Yes, you can withdraw cash with a credit card, but it works differently than a debit card and costs more
When you withdraw cash using a credit card, you are borrowing money from your credit card issuer, not pulling from your own account. The transaction is called a cash advance. Unlike a purchase, which gets added to your monthly bill at your regular interest rate, a cash advance starts charging interest immediately — there is no grace period. You also pay an upfront fee, usually 3 to 5 percent of the amount you withdraw.
You can get a cash advance at an ATM using your credit card and PIN, at a bank teller window, or sometimes at a convenience store. The money appears in your account within one business day, but the cost starts the moment you complete the transaction.
Key Takeaways
- Cash advances charge interest from day one, with no grace period like purchases have.
- You pay an upfront fee (typically 3 to 5 percent) plus a higher interest rate than you pay on regular purchases.
- You can withdraw cash at ATMs, bank teller windows, or some retail locations using your credit card and PIN.
- The money counts as borrowed debt immediately and appears on your credit card statement as a separate line item.
How much a cash advance actually costs you
The total cost of a cash advance has two parts: the upfront fee and the interest. If you withdraw $200, your card issuer charges a fee right away — often $6 to $10 depending on your card's terms. That fee is added to your balance.
Then interest starts accruing daily on the full amount, including the fee. Credit card companies charge a higher interest rate for cash advances than for purchases. Where a regular purchase might be charged at 18 percent APR, a cash advance on the same card might be 22 or 25 percent APR. That difference compounds quickly. A $200 cash advance that you pay back in one month could cost you $4 to $5 in interest alone, on top of the upfront fee.
The longer you carry the balance, the more expensive it becomes. This is why cash advances are meant for emergencies only, not regular spending.
Where you can withdraw cash with a credit card
ATMs are the most common place. Your credit card issuer's own ATMs usually charge no ATM fee on top of the cash advance fee, but ATMs from other banks or networks charge an additional fee — often $2 to $3. Some cards waive this fee; most do not.
You can also go to a bank teller window at your credit card issuer's bank and ask for a cash advance. The teller will process it the same way, and you will pay the same cash advance fee but avoid the ATM operator's fee.
Some convenience stores and grocery stores offer cash advances at checkout, though this is less common than it used to be. The store charges its own fee on top of your card issuer's fee, so this option is usually the most expensive route.
The difference between a cash advance and a balance transfer
A balance transfer is when you move debt from one credit card to another, usually to get a lower interest rate. A cash advance is when you borrow new money in the form of cash. They are different transactions with different costs.
Balance transfers also charge an upfront fee (typically 3 to 5 percent) and may have a promotional period with a lower interest rate. But you are moving existing debt, not creating new debt. A cash advance creates new debt from the moment you withdraw the cash.
Why your credit card issuer limits how much you can withdraw
Your credit card has a credit limit — the maximum you can borrow. Your cash advance limit is usually lower than your credit limit. A card with a $5,000 credit limit might only allow you to withdraw $1,500 in cash advances.
Card issuers set lower cash advance limits because cash is riskier for them than purchases. When you buy something with a credit card, the merchant can dispute the charge if something goes wrong. With cash, once it is in your hand, the issuer has no way to recover it if you do not pay the bill. The lower limit protects the issuer's money.
You can find your cash advance limit in your card's terms and conditions, on your statement, or by calling the customer service number on the back of your card.
How a cash advance shows up on your credit report
A cash advance appears on your credit card statement as a separate line item from your purchases. It counts toward your credit utilization — the percentage of your available credit that you are using. If you have a $5,000 credit limit and you take a $500 cash advance, your utilization jumps to 10 percent.
High credit utilization can lower your credit score, even if you pay the balance in full and on time. The damage is temporary — your score recovers once you pay down the balance — but it happens immediately when you take the advance.
The cash advance itself does not show up differently on your credit report than a regular purchase. But the higher balance and the fact that you are carrying it longer (because of the interest) means it affects your score more.
When a cash advance makes sense and when it does not
A cash advance makes sense only in a genuine emergency where you need cash and have no other option. Examples: your car breaks down and the mechanic only takes cash, or you need to pay a deposit for housing and the landlord will not accept a card.
A cash advance does not make sense for everyday spending, even if you are short on cash. The fees and interest are too high. If you need cash regularly, a debit card or a trip to your bank's ATM is far cheaper. If you are short on money, a cash advance only makes the problem worse by adding interest and fees to your debt.
If you find yourself taking cash advances often, that is a sign you are spending more than you earn. The solution is to adjust your budget, not to borrow more money at a high rate.
Frequently Asked Questions
Can I use a credit card to withdraw cash at any ATM?
Yes, you can use your credit card at most ATMs that display your card's network logo (Visa, Mastercard, American Express, or Discover). You will need your PIN. ATMs outside your card issuer's network charge an additional operator fee, usually $2 to $3, on top of your cash advance fee.
What happens if I do not pay back a cash advance?
The balance stays on your credit card and interest keeps accruing daily. If you do not pay at least the minimum payment, your account goes past due, your credit score drops, and the card issuer may charge late fees. After several months of non-payment, the issuer may close your account and send it to a collection agency.
Is the interest rate on a cash advance the same as on purchases?
No. Cash advances almost always have a higher interest rate than purchases on the same card. Where purchases might be 18 percent APR, cash advances might be 22 to 25 percent APR. Check your card's terms to see the exact rates.
Can I pay off a cash advance faster to reduce interest?
Yes. The faster you pay it off, the less interest you pay. If you can pay the full amount within a few days, do it. Every day you carry the balance, interest is accruing. Some cards apply your payments to the lowest-interest debt first, so you may need to contact the issuer to make sure your payment goes toward the cash advance.