plus a higher interest rate than regular purchases, with interest starting immediately.
- You can withdraw cash at an ATM using your credit card PIN, at a bank teller, or sometimes at a store customer service desk.
- Interest on cash advances accrues from day one with no grace period, so the longer you hold the cash, the more you pay.
- If you carry a balance on your card, payments go toward the lowest-interest debt first, meaning cash advance interest can compound while you pay off purchases.
Where and how to get cash with a credit card
An ATM is the fastest method. Insert your credit card, enter your PIN, and select "cash advance" or "withdrawal" — the exact wording depends on the ATM. Most ATMs will show you the fee before you confirm, so you know the cost upfront. The fee is usually a flat amount (like $3 to $5) or a percentage of the withdrawal, whichever is higher.
A bank teller can also process a cash advance if you visit a branch in person. You hand over your card and request the amount. The teller will tell you the fee and interest rate before completing the transaction. This method works even if you do not have a PIN set up for your card.
Some retailers offer cash advances at the register or customer service desk, though this is less common now. You present your card and ask for cash back beyond your purchase amount. The store may charge its own fee on top of your card issuer's fee, so ask before you proceed.
The fees and interest rates you will pay
Cash advance fees range from 3 to 5 percent of the amount withdrawn, with a minimum fee (often $2 to $10). If you withdraw $200, you might pay $6 to $10 in fees alone. Some cards charge a flat fee instead — for example, $5 per advance regardless of amount.
The interest rate on cash advances is separate from your card's regular purchase APR and is almost always higher. While a purchase APR might be 18 percent, a cash advance APR could be 25 percent or more. Your card issuer sets both the fee and the rate, and you can find both in your card's terms and conditions or by calling the number on the back of your card.
Interest starts accruing the day you withdraw the cash. If you withdraw $200 at a 25 percent APR, you owe roughly $0.14 in interest per day. Over a month, that is about $4.17 in interest alone, on top of the upfront fee you already paid.
How cash advances affect your credit card balance
When you carry a balance on your card, your payment goes toward the lowest-interest debt first. This means if you have both a purchase balance and a cash advance balance, your payment reduces the purchase balance (which has a lower rate) before it touches the cash advance balance (which has a higher rate). The cash advance interest keeps compounding while you pay down the purchase.
This is why a cash advance can become expensive quickly if you cannot pay it off right away. A $200 cash advance at 25 percent APR with a $6 fee costs you $206 upfront. If you only pay the minimum and carry the balance for three months, you could owe an additional $15 to $20 in interest.
When a cash advance makes sense and when it does not
A cash advance is useful only in genuine emergencies when you need cash immediately and have no other option. Examples: a car breaks down and you need to pay a mechanic in cash, or you are traveling and your debit card stops working. In these situations, the convenience of getting cash quickly may outweigh the cost.
A cash advance does not make sense for everyday spending, building a cash buffer, or covering a shortfall you could address another way. If you need cash regularly, a debit card or ATM withdrawal from your bank account costs nothing. If you are short on money, a cash advance adds debt and interest rather than solving the underlying problem.
Avoid a cash advance if you already carry a balance on your card or if you know you cannot pay it back within a few days. The interest and fees compound too quickly to make it worthwhile.
Alternatives to a credit card cash advance
A debit card withdrawal from your own bank account costs nothing and has no interest. If your debit card is unavailable, most banks let you withdraw cash at a teller or ATM using just your account number and ID.
A personal loan from a bank or credit union often has a lower interest rate than a cash advance, though it takes longer to process (usually a few days). If you have time and the cash is not an emergency, this is cheaper than a credit card advance.
A payday loan is faster than a personal loan but more expensive than a credit card cash advance in most cases. Payday loans charge fees of $15 to $20 per $100 borrowed, which works out to an APR of 400 percent or higher. Use this only if a cash advance is truly not available.
Asking a friend or family member for a short-term loan costs nothing and has no interest, though it carries social risk. If this is an option and you can repay quickly, it is the cheapest route.
Frequently Asked Questions
What is the difference between a cash advance and a regular purchase?
A purchase is charged to your card and has a grace period — you owe no interest if you pay the full balance by the due date. A cash advance charges a fee upfront and interest starts immediately, with no grace period. Interest accrues from day one regardless of when you pay.
Can I use any credit card to get a cash advance?
Most credit cards allow cash advances, but some do not — particularly secured cards or cards designed for people rebuilding credit. Check your card's terms or call the number on the back to confirm. Your card issuer will also tell you your cash advance limit, which may be lower than your overall credit limit.
Does a cash advance hurt my credit score?
A cash advance itself does not directly hurt your score, but carrying a balance does. If the cash advance increases your overall balance and your credit utilization (the percentage of your limit you are using), your score may drop slightly. Paying it off quickly minimizes this effect.
What happens if I cannot pay back a cash advance?
The balance stays on your card and interest continues to accrue. If you miss payments, late fees apply and your credit score drops. The card issuer may also lower your credit limit or close the account. Contact your card issuer if you are struggling to pay — some offer hardship programs or payment plans.
Can I get a cash advance from a credit card I do not have a PIN for?
Yes. You can visit a bank teller in person with your card and ID, and they will process a cash advance without a PIN. ATMs require a PIN, so if you do not have one set up, call your card issuer to request one or visit a branch instead.