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 treated differently than a purchase — it triggers a cash advance fee (usually 3% to 5% of the amount you withdraw) and starts charging interest immediately, with no grace period like you get on regular purchases.
This means withdrawing $100 in cash will cost you more than charging $100 to the card. You pay the fee upfront, and interest starts accruing the same day, even if you pay the full balance when your statement arrives.
Key Takeaways
- Cash advances charge a fee (typically 3% to 5%) plus interest that starts right away, unlike regular purchases which have a grace period.
- The interest rate on a cash advance is often higher than the rate on regular purchases, even on the same card.
- You can withdraw cash at any ATM that accepts your card's network (Visa, Mastercard, American Express, Discover), not just your card issuer's ATMs.
- The amount you can withdraw is limited by your available credit and your card's daily cash advance limit, which is often lower than your total credit limit.
How much you can withdraw and what limits apply
Your credit card issuer sets a cash advance limit, which is separate from your overall credit limit. This limit is often 20% to 50% of your total credit limit, though it varies by card and issuer. If your credit limit is $5,000, your cash advance limit might be $1,000 or $2,500.
You also hit a daily limit — most cards allow $300 to $500 per day at ATMs, though some allow more. This is a security measure to prevent fraud. If you need more cash than your daily limit allows, you have to wait until the next day to withdraw again.
The amount you can actually withdraw is whichever is smallest: your cash advance limit, your daily ATM limit, or your available credit on the card.
The fees and interest you'll pay
A cash advance fee is charged the moment you withdraw the money. This is usually a flat fee (like $5 or $10) or a percentage of the amount (like 3% or 5%), whichever is greater. So withdrawing $100 might cost you $5 to $10 in fees alone.
Interest starts accruing immediately on the cash advance balance — there is no grace period like there is on regular purchases. If your card's regular purchase APR is 18%, the cash advance APR might be 22% or higher. That interest compounds daily until you pay off the cash advance.
Because of these costs, a $100 cash withdrawal can easily cost you $8 to $15 by the time you pay it off, depending on how long you carry the balance.
Where you can withdraw cash and what to expect
You can withdraw cash at any ATM that displays your card's network logo — Visa, Mastercard, American Express, or Discover. You do not have to use your card issuer's ATM. Walk up to any ATM, insert your card, enter your PIN, select "cash withdrawal" or "cash advance," and choose your amount.
Some ATMs charge an additional fee (called a surcharge) on top of your credit card's cash advance fee — usually $2 to $3. This is separate from what your card issuer charges. The ATM screen will tell you the surcharge before you confirm the withdrawal, so you can cancel if you do not want to pay it.
The cash is dispensed immediately, and the transaction shows up on your credit card statement as a cash advance, not a purchase.
Why cash advances cost more than other ways to get cash
If you need cash, a cash advance is usually the most expensive option. Alternatives include using a debit card (no fee, no interest), writing a check, using a bank transfer, or asking a friend to pay and you pay them back. Even a personal loan from a bank typically costs less than a credit card cash advance.
Credit card companies charge more for cash advances because they see them as riskier — cash cannot be returned or disputed the way a purchase can. The higher fee and interest rate reflect that risk.
If you find yourself regularly needing cash advances, it may be worth opening a checking account with a debit card, which lets you withdraw cash for free at most ATMs.
How a cash advance affects your credit score
A cash advance itself does not directly hurt your credit score, but it does increase your credit utilization — the percentage of your available credit that you are using. If you have a $5,000 limit and withdraw $1,000 in cash, your utilization jumps to 20%. High utilization can lower your score slightly.
The bigger impact comes if you carry the cash advance balance and miss a payment. Late payments and high balances over time will lower your score more than the cash advance itself.
Paying off a cash advance
When you make a payment to your credit card, the payment is typically applied first to your lowest-interest balance (usually regular purchases) and last to your highest-interest balance (usually cash advances). This means if you have both a purchase balance and a cash advance balance, your payment will pay down the purchase first, leaving the cash advance to accrue interest longer.
To pay off a cash advance faster, you can contact your card issuer and ask them to apply your payment directly to the cash advance, or you can pay more than the minimum to cover both balances. Paying off the cash advance as soon as possible is the best way to minimize the interest you pay.
Frequently Asked Questions
Can I use a credit card cash advance to pay another credit card bill?
Technically yes, but it is a bad idea. You would be paying a cash advance fee and interest on money you are using to pay another card's balance. You would end up paying more in fees and interest than if you just paid the other card directly or transferred the balance instead.
What is the difference between a cash advance and a balance transfer?
A cash advance gives you physical cash and charges a fee plus high interest immediately. A balance transfer moves debt from one card to another and often has a lower fee and a promotional 0% interest period. If you need to move money between cards, a balance transfer is usually cheaper than a cash advance.
Will a cash advance show up on my credit report?
The cash advance itself does not show up as a separate line item on your credit report. But if you carry a high balance or miss a payment, that will show up and affect your score. Your credit report shows your payment history and balances, not the type of transaction.
Can I withdraw cash from a credit card at a bank teller?
Yes, you can ask a bank teller to give you a cash advance on your credit card, even if you do not have an account at that bank. They will charge you a fee (usually higher than an ATM fee) and process it like an ATM withdrawal. Most people use ATMs instead because they are faster and sometimes cheaper.
What happens if I do not pay back a cash advance?
The balance stays on your card and interest keeps accruing. If you miss payments, your credit score drops, your interest rate may increase, and the card issuer can pursue collection. Unpaid cash advances can lead to debt collection and legal action, just like any other unpaid credit card balance.