Yes, you can withdraw cash using your credit card, but it costs more than a purchase and the interest starts immediately
A cash advance lets you pull money from an ATM or bank using your credit card instead of your debit card. The card issuer treats it as a loan against your credit limit, not a purchase. You get the cash in your hand, but you pay a fee upfront (usually 3 to 5 percent of the amount) plus a higher interest rate than you would on regular purchases—often 20 to 30 percent or more, depending on your card and issuer.
The catch: interest on a cash advance starts accruing the day you withdraw it. There is no grace period like there is for purchases. If you carry a balance, the interest compounds daily until you pay it off.
Key Takeaways
- Cash advances charge an upfront fee (typically 3 to 5 percent) plus a higher interest rate than purchases, with interest starting immediately.
- You can withdraw cash at any ATM that accepts your card, at a bank teller, or through a cash advance from a merchant, but each method has different fees.
- The total cost of a cash advance grows quickly because interest compounds daily, so paying it back fast is essential to avoid debt.
- Your credit card company sets a separate cash advance limit, which may be lower than your overall credit limit.
Where and how to get cash from your credit card
You have three main ways to pull cash. The first is an ATM withdrawal: insert your card, enter your PIN (which you may need to set up with your issuer first), and withdraw up to your cash advance limit. The ATM operator may charge a fee on top of your card issuer's fee—often $2 to $5 per transaction.
The second is a bank teller withdrawal. Walk into any bank branch, hand over your credit card and ID, and ask for a cash advance. The bank will charge its own fee, usually $5 to $10, in addition to your card issuer's fee.
The third is a merchant cash advance. Some retailers, check-cashing services, and money transfer businesses (like MoneyGram or Western Union) will give you cash in exchange for charging your card. These often carry the highest fees of all three methods—sometimes 5 to 10 percent or more.
What fees and interest rates you will actually pay
Your card issuer charges a cash advance fee upfront, calculated as a percentage of the amount you withdraw. Most cards charge between 3 and 5 percent, though some charge a flat fee (like $10) if that is higher. A $300 cash advance at 4 percent costs $12 in fees alone.
Then there is the cash advance interest rate, which is separate from your purchase APR and almost always higher. While a purchase might carry 18 percent APR, a cash advance might be 25 or 30 percent. This rate applies from day one—no 21-day grace period. If you withdraw $300 and pay it back in 30 days at 25 percent APR, you will owe roughly $6 in interest on top of the $12 fee.
Check your card's terms or call your issuer to find out your specific cash advance fee and APR. Both are usually listed in your cardholder agreement or online account dashboard.
How your cash advance limit works
Your credit card issuer sets a separate cash advance limit, which is often much lower than your overall credit limit. If your card has a $5,000 credit limit, your cash advance limit might be only $500 or $1,000. This limit is set by the issuer based on your credit history and account activity, and you cannot change it yourself.
You can contact your issuer to ask for an increase, but there is no may provide they will grant one. Some issuers allow you to request a temporary increase for a specific withdrawal, while others require you to wait a certain amount of time between requests.
Why a cash advance is expensive compared to other options
A $300 cash advance might cost you $12 in fees plus $6 in interest over a month—$18 total, or 6 percent of the amount borrowed. That is far steeper than a personal loan (which might charge 1 to 2 percent in fees and 8 to 15 percent APR) or a payday loan alternative like a credit union cash advance (which often has lower rates for members).
If you need cash regularly, a personal loan from a bank or credit union is usually cheaper. If you need it once and can pay it back within days, a cash advance might be your only option—but the faster you repay it, the less interest you will owe.
Avoid carrying a cash advance balance. If you cannot pay it back within a week or two, the interest will compound and the debt will grow faster than it would on a purchase.
How to minimize the damage if you must take a cash advance
If you have no other way to get cash, take the smallest amount you actually need. Every dollar you withdraw costs you a percentage fee plus daily interest, so borrowing $100 instead of $300 saves you money immediately.
Withdraw from an ATM rather than a bank teller or merchant if possible—ATM fees are usually lower than teller or merchant fees, though you will still pay your issuer's cash advance fee. Check whether your bank has a partnership with other banks' ATM networks (like Allpoint or MoneyPass) to avoid out-of-network fees.
Pay the cash advance back as fast as you can. If you have other money coming in within days, wait for it and pay the advance off immediately rather than carrying it. The interest clock starts the moment you withdraw, so every day you carry the balance costs you money.
Alternatives to a credit card cash advance
Before you use a cash advance, consider these options. A personal loan from a bank, credit union, or online lender usually has a lower APR and no upfront fee. You will need to wait a few days for funding, but the total cost is almost always lower if you need the money for more than a week.
A credit union cash advance (if you are a member) often charges lower fees and rates than a credit card. Some credit unions offer small loans at 12 to 18 percent APR with no fee, which beats most credit card cash advances.
A balance transfer to a card with a 0 percent introductory rate can work if you have time to apply and be approved. You transfer the cash advance to the new card and pay no interest for 6 to 21 months (depending on the card), though you will still pay a balance transfer fee of 3 to 5 percent upfront.
If you are in a true emergency, ask friends or family for a short-term loan, or contact a local nonprofit credit counselor—many offer emergency assistance or can help you find lower-cost options.
Frequently Asked Questions
Can I use my credit card to withdraw cash at any ATM?
Most ATMs accept credit cards, but some are restricted to debit cards only. Look for the Visa or Mastercard logo on the ATM before you insert your card. You will also need a PIN set up with your card issuer—if you have never used your card at an ATM before, call your issuer to request one or set it up online.
What is the difference between a cash advance and a balance transfer?
A cash advance gives you physical cash but charges a high APR and fee. A balance transfer moves debt from one card to another, usually at a lower or 0 percent introductory rate, but does not give you cash. Both hurt your credit utilization and credit score, but a balance transfer is cheaper if you need to carry a balance.
Does a cash advance hurt my credit score?
A cash advance itself does not directly hurt your score, but it increases your credit utilization (the percentage of your limit you are using), which can lower your score by a few points. Paying it off quickly will bring your utilization back down and recover those points.
Can I get a cash advance if I have a low credit limit?
Your cash advance limit is separate from your credit limit and is usually lower. Even with a $500 credit limit, you might only be able to withdraw $100 to $200 in cash. Contact your issuer to find out your specific cash advance limit.
What happens if I cannot pay back a cash advance?
Interest will continue to compound daily at your cash advance APR, and the debt will grow. If you miss payments, your issuer will report it to the credit bureaus, which will damage your credit score. You may also face late fees and a higher APR. Contact your issuer immediately if you cannot pay to discuss a payment plan.