Yes, you can withdraw cash using your credit card, but it costs more than a regular purchase
You can pull cash from an ATM or ask a bank teller for cash back using your credit card. The transaction is called a cash advance. Unlike a debit card withdrawal, which pulls from money you already have, a cash advance borrows against your credit limit and starts charging interest immediately — there is no grace period like there is for regular purchases.
Most credit cards charge a fee for each cash advance (usually 3 to 5 percent of the amount withdrawn, with a minimum of $5 to $10) plus a higher interest rate than your regular purchase APR. If you withdraw $200, you might pay $6 to $10 in fees alone, then interest compounds daily until you pay it back.
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 get cash at most ATMs using your credit card PIN, or ask a bank teller for cash back without a PIN.
- Your credit card statement will show the cash advance separately from purchases, and the balance accrues interest daily until paid off.
- Most credit cards do not offer a grace period for cash advances, so interest begins the day you withdraw the money.
- If you need cash regularly, a personal loan or line of credit usually costs less than repeated cash advances.
Where you can withdraw cash with a credit card
You can withdraw cash at any ATM that displays your card's logo (Visa, Mastercard, American Express, or Discover). You will need your PIN. If you do not have a PIN, call the customer service number on the back of your card to set one up before you go to the ATM.
You can also walk into any bank branch — not just your card issuer's branch — and ask the teller for a cash advance. You will need your card and a photo ID. This method does not require a PIN and works even if you have not set one up yet.
The fees and interest rates you will pay
Every credit card charges a cash advance fee, which is a percentage of the amount you withdraw. This fee ranges from 3 to 5 percent on most cards, though some charge as much as 10 percent. The fee is charged immediately and added to your balance.
Your cash advance also carries a different interest rate than your regular purchases. This rate is usually 2 to 3 percentage points higher than your purchase APR. If your purchase APR is 18 percent, your cash advance APR might be 21 percent. Interest starts accruing the day you withdraw the money — there is no interest-free period.
To see your card's specific cash advance fee and APR, check your cardholder agreement or log into your online account. The fee and rate are set by your card issuer and do not change based on how much you withdraw.
How a cash advance appears on your statement
Your credit card statement separates cash advances from regular purchases. You will see the withdrawal listed as "cash advance" with the date and amount, the fee charged, and the interest accrued so far. The cash advance balance is tracked separately from your purchase balance, though both count toward your total credit card debt.
If you make a payment to your card, most issuers apply it to your lowest-interest balance first — usually your regular purchases. This means your cash advance (which has the higher rate) keeps accruing interest longer. To pay off a cash advance faster, contact your issuer and ask them to apply your next payment directly to the cash advance balance.
When a cash advance costs less than alternatives
A cash advance is rarely the cheapest way to get cash, but it can be the fastest. If you need $300 today and your only other option is a payday loan (which charges 400 percent APR or higher), a credit card cash advance is the better choice.
If you have time to plan, a personal loan from a bank or credit union usually costs less. Personal loans charge a fixed interest rate (often 6 to 36 percent depending on your credit) with no upfront fee, and interest does not start until you receive the money. A line of credit works similarly and lets you withdraw only what you need.
If you need cash regularly — for a business, a side job, or ongoing expenses — a personal line of credit is cheaper than repeated cash advances because you pay interest only on what you actually use, and the rate is lower.
How to minimize the cost if you do take a cash advance
Withdraw only what you need. Every dollar you advance costs you the upfront fee plus daily interest, so taking $500 when you need $200 doubles your cost.
Pay it back as fast as possible. The longer the balance sits, the more interest you pay. If you can pay it off within a week, the interest charge might be only $2 to $3. If it sits for three months, you could pay $15 to $30 in interest alone, on top of the upfront fee.
Ask your issuer whether they offer a lower cash advance APR for customers who pay on time. Some cards do not, but a few will reduce the rate if you have a good payment history.
Alternatives to a credit card cash advance
ATM withdrawal from a savings account or checking account costs nothing and is the cheapest option if you have the money available. You pay no fee and no interest.
A personal loan from a bank or credit union charges a fixed interest rate with no upfront fee. You receive the full amount upfront and repay it in fixed monthly payments. Rates are usually lower than credit card APRs.
A line of credit works like a credit card but usually charges lower interest rates. You draw only what you need and pay interest only on the amount you use.
Borrowing from friends or family costs nothing if they do not charge interest. Put any agreement in writing to avoid misunderstandings.
A payday loan is faster than a personal loan but costs much more (often 400 percent APR or higher). Use this only if you have no other option and can pay it back within two weeks.
Frequently Asked Questions
Can I use a credit card to withdraw cash at any ATM?
You can use any ATM that displays your card's logo. Some ATMs charge an out-of-network fee ($2 to $3) on top of your credit card's cash advance fee, so using an ATM owned by your card issuer or a partner bank saves money. Check your card's website for a list of partner ATMs.
What happens if I do not pay back a cash advance?
The balance stays on your credit card and accrues interest daily. If you do not pay at least the minimum payment, your issuer will report the late payment to the credit bureaus, which lowers your credit score. After 30 days late, you may face a late fee; after 180 days, the account may be sent to collections.
Is there a limit to how much cash I can withdraw?
Yes. Your card issuer sets a cash advance limit, which is usually lower than your total credit limit. You might have a $5,000 credit limit but only a $1,000 cash advance limit. Check your cardholder agreement or call customer service to find out your limit.
Do I pay interest on a cash advance if I pay it off right away?
Interest starts the day you withdraw the cash, so even if you pay it off the next day, you will owe one day of interest. However, the amount is small — usually less than $1 on a $200 withdrawal. You will still owe the upfront cash advance fee regardless of how quickly you repay.
Can I use a credit card to get cash back at a store?
No. Cash back at a grocery store or retail checkout is only available with a debit card, not a credit card. Your only options with a credit card are an ATM withdrawal or asking a bank teller for a cash advance.