Yes, you can withdraw cash using a credit card, but it costs more than a regular purchase
You can get cash from a credit card through an ATM, at a bank teller window, or at some retail locations that offer cash back. The transaction is called a cash advance. Unlike swiping your card to buy something, a cash advance charges you fees upfront and starts accruing interest immediately — there is no grace period like there is for regular purchases.
The cost difference is significant. A typical cash advance fee runs 3 to 5 percent of the amount you withdraw, charged to your account right away. Interest rates on cash advances are usually 2 to 3 percentage points higher than your regular purchase APR, and that interest starts the day you withdraw the money, not at the end of a billing cycle.
Key Takeaways
- Cash advances charge a fee (usually 3 to 5 percent) plus a higher interest rate than regular purchases, with interest starting immediately.
- You can withdraw cash at an ATM using your credit card PIN, at a bank teller, or sometimes at a retail counter, depending on your card issuer.
- Your credit card company sets a separate cash advance limit, which may be lower than your overall credit limit.
- The total cost of a cash advance makes it expensive for anything other than a genuine emergency.
Where and how to get cash with your credit card
The most common method is an ATM. You insert your card, enter your PIN, and select the cash advance option (not a regular withdrawal, since this is a credit card, not a debit card). The ATM dispenses cash and charges the fee immediately. Some ATMs charge an additional operator fee on top of your card issuer's fee — you will usually see this warning on the screen before you confirm the transaction.
You can also visit a bank branch and ask a teller for a cash advance. Bring your credit card and a form of ID. The teller processes it like a withdrawal but from your credit line instead of a deposit account. This method sometimes avoids the ATM operator fee, though your card issuer's fee still applies.
A smaller number of credit card issuers allow cash advances at retail locations — you ask the cashier for cash back when you make a purchase, and the total (purchase plus cash) is charged to your card. Check your card's terms or call the issuer to see if this option is available to you.
Understanding cash advance limits and how they work
Your credit card issuer sets a cash advance limit separate from your regular credit limit. This limit is often lower — sometimes 20 to 50 percent of your total credit limit, though it varies by card and issuer. You can find your cash advance limit in your card agreement, on your online account, or by calling customer service.
When you take a cash advance, it counts against both your cash advance limit and your overall credit limit. If your cash advance limit is $500 and your total credit limit is $2,000, you can withdraw up to $500 in cash, but that $500 also reduces the $2,000 available for regular purchases.
The cash advance appears on your statement as a separate line item from regular purchases. You can pay it off independently, but most card issuers apply your payment to the lowest-interest debt first — meaning regular purchases get paid down before the cash advance, even though the cash advance has a higher interest rate.
The fees and interest you will pay
A cash advance typically costs you money in three ways. First, there is an upfront fee charged by your card issuer, usually 3 to 5 percent of the amount withdrawn. A $200 cash advance with a 4 percent fee costs $8 immediately. Second, if you use an ATM outside your card issuer's network, the ATM operator charges a separate fee — often $2 to $3 per transaction. Third, interest accrues from day one at a higher rate than your purchase APR.
Interest is calculated daily on the cash advance balance until you pay it off completely. If your cash advance APR is 24 percent and you withdraw $200, you owe roughly $4 in interest per month if you make no payment. The interest compounds, so the longer you carry the balance, the more you pay.
To see the real cost, imagine withdrawing $300 at a 4 percent fee ($12) with a 24 percent APR. If you pay it back in one month, you owe the $300 plus $12 plus about $6 in interest — $318 total. If you carry it for six months, interest alone could add $40 or more to the original $312 cost.
When a cash advance makes sense and when it does not
A cash advance is rarely the cheapest way to get cash. A personal loan from a bank or credit union, a payday loan (despite its high rates), or even a short-term loan from family usually costs less than a credit card cash advance if you need money for more than a few days.
A cash advance might make sense only in a genuine emergency — you need cash immediately, have no other source, and can pay it back within days. For example, if your car breaks down and the mechanic takes only cash, and you can repay the advance from your next paycheck, the cost might be worth it. But if you are considering a cash advance to cover regular expenses or to fund a purchase you cannot otherwise afford, that is a sign to pause and find a different solution.
Before taking a cash advance, call your card issuer and ask for your exact cash advance limit, the fee percentage, and the APR. Then calculate the total cost for the time period you expect to carry the balance. That number often makes the decision clear.
How a cash advance affects your credit score
Taking a cash advance does not directly hurt your credit score, but it can indirectly. A cash advance increases your credit utilization ratio — the percentage of your available credit you are using. If you have a $2,000 limit and take a $500 cash advance, your utilization jumps to 25 percent. Credit scoring models penalize high utilization, so your score may drop a few points.
The bigger risk is carrying the balance. If you do not pay off the cash advance quickly, the interest compounds and the balance grows. A growing balance keeps your utilization high, which keeps your score depressed. Missed payments on a cash advance damage your score far more than the advance itself.
Alternatives to a credit card cash advance
If you need cash and want to avoid the high cost of a cash advance, explore these options first. A personal loan from a bank or credit union typically has a lower interest rate and no upfront fee. A line of credit (if you have one) usually costs less than a cash advance. Some employers offer paycheck advances or loans to employees. A credit card balance transfer to a card with a 0 percent introductory rate can be cheaper if you need to carry a balance, though balance transfers also charge a fee.
If you are in a true emergency and have no credit access, some nonprofits and community organizations offer emergency loans or grants. Local 211 services (dial 211 or visit 211.org) can connect you to resources in your area. These options take longer to process but cost nothing or very little.
Frequently Asked Questions
What is the difference between a cash advance and a regular credit card purchase?
A regular purchase has a grace period — you do not pay interest if you pay the full balance by the due date. A cash advance charges a fee upfront and interest starts immediately, with no grace period. The interest rate on a cash advance is also higher than the rate on purchases.
Can I use a credit card to withdraw money from an ATM without a PIN?
No. You need a PIN to withdraw cash at an ATM. If you do not have one, contact your card issuer to set one up. You can usually do this online, by phone, or at a branch. A PIN is different from your card number and is required for security.
Does taking a cash advance hurt my credit score?
Not directly, but it can indirectly. A cash advance increases your credit utilization, which may lower your score slightly. If you carry the balance and pay interest, the high utilization stays in place and keeps your score depressed. Paying off the advance quickly minimizes the damage.
What happens if I cannot pay back a cash advance?
The balance stays on your credit card and interest continues to accrue. If you miss payments, your card issuer reports it to credit bureaus, which damages your credit score. The issuer may also increase your interest rate or close your account. Contact your card issuer as soon as you know you cannot pay — they may offer a hardship plan.
Is there a way to get cash from a credit card without paying a fee?
No. All cash advances charge a fee from your card issuer. Some cards offer a slightly lower fee (2 percent instead of 5 percent), but there is always a cost. The only way to avoid the fee is not to take a cash advance.