Yes, you can withdraw cash from a credit card, but it costs more than a regular purchase
A cash advance lets you borrow money against your credit card's available balance and get it as actual cash. You can do this at an ATM, at a bank teller window, or sometimes through a cash advance check your card issuer sends you. The money hits your account immediately, but the card treats it differently than a purchase — you pay a fee upfront, a higher interest rate starts right away, and no grace period applies.
The catch is cost. A typical cash advance fee runs 3 to 5 percent of the amount you withdraw, charged instantly. If you take out $500, you might pay $15 to $25 just to get the cash. Then interest accrues from day one at a rate that is often 5 to 10 percentage points higher than your purchase APR. If your card charges 18 percent on purchases, the cash advance rate might be 28 percent. That interest compounds daily until you pay it back.
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 get cash at an ATM using your PIN, at a bank teller, or through a check your issuer mails to you.
- Interest starts accruing immediately, so a $500 advance at 28 percent costs about $3.89 per day in interest alone.
- Most credit cards limit how much you can withdraw — often 20 to 50 percent of your total credit limit — and some issuers charge a per-transaction fee on top of the percentage fee.
Where and how to withdraw cash from your card
The easiest method is an ATM. Use your credit card's PIN (which you may need to request from your issuer if you do not have one) and withdraw cash like you would from a debit card. The transaction posts immediately, and the fee appears on your next statement.
You can also visit a bank branch — yours or any bank — and ask the teller for a cash advance. Bring your card and ID. The teller will process it the same way, though some banks charge an additional fee on top of your card issuer's fee.
Some card issuers mail convenience checks that work like a cash advance. You write a check to yourself, deposit it, and the amount is treated as a cash advance on your card. These carry the same fees and interest rates as an ATM withdrawal.
What the fees and interest actually cost you
A $500 cash advance with a 4 percent fee costs $20 upfront. If your cash advance APR is 28 percent and you pay nothing for a month, you owe an additional $11.67 in interest. After three months of minimum payments, you could easily have paid $50 or more in fees and interest on that $500.
Compare this to a $500 purchase on the same card at 18 percent APR with a 21-day grace period. If you pay the full balance within the grace period, you pay zero interest. Even if you carry it for three months, you pay roughly $22.50 in interest — less than half what the cash advance costs.
The math gets worse if you only make minimum payments. A $500 cash advance at 28 percent APR, paying $25 per month, takes 24 months to clear and costs $99 in interest alone — nearly 20 percent of the original amount.
Limits on how much you can withdraw
Your card issuer sets a cash advance limit separate from your credit limit. This limit is often 20 to 50 percent of your total credit limit, though some cards set it lower. If your credit limit is $5,000 and your cash advance limit is 25 percent, you can withdraw a maximum of $1,250.
You can contact your card issuer to ask what your cash advance limit is. Some issuers let you request a higher limit, though this is not may provide. Others will not raise it at all. There is no way to know without calling the number on the back of your card.
ATMs also have daily withdrawal limits — often $500 to $1,000 per day — so even if your card allows a larger advance, you may need to make multiple withdrawals over several days.
When a cash advance makes sense (and when it does not)
A cash advance is rarely the cheapest way to borrow money. A personal loan from a bank or credit union typically charges 6 to 36 percent APR with no upfront fee. A payday loan, though predatory, is sometimes cheaper for a one-week emergency than a cash advance you carry for months. Even a 0 percent introductory APR credit card (if you have the credit to get one) beats a cash advance.
The only scenario where a cash advance makes sense is a genuine emergency where you need cash immediately and have no other option — a car repair you must pay in cash, a medical bill, a security deposit. Even then, plan to pay it back within days, not weeks. Every day you carry it costs you money.
If you find yourself regularly needing cash advances, that is a sign your budget has a gap. A cash advance is a symptom, not a solution. The real fix is either cutting expenses or increasing income so you have cash on hand for emergencies.
How a cash advance affects your credit score
A cash advance does not hurt your credit score directly — it is a legitimate use of your available credit. However, it does increase your credit utilization ratio, which is the percentage of your available credit you are using. If you have a $5,000 limit and you take a $1,000 cash advance, your utilization jumps to 20 percent. High utilization (above 30 percent) can lower your score by a few points.
The bigger risk is that a cash advance can trap you in a cycle of debt. If you carry the balance for months, you pay so much interest that your minimum payment barely covers the interest, let alone the principal. This keeps your utilization high and your score suppressed for longer.
Alternatives to a cash advance
If you need cash urgently, consider these options first: a personal loan from a bank or credit union (usually 6 to 36 percent APR with no upfront fee), a 0 percent balance transfer card (if you have good credit and can transfer the balance before the promotional period ends), borrowing from family or friends, or selling something you own. All of these are cheaper than a cash advance in the long run.
If you need cash for an emergency and have no credit, a credit union may offer a small personal loan or a credit-builder loan at a lower rate than a cash advance. Some employers offer paycheck advances or emergency loans to employees. If you are in crisis, 211.org can connect you to local financial assistance programs.
Frequently Asked Questions
Can I use a credit card to withdraw cash at any ATM?
Yes, but only if you have a PIN set up with your card issuer. Not all ATMs accept credit cards — most are set up for debit cards only. Look for ATMs at your card issuer's bank or at banks that are part of the same network. Some ATMs charge an additional fee on top of your card issuer's cash advance fee.
What happens if I only pay the minimum on a cash advance?
The balance grows because the minimum payment barely covers the interest. A $500 cash advance at 28 percent APR with a $25 minimum payment takes 24 months to pay off and costs $99 in interest. You are paying nearly 20 percent extra just to borrow the money.
Does a cash advance show up differently on my credit report?
No, it appears as a regular balance on your credit card account. However, it increases your utilization ratio, which can lower your credit score. The real damage comes from carrying the balance long-term because the high interest makes it hard to pay down.
Can I get a cash advance if I am near my credit limit?
Only up to your cash advance limit, which is separate from your credit limit. If your credit limit is $5,000 and your cash advance limit is $1,000, you can withdraw up to $1,000 even if you have already used $4,500 of your credit limit. However, the cash advance counts toward your total credit utilization.
What if my card issuer denies my cash advance?
This can happen if you have reached your cash advance limit, if your account is flagged for fraud, or if you are behind on payments. Contact your issuer to ask why. If it is a fraud flag, you may need to verify your identity. If it is a limit issue, you can ask for a temporary increase, though this is not may provide.