Yes, you can withdraw cash from a credit card, but it works differently than a debit card and costs more
Most credit cards let you take out cash at an ATM, bank teller, or through a cash advance at a store. But a cash advance is not the same as spending on the card. The moment you withdraw the cash, you start paying interest — usually a higher rate than your purchase APR — and you owe a separate fee, typically 3 to 5 percent of the amount withdrawn. There is no grace period like there is for purchases. Interest begins accruing immediately.
The mechanics are straightforward: you use your credit card PIN at an ATM, or you walk into a bank branch and ask the teller for a cash advance. Some retailers also offer cash back at checkout, though that is technically a purchase, not a cash advance. The credit card company treats a cash advance as a loan against your credit line, separate from your regular balance.
Key Takeaways
- Cash advances charge interest from day one with no grace period, and the interest rate is usually 2 to 5 percentage points higher than your purchase APR.
- Most credit cards charge a cash advance fee of 3 to 5 percent of the amount withdrawn, in addition to interest charges.
- You can withdraw cash at ATMs using your credit card PIN, at bank tellers, or sometimes at retail checkouts, but the amount available may be lower than your credit limit.
- Cash advances appear on your credit card statement as a separate balance and do not count toward rewards or cashback programs.
- If you need cash, a personal loan, bank overdraft, or ATM withdrawal from a checking account are usually cheaper options than a credit card cash advance.
How much cash you can withdraw and where
Your credit card issuer sets a separate cash advance limit, which is often lower than your total credit limit. You might have a $5,000 credit limit but only a $1,000 cash advance limit. Check your card's terms or call the issuer to find out your specific limit.
You can withdraw cash at ATMs that accept your card's network (Visa, Mastercard, American Express, Discover). You can also visit a bank branch and ask a teller for a cash advance. Some grocery stores and retailers offer cash back at the register, though this is technically a purchase rather than a cash advance and may have different terms. ATMs typically dispense in $20 increments, so your withdrawal amount must be a multiple of that.
The location matters for fees. ATMs outside your card issuer's network often charge an ATM operator fee on top of your credit card company's cash advance fee. A bank teller usually does not charge an additional fee beyond what the card issuer charges.
The fees and interest you will pay
A cash advance fee is charged once, at the time of withdrawal. Most cards charge 3 to 5 percent of the amount withdrawn, with a minimum fee (often $2 to $10). If you withdraw $200, you might pay a $6 to $10 fee immediately. If you withdraw $1,000, you might pay $30 to $50.
Interest starts accruing the same day. The cash advance APR is usually 2 to 5 percentage points higher than your purchase APR. If your purchase rate is 18 percent, your cash advance rate might be 23 percent. Interest compounds daily, so the longer you carry the balance, the more you owe. Unlike purchases, there is no interest-free grace period — interest begins on day one.
Payments toward a cash advance are applied separately from purchases. If you have both a purchase balance and a cash advance balance, your payment goes toward whichever balance has the higher interest rate first (usually the cash advance). This means you may pay off the purchase slowly while the cash advance interest keeps growing.
Why cash advances are expensive compared to other options
A $500 cash advance at 5 percent fee plus 23 percent APR costs you $25 upfront, plus roughly $9.58 in interest if you pay it back in one month. Over three months, interest alone could reach $30. A personal loan from a bank or credit union, by contrast, might charge 8 to 12 percent APR with no separate fee, making it significantly cheaper for the same amount.
If you have a checking account, withdrawing cash from your own account at an ATM is free. If you need a short-term loan, many banks offer overdraft protection or a line of credit at lower rates than a cash advance. Some employers offer paycheck advances. A credit card cash advance should be a last resort, not a routine way to get cash.
Rewards and cashback do not apply to cash advances. If your card offers 2 percent cashback on all purchases, that benefit does not extend to cash advances. This is another reason the true cost is higher than the interest and fees alone suggest.
How cash advances affect your credit and statement
A cash advance appears on your credit card statement as a separate line item, distinct from purchases. It counts toward your total balance and your credit utilization ratio — the percentage of your available credit you are using. If you have a $5,000 limit and a $1,000 cash advance, your utilization jumps to 20 percent, which can lower your credit score slightly.
The cash advance does not hurt your credit score directly, but carrying a high balance does. If you pay off the cash advance quickly, the impact is minimal. If you carry it for months, the high utilization and the growing balance can lower your score.
Lenders and creditors see cash advances as riskier than purchases because they suggest you are short on cash. If you apply for a loan or new credit card soon after taking a cash advance, lenders may view you as higher risk.
What to do if you need cash urgently
Before using a credit card cash advance, consider these alternatives: withdraw from your own bank account (free), ask your employer for a paycheck advance, borrow from a friend or family member, or take out a personal loan from a bank or credit union. If you have a line of credit through your bank, that usually charges less than a credit card cash advance.
If you must use a cash advance, withdraw only what you need and pay it back as fast as possible. Every day the balance sits, interest accrues. Some people set up an automatic payment to clear the cash advance balance within one or two pay periods, treating it like a short-term emergency loan rather than ongoing debt.
If you find yourself needing cash advances regularly, that is a sign your budget needs adjustment or you need a different financial product. A line of credit, overdraft protection, or a personal loan are all cheaper ways to cover cash shortfalls.
Frequently Asked Questions
Can I use a credit card cash advance to pay off another credit card?
Technically yes, but it is one of the most expensive ways to move debt. You pay the cash advance fee and high interest rate immediately, and you gain nothing — you are just moving the balance from one card to another. A balance transfer (moving debt to a card with a 0 percent introductory rate) or a personal loan is far cheaper.
What is the difference between a cash advance and a balance transfer?
A cash advance gives you physical cash and charges interest from day one. A balance transfer moves debt from one card to another and may offer a 0 percent introductory period. Balance transfers also charge a fee (usually 3 to 5 percent), but if you pay during the 0 percent window, you avoid interest entirely. Use a balance transfer to move existing debt, not to get cash.
Will a cash advance show up on my credit report?
The cash advance itself does not appear separately on your credit report, but the balance does. Your credit report shows your total credit card balance and utilization. If the cash advance pushes your balance high, that can lower your credit score. Once you pay it off, the impact fades.
Can I withdraw cash from a credit card with no annual fee?
Yes. The annual fee and the cash advance fee are separate charges. A card with no annual fee can still charge a cash advance fee and interest. Read your card's terms to see the cash advance APR and fee before you withdraw.
What happens if I cannot pay back a cash advance?
It becomes part of your credit card debt. Interest keeps accruing, your balance grows, and your credit score drops as the balance climbs and your utilization stays high. If you miss payments, late fees apply and your interest rate may increase. Contact your card issuer to discuss a payment plan if you are struggling.