Yes, you can withdraw cash from a credit card, but it costs more than a regular purchase
You can pull cash directly from a credit card at an ATM, bank teller, or through a cash advance at a store. The transaction itself takes minutes. 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) and starts charging interest immediately, with no grace period. A $300 cash advance can cost you $9 to $15 just to take it out, plus interest that begins accruing the same day.
Most people use cash advances only when they have no other option, because the cost is steep compared to using your debit card, borrowing from a friend, or waiting until you can visit your bank. But if you need cash now and a credit card is your only tool, understanding the mechanics and the fees will help you minimize the damage.
Key Takeaways
- Cash advances charge a fee (typically 3 to 5 percent) on top of a higher interest rate that starts immediately with no grace period.
- You can withdraw cash at an ATM using your credit card PIN, at a bank teller with your card and ID, or through a store cash advance at checkout.
- The interest rate on a cash advance is usually higher than your regular purchase APR and varies by card issuer and your creditworthiness.
- Most credit cards have a cash advance limit that is lower than your total credit limit, so you may not be able to withdraw as much as you can spend.
- Paying back a cash advance should be your priority because the interest compounds daily and the fee is non-refundable.
Where you can actually get the cash
An ATM is the fastest route. Insert your credit card, enter your PIN (the same one you use for debit), and withdraw the amount you need. Most ATMs will show you the fee before you confirm — read it. Some ATMs charge an additional operator fee on top of your card issuer's cash advance fee, so a $300 withdrawal might cost $15 from your issuer plus $3 from the ATM operator.
A bank teller is another option if you have time to visit a branch. Bring your credit card and a photo ID. The teller will process the cash advance and hand you the cash. The fee structure is the same as an ATM, but you avoid the ATM operator fee if your card issuer has a branch nearby.
Some stores offer cash advances at the register. You ask the cashier, they run your card, and you receive cash back. This method usually has the lowest additional fees because there is no ATM operator involved, though your card issuer's cash advance fee still applies. Not all stores offer this, so ask before you assume it is available.
The fees and interest rates you will pay
A cash advance fee is charged the moment you withdraw the money. It is a percentage of the amount — typically 3 to 5 percent, though some cards charge a flat fee (like $5 or $10) if that is higher. A $300 advance at 4 percent costs $12. A $1,000 advance at 5 percent costs $50. This fee is added to your balance immediately and is not refundable, even if you pay back the cash advance the next day.
The interest rate on a cash advance is separate from your purchase APR and is usually higher. Where a purchase might carry 18 percent APR, a cash advance might be 22 or 25 percent. Interest begins accruing the day you withdraw the cash — there is no grace period like there is for purchases. If you carry a $300 cash advance for 30 days at 24 percent APR, you will owe roughly $6 in interest on top of the $12 fee.
Your card issuer sets both the fee and the rate based on your creditworthiness and the card terms. Check your card's disclosure document or call the issuer to find out your specific cash advance fee and APR before you withdraw.
Your cash advance limit is usually lower than your credit limit
Most credit cards set a separate, lower limit for cash advances. If your total credit limit is $5,000, your cash advance limit might be $1,000 or $1,500. This limit is set by your issuer and is not something you can change by asking — it is built into your account terms.
You can find your cash advance limit by logging into your online account, calling your issuer, or checking your most recent statement. Trying to withdraw more than your limit will be declined at the ATM or rejected by the teller, so check first if you are planning to withdraw a large amount.
How to pay it back quickly
A cash advance should be your first priority to pay off because the interest rate is higher than your purchase rate and compounds daily. Make a payment as soon as you can, even if it is a partial payment.
When you make a payment to your credit card, most issuers apply it to your lowest-interest balance first (usually purchases), then to higher-interest balances (like cash advances). If you want your payment to go directly to the cash advance, call your issuer and ask them to apply it there, or make a payment large enough to cover both the cash advance and any purchases.
The fee you paid upfront is gone — you cannot recover it by paying early. But every day you carry the balance, more interest accrues, so paying it off within days rather than weeks will save you money.
Alternatives that cost less
A personal loan from a bank or credit union usually has a lower interest rate than a credit card cash advance and no upfront fee. The catch is that approval takes a few days, so this works only if you can wait.
Borrowing from a friend or family member costs nothing if they do not charge interest, though it carries its own risks. A payday loan is faster than a personal loan but often costs more than a cash advance, so it is not a better option.
If you have a debit card linked to a checking account, withdrawing from your own account at an ATM is free. If you do not have the cash in your account, a debit card is not an option, but it is worth checking before you turn to a credit card.
What happens if you cannot pay it back
If you carry a cash advance balance month to month, the interest and fees compound. A $300 cash advance that you do not pay off can easily cost you $50 or more in fees and interest over three months. The balance will show on your credit report as a revolving balance, which can lower your credit score if it pushes your overall credit utilization above 30 percent.
If you miss a payment, your issuer will charge a late fee (typically $25 to $40) and may increase your interest rate. The cash advance will remain on your account until you pay it off, and interest will continue to accrue daily.
Frequently Asked Questions
Can I use a credit card cash advance to pay another credit card bill?
Technically yes, but it is a bad idea. You would pay a cash advance fee on the withdrawal, then pay the other card with cash, and you would owe interest on the cash advance immediately. You would be paying fees and interest to move money between cards. If you are trying to manage multiple card balances, a balance transfer (moving a purchase balance from one card to another at a lower rate) is cheaper than a cash advance.
Does a cash advance show up differently on my credit report?
A cash advance appears as part of your revolving balance on your credit report, the same way a purchase does. It does not have a separate label. What matters to your credit score is the total amount you owe and how much of your available credit you are using. A large cash advance can push your utilization higher and temporarily lower your score.
What if the ATM declines my cash advance?
A decline usually means you have hit your cash advance limit, the ATM is out of service, or there is a temporary issue with your card. Call your issuer to confirm your cash advance limit and check that your card is active. If the limit is the problem, you cannot increase it on the spot, but you can try withdrawing a smaller amount or using a different method like a bank teller.
Is there a way to avoid the cash advance fee?
No. The fee is charged automatically when you withdraw cash and cannot be waived or refunded. The only way to avoid it is to not take a cash advance. If you need cash, using your debit card or visiting your bank to withdraw from your own account costs nothing.