Yes, you can withdraw cash with a credit card, but it works differently than a debit card and costs more

When you take cash out using a credit card, you are borrowing money from your credit card issuer the same way you borrow when you make a purchase. The difference is that the bank treats a cash withdrawal as a separate transaction with its own fees and interest rate. You do not get the same grace period you might get on regular purchases — interest starts accruing immediately, usually at a higher rate than your standard purchase APR.

The most common way to withdraw cash is at an ATM using your credit card. You insert the card, enter your PIN, and withdraw the amount you need, just as you would with a debit card. Some banks also let you get cash back at a store checkout or withdraw cash at a bank branch. The mechanics are straightforward. The cost is what surprises most people.

Key Takeaways

  • Cash advances charge an upfront fee (usually 3 to 5 percent of the amount withdrawn) plus a higher interest rate than regular purchases, with interest starting immediately.
  • Your credit card's cash advance limit is often lower than your overall credit limit, so you may not be able to withdraw as much as you can spend.
  • Interest on cash advances typically has no grace period, meaning you pay interest from the day you withdraw the money, not from your statement date.
  • ATM withdrawals, bank teller withdrawals, and store cash-back options all count as cash advances and carry the same fees and rates.

The fees and interest rates that make cash advances expensive

When you take a cash advance, your credit card issuer charges you a cash advance fee upfront. This fee is usually between 3 and 5 percent of the amount you withdraw, though some cards charge a flat dollar amount instead (like $5 or $10 per transaction). If you withdraw $200, you might pay $6 to $10 just to get the cash.

On top of the upfront fee, you pay interest on the cash advance at a rate that is almost always higher than your regular purchase APR. Where a purchase might carry 18 percent APR, a cash advance might be 24 or 25 percent. The interest starts accruing immediately — there is no grace period like there often is for regular purchases. If you carry the balance for a month, you are paying interest for that entire month.

Because of how credit card companies apply payments, if you have both a regular purchase balance and a cash advance balance, your payment goes toward the purchase first (the lower-interest debt) and the cash advance last. This means the cash advance sits there accruing interest while you pay down the other balance.

Your cash advance limit is separate from your credit limit

Your credit card issuer sets a cash advance limit that is different from your overall credit limit. If your credit limit is $5,000, your cash advance limit might be only $1,500 or $2,000. This limit is set by the bank based on your creditworthiness and account history, and you cannot change it yourself.

When you withdraw cash, that amount counts against your cash advance limit, not your regular credit limit. If you hit your cash advance limit, you cannot withdraw more cash even if you have room left on your overall credit limit. You can call your card issuer to ask what your cash advance limit is, and some issuers let you request an increase, though there is no may provide they will grant it.

Where you can withdraw cash and what counts as a cash advance

You can get cash from a credit card in several ways, and all of them are treated as cash advances:

  • ATM withdrawal: Insert your card at any ATM, enter your PIN, and withdraw cash. You may be charged an ATM operator fee on top of your card issuer's cash advance fee.
  • Bank teller withdrawal: Go to a branch of your card issuer (or sometimes any bank) and ask the teller to withdraw cash against your credit card. This avoids the ATM operator fee but still charges the cash advance fee.
  • Store cash back: Some retailers let you get cash back when you make a purchase with your credit card. This counts as a cash advance, not a regular purchase, so you pay the cash advance fee and interest rate.
  • Balance transfer check: Some issuers send you checks that draw against your credit line. Using these checks to withdraw cash is a cash advance.

Each withdrawal is a separate transaction with its own fee. If you withdraw $100 three times, you pay the cash advance fee three times.

Why credit card cash advances are rarely the right choice

Because of the upfront fee and the high interest rate with no grace period, a cash advance is one of the most expensive ways to borrow money. If you need $200 in cash, you might pay $6 to $10 in fees plus interest that starts immediately. Over a month, that $200 could cost you $30 or more in fees and interest combined.

There are almost always cheaper alternatives. A personal loan from a bank or credit union typically charges lower interest and no upfront fee. A payday loan, while also expensive, may cost less than a credit card cash advance if you pay it back quickly. Even using a debit card to withdraw from your own bank account (if you have one) costs nothing.

The only time a cash advance makes sense is if you have no other option and you need the cash urgently. Even then, pay it back as quickly as you can to minimize the interest.

How a cash advance affects your credit score

A cash advance shows up on your credit report as a separate transaction, and it affects your credit utilization ratio — the percentage of your available credit that you are using. If you have a $5,000 credit limit and a $1,500 cash advance limit, and you withdraw $500, you are using 33 percent of your cash advance limit. High utilization can lower your credit score slightly.

The cash advance itself does not hurt your score, but carrying a balance and paying interest over time does. The longer you carry the balance, the more interest you pay and the longer your utilization stays high. Paying off the cash advance quickly keeps the damage to your score minimal.

Frequently Asked Questions

Can I use a credit card to withdraw cash from my own bank account?

No. A credit card is a borrowing tool, not a way to access money you already have. If you want to withdraw from your own account, use your debit card or go to your bank in person. A credit card cash advance always borrows money from the card issuer.

What happens if I cannot pay back a cash advance?

The balance carries over to your next statement and accrues interest every month. If you miss payments, late fees are added and your credit score drops. The debt can eventually be sent to a collection agency. Contact your card issuer as soon as you know you will have trouble paying — they may offer a hardship plan or lower interest rate.

Is there a way to get a lower cash advance fee?

The fee is set by your card issuer and applies to all cardholders on that card. You cannot negotiate it down. Some cards have lower cash advance fees than others, but you would need to switch cards to change the fee. Check your card's terms to see what fee applies before you withdraw.

Does a cash advance count toward my credit limit?

Yes. The amount you withdraw reduces your available credit on that card. If you have a $5,000 limit and withdraw $500 in cash, you have $4,500 left to spend. The cash advance limit is separate, but the amount you withdraw still counts against your overall credit limit.

Can I get a cash advance with a secured credit card?

Yes, most secured cards allow cash advances, though the cash advance limit is usually lower than on unsecured cards. The fees and interest rates are the same. Check your card's terms to confirm whether cash advances are available on your specific card.