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

You can take 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 withdraw the money, your credit card company starts charging you interest — usually at a higher rate than your regular purchase APR. You also pay an upfront fee, typically 3 to 5 percent of the amount you withdraw. Unlike a purchase, there is no grace period: interest begins accruing immediately.

The cost difference is significant. If your purchase APR is 18 percent but your cash advance APR is 24 percent, and you withdraw $500, you will pay roughly $10 in fees plus interest that compounds daily until you pay it back. Most people use cash advances only when they have no other option, because the fees and interest make them expensive compared to a regular debit card withdrawal or a personal loan.

Key Takeaways

  • Cash advances charge an upfront fee (usually 3 to 5 percent) plus a higher interest rate than purchases, with no grace period.
  • You can withdraw cash at any ATM that accepts your card's network, or ask a teller at a bank branch for cash over the counter.
  • Interest starts accruing the day you withdraw the money, not at the end of your billing cycle like a purchase.
  • Your credit card issuer sets a separate cash advance limit, which may be lower than your overall credit limit.

Where to withdraw cash and what happens at the ATM

You can use your credit card at any ATM that displays your card's logo — Visa, Mastercard, American Express, or Discover. Insert your card, enter your PIN, select "cash advance" or "withdrawal," and choose your amount. The ATM will show you the fee before you confirm. Some ATMs charge an additional operator fee on top of your card issuer's fee, so you may pay two fees at once.

You can also walk into a bank branch and ask the teller for a cash advance. Bring your credit card and ID. The teller will process it the same way an ATM does, and you will see the fee before the transaction completes. Bank tellers sometimes waive the operator fee if you have an account with them, though this varies by bank and branch.

How much you can withdraw and your cash advance limit

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. If your credit limit is $5,000 but your cash advance limit is $1,000, you can only withdraw up to $1,000 in cash, even though you could charge $5,000 in purchases.

You can find your cash advance limit in your cardholder agreement, on your online account dashboard, or by calling the customer service number on the back of your card. The limit may change over time as your credit score and payment history change. If you need to withdraw more than your limit allows, you will need to use another payment method or wait until your balance decreases.

The fees and interest rates you will pay

A cash advance fee is charged the moment you withdraw the money. This fee is usually a flat dollar amount (like $5 or $10) or a percentage of the amount withdrawn (typically 3 to 5 percent), whichever is greater. If you withdraw $100 and the fee is 5 percent with a $5 minimum, you pay $5. If you withdraw $500 at 5 percent, you pay $25.

The cash advance APR is the interest rate applied to the balance. This rate is almost always higher than your purchase APR and varies by card issuer and your creditworthiness. Common cash advance APRs range from 20 to 30 percent, though some cards charge even more. Unlike purchases, there is no grace period — interest accrues from day one. If you withdraw $500 at a 25 percent APR and pay it back in 30 days, you will owe roughly $10 in interest plus the upfront fee.

How a cash advance affects your credit score

A cash advance counts as a balance on your credit card and increases your credit utilization ratio — the percentage of your available credit you are using. If you have a $5,000 limit and withdraw $1,000 in cash, your utilization jumps to 20 percent. High utilization can lower your credit score, even if you pay the balance off quickly.

The withdrawal itself does not appear as a separate item on your credit report, but the balance does. If you carry the cash advance balance for several months, the ongoing interest and balance will be visible to lenders and may affect your ability to borrow at favorable rates. Paying off the cash advance as quickly as possible minimizes both the interest cost and the credit score impact.

Alternatives to a credit card cash advance

If you need cash urgently, a cash advance is rarely the cheapest option. A personal loan from a bank or credit union typically charges lower interest rates (often 6 to 36 percent depending on your credit) and has no upfront fee. A payday loan is faster to obtain but usually more expensive than a cash advance, so it is not a better choice. A balance transfer to a 0 percent promotional card can work if you need time to repay, though you will still pay a transfer fee.

If you have a debit card linked to a checking or savings account, withdrawing from an ATM costs nothing and is always the cheapest option. If you need cash for an emergency and have no other way to pay, a cash advance is available, but it should be a last resort. Plan to repay it within days or weeks, not months, to keep the interest cost manageable.

How to repay a cash advance and minimize interest

A cash advance balance appears on your credit card statement and is due by your regular payment due date. You can pay it off in full, make a minimum payment, or pay any amount in between. If you pay only the minimum, interest will continue to accrue on the remaining balance at your cash advance APR.

Credit card issuers typically apply your payment to the lowest-interest balance first — usually purchases — and the highest-interest balance last — usually cash advances. This means if you have both a purchase balance and a cash advance balance, your payment will reduce the purchase first, leaving the cash advance to accrue interest longer. To minimize interest, make a payment large enough to cover the entire cash advance, or call your issuer and ask them to apply your payment to the cash advance specifically.

Frequently Asked Questions

Can I use a credit card to withdraw cash from my own bank's ATM?

Yes, if your credit card is issued by that bank. However, it will still be processed as a cash advance with the same fees and interest rate. Using your debit card at your own bank's ATM is free. If you have a credit card from a different issuer, you can use it at any ATM that accepts your card's network, but you will pay both your issuer's fee and the ATM operator's fee.

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

A cash advance gives you physical cash and charges a cash advance APR (usually 20 to 30 percent) plus a 3 to 5 percent fee. A balance transfer moves debt from one card to another and may offer a 0 percent promotional rate for 6 to 21 months, but charges a 3 to 5 percent transfer fee upfront. Balance transfers are better for paying off existing debt; cash advances are for getting cash.

Will a cash advance show up separately on my credit report?

No, it does not appear as a separate line item. The balance counts toward your overall credit card balance and credit utilization. Your credit report shows only the total balance owed, not whether it came from purchases or cash advances. However, the interest and balance will affect your credit score if you carry it for a long time.

Can I get a cash advance if my credit card is maxed out?

Not if your cash advance limit is already used. Your cash advance limit is separate from your purchase limit, so you could theoretically max out your purchases but still have room to withdraw cash — or vice versa. Check your account to see how much of your cash advance limit remains available.