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

You can take cash out of an ATM using your credit card, but the bank treats it differently than a purchase. Instead of paying interest only if you carry a balance, a cash advance starts charging interest immediately — there is no grace period. You also pay an upfront fee, usually 3 to 5 percent of the amount you withdraw, on top of a higher interest rate than regular purchases.

The process is straightforward: insert your card into an ATM, select "cash advance" or "withdraw cash," enter your PIN, and take the money. But the cost structure makes cash advances expensive compared to other ways of getting cash, so understanding what you will pay matters before you do it.

Key Takeaways

  • Cash advances charge interest from day one with no grace period, unlike regular credit card purchases.
  • You pay an upfront fee (typically 3 to 5 percent) plus a higher interest rate than your regular purchase APR.
  • The total cost depends on how long you carry the balance and your card's specific rates and fees.
  • ATMs, bank tellers, and convenience stores all offer cash advances, but fees vary by location and card issuer.
  • Alternatives like debit cards, bank transfers, or personal loans are usually cheaper if you need cash urgently.

Where you can withdraw cash with a credit card

ATMs are the most common place to get a cash advance. You can use your card at ATMs owned by your card issuer (usually free or low-cost) or at other banks' ATMs (often higher fees). Some ATMs charge their own fee on top of what your credit card company charges.

You can also get a cash advance from a bank teller by visiting a branch in person with your card and ID. Some convenience stores and casinos offer cash advances too, though these typically charge higher fees than ATMs. Check with your card issuer about which locations they partner with, because fees vary widely depending on where you withdraw.

The fees and interest rates you will pay

A cash advance fee is charged upfront and is usually a percentage of the amount you withdraw — commonly 3 to 5 percent, though some cards charge a flat fee instead (like $5 or $10 minimum). A $200 withdrawal at 4 percent costs $8 in fees alone.

The interest rate on cash advances is separate from your regular purchase APR and is typically higher. While a card might charge 15 percent APR on purchases, the cash advance APR could be 20 to 25 percent or more. Interest starts accruing immediately, with no grace period like you get on purchases. If you carry a $200 cash advance for 30 days at 20 percent APR, you will owe roughly $3.30 in interest on top of the $8 fee.

The total cost compounds quickly if you do not pay back the cash advance fast. A $500 withdrawal with a 4 percent fee ($20) and 22 percent APR costs you $9.17 in interest after just one month if you make no payments.

How cash advances affect your credit and available credit

A cash advance counts as a balance on your credit card and reduces your available credit immediately. If your card has a $2,000 limit and you withdraw $500 in cash, your available credit drops to $1,500 right away. This affects your credit utilization ratio — the percentage of your total credit limit you are using — which influences your credit score.

The cash advance also appears on your credit report as a balance, just like a purchase would. Paying it off quickly helps minimize the damage to your score, but carrying it for months will keep your utilization high and may lower your score.

Paying back a cash advance faster

Credit card companies apply your payments to the lowest-interest debt first, which means regular purchases get paid before cash advances if both are on your card. To pay off a cash advance faster, contact your card issuer and ask if you can make a payment that goes directly toward the cash advance balance, or request a separate payment arrangement.

Some cards let you pay cash advances online through a separate section of your account. Check your card's website or call the number on the back to see if this option is available. The sooner you pay it back, the less interest you will owe.

Cheaper ways to get cash when you need it

A debit card withdrawal from your own bank account costs nothing and is the cheapest option if you have the money available. A bank transfer to another person or account is also free and takes one to three business days. If you need cash urgently and do not have it in savings, a personal loan from a bank or credit union usually has a lower interest rate than a credit card cash advance, though it takes longer to process.

Asking a friend or family member for a short-term loan, borrowing from your employer's paycheck advance program, or using a buy-now-pay-later service (if the merchant offers it) are other options depending on your situation. A payday loan is faster than a personal loan but typically charges much higher fees, so compare the total cost before choosing that route.

When a cash advance might make sense

A cash advance is rarely the best choice, but there are narrow situations where it might be worth the cost. If you have a true emergency, no other source of cash, and can pay back the full amount within a few days, the total fee and interest might be acceptable. For example, a $300 cash advance with a $12 fee and $1 in interest (if paid back in five days) costs $13 total — less than some emergency alternatives.

If you are considering a cash advance, first check whether your card issuer offers a lower-cost option like a balance transfer or a line of credit. Some cards have promotional rates on cash advances for new cardholders, though these are uncommon. Always calculate the total cost before you withdraw, and have a specific plan to pay it back quickly.

Frequently Asked Questions

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

You can use your card at most ATMs, but fees vary. ATMs owned by your card issuer usually charge nothing or a small fee, while other banks' ATMs charge their own fee plus your card issuer's fee. Some ATMs charge $3 to $5 per transaction on top of your credit card company'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, but a cash advance charges interest from day one. Cash advances also have a higher interest rate and an upfront fee, while purchases typically have neither fee nor immediate interest.

Does a cash advance hurt my credit score?

A cash advance increases your credit utilization ratio, which can lower your score temporarily. The impact is usually small if you pay it back quickly, but carrying a large balance for months will keep your utilization high and may lower your score more noticeably.

Can I get a cash advance with a rewards credit card?

Yes, but you will not earn rewards on the cash advance. Most cards exclude cash advances from their rewards program, so you pay the fees and interest without getting any points or cash back in return.

What happens if I cannot pay back a cash advance?

The balance stays on your card and continues to accrue interest at the cash advance rate. If you miss payments, late fees apply and your credit score will drop. The debt can eventually go to a collection agency if unpaid for long enough.