Yes, you can pull cash out of your credit card, but it costs more than a regular purchase
You can withdraw cash from a credit card at an ATM or by asking a bank teller for cash back. This is called a cash advance. The money comes from your credit card's available balance, just like a purchase does. But unlike buying something, a cash advance charges you fees and interest that start right away — there is no grace period where you pay nothing.
Most people use cash advances only when they have no other option, because the cost adds up fast. A typical cash advance fee is 3 to 5 percent of the amount you withdraw, charged immediately. If you withdraw $200, you might pay $6 to $10 just to get the cash. Then interest starts accruing the same day at a rate that is usually higher than your regular purchase rate.
Key Takeaways
- You can withdraw cash at an ATM using your credit card PIN, or ask a teller at your bank for cash back over the counter.
- Cash advances charge a fee (usually 3 to 5 percent) and a higher interest rate than purchases, with interest starting immediately.
- Your credit card statement will show the cash advance separately from purchases, and you pay interest on it until the balance is zero.
- Your credit limit covers both purchases and cash advances combined, so a large withdrawal reduces what you can spend elsewhere.
- If you need cash regularly, a debit card or bank account withdrawal costs nothing and should be your first choice.
Where and how to withdraw cash from your credit card
The easiest way is to find an ATM that accepts your card. Look for your card's logo (Visa, Mastercard, American Express, Discover) on the ATM screen, insert your card, enter your PIN, and select "cash advance" or "withdrawal." The ATM will ask how much you want and then dispense the cash. Some ATMs charge an additional fee of $2 to $3 just for using their machine, on top of your card issuer's cash advance fee.
You can also walk into any bank branch — yours or someone else's — and ask the teller for a cash advance. Hand them your credit card and tell them the amount. They will process it like a withdrawal from a checking account, but it will post to your credit card bill instead. This method avoids ATM fees but may take a few minutes longer.
A third option is to use a convenience check if your credit card issuer sends them. These look like regular checks but draw from your credit card balance. You write one to yourself, deposit it in your bank account, and the amount becomes a cash advance on your card. This method also triggers the cash advance fee and interest rate.
What fees and interest rates you will pay
The cash advance fee is a one-time charge 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. This fee appears on your statement immediately and is added to your balance.
The interest rate on a cash advance is almost always higher than your regular purchase rate. If your card charges 18 percent APR on purchases, the cash advance rate might be 22 or 25 percent. More importantly, interest starts accruing the day you withdraw the cash — there is no grace period. With a purchase, you typically have 21 to 25 days before interest kicks in. With a cash advance, you are paying interest from day one.
To see what your card charges, check your credit card agreement or call the number on the back of your card and ask for the cash advance fee percentage and APR. These vary by card and by your creditworthiness, so what one person pays may differ from what another pays.
How a cash advance affects your credit limit and balance
Your credit limit is shared between purchases and cash advances. If your limit is $2,000 and you withdraw $500 in cash, you have $1,500 left to spend on purchases. The cash advance counts against your available credit just like a purchase does.
On your statement, the cash advance appears as a separate line item from your regular purchases. You will see the amount withdrawn, the fee charged, and the interest accrued. As you make payments, you get to decide which balance to pay down first — but most card issuers apply your payment to the lowest-interest balance first, which means purchases get paid before the cash advance does.
The cash advance balance stays on your card and accrues interest every month until you pay it off completely. If you only make the minimum payment, the balance shrinks slowly and you pay a lot in interest over time.
Why cash advances are expensive compared to other ways to get cash
A debit card withdrawal from your own bank account costs nothing — no fee, no interest. If you have a checking or savings account, this is always the cheapest way to get cash. A credit card cash advance should only happen when you have no access to your own money.
A personal loan from a bank or credit union is cheaper than a cash advance if you need a larger amount. Interest rates on personal loans are usually lower than credit card cash advance rates, and there is no upfront fee. But a loan takes a few days to process, so it does not help if you need cash today.
A balance transfer to a different card might make sense if you already have a cash advance balance and another card offers a 0 percent introductory rate. You would transfer the cash advance balance to that card and pay nothing in interest for the promotional period. But this also charges a fee (usually 3 to 5 percent), so it only saves money if you can pay off the balance before the rate goes back up.
What happens if you cannot pay back the cash advance
If you do not pay back the cash advance, it stays on your credit card and accrues interest every month. Your minimum payment covers some of it, but the balance shrinks slowly. After several months of non-payment, your card issuer may freeze your account or close it, and the debt goes to a collection agency.
A cash advance that goes unpaid also damages your credit score because it shows up as a late payment or charge-off on your credit report. This makes it harder to borrow money in the future and can affect your ability to rent an apartment or get a job.
If you are struggling to pay back a cash advance, contact your card issuer and ask about a hardship program. Some issuers will lower your interest rate or set up a payment plan if you explain your situation. This is better than ignoring the debt.
Frequently Asked Questions
Can I withdraw more cash than my available credit?
No. Your cash advance is limited to your available credit balance. If your limit is $2,000 and you have already spent $1,500, you can only withdraw $500. Some card issuers also set a separate cash advance limit that is lower than your total credit limit, so check your agreement.
Do I need a PIN to get a cash advance at an ATM?
Yes. You will need to enter your PIN, which is different from your card number. If you do not have a PIN set up, call your card issuer and ask them to send you one or set it up online. At a bank teller, you may only need your card and ID.
How long does it take for a cash advance to show up on my statement?
It usually appears within one to three business days. The fee and interest start accruing immediately, even if the transaction has not posted yet. Check your online account to see pending transactions.
What is the difference between a cash advance and a purchase?
A purchase has a grace period (usually 21 to 25 days) before interest starts, and a lower interest rate. A cash advance charges a fee immediately, has a higher interest rate, and interest starts accruing right away. Purchases are always cheaper.
Can I use a credit card cash advance to pay another credit card bill?
Technically yes, but it is a bad idea. You would pay a cash advance fee on the withdrawal, then pay interest on the borrowed money while you pay off the other card. You end up paying more in fees and interest than if you just paid the original bill slowly.