Yes, you can withdraw cash using a credit card, but it is not the same as using a debit card and comes with immediate fees and higher interest rates
A cash advance is a withdrawal of cash from your credit card account, usually at an ATM or through a bank teller. The moment you take the cash out, your credit card company charges you a fee — typically 3 to 5 percent of the amount withdrawn, with a minimum fee of $5 to $10. Unlike regular credit card purchases, cash advances also start accruing interest immediately, with no grace period. Most credit cards charge a higher interest rate for cash advances than for regular purchases, often 2 to 3 percentage points above your standard APR.
Because of these costs, a cash advance should be a last resort, not a convenient way to get spending money. If you need cash regularly, a debit card or ATM withdrawal from your bank account costs nothing. If you need emergency cash and do not have access to your bank account, a cash advance may be your only option — but you should understand the full cost before you proceed.
Key Takeaways
- Cash advances charge an upfront fee of 3 to 5 percent plus interest that starts accruing immediately, making them far more expensive than regular credit card purchases.
- The interest rate on a cash advance is usually 2 to 3 percentage points higher than your card's standard APR and does not include a grace period.
- You can take a cash advance at most ATMs, bank branches, or through a cash advance check your card issuer may send you.
- The amount you can withdraw is limited by your credit limit and your card's cash advance limit, which is often lower than your total credit limit.
Where you can get a cash advance
Most credit card companies allow you to withdraw cash at any ATM that displays your card's logo — Visa, Mastercard, American Express, or Discover. You insert your card, enter your PIN (which you may need to set up first if you have never taken a cash advance before), and withdraw the amount you need. The fee is charged immediately, and interest begins accruing the same day.
You can also visit a bank branch — not necessarily your own bank — and ask the teller for a cash advance. Some card issuers send convenience checks that work like a cash advance: you write the check to yourself or to a payee, deposit or cash it, and the amount is charged to your credit card with the same fees and interest rates as an ATM withdrawal.
Not all ATMs accept credit cards for cash advances. Some machines are set up for debit cards only. If an ATM rejects your card, try a different machine or go to a bank branch instead.
How much you can withdraw
Your credit card issuer sets a cash advance limit, which is separate from your overall credit limit. This limit is often 20 to 50 percent of your total credit limit, though it varies by card and issuer. For example, if your credit limit is $5,000 and your cash advance limit is $1,500, you can withdraw up to $1,500 in cash even though you have $5,000 in available credit for purchases.
You can find your cash advance limit in your card's terms and conditions, in your online account dashboard, or by calling the customer service number on the back of your card. If you need to withdraw more than your limit allows, you can ask your issuer to increase it, though they may decline or increase it only slightly.
The real cost of a cash advance
A $500 cash advance with a 4 percent fee costs $20 upfront. If your cash advance APR is 24 percent and you pay back the $500 over three months, you will pay roughly $30 in interest on top of the $20 fee — a total cost of $50 for borrowing $500 for a quarter of a year. By comparison, a $500 purchase on a card with a 20 percent APR and a 21-day grace period costs nothing if you pay it off within the grace period, and only $8.33 in interest if you carry it for three months.
The math gets worse if you carry the balance longer. A $500 cash advance paid back over a year at 24 percent APR costs $20 in fees plus roughly $65 in interest — a total of $85. That is a 17 percent cost to borrow $500 for a year, compared to roughly 5 percent if you had charged a purchase instead and paid interest for the full year.
If you are considering a cash advance, calculate the total cost first. Multiply the amount you want to withdraw by your card's cash advance fee percentage, then add the interest you will pay based on how long you think it will take to pay back the cash. If that total is more than you can afford, look for another option.
How a cash advance affects your credit score
Taking a cash advance does not directly damage your credit score the way a missed payment does. However, it does increase your credit utilization — the percentage of your available credit that you are using. If you have a $5,000 credit limit and take a $1,000 cash advance, your utilization jumps to 20 percent. High utilization can lower your score slightly, especially if you already have other balances on the card.
The bigger risk is that a cash advance can make it harder to pay off your balance, which can lead to missed payments or carrying a balance for months. Missed payments and long-term debt are what seriously damage your score. A single cash advance, paid back quickly, usually has minimal impact on your credit.
Alternatives to a cash advance
Before you take a cash advance, consider whether you can meet your need another way. If you need cash for an emergency, ask whether you can use a debit card, write a check, or transfer money from savings instead. If you do not have access to your bank account, ask a friend or family member for a short-term loan — even with interest, a personal loan from someone you know is usually cheaper than a credit card cash advance.
If you need cash because you are short on money for regular expenses, a cash advance is a sign that you should look at your budget. Taking cash out at high interest rates will make your financial situation worse, not better. A credit counselor or nonprofit financial advisor can help you work through a budget without charging you a fee.
If you regularly need cash and do not have a debit card, opening a basic checking account at a bank or credit union gives you access to ATMs and debit card withdrawals at no cost. Most banks offer free checking accounts with no minimum balance.
Frequently Asked Questions
Can I use a credit card to withdraw cash at any ATM?
Most ATMs accept credit cards, but some are set up for debit cards only. Look for your card's logo on the ATM before you insert it. If the machine rejects your card, try a different ATM or visit a bank branch instead.
What is the difference between a cash advance and a balance transfer?
A cash advance gives you physical cash and charges a fee plus interest immediately. A balance transfer moves debt from one credit card to another and may offer a lower interest rate for a set period. Balance transfers are for moving existing debt, not for getting cash.
Do I have to set up a PIN to take a cash advance?
Yes, most ATMs require a PIN. If you have never taken a cash advance before, you may need to set one up by calling your card issuer or using your online account. Some issuers let you set a PIN through their app or website.
Will a cash advance show up on my credit report?
The cash advance itself does not appear on your credit report, but the balance does. If you carry the balance for months, it shows as debt on your report and can affect your credit score if it raises your utilization or leads to missed payments.
Can I take a cash advance if my credit card is maxed out?
No. A cash advance counts against your credit limit, so you need available credit to withdraw cash. If your limit is $5,000 and you have already charged $5,000, you cannot take a cash advance until you pay down your balance.