Yes, you can withdraw cash from a credit card, but it costs more than a regular purchase

You can pull cash off a credit card through an ATM, bank teller, or cash advance service. The transaction goes through immediately, and the money appears in your account right away. But a cash advance is not the same as a purchase — your card issuer charges a separate fee (usually 3 to 5 percent of the amount) plus a higher interest rate that starts accruing the moment you withdraw the cash, with no grace period.

Because of these costs, a cash advance should be a last resort, not a convenience. If you need cash regularly, a debit card or a trip to your bank is cheaper. If you are considering a cash advance because you are short on money, there may be lower-cost alternatives worth exploring first.

Key Takeaways

  • Cash advances charge a fee (typically 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 with your card and ID, or through a cash advance service.
  • The interest rate on a cash advance is usually 2 to 5 percentage points higher than your purchase APR and varies by card issuer and your creditworthiness.
  • Most credit cards set a cash advance limit that is lower than your overall credit limit, so you may not be able to withdraw your full available balance.
  • Interest on a cash advance begins accruing immediately, unlike purchases, which typically have a grace period of 20 to 25 days.

How to withdraw cash using your credit card

The simplest method is to use an ATM. Insert your credit card, enter your PIN (which you may need to set up if you have not used cash advances before), and select the withdrawal amount. The ATM will show you the fee before you confirm, so you can see the total cost before the transaction completes.

If you prefer not to use an ATM, you can visit a bank branch and ask a teller for a cash advance. Bring your credit card and a photo ID. The teller will process the transaction and hand you cash. This method works even if the bank is not your card issuer — most banks will process cash advances for any major credit card.

Some credit card issuers also allow cash advances through their mobile app or website, transferring the money to your linked bank account instead of giving you physical cash. This option avoids ATM fees but still charges the cash advance fee and interest rate.

What fees and interest rates apply to cash advances

Every cash advance incurs two separate costs. The first is a cash advance fee, charged at the time of withdrawal. This fee is typically 3 to 5 percent of the amount withdrawn, though some cards charge a flat fee (such as $5 or $10) if that is higher. A $500 cash advance with a 4 percent fee costs $20 upfront.

The second cost is interest, which begins accruing immediately — there is no grace period. The interest rate on cash advances is usually 2 to 5 percentage points higher than the rate on purchases. If your purchase APR is 18 percent, your cash advance APR might be 23 percent. This rate varies by card issuer and your credit profile, so check your card's terms or call the issuer to find out your specific rate before you withdraw.

Interest compounds daily, so the longer you carry the balance, the more you owe. A $500 cash advance at 23 percent APR costs roughly $9.58 in interest per month if you make no payments. Combined with the $20 upfront fee, your total cost reaches $29.58 after one month alone.

Cash advance limits and how they differ from your credit limit

Your credit card issuer sets a separate cash advance limit, which is often lower than your overall credit limit. If your credit limit is $5,000, your cash advance limit might be $1,500 or $2,000. This limit is set by the issuer based on your creditworthiness and account history, and you cannot change it yourself.

You can find your cash advance limit by logging into your online account, calling the issuer's customer service line, or checking your most recent statement. If you try to withdraw more than your limit, the ATM or teller will decline the transaction.

A cash advance counts against your overall credit limit, so withdrawing $500 in cash reduces your available credit by $500. This can lower your credit utilization ratio (the percentage of your credit limit you are using), which may temporarily affect your credit score.

Why cash advances are expensive compared to other borrowing options

A cash advance is one of the most costly ways to borrow money on a credit card. The combination of an upfront fee and a high interest rate with no grace period makes it significantly more expensive than a regular purchase or a personal loan.

If you need cash for an emergency, a personal loan from a bank or credit union typically charges lower interest and no upfront fee. A payday loan, while controversial, may cost less than a cash advance if you repay it within two weeks. Even a balance transfer to a 0 percent APR card (if you have one available) would cost less than a cash advance, though balance transfers also charge a fee.

If you are short on money and considering a cash advance, it is worth exploring whether you can use a debit card, borrow from family, or delay the purchase instead. The cost of a cash advance adds up quickly, especially if you carry the balance for more than a few weeks.

How a cash advance affects your credit score

A cash advance itself does not appear separately on your credit report — it is simply a balance on your credit card account. However, it can affect your score in two ways.

First, it increases your credit utilization ratio. If you have a $5,000 credit limit and you withdraw $1,000 in cash, your utilization jumps to 20 percent. Credit scoring models penalize high utilization, so your score may drop slightly. The impact is temporary and reverses once you pay down the balance.

Second, if you carry the cash advance balance for a long time without paying it off, the interest charges increase your total debt. This higher balance continues to raise your utilization ratio and can damage your score over time. Paying off the cash advance quickly minimizes this effect.

Alternatives to cash advances when you need cash fast

If you need cash but want to avoid the high cost of a cash advance, consider these options first.

Use your debit card at an ATM. There is no fee or interest if you are withdrawing from your own account. If your bank charges ATM fees, you pay a flat amount (usually $1 to $3) rather than a percentage of the withdrawal.

Visit your bank branch. Most banks let you withdraw cash for free at the teller window if you have a checking or savings account with them.

Get cash back at a store. Many grocery stores and retailers offer cash back when you use a debit card at checkout, with no fee.

Borrow from family or friends. If possible, this costs nothing and avoids debt entirely.

Take out a personal loan. Banks and credit unions offer personal loans with lower interest rates than cash advances, though they require a formal application and take a few days to fund.

Frequently Asked Questions

What is the difference between a cash advance and a balance transfer?

A cash advance withdraws money from your credit card and deposits it into your bank account or gives you physical cash. A balance transfer moves debt from one credit card to another. Both charge fees and interest, but balance transfers sometimes offer a 0 percent introductory rate for 6 to 12 months, while cash advances charge interest immediately at a higher rate.

Can I use a credit card to withdraw cash from any ATM?

Yes, you can use your credit card at most ATMs that display your card network's logo (Visa, Mastercard, American Express, or Discover). However, ATMs outside your card issuer's network may charge an additional ATM operator fee on top of the cash advance fee.

Does a cash advance show up on my credit report?

A cash advance does not appear as a separate line item on your credit report. It is part of your credit card balance. However, it increases your total debt and credit utilization, which can affect your credit score if you carry the balance for a long time.

What happens if I cannot pay back a cash advance?

If you do not pay back a cash advance, interest continues to accrue at your cash advance APR, and the balance grows each month. If you miss payments, your card issuer may report the delinquency to credit bureaus, damaging your credit score. Contact your card issuer if you are struggling to pay — they may offer a hardship program or payment plan.

Can I get a cash advance on a prepaid card or gift card?

Most prepaid cards and gift cards do not allow cash advances. Some prepaid cards marketed toward people without bank accounts may offer cash withdrawal at ATMs, but this is a withdrawal from your prepaid balance, not a cash advance. Check your card's terms to see what options are available.