The main ways to withdraw money from a credit card

You can get cash from a credit card in three ways: using an ATM with your card and PIN, asking a cashier to give you cash back when you make a purchase, or visiting your card issuer's branch in person. Each method charges a fee and starts charging interest immediately — credit cards do not treat cash withdrawals the way they treat purchases, which may have a grace period before interest kicks in.

The most common method is an ATM withdrawal. You insert your card, enter your PIN, and withdraw cash up to your daily limit. Your card issuer sets this limit, which often ranges from $300 to $1,000 per day, though it varies by card and bank. The fee is usually a flat amount — often $3 to $5 — plus a percentage of the amount withdrawn, typically 2 to 3 percent. Some ATMs charge an additional operator fee on top of what your card issuer charges.

Cash back at a store is usually free or costs less than an ATM. When you swipe your card at checkout, you can ask for cash back and the amount is added to your purchase total. Many retailers allow $20 to $100 cash back, though limits vary. This method avoids the ATM fee but still triggers interest charges on the cash portion immediately.

Key Takeaways

  • Cash withdrawals from a credit card charge interest from day one, unlike purchases which may have a grace period of 21 to 25 days.
  • ATM withdrawals typically cost $3 to $5 per transaction plus 2 to 3 percent of the amount withdrawn, in addition to interest charges.
  • Cash back at a store checkout usually costs nothing and may be the cheapest way to get cash, though your daily limit is lower.
  • Your card issuer sets a daily cash withdrawal limit, often between $300 and $1,000, which is separate from your credit limit.
  • Interest on cash advances starts accruing immediately and continues until the balance is paid off, with no grace period.

Why cash withdrawals cost more than regular purchases

Credit card companies treat cash withdrawals differently from regular purchases because they carry more risk. When you buy something, the merchant guarantees the transaction and you have some recourse if something goes wrong. Cash has no trail and cannot be reversed, so the card issuer charges higher interest rates and fees to offset that risk.

The interest rate on a cash advance is often 3 to 5 percentage points higher than your regular purchase APR. If your card charges 18 percent APR on purchases, the cash advance rate might be 23 percent. This higher rate applies only to the cash portion of your balance, not to regular purchases. Interest begins accruing the moment you withdraw the cash — there is no grace period like there is for purchases.

Fees add up quickly. A $300 ATM withdrawal might cost $9 to $15 in fees alone (a $5 ATM fee plus 2 to 3 percent of $300), plus interest that starts the same day. Over a month, that $300 could cost you $30 to $40 in fees and interest combined, depending on your card's rates and how quickly you pay it back.

How to find your daily cash withdrawal limit

Your card issuer sets a daily limit on how much cash you can withdraw, and this limit is separate from your overall credit limit. You might have a $5,000 credit limit but only be able to withdraw $500 per day in cash. The limit exists to protect both you and the card issuer from fraud.

You can find your cash advance limit by calling the customer service number on the back of your card, logging into your online account, or checking your cardholder agreement. The agreement lists the limit under "cash advance limit" or "ATM withdrawal limit." If you do not see it listed, call and ask — the issuer is required to tell you.

You can request a lower limit if you want to reduce the temptation to withdraw cash, or you can ask to increase it if you need more access. Some issuers allow you to set your own daily limit through their app or website. Lowering your limit does not cost anything and can be a useful safeguard against fraud or overspending.

Cash advances versus balance transfers

A cash advance is money you withdraw directly from your credit card account. A balance transfer is when you move debt from one card to another. They are different transactions with different fees and interest rates.

Cash advances charge a fee (usually 3 to 5 percent of the amount) plus a higher interest rate that starts immediately. Balance transfers also charge a fee (usually 3 to 5 percent) but may offer a lower introductory interest rate for a set period — sometimes 0 percent for 6 to 21 months. If you need cash, a cash advance is your only option. If you are moving existing debt between cards, a balance transfer may be cheaper if the new card offers a promotional rate.

Neither option is ideal for borrowing money. Both charge fees and interest, and both count against your credit limit. If you need cash, consider whether a personal loan, a line of credit, or borrowing from family might cost less.

What happens if you cannot pay back the cash advance

If you do not pay back a cash advance, it becomes part of your credit card balance and you owe interest on it at the higher cash advance rate. The interest compounds daily, so the longer you carry the balance, the more you owe.

Your card issuer will report the unpaid balance to the credit bureaus, which will lower your credit score. After 30 days of missed payments, the issuer may charge you a late fee. After 60 days, they may increase your interest rate further. After 180 days of non-payment, the issuer may close your account and send the debt to a collection agency.

If you are struggling to pay back a cash advance, contact your card issuer as soon as possible. Some issuers offer hardship programs that lower your interest rate or allow you to pause payments temporarily. Paying back the cash advance should be a priority because the interest rate is high and the debt will grow quickly if left unpaid.

Alternatives to withdrawing cash from your credit card

Before you use a credit card cash advance, consider these cheaper options. A personal loan from a bank or credit union usually charges lower interest than a cash advance and does not have the same fees. If you have good credit, you may may have access to for a rate of 6 to 12 percent, compared to 20 to 25 percent for a cash advance.

A line of credit works similarly to a personal loan but lets you borrow only what you need and pay interest only on the amount you use. Some employers offer paycheck advances or loans to employees. Family or friends may lend you money interest-free. A payment plan with a creditor or service provider may let you spread the cost over time without borrowing at all.

If you need cash regularly, a debit card linked to a checking account lets you withdraw cash without fees or interest. If you do not have a bank account, a prepaid card or a check-cashing service are options, though they charge fees. The point is that a credit card cash advance should be a last resort, not a first choice, because it is one of the most expensive ways to borrow money.

Frequently Asked Questions

Can I withdraw cash from a credit card without a PIN?

At an ATM, you need a PIN to withdraw cash. If you do not have one, contact your card issuer to set one up — it usually takes a few minutes over the phone or through your online account. At a store, you can get cash back without a PIN by swiping your card and asking the cashier, though the amount is usually limited to $20 to $100.

Does cash back at a store count as a cash advance?

Yes, cash back is a type of cash advance. It charges interest from day one and may have a fee, though many stores and card issuers do not charge a fee for cash back. The interest rate is the same higher rate as an ATM withdrawal. The main difference is that cash back usually has no separate fee, making it cheaper than an ATM withdrawal.

What is the difference between my credit limit and my cash advance limit?

Your credit limit is the total amount you can borrow on your card for purchases and cash advances combined. Your cash advance limit is the maximum you can withdraw in cash, and it is usually much lower — often 20 to 30 percent of your credit limit. If your credit limit is $5,000, your cash advance limit might be $1,000.

Will a cash advance hurt my credit score?

A cash advance itself does not hurt your credit score, but carrying a high balance does. If you withdraw cash and pay it back quickly, there is minimal impact. If you carry the balance for months, your credit utilization ratio increases, which lowers your score. Late or missed payments on the cash advance will also damage your score.

Can I use a credit card to withdraw cash from another person's bank account?

No. A credit card cash advance withdraws money from your own credit line, not from anyone else's account. You cannot use someone else's card to withdraw cash without their permission, and doing so is fraud. If you need to transfer money to someone else, use a bank transfer, wire transfer, or payment app instead.