Yes, you can pull cash from a credit card, but it works differently than a debit card withdrawal
When you withdraw cash using a credit card, you are borrowing money from your credit card issuer the same way you borrow when you make a purchase. The difference is that the cash goes directly into your pocket or bank account instead of paying a merchant. This is called a cash advance.
The bank treats a cash advance as a separate transaction from your regular purchases. It starts charging interest immediately — there is no grace period like there often is for regular credit card purchases. You also pay an upfront fee just for taking the cash out, usually between 3% and 5% of the amount you withdraw, though some cards charge a flat dollar amount instead.
Most people use cash advances only when they have no other option, because the cost adds up fast. If you need cash, a debit card withdrawal or a personal loan from a bank usually costs much less.
Key Takeaways
- A cash advance charges interest starting the day you withdraw it, with no grace period, so the cost begins immediately.
- You pay an upfront fee of 3% to 5% of the amount withdrawn, on top of the interest that accrues.
- The interest rate on cash advances is typically higher than the rate on regular purchases made with the same card.
- You can withdraw cash at an ATM using your credit card PIN, or ask a bank teller for cash over the counter.
Where and how to withdraw cash from a credit card
You can pull cash from a credit card at most ATMs that display your card's logo — Visa, Mastercard, American Express, or Discover. You insert your card, enter your PIN, select the cash advance option (some ATMs call it "cash withdrawal"), and choose your amount. The ATM dispenses the cash and charges it to your credit card account.
You can also walk into a bank branch — yours or any bank — and ask a teller for a cash advance. Bring your credit card and your ID. The teller will process the transaction and hand you cash. This method works even if you do not have a PIN set up for your card, though most credit card issuers require a PIN for ATM withdrawals.
Some credit card issuers also let you request a cash advance by phone or through their mobile app, and they deposit the money into your bank account within one to three business days. Check your card's terms or call the number on the back of your card to see if this option is available to you.
The fees and interest you pay on a cash advance
A cash advance costs you money in two ways: an upfront fee and daily interest.
The upfront fee is charged the moment you withdraw the cash. Most credit card issuers charge 3% to 5% of the amount you withdraw. If you take out $500, you might pay $15 to $25 just for the withdrawal. Some cards charge a flat fee instead — for example, $10 per transaction — which can be cheaper if you are withdrawing a large amount, or more expensive if you are withdrawing a small amount.
The interest rate on a cash advance is usually higher than the rate on regular purchases. While a purchase might carry an APR (annual percentage rate) of 18%, a cash advance on the same card might be 22% or higher. The interest starts accruing the day you withdraw the cash — there is no grace period. If you owe $500 at 22% APR, you are paying roughly $9 per month in interest alone, plus the original fee.
Your credit card statement will show the cash advance as a separate line item from your regular purchases, and the interest accrues separately as well.
How a cash advance affects your credit and account
A cash advance does not hurt your credit score directly the way a missed payment does. However, it does increase your credit utilization — the amount of your available credit that you are using. If your credit limit is $5,000 and you take a $1,000 cash advance, your utilization jumps to 20%. High utilization can lower your credit score slightly, even if you pay on time.
The cash advance also counts toward your total credit card balance. If you are carrying a balance on your card, the cash advance interest is calculated separately and usually paid off last, after you have paid down your regular purchases. This means if you make a partial payment, more of it goes toward your lower-interest purchases, and the cash advance keeps accruing interest longer.
Some credit card issuers set a separate limit for cash advances that is lower than your overall credit limit. You might have a $5,000 credit limit but only a $1,000 cash advance limit. Check your card's terms or call your issuer to find out what your cash advance limit is before you try to withdraw.
When a cash advance makes sense and when it does not
A cash advance is expensive, so it only makes sense in specific situations. Use one if you need cash urgently and have no other way to get it — for example, if an ATM ate your debit card and you need money for groceries before you can replace it. The cost is worth it for a short-term emergency.
Do not use a cash advance to get spending money or to avoid going to an ATM. The fees and interest will cost you far more than the inconvenience of finding an ATM or going to a bank branch. If you regularly need cash, ask your bank about a debit card or a savings account that lets you withdraw cash for free.
If you are considering a cash advance because you need money to cover an expense you cannot afford, look for other options first. A personal loan from a bank or credit union usually has a lower interest rate and no upfront fee. Some employers offer paycheck advances. Some nonprofits offer small emergency loans. These routes cost less than a credit card cash advance.
How to pay back a cash advance
A cash advance is part of your credit card balance, so you pay it back the same way you pay back any credit card debt: by making a payment to your credit card account. The payment goes toward your entire balance unless you specify otherwise.
Because cash advance interest is usually higher than purchase interest, and because it accrues from day one, paying off a cash advance should be your priority. If you have $500 in purchases at 18% APR and $500 in a cash advance at 22% APR, the cash advance is costing you more money per month. Pay it off first.
Some credit card issuers let you specify which part of your balance a payment goes toward — purchases, cash advances, or balance transfers. If your issuer offers this, direct your payments to the cash advance. If not, ask your issuer how payments are applied to different types of balances, so you know whether your payment is actually reducing the cash advance or just the lower-interest purchases.
Frequently Asked Questions
What is the difference between a cash advance and a regular credit card purchase?
A regular purchase is charged to a merchant and has a grace period — you do not pay interest if you pay the full balance by the due date. A cash advance charges interest from day one with no grace period, costs an upfront fee, and usually has a higher interest rate. Both count toward your credit card balance.
Can I use a credit card to withdraw cash at any ATM?
You can use most ATMs that display your card's logo — Visa, Mastercard, American Express, or Discover. Some ATMs charge an additional fee for using a credit card instead of a debit card. Check the ATM screen before you complete the transaction to see if there is an extra charge.
What happens if I cannot pay back a cash advance?
If you do not pay, the debt stays on your credit card balance and interest keeps accruing. If you miss your minimum payment, your credit card issuer will report the missed payment to credit bureaus, which will lower your credit score. After several months of missed payments, the issuer may close your account or send the debt to a collection agency.
Is there a limit to how much cash I can advance?
Yes. Most credit card issuers set a cash advance limit that is separate from and usually lower than your overall credit limit. Your limit might be $1,000 even if your card has a $5,000 credit limit. Call your issuer or check your online account to find out your specific cash advance limit.
Can I get a cash advance if I have a bad credit score?
If you already have a credit card, you can take a cash advance regardless of your credit score — the card issuer has already decided to lend to you. The cash advance limit and interest rate are based on your account history and the terms of your card, not on your current score.