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 using your credit card, just like you would with a debit card. The money comes from your credit line, not a bank account. But a cash advance — that's what this transaction is called — charges you fees and interest that start right away, with no grace period like you get on regular purchases.
Most credit cards charge a cash advance fee (usually 3 to 5 percent of the amount you withdraw) plus a higher interest rate than your regular purchase rate. If you withdraw $200, you might pay $6 to $10 just to get the cash, and then interest starts accruing immediately. A regular purchase gives you a grace period — typically 21 days — before interest kicks in. A cash advance does not.
Key Takeaways
- Cash advances charge an upfront fee (usually 3 to 5 percent) plus a higher interest rate than purchases, with no grace period.
- You can withdraw cash at any ATM that accepts your card, but your credit card company sets a daily limit on how much you can take out.
- Interest on a cash advance starts the day you withdraw it, so the longer you carry the balance, the more you pay.
- If you need cash, a debit card, bank transfer, or personal loan will almost always cost you less than a credit card cash advance.
How much you can withdraw and where
Your credit card company sets a cash advance limit, which is usually lower than your overall credit limit. You might have a $5,000 credit limit but only a $1,000 cash advance limit. You can find this limit in your cardholder agreement or by calling the number on the back of your card.
You can withdraw cash at any ATM that displays your card's logo — Visa, Mastercard, American Express, or Discover. You can also get a cash advance at a bank teller window or at some retail stores that offer cash back. The ATM will show you the fee before you complete the transaction, so you can decide whether to proceed.
What fees and interest you'll pay
A cash advance typically costs you two things: an upfront fee and a higher interest rate. The fee is usually a flat dollar amount (like $5) or a percentage of the amount withdrawn (like 3 percent), whichever is greater. So on a $100 withdrawal, you might pay $5 flat; on a $500 withdrawal, you might pay $15 (3 percent).
The interest rate on a cash advance is almost always higher than your regular purchase rate. If your purchase APR is 18 percent, your cash advance APR might be 25 percent. That interest starts accruing the moment you withdraw the cash — there is no grace period. If you carry a $200 cash advance for a month at 25 percent APR, you'll pay roughly $4 in interest alone, on top of the upfront fee.
The longer you carry the balance, the more interest compounds. This is why paying off a cash advance as quickly as possible matters much more than paying off a regular purchase.
How cash advances appear on your statement
A cash advance shows up as a separate line item on your credit card statement, not mixed in with your regular purchases. This makes it easy to see what you withdrew and how much you paid in fees. The cash advance balance is also tracked separately from your purchase balance, which matters because credit card companies typically apply your payment to the lowest-interest balance first — meaning your cash advance might sit unpaid longer while you pay down purchases.
Some cards let you see your cash advance limit and current balance online or in the mobile app. Check your account to understand your limit before you head to an ATM.
Why a cash advance costs more than other options
If you need cash, a credit card cash advance is usually the most expensive way to get it. A debit card withdrawal costs nothing. A bank transfer to another person costs nothing or a few dollars. A personal loan from a bank or credit union typically charges 6 to 36 percent APR, which is lower than most cash advance rates, and you get a fixed repayment schedule instead of a revolving balance.
Even a payday loan, which has a bad reputation, often costs less than a credit card cash advance if you pay it back within two weeks. The only scenario where a cash advance makes sense is if you have no other way to get cash and you can pay it back within a few days.
How to pay back a cash advance
When you make a payment on your credit card, the payment goes toward your lowest-interest balance first. Since a cash advance usually has the highest interest rate, your payment will go toward your regular purchases before it touches the cash advance. To pay off a cash advance faster, you can call your credit card company and ask them to apply your next payment specifically to the cash advance balance.
Some cards let you make targeted payments through the online account or app. Check your statement or log into your account to see if that option is available. The goal is to pay off the cash advance before interest compounds too much — ideally within the same billing cycle you withdrew it.
Alternatives to a credit card cash advance
If you need cash and have a choice, consider these options first. A debit card withdrawal from your own bank account costs nothing and carries no interest. A bank transfer or peer-to-peer payment app (like Venmo or PayPal) lets you move money to someone else's account for free or a small fee. A personal loan from a bank, credit union, or online lender gives you a fixed interest rate and repayment schedule, usually lower than a cash advance rate.
If you're in a genuine emergency and have no other option, a cash advance is available — but plan to pay it back immediately. The longer you carry it, the more the fees and interest will cost you.
Frequently Asked Questions
Can I use a credit card cash advance to pay another credit card?
Technically yes, but it's a bad idea. You'll pay the cash advance fee and high interest rate, and you're just moving debt around instead of paying it down. If you're trying to consolidate debt, a balance transfer or personal loan is cheaper.
Does a cash advance hurt my credit score?
A cash advance itself doesn't hurt your score, but carrying a high balance does. If the cash advance pushes your total credit card balance above 30 percent of your credit limit, your credit utilization ratio goes up and your score may drop. Paying it off quickly keeps this from happening.
What's the difference between a cash advance and a balance transfer?
A balance transfer moves debt from one card to another (usually with a lower rate). A cash advance withdraws cash from your credit line. Balance transfers are for moving existing debt; cash advances are for getting physical cash. Both charge fees, but balance transfers sometimes offer a promotional 0 percent rate for a period.
Can I withdraw cash from a credit card without a PIN?
At a bank teller window, yes — you just need your card and ID. At an ATM, you need a PIN. If you don't have one, call your credit card company to set one up before you go to the ATM.
Will my credit card company let me withdraw my full credit limit as cash?
No. Your cash advance limit is separate from and usually much lower than your overall credit limit. You can find your cash advance limit in your cardholder agreement or by calling the card issuer.