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 card's available balance, not from a bank account. But a cash withdrawal from a credit card is not the same as a purchase — your credit card company charges a separate fee for it, and the interest rate is usually higher from the moment you take the money out.
The process itself is simple: insert your card into an ATM, enter your PIN, select "withdrawal" or "cash advance," and choose your amount. The ATM will dispense the cash and your credit card statement will show it as a cash advance. But because of the fees and interest, this is an expensive way to get cash and should only be your choice when you have no other option.
Key Takeaways
- Cash advances from a credit card charge a separate fee (usually 3 to 5 percent of the amount) on top of your regular credit card interest.
- Interest on a cash advance begins accruing immediately — there is no grace period like there is for purchases.
- Your credit card company sets a cash advance limit, which may be lower than your overall credit limit.
- You can withdraw cash at any ATM that accepts your card's network, but ATMs not owned by your bank may charge an additional operator fee.
What fees you will pay for a cash advance
Every credit card company charges a cash advance fee, which is a flat percentage of the amount you withdraw. This fee is separate from your regular purchase interest rate. Most cards charge between 3 and 5 percent, though some charge as much as 10 percent. If you withdraw $200 and your fee is 5 percent, you pay $10 just to get the cash.
You may also pay an ATM operator fee if you use an ATM that does not belong to your card issuer's network. This is usually $2 to $3 per transaction and goes to the ATM owner, not your credit card company. Some banks waive this fee for their own customers; others do not. Check your card's terms or call customer service to learn which ATMs are fee-free for you.
Add these fees together before you withdraw. A $200 cash advance with a 5 percent card fee ($10) plus a $3 ATM fee costs you $13 just to hold the cash — and that is before any interest.
How interest works on cash advances
A cash advance interest rate is usually higher than the rate you pay on regular purchases. Where a purchase might have a 15 percent annual rate, a cash advance might be 20 or 25 percent. Your card's terms will list both rates separately.
The critical difference is timing: interest on a purchase does not start until your grace period ends (usually 21 to 25 days after your statement closes). Interest on a cash advance starts accruing the day you withdraw it. There is no grace period. If you withdraw $200 at a 25 percent annual rate, you are paying roughly $1.37 per day in interest before you even make a payment.
Interest compounds daily, so the longer you carry the balance, the more you owe. If you pay back the $200 in one week, you might pay $4 in interest. If you carry it for a month, you could pay $17 or more. This is why a cash advance should be repaid as quickly as possible.
Your cash advance limit is separate from your credit limit
Your credit card company sets a cash advance limit that is often lower than your overall credit limit. You might have a $5,000 credit limit but only a $1,000 cash advance limit. This limit is set by the card issuer based on your credit history and account activity, and you cannot change it yourself.
You can call your card issuer's customer service number (on the back of your card) and ask what your cash advance limit is. Some card issuers will increase it if you request it, though they may run a credit check. Others keep it fixed. Knowing your limit before you go to an ATM prevents the embarrassment of a declined transaction.
Where you can withdraw cash and what to watch for
You can withdraw cash at any ATM that displays your card's network logo — Visa, Mastercard, American Express, or Discover. This includes ATMs at banks, credit unions, grocery stores, convenience stores, and casinos. The ATM does not need to belong to your bank; any machine that accepts your card will work.
Before you complete the transaction, the ATM will show you the fee it charges (if any). You can cancel at this point if the fee is too high. Some ATMs charge $2, others charge $5 or more. If you are withdrawing a small amount, the fee might be a larger percentage of your cash than you expect.
Avoid using a credit card cash advance at a casino, bar, or other place where you might be tempted to spend the money immediately. The fees and interest make this an expensive source of gambling or entertainment money.
When a cash advance makes sense
A cash advance is useful only in specific situations where you need cash and have no better option. If you have a debit card, use that instead — debit withdrawals have no interest and usually only the ATM operator fee. If you have a bank account with a low-interest overdraft option, that is cheaper than a credit card cash advance.
A cash advance might make sense if you are traveling somewhere that does not accept cards and your debit card is not accepted, or if you need emergency cash and your bank is closed. Even then, withdraw only what you need and repay it within days if possible.
Never use a cash advance to pay another credit card, to pay a loan, or to fund a purchase you cannot otherwise afford. The fees and interest will make the debt worse, not better.
How to repay a cash advance quickly
When you make a payment to your credit card, the company applies it to your lowest-interest debt first — usually your regular purchases — and your highest-interest debt last. This means if you have both a purchase balance and a cash advance balance, your payment goes toward the purchase first, and the cash advance keeps accruing interest.
To pay off a cash advance faster, contact your card issuer and ask if you can make a payment earmarked specifically for the cash advance. Some issuers allow this; others do not. If yours does not, your only option is to pay down your entire card balance until the cash advance is gone.
The best strategy is to avoid the cash advance in the first place. If you do take one, treat it as an emergency-only debt and repay it before you make any other purchases on that card.
Frequently Asked Questions
Can I use a credit card cash advance to pay bills online?
Technically yes, but most bill payment systems do not accept credit card cash advances directly. You would need to withdraw the cash first, then deposit it into a bank account or pay in person. This adds time and defeats the purpose of paying online. If you need to pay a bill urgently, contact the biller to ask about payment plans or extensions instead.
What happens if I cannot repay the cash advance?
The balance stays on your credit card and accrues interest at your cash advance rate. If you miss payments, your credit score will drop and the card issuer may increase your interest rate on all balances. The debt does not go away — it only gets worse. Contact your card issuer immediately if you cannot pay to discuss options.
Is there a difference between a cash advance and a balance transfer?
Yes. A cash advance is money you withdraw in cash. A balance transfer is moving debt from one credit card to another. Balance transfers usually have lower fees and sometimes a temporary 0 percent interest rate, making them cheaper than cash advances. If you need to move money between accounts, a balance transfer is usually the better choice.
Do all credit cards allow cash advances?
Most credit cards do, but some do not. Secured credit cards and certain student cards may not offer cash advances. Check your card's terms or call customer service to confirm. If your card does not allow cash advances, you cannot override this restriction.
Can I withdraw cash from a credit card at a bank teller instead of an ATM?
Yes. You can go to any bank branch and ask a teller for a cash advance using your credit card. The fee structure is the same as an ATM withdrawal, and interest still starts immediately. Some banks charge an additional fee for teller-assisted cash advances. Call ahead to ask about fees before you visit.