Yes, you can get cash out with a credit card, but it costs more than a debit card and works differently than a purchase
When you withdraw cash using a credit card, you are borrowing money from your credit card issuer at that moment. The bank hands you cash, and you owe them back immediately — not at the end of the month like a regular purchase. This is called a cash advance.
The catch is that cash advances charge you three separate costs: an upfront fee (usually 3 to 5 percent of the amount you withdraw), a higher interest rate than regular purchases (often 5 to 10 percentage points higher), and interest starts accruing the day you take the cash — there is no grace period like there is for purchases. A $200 cash advance can cost you $6 to $10 just to get it, plus interest from day one.
Most people use cash advances only when they have no other option, because the cost adds up fast. But if you need cash and only have a credit card available, it is possible.
Key Takeaways
- Cash advances charge an upfront fee (typically 3 to 5 percent), a higher interest rate than purchases, and interest that starts immediately with no grace period.
- You can get cash at an ATM using your credit card, at a bank teller window, or through a cash advance service, but each method has different fees.
- The interest rate and fees for cash advances are set by your card issuer and vary by card — check your cardholder agreement to see your specific rates.
- Cash advances do not count toward rewards or cash back, and the borrowed amount counts toward your credit limit immediately.
Where you can actually get the cash
An ATM is the most common way. You insert your credit card, enter your PIN, and withdraw cash just like you would with a debit card. The ATM charges a fee (usually $2 to $5), and your credit card issuer charges their own fee on top of that. You will see both fees on your statement.
A bank teller can also give you a cash advance. Walk into any bank branch (not necessarily your own bank), hand them your credit card, and ask for a cash advance. They will charge a fee and process it on the spot. This is slower than an ATM but sometimes has lower fees.
Cash advance services or check-cashing stores will also convert your credit card to cash, but they charge the highest fees of all — sometimes 10 percent or more. Use these only if an ATM and bank are not available.
What fees and interest rates actually apply to you
Your credit card issuer sets the cash advance fee and interest rate, and these are different for every card. The fee is usually a flat percentage of the amount you withdraw — often 3 to 5 percent, with a minimum fee of $5 or $10. So a $100 cash advance might cost $5 to $10 just in the fee.
The interest rate for cash advances is separate from your regular purchase APR. If your card charges 18 percent APR on purchases, the cash advance rate might be 25 percent. This higher rate applies only to the cash advance balance, not to purchases you make on the same card.
Interest starts accruing the day you take the cash. Unlike a purchase, which has a grace period (usually 21 to 25 days before interest kicks in), a cash advance charges interest from day one. If you carry the balance for a month, you will owe interest for the full month.
To find your specific rates and fees, check your cardholder agreement or log into your online account. Most card issuers list the cash advance APR and fee percentage in the terms section.
How the payment works when you get your statement
When you make a payment on your credit card, the payment goes toward your balances in a specific order set by law. Most cards pay off purchases first, then cash advances. This means if you owe $500 in purchases and $200 in a cash advance, and you send in a $400 payment, the $400 goes to the purchases first, and the cash advance keeps accruing interest.
To pay off a cash advance faster, you can request that your payment go toward the cash advance balance specifically. Call your card issuer and ask them to apply your next payment to the cash advance. Some cards let you do this online.
The cash advance balance also counts toward your credit limit immediately. If your limit is $2,000 and you take out a $500 cash advance, you now have only $1,500 available to spend on purchases.
Why cash advances are expensive compared to other ways to get cash
A debit card withdrawal costs nothing — you are taking out your own money. A personal loan from a bank or credit union charges interest, but usually a lower rate than a credit card cash advance, and you pay it back on a fixed schedule. A cash advance is expensive because you are paying three costs at once: the upfront fee, a high interest rate, and interest from day one.
If you need $200 in cash and carry the balance for a month, a cash advance might cost you $12 to $20 in fees and interest combined. A personal loan for the same amount and time would cost less. A debit card costs nothing. This is why cash advances are a last resort.
When a cash advance might make sense
A cash advance makes sense when you have no other way to get cash and you need it urgently. Examples: your debit card is lost, you are traveling and your bank has no ATMs nearby, or you need cash for an emergency and it is the middle of the night.
It does not make sense to use a cash advance to pay down other debt, to fund a purchase you could make with the card itself, or to get cash for everyday spending. In those cases, the fees and interest will cost you more than the benefit.
What does not work the way you might think
Cash advances do not earn rewards or cash back. If your card offers 2 percent cash back on all purchases, that does not apply to cash advances. You pay the fee and interest with no reward.
A cash advance is not the same as a balance transfer. A balance transfer moves debt from one card to another and usually has a lower fee and rate. A cash advance is borrowing new money in the form of cash.
Taking a cash advance does not hurt your credit score directly, but it does increase your credit utilization (the percentage of your limit you are using), which can lower your score slightly. It also signals to lenders that you are borrowing cash, which some see as a sign of financial stress.
Frequently Asked Questions
Can I use a credit card at an ATM without a PIN?
No. You need a PIN to withdraw cash at an ATM, even with a credit card. If you do not have one, call your card issuer and ask them to set one up. This usually takes a few minutes over the phone or through your online account.
What is the difference between a cash advance and a purchase on my credit card?
A purchase is charged to your account and you pay interest only if you carry a balance past the grace period. A cash advance charges an upfront fee, a higher interest rate, and interest from day one with no grace period. The cash advance rate is also usually 5 to 10 percentage points higher than your purchase rate.
If I pay off my cash advance right away, do I still pay interest?
Yes. Interest on a cash advance starts the day you take it out. If you withdraw $200 on Monday and pay it back on Wednesday, you still owe interest for those three days. The fee is charged upfront regardless of how quickly you repay.
Can I take a cash advance from a credit card I do not have in my wallet?
No. You need the physical card or the card number and security code to take a cash advance. Some card issuers let you request a cash advance online or by phone, but you will need to verify your identity and account information first.
Does a cash advance show up on my credit report?
The cash advance itself does not show up as a separate item. But if you carry the balance and it increases your credit utilization, that change may be reported to the credit bureaus and could affect your score. The balance is part of your total credit card debt.