Yes, you can withdraw cash with a credit card, but it costs more than a regular purchase

Most credit cards let you take out cash at an ATM or from a bank teller, but the bank charges you fees and interest that start immediately. A cash advance is different from a regular purchase: there is no grace period, interest accrues from day one, and the interest rate is usually higher than your purchase rate. You will also pay an upfront fee — typically 3 to 5 percent of the amount you withdraw, with a minimum charge of $5 to $10.

The mechanics are straightforward: you use your credit card at an ATM the same way you would use a debit card, or you walk into a bank branch and ask the teller for a cash advance. The money appears in your account within minutes. But the cost adds up fast, and most people should avoid cash advances unless they have no other option.

Key Takeaways

  • Cash advances charge interest from the day you withdraw the money, with no grace period like purchases have.
  • You pay an upfront fee of 3 to 5 percent of the amount withdrawn, plus a higher interest rate than your regular purchase rate.
  • ATM withdrawals have daily limits set by your card issuer, usually $500 to $1,000 but sometimes lower.
  • The total cost of a cash advance can exceed 10 percent of the amount in the first month alone.

How much a cash advance actually costs

The fee structure has two parts: the upfront fee and the interest. If you withdraw $500, you might pay $15 to $25 in fees alone (3 to 5 percent). Then interest starts accruing immediately at a rate that varies by card — commonly 20 to 30 percent annually, though some cards charge more.

A concrete example: you withdraw $500 on a card with a 25 percent annual interest rate and a 4 percent cash advance fee. You pay $20 upfront. After one month, you owe $510.42 in interest alone (assuming you make no payment). If you pay back the $500 in full after 30 days, your total cost is roughly $40 to $45. If you carry the balance for three months, the interest alone exceeds $37.

Compare this to a personal loan from a bank or credit union, which typically charges 6 to 36 percent annually with no upfront fee. A cash advance is almost always the most expensive way to borrow money.

Where you can get a cash advance

ATMs are the fastest option. Any ATM that accepts your card's network (Visa, Mastercard, American Express, Discover) will let you withdraw cash, though you may pay an additional ATM operator fee of $2 to $5 on top of your card's cash advance fee. Your card issuer's own ATMs usually have no operator fee.

Bank tellers offer another route. Walk into any branch of your card issuer or a partner bank and ask for a cash advance. The teller will process it the same way, charging the same fees. Some banks let you request larger amounts this way than an ATM allows.

Convenience stores and grocery stores sometimes offer cash back when you make a purchase with your credit card, but this is rare — most retailers only allow cash back with debit cards. Check with your specific store.

Limits on how much you can withdraw

Your card issuer sets a cash advance limit separate from your credit limit. This limit is often lower than your total credit limit — sometimes 20 to 50 percent of it. A card with a $5,000 credit limit might have a $1,000 cash advance limit.

ATMs also impose daily withdrawal limits, typically $500 to $1,000 per day, though some cards allow more. If you need more than your daily ATM limit, you can request a larger amount from a bank teller, but you are still bound by your card's cash advance limit.

You can contact your card issuer to ask what your cash advance limit is. Some cards let you request a higher limit, though the issuer may decline.

Why cash advances hurt your credit score

A cash advance shows up on your credit report as a balance, just like a purchase does. It counts toward your credit utilization ratio — the percentage of your available credit 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 credit score by 10 to 50 points, depending on how much you already owe.

The damage is temporary: once you pay off the cash advance, your utilization drops and your score recovers. But while the balance is outstanding, it works against you.

Alternatives to a cash advance

If you need cash urgently, consider these options first:

  • Debit card withdrawal: If you have a bank account, use your debit card at an ATM. No fees, no interest.
  • Personal loan: Banks and credit unions offer personal loans at rates far lower than credit card cash advances, usually 6 to 36 percent annually.
  • Payday loan: These are expensive (often 400 percent annual interest or higher), but they are sometimes cheaper than a cash advance if you repay within two weeks.
  • Borrow from friends or family: No fees or interest if you agree on terms.
  • Payment plan: If you owe a bill, ask the creditor whether you can set up a payment plan instead of paying in full immediately.

A personal loan from a bank or credit union is almost always better than a cash advance. The interest rate is lower, there is no upfront fee, and you have a fixed repayment schedule. Even if your credit is not perfect, credit unions often work with members who have lower scores.

How to minimize the damage if you do take a cash advance

If you have already taken a cash advance or feel you must, pay it back as fast as possible. Interest accrues daily, so every day you carry the balance costs you money.

When you make a payment on your card, the payment goes toward your lowest-interest debt first — usually purchases. To pay down a cash advance faster, contact your card issuer and ask whether you can direct a payment specifically to the cash advance balance. Some issuers allow this; others do not. If yours does not, you will need to pay off all other balances first before the cash advance balance decreases.

Do not take another cash advance to pay off the first one. This extends the cycle and costs you more in fees.

Frequently Asked Questions

Does taking a cash advance affect my credit score right away?

Yes. The cash advance shows up on your credit report within a few days, and your utilization ratio increases immediately. Your score may drop by 10 to 50 points depending on how much you owe overall. The impact is temporary — your score recovers once you pay off the balance — but it happens fast.

Can I use a credit card to withdraw cash from my own bank account?

No. A cash advance is a loan from your credit card issuer, not a withdrawal from your bank account. If you have a debit card linked to your bank account, use that instead — it costs nothing.

What if I can't pay back the cash advance?

The balance carries over to the next month with interest, and you owe it just like any other credit card debt. If you miss payments, your card issuer may raise your interest rate, freeze your account, or send the debt to a collection agency. Contact your issuer immediately if you cannot pay — some offer hardship programs that lower your interest rate or pause payments temporarily.

Is a cash advance the same as a balance transfer?

No. A balance transfer moves debt from one card to another (usually to a card with a lower interest rate). A cash advance is a loan of actual cash. Balance transfers have their own fees and terms, but they are not the same transaction.

Can I use a credit card to withdraw cash outside the United States?

Yes, but it costs more. You pay the standard cash advance fee plus an international transaction fee (usually 1 to 3 percent) and possibly an ATM operator fee. The interest rate also applies immediately. Using a debit card or withdrawing from a local bank is cheaper if possible.