Yes, you can withdraw cash using a credit card, but it costs more than a regular purchase
You can take cash out of an ATM or ask a bank teller for cash using your credit card. This is called a cash advance. The moment you do it, your card issuer charges you a fee — usually 3 to 5 percent of the amount you withdraw — and starts charging you interest immediately. Unlike a regular purchase, which may have a grace period before interest kicks in, a cash advance begins accruing interest the same day.
The interest rate on a cash advance is also higher than your regular purchase APR. If your card charges 18 percent APR on purchases, the cash advance APR might be 24 or 25 percent. You pay both the upfront fee and the daily interest until the balance is gone.
Key Takeaways
- Cash advances charge an upfront fee of 3 to 5 percent plus a higher interest rate than regular purchases, with interest starting immediately.
- You can withdraw cash at an ATM using your credit card's PIN or ask a teller at a bank branch for the cash.
- Your credit card company sets a cash advance limit, which is often lower than your overall credit limit.
- A cash advance shows up on your credit report as a balance and can lower your credit score if it raises your overall credit utilization.
Where and how to get the cash
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 your card issuer to set one up before you go to the ATM.
You can also walk into a bank branch and ask a teller for a cash advance. Bring your credit card and a form of ID. The teller will process it the same way they would a debit card withdrawal, though the fee and interest terms are the same as an ATM withdrawal.
Some credit cards also allow you to transfer a cash advance to your bank account instead of withdrawing it at an ATM. Check your card's app or call the issuer to see if this option is available to you.
What fees and interest you will pay
The upfront fee is non-negotiable and appears on your statement as a separate charge. A $200 cash advance with a 4 percent fee costs you $8 immediately. That $8 is added to your balance.
Interest begins accruing the day you withdraw the cash. If your cash advance APR is 25 percent and you withdraw $200, you owe roughly $0.14 per day in interest (before you pay any of it back). The longer the balance sits, the more interest you pay. If you pay back the $200 in 30 days, you will owe about $4.25 in interest on top of the $8 fee — a total cost of $12.25 for borrowing $200 for a month.
Your card issuer will tell you the exact fee percentage and APR for cash advances in your cardholder agreement or on the card's pricing page. These numbers vary by card and by issuer.
Your cash advance limit
Your credit card company sets a separate limit on how much you can withdraw as a cash advance. This limit is often much lower than your overall credit limit. If your credit limit is $5,000, your cash advance limit might be $1,000 or $1,500.
You can find your cash advance limit in your cardholder agreement, in your card's mobile app, or by calling the issuer. Some cards let you request a higher limit, though the issuer is not required to grant it.
How a cash advance affects your credit
A cash advance balance counts toward your overall credit utilization — the percentage of your total available credit that you are using. If you have a $5,000 credit limit and a $500 cash advance balance, your utilization is 10 percent. Higher utilization can lower your credit score, even if you pay on time.
The cash advance also shows up on your credit report as a separate balance, which some lenders view differently than a regular purchase balance. It does not hurt you more than a regular balance of the same size, but it is visible to anyone who pulls your credit report.
When a cash advance makes sense
A cash advance is expensive and should be a last resort. It makes sense only if you need cash immediately and have no other way to get it — no ATM access to your bank account, no way to borrow from a friend or family member, and no time to wait for a paycheck.
If you are considering a cash advance because you do not have enough money in your bank account, that is a sign you need to look at your budget or find a way to increase your income. A cash advance does not solve the underlying problem; it just adds cost on top of it.
Alternatives to a cash advance
If you need cash but want to avoid the fees and high interest, consider these options first: withdraw money from your bank account at an ATM (free), ask your employer for an advance on your paycheck (often free or low-cost), borrow from a friend or family member (potentially free), or use a personal loan from a bank or credit union (usually lower interest than a cash advance).
If you are in a true emergency and need cash fast, a personal loan or a short-term loan from a credit union may still be cheaper than a cash advance, even if they charge a fee. Compare the total cost — the fee plus interest for the time you will carry the balance — before you decide.
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 additional fee (usually $2 to $3) on top of your card issuer's cash advance fee. Check the ATM screen before you complete the transaction — it will tell you the total cost.
What happens if I do not pay back the cash advance?
The balance will accrue interest at your cash advance APR until you pay it off. If you miss payments, your card issuer may report it to the credit bureaus, which will damage your credit score. You may also face late fees and a higher APR on future purchases.
Is the cash advance fee the same as the interest rate?
No. The fee is a one-time charge (3 to 5 percent) that you pay upfront. The interest rate is an annual percentage rate (APR) that you pay daily on the outstanding balance. You pay both.
Can I get a cash advance if my credit limit is full?
No. Your cash advance limit is separate from your overall credit limit, but you still cannot exceed your total available credit. If you have used your full credit limit, you cannot take a cash advance until you pay down the balance.
Does a cash advance hurt my credit score?
It can lower your score if it raises your overall credit utilization. The cash advance itself does not hurt you more than a regular purchase of the same amount, but the higher utilization and the visible separate balance may affect how lenders view your creditworthiness.