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

You can pull cash from a credit card at an ATM, bank teller, or through a cash advance at a store. The card issuer treats this as a cash advance — a short-term loan against your credit limit. Unlike a purchase, a cash advance starts charging interest immediately, usually at a higher rate than your purchase APR, and you pay an upfront fee of 3% to 5% of the amount withdrawn.

The math works against you quickly. If you withdraw $500 at a 4% fee plus 24% APR, you owe $20 upfront and then $10 per month in interest alone — before you pay down the principal. Most people use cash advances only when they have no other option, because the cost is steep and the interest accrues from day one.

Key Takeaways

  • Cash advances charge an upfront fee (typically 3% to 5% of the amount) plus a higher interest rate than purchases, with interest starting immediately.
  • You can withdraw cash at an ATM using your credit card PIN, at a bank teller with your card and ID, or sometimes at a store checkout.
  • The interest rate on a cash advance is usually 5% to 10% higher than your purchase APR and varies by card issuer and your creditworthiness.
  • Cash advances do not earn rewards points or cash back, even if your card normally offers them on purchases.
  • Paying off a cash advance should be your priority because the interest cost compounds faster than on regular purchases.

Where to withdraw cash and what you need

An ATM is the fastest route. Insert your credit card, enter your PIN (the same one you use for debit), and withdraw up to your cash advance limit — which is usually lower than your total credit limit and varies by issuer. Some cards set it at 50% of your credit limit; others cap it at a fixed dollar amount like $500 or $1,000.

A bank teller can also process a cash advance if the bank is your card issuer or has a partnership with it. Bring your card and a photo ID. The teller will verify your identity and process the withdrawal on the spot, though some banks charge an additional fee for teller-processed advances.

A store checkout is a third option at some retailers. Ask the cashier whether they offer cash advances on credit cards. Not all stores do, and those that do may charge a separate fee on top of your card issuer's fee.

How much the fee and interest will cost you

The upfront fee is non-negotiable and appears on your statement as a separate charge. A $500 advance at 4% costs $20 immediately. A $1,000 advance at 5% costs $50. This fee is added to your balance and also accrues interest.

The interest rate depends on your card issuer and your credit profile. Most issuers charge between 20% and 36% APR on cash advances, and many charge 5% to 10% more than they charge on purchases. If your purchase APR is 18%, your cash advance APR might be 24% or 26%. Check your card's terms or call the issuer to find out your specific rate — it is not always listed online.

Interest starts accruing the day you withdraw the cash, with no grace period. A $500 advance at 24% APR costs roughly $10 per month in interest alone. If you pay $100 per month, $10 goes to interest and $90 to principal. The longer you carry the balance, the more you pay.

Why cash advances are more expensive than other borrowing options

A personal loan from a bank or credit union typically charges 8% to 36% APR depending on your credit score, but has no upfront fee and a fixed repayment schedule. A payday loan charges a flat fee (often $15 to $20 per $100 borrowed) but is meant to be repaid in two weeks. A cash advance on a credit card charges both an upfront fee and a high interest rate with no fixed payoff date, making it one of the most expensive ways to borrow.

Credit card purchases are cheaper because they have a grace period — usually 21 to 25 days before interest starts. Cash advances have no grace period. If you need cash for an emergency, a personal loan or a line of credit from your bank is almost always cheaper than a cash advance, even if your credit is not perfect.

How cash advances affect your credit score

A cash advance does not hurt your credit score directly, but it does increase your credit utilization ratio — the percentage of your available credit you are using. If you have a $5,000 limit and withdraw $1,000 in cash, your utilization jumps to 20%. High utilization can lower your score by 10 to 50 points, depending on how much you already owe.

The impact is temporary. Once you pay off the advance, your utilization drops and your score recovers. But while the balance is outstanding, it works against you if you are trying to build credit or apply for a loan.

How to pay off a cash advance quickly

Pay the cash advance balance before you pay other balances on the same card. Credit card issuers apply your payment to the lowest-interest debt first — usually purchases — and leave the highest-interest debt (the cash advance) to accrue longer. Some issuers let you specify where your payment goes; call and ask. If you can, pay more than the minimum each month to avoid the interest trap.

If you have multiple cards, paying off the cash advance should be your priority over paying off purchases on other cards, because the interest rate is higher. A $500 cash advance at 26% APR costs more per month than a $500 purchase at 18% APR.

Alternatives to a cash advance

If you need cash urgently, explore these options first. A personal loan from your bank or credit union usually has a lower interest rate and a fixed repayment term. A 0% balance transfer card lets you move high-interest debt from another card to a new card with no interest for 6 to 21 months (though balance transfers also charge a 3% to 5% fee). A line of credit from your bank works like a credit card but often charges less interest.

If you have a 401(k), some plans allow you to borrow against your balance at a low interest rate, though you must repay it within a set timeframe or face taxes and penalties. If you have savings, using that cash avoids interest entirely. If you have family or friends who can lend you money, that is often the cheapest option, though it carries its own risks.

Frequently Asked Questions

What is the difference between a cash advance and a balance transfer?

A cash advance gives you physical cash and charges a higher interest rate with no grace period. A balance transfer moves debt from one card to another and usually has a lower introductory rate (often 0%) for a set period, though it also charges an upfront fee. Use a cash advance only for cash; use a balance transfer to move existing credit card debt.

Can I use a credit card cash advance to pay off another debt?

Technically yes, but it is expensive. You pay the cash advance fee and high interest rate, so you are borrowing at 24% to 36% to pay off debt that might be costing you less. A personal loan or balance transfer is cheaper in almost every case.

Does a cash advance count toward my rewards or cash back?

No. Cash advances do not earn points, miles, or cash back, even on cards that reward purchases. You pay the fee and interest with no benefit.

What happens if I only pay the minimum on a cash advance?

The balance shrinks very slowly because most of your payment goes to interest. A $500 advance at 26% APR with a $25 minimum payment takes roughly 24 months to pay off and costs you an extra $100 in interest alone.

Can I get a cash advance on a debit card?

No. Debit cards draw directly from your bank account and do not allow cash advances. Only credit cards offer this feature.