Yes, you can withdraw cash using a credit card, but it costs more than a regular purchase
You can pull cash out of an ATM or ask a bank teller for cash using your credit card. This is called a cash advance. The moment you do it, your credit card issuer charges you a fee — usually 3% to 5% of the amount withdrawn — and starts charging you interest immediately. Unlike regular purchases, which often have a grace period before interest kicks in, cash advances begin accruing interest the same day you take the money out. There is no waiting period.
The interest rate on a cash advance is also typically higher than your regular purchase APR. If your card charges 18% APR on purchases, the cash advance rate might be 22% or higher. This combination of an upfront fee plus a higher interest rate makes cash advances an expensive way to borrow money.
Key Takeaways
- Cash advances charge an upfront fee of 3% to 5% of the amount you withdraw, applied immediately.
- Interest on cash advances begins accruing the day you withdraw the money, with no grace period like purchases have.
- The APR on cash advances is usually 2% to 4% higher than your regular purchase rate.
- You can withdraw cash at an ATM, bank branch, or convenience store using your credit card PIN.
- Paying back a cash advance should be a priority because the interest compounds quickly.
Where you can physically get the cash
You have three main options for withdrawing cash with a credit card. The first is an ATM that displays your card network's logo — Visa, Mastercard, American Express, or Discover. Insert your card, enter your PIN, and select the cash withdrawal option. The ATM will show you the fee it charges (usually $2 to $5 on top of your card issuer's fee) before you confirm.
The second option is to visit a bank branch and ask a teller for a cash advance. You will need your card and your PIN. The teller will process it like a withdrawal, and you will walk out with cash. Some banks charge a fee for this service; others do not if you are a customer.
The third option is a convenience store or grocery store that offers cash advances at the register. You hand over your card, enter your PIN, and receive cash. These locations often charge higher fees than ATMs — sometimes $5 to $10 per transaction — so this is usually the most expensive route.
The fees and interest you will pay
Your credit card issuer charges a cash advance fee that appears on your statement. This fee is a percentage of the amount withdrawn, typically 3% to 5%, with a minimum of $2 to $10. If you withdraw $200, a 5% fee means you owe $10 immediately. If you withdraw $500, the fee is $25. This fee is added to your balance right away.
On top of that, interest starts accruing immediately. There is no grace period. If your cash advance APR is 24% and you withdraw $500, you will owe roughly $10 in interest after one month if you make no payments. The longer you carry the balance, the more interest compounds. After six months, you could owe $60 in interest alone, plus the original $25 fee.
The total cost depends on how long you carry the balance. A $500 cash advance at 5% fee plus 24% APR costs you $25 upfront. If you pay it back in full within two weeks, you might owe only $30 to $35 total. If you carry it for three months, you could owe $50 to $60 total. Carrying it for a year could cost $150 or more.
How a cash advance affects your credit score
A cash advance itself does not appear as a separate item on your credit report. However, it increases your credit card balance, which affects your credit utilization ratio — the percentage of your available credit you are using. If you have a $5,000 limit and take a $1,000 cash advance, your utilization jumps to 20%. Higher utilization can lower your credit score by a few points.
The impact is temporary. Once you pay off the cash advance, your utilization drops and your score typically recovers within a month or two. The bigger risk is if you carry the balance for months and miss payments — that will damage your score far more than the initial withdrawal.
When a cash advance makes sense (and when it does not)
A cash advance is rarely the best option, but there are narrow situations where it might be necessary. If you need cash urgently and have no other way to get it — no ATM access, no friends to borrow from, no time to visit your bank — a cash advance is faster than a personal loan or payday loan. It is also better than a payday loan because the interest rate, while high, is usually lower than a payday lender's rate.
A cash advance does not make sense if you have a savings account with money in it, even if that account earns very little interest. It also does not make sense if you can wait a few days for a bank transfer, use a peer-to-peer payment app, or borrow from someone you know. If you are considering a cash advance to pay another debt, stop and talk to a credit counselor first — you may be able to negotiate a payment plan or find a lower-cost option.
How to pay back a cash advance quickly
Your credit card statement will show the cash advance as a separate line item from your regular purchases. When you make a payment, credit card companies typically apply your payment to the lowest-interest debt first — usually your regular purchases. This means your cash advance, which has the highest interest rate, keeps accruing interest while you pay down cheaper debt.
To minimize the cost, pay the cash advance balance in full as soon as you can. If you cannot pay it all at once, call your card issuer and ask if you can make a payment that goes directly toward the cash advance. Some issuers allow this; others do not. Either way, treat the cash advance as your top priority and pay it off before taking on new credit card debt.
If you are carrying a cash advance balance and struggling to pay it down, consider a balance transfer to a card with a 0% introductory APR. This can give you a few months to pay without interest, though balance transfers also charge a fee (usually 3% to 5%). The math only works if you can pay off the balance before the introductory period ends.
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 charges 6% to 36% APR with no upfront fee, and you have a set repayment schedule. A line of credit works similarly but gives you flexibility to borrow only what you need. Both are cheaper than a cash advance if you carry the balance for more than a few weeks.
If you have a savings account, withdraw from that instead. You lose the interest you would have earned, but you avoid fees and interest charges. If you do not have savings, ask family or friends for a short-term loan. If that is not possible, a credit union loan or a small personal loan from an online lender is usually cheaper than a cash advance, even if the interest rate seems high.
A payday loan is not recommended — the fees and interest rates are often worse than a cash advance — but it is worth knowing it exists as a last resort. If you are in a genuine emergency and have exhausted other options, a payday loan might be preferable to missing a critical payment or going without food or medicine.
Frequently Asked Questions
Can I use a credit card to withdraw cash at any ATM?
You can use an ATM that displays your card network's logo — Visa, Mastercard, American Express, or Discover. Not all ATMs accept all card types, so look for the logo before you insert your card. You will need your PIN. ATMs outside your card issuer's network usually charge a fee of $2 to $5 on top of your issuer's cash advance fee.
What is the difference between a cash advance and a regular purchase?
A regular purchase has a grace period — usually 21 to 25 days — before interest starts. A cash advance has no grace period; interest begins the day you withdraw the money. Cash advances also charge an upfront fee and typically have a higher interest rate than purchases on the same card.
Will a cash advance show up on my credit report?
The cash advance itself does not appear as a separate item. However, it increases your credit card balance, which raises your credit utilization ratio and can lower your score slightly. Once you pay it off, your score typically recovers within a month or two.
Can I get a cash advance if my credit card is maxed out?
No. A cash advance counts toward your credit limit, just like a purchase does. If you have no available credit, you cannot take a cash advance. You would need to pay down your balance first or request a credit limit increase.
How long does it take to process a cash advance?
At an ATM or bank teller, a cash advance is instant — you get the money immediately. The fee and interest appear on your next statement. Online, some card issuers allow you to transfer your credit line to a bank account, which takes one to three business days, but this is less common and may have different terms.