Yes, you can take cash out from a credit card, but it costs more than a regular purchase
You can withdraw cash directly from a credit card at an ATM, through your bank teller, or sometimes at a store checkout. The transaction is called a cash advance. Unlike a purchase, which you can pay off interest-free during your grace period, a cash advance starts charging interest immediately—usually the day you withdraw it. You also pay an upfront fee, typically 3 to 5 percent of the amount you withdraw.
The interest rate on cash advances is almost always higher than the rate on regular purchases from the same card. If your card charges 18 percent on purchases, it might charge 24 percent on cash advances. That difference matters fast, especially since interest starts accruing right away.
Key Takeaways
- Cash advances charge interest from day one, with no grace period like purchases have.
- You pay an upfront fee—usually 3 to 5 percent of the cash you withdraw—on top of interest.
- The interest rate on cash advances is typically higher than the rate on purchases from the same card.
- You can withdraw cash at an ATM, at your bank branch, or sometimes at a store, depending on your card issuer.
- The amount you can withdraw is limited by your card's cash advance limit, which is often lower than your credit limit.
Where you can actually get the cash
Most credit card issuers let you withdraw cash at any ATM that displays your card's network logo—Visa, Mastercard, American Express, or Discover. You insert your card, enter your PIN, and withdraw up to your daily limit, just like a debit card.
You can also visit your card issuer's bank branch and ask a teller for a cash advance. This method works if you don't have a PIN set up or if you've hit your ATM daily limit. Some card issuers also allow cash advances through convenience checks—checks linked to your credit card account that you can write to yourself or deposit into another account.
A few retailers let you get cash back when you make a purchase with your credit card, though this is less common than it used to be. Ask at checkout whether the store offers this option.
How much you can withdraw and what limits apply
Your credit card issuer sets a cash advance limit separate from your regular credit limit. This limit is often much lower—sometimes 20 to 50 percent of your total credit limit. If your credit limit is $5,000, your cash advance limit might be only $1,000.
You also face a daily ATM withdrawal limit, which varies by card issuer but commonly ranges from $300 to $1,000 per day. If you need more cash than your daily limit allows, you can make multiple withdrawals over several days, but you'll pay the cash advance fee each time.
Your available credit determines how much you can actually withdraw. If you've already charged $2,000 on a $5,000 limit, you have $3,000 available—but your cash advance limit might cap you at $1,000 of that.
The fees and interest that make cash advances expensive
A cash advance fee is charged the moment you withdraw the money. This fee is typically a flat dollar amount (like $5 or $10) or a percentage of the amount withdrawn (usually 3 to 5 percent), whichever is greater. If you withdraw $500 and the fee is 3 percent with a $5 minimum, you pay $15.
Interest starts accruing immediately—there is no grace period. If you withdraw $500 at a 24 percent annual rate, you owe roughly $10 in interest after one month, even if you haven't made any other charges. The longer you carry the balance, the more interest compounds.
Some card issuers also charge a foreign transaction fee if you withdraw cash from an ATM outside your home country, typically 1 to 3 percent on top of the cash advance fee and interest.
How the payment gets applied to your balance
When you make a payment on your credit card, the card issuer applies it first to the balance with the highest interest rate. Since cash advances carry a higher rate than purchases, your payment goes toward the cash advance first, not your regular purchases.
This means if you have a $500 cash advance at 24 percent and a $500 purchase at 18 percent, and you pay $200, that $200 goes entirely toward the cash advance. Your purchase keeps accruing interest at 18 percent until the cash advance is paid off.
To avoid this trap, pay off cash advances as quickly as possible. If you must take a cash advance, treat it as a short-term loan you're paying back immediately, not as spending money.
When a cash advance makes sense and when it doesn't
A cash advance makes sense only in genuine emergencies when you have no other way to get cash—a broken-down car that needs a tow, a medical bill that requires immediate payment, or a situation where a business won't take your card. Even then, it should be a last resort.
A cash advance does not make sense for everyday spending, even if you're short on cash. The fees and interest add up faster than you might expect. If you need cash regularly, a debit card or a withdrawal from your checking account is far cheaper.
If you're considering a cash advance to pay another debt, pause and think through the math. A cash advance at 24 percent interest plus a 5 percent fee is almost always more expensive than other borrowing options, including personal loans or even a payment plan with the creditor you owe.
How to set up or change your cash advance limit
Your card issuer sets your initial cash advance limit based on your credit score and payment history. You can contact your card issuer's customer service to request a higher or lower limit.
To lower your limit, call the number on the back of your card and ask to reduce your cash advance limit. This takes effect immediately and can help you avoid the temptation to withdraw cash in a moment of financial stress.
To raise your limit, you'll need to call and make a formal request. The issuer may approve it on the spot, or they may review your account and contact you later. A higher limit doesn't mean you should use it—it just means the option is there if you need it.
Frequently Asked Questions
What's the difference between a cash advance and a regular purchase?
A purchase has a grace period (usually 21 to 25 days) where you pay no interest if you pay the full balance by the due date. A cash advance charges interest from day one and has no grace period. Cash advances also charge an upfront fee and usually carry a higher interest rate.
Can I use a credit card to withdraw cash from my own bank account?
No. A cash advance is a loan from your credit card issuer, not a withdrawal from your bank. If you need to access money in your checking account, use your debit card or visit your bank branch. Using your credit card to get cash is always a cash advance with fees and interest.
What happens if I can't pay back a cash advance?
The balance stays on your credit card and continues to accrue interest. If you don't pay, the debt can go to collections and damage your credit score. Contact your card issuer if you're struggling to pay—some issuers offer hardship programs or payment plans.
Is there a way to get cash without paying a cash advance fee?
Yes. Use a debit card, withdraw from an ATM at your bank, or ask for cash back at a store when you make a purchase with your debit card. If you must borrow, a personal loan or line of credit from a bank usually has lower interest rates and fees than a credit card cash advance.