Yes, you can withdraw cash from 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 withdraw the money, your credit card company charges you a fee — usually 3 to 5 percent of the amount — and starts charging you interest immediately. Unlike a purchase, which may have a grace period before interest kicks in, a cash advance begins accruing interest the same day you take it out.

The cash advance limit on your credit card is often lower than your overall credit limit. A card with a $5,000 limit might only allow you to advance $1,500 in cash. Your card issuer sets this limit, and you can call to ask what yours is before you go to the ATM.

Key Takeaways

  • Cash advances charge a fee (typically 3 to 5 percent) and interest starting immediately, with no grace period like purchases have.
  • Your cash advance limit is usually much lower than your total credit limit, and you should check it before attempting a withdrawal.
  • ATM withdrawals and bank teller withdrawals both count as cash advances and carry the same fees and interest rates.
  • If you need cash, a personal loan or a withdrawal from your own savings account will cost you far less in fees.

Where you can withdraw the cash

You can withdraw cash at any ATM that displays your card's logo — Visa, Mastercard, American Express, or Discover. You insert your card, enter your PIN, select the cash advance option (not a regular withdrawal, since it is a credit card), and take the money. Some ATMs charge an additional operator fee on top of your card issuer's fee.

You can also walk into a bank branch — yours or any other bank — and ask a teller for a cash advance. You hand them your credit card and your ID, and they process it the same way an ATM does. This method avoids the ATM operator fee, but you are limited to the bank's business hours.

What the fees and interest actually cost

A $300 cash advance with a 4 percent fee costs you $12 right away. If your card's interest rate is 22 percent APR (annual percentage rate), you owe roughly $5.50 in interest after one month if you have not paid it back. After three months, that interest grows to about $16.50. The longer you carry the balance, the more you pay.

Compare this to a $300 purchase on the same card: if you pay it off within the grace period (usually 21 to 25 days), you pay zero interest and zero fees. A cash advance has no grace period, so you are paying interest from day one.

Interest rates and fees vary by card and by issuer. Call the customer service number on the back of your card to ask your specific cash advance fee and interest rate before you withdraw.

How a cash advance affects your credit score

A cash advance shows up on your credit report as a balance on your credit card, just like a purchase does. If you carry the balance for months, it raises your credit utilization ratio — the percentage of your available credit you are using — which can lower your credit score.

The withdrawal itself does not hurt your score, but the debt it creates does. Paying it back quickly keeps the damage minimal.

Cheaper ways to get cash when you need it

If you have a savings account, withdraw from that instead. There is no fee and no interest.

If you do not have savings, a personal loan from a bank or credit union is usually cheaper than a cash advance. Personal loans charge interest, but the rate is often lower than a credit card's cash advance rate, and you know exactly how long you have to pay it back. A credit union loan may be especially affordable if you are a member.

A payday loan is faster but much more expensive — fees can equal 400 percent APR or higher — so avoid it unless you are in a genuine emergency and can pay it back within two weeks.

If you have already taken a cash advance

Pay it back as fast as you can. Every day you carry the balance, interest accrues. If you have other credit card balances, most card issuers apply your payment to the lowest-interest debt first, so your cash advance interest keeps growing while you pay off cheaper purchases. Call your issuer and ask if you can direct a payment specifically to the cash advance balance.

If you cannot pay it back quickly, a personal loan or balance transfer card (a card offering 0 percent interest for a set period) might let you move the debt to a cheaper place while you work on paying it down.

Frequently Asked Questions

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

No. A credit card is not a debit card. When you withdraw cash using a credit card, you are borrowing money from the card issuer, not accessing your own account. Use your debit card or visit your bank's ATM with your debit card to withdraw your own money without fees.

What is the difference between a cash advance and a balance transfer?

A cash advance is money you withdraw as cash. A balance transfer moves debt from one credit card to another. Both charge fees, but a balance transfer sometimes offers a 0 percent interest period, while a cash advance charges interest immediately. Use a balance transfer to move existing debt; use a cash advance only if you need physical cash.

Will my credit card company let me withdraw my entire credit limit as cash?

No. Your cash advance limit is separate from your credit limit and is usually much lower — often 20 to 50 percent of your total limit. The issuer sets this limit to manage risk. You can call and ask what your cash advance limit is.

Can I avoid the cash advance fee by using a credit card at a store checkout?

Yes. If you ask for "cash back" at a store register when you make a purchase, that cash back is treated as part of the purchase, not a separate cash advance, and you avoid the cash advance fee. You still pay interest on the total amount if you do not pay your bill, but you skip the upfront fee.