Yes, you can withdraw cash on a credit card, but it costs more than a regular purchase
You can get cash out on a credit card through an ATM, bank teller, or cash advance service. The money comes from your credit limit, not a separate account. But unlike a purchase, a cash advance charges you a fee upfront and starts charging interest immediately—there is no grace period like there is for regular purchases.
Most people use cash advances only when they have no other option, because the cost adds up fast. A typical cash advance fee is 3 to 5 percent of the amount you withdraw, plus a higher interest rate than your regular purchase rate.
Key Takeaways
- Cash advances charge a fee (usually 3 to 5 percent) at the time you withdraw, plus interest that starts accruing immediately.
- You can get cash from an ATM using your credit card PIN, at a bank teller, or through a cash advance service, depending on your card.
- The interest rate on a cash advance is typically higher than your purchase rate, and there is no grace period before interest starts.
- The total cost of a cash advance—fee plus interest—makes it expensive compared to using a debit card or getting cash back at a store.
How to withdraw cash using your credit card
The most common way is to use an ATM. Insert your credit card, enter your PIN, and select the cash withdrawal option. The ATM will show you the fee before you confirm, so you can see the cost upfront. Not all ATMs accept credit cards—some only take debit cards—so you may need to try a few or use your card issuer's ATM network.
You can also go to a bank teller and ask for a cash advance. Bring your credit card and ID. The teller will process the transaction the same way they would a withdrawal from a checking account, but it will be charged to your credit card instead. This method works even if you do not have a PIN set up.
Some credit card issuers offer cash advance checks or allow you to transfer money to your bank account through their app or website. Check your card's terms or call the number on the back to see what options your card offers.
What fees and interest rates apply
The cash advance fee is charged immediately when you withdraw the money. It is a percentage of the amount—typically 3 to 5 percent, though some cards charge a flat fee instead (like $10 minimum). A $300 cash advance at 4 percent costs $12 in fees alone.
Interest starts accruing the day you withdraw the cash. There is no grace period. If your regular purchase APR is 18 percent, your cash advance APR might be 22 percent or higher. The interest compounds daily, so the longer you carry the balance, the more you owe.
Your credit card statement will show the cash advance as a separate line item from your regular purchases. Payments you make go toward your lowest-interest balance first, so if you have both purchases and a cash advance, your payment will pay off the purchase before the cash advance.
Why cash advances are expensive compared to alternatives
A $300 cash advance at a 4 percent fee plus 22 percent APR costs you $12 upfront plus roughly $5.50 in interest over one month if you do not pay it back immediately. That is $17.50 in total cost for borrowing $300 for 30 days. A personal loan or payday loan might have a lower rate depending on your credit, and a debit card withdrawal costs nothing.
Getting cash back at a store when you make a purchase is free and does not trigger a cash advance fee. If you need cash, ask the cashier at a grocery store or pharmacy—most will give you cash back up to a certain amount (often $20 to $100) when you swipe your debit card.
If you do not have a debit card, borrowing from a friend or family member, using a credit union loan, or waiting until you can visit your bank during business hours are all cheaper than a cash advance.
How a cash advance affects your credit score
A cash advance itself does not appear on your credit report as a separate item. It shows up as part of 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 you take a $1,500 cash advance, your utilization jumps to 30 percent (or higher if you have other purchases on the card).
High utilization can lower your credit score temporarily. The effect is usually small if you pay it back quickly, but it can matter if you are about to apply for a loan or mortgage and your score is already borderline.
What happens if you cannot pay back a cash advance
If you do not pay back the cash advance, it becomes part of your credit card balance. You will owe the original amount plus the fee plus all the interest that has accrued. Your credit card issuer will report the missed payment to the credit bureaus after 30 days, which damages your credit score. After 60 days, the damage is worse. After 180 days, the account may be sent to a collection agency.
You can ask your card issuer about a payment plan or hardship program if you are struggling, but they are not required to offer one. The best approach is to avoid a cash advance unless you are certain you can pay it back within a few days.
When a cash advance might make sense
A cash advance is worth considering only in specific situations. If you need cash for an emergency and have no other way to get it—no debit card, no access to a store, no friends or family to borrow from—and you can pay it back within a week or two, the fee and interest might be worth the cost of solving the immediate problem.
Some people use cash advances to pay off higher-interest debt, though this rarely works out because the cash advance rate is usually higher than what they are paying off. Before you take a cash advance, call your card issuer and ask what your cash advance APR is. Compare it to any other borrowing options available to you.
Frequently Asked Questions
Can I use a credit card to withdraw cash from any ATM?
Most ATMs accept credit cards, but some only take debit cards. Your card issuer's ATM network is most likely to accept your card. If an ATM declines your card, try another one or visit a bank teller instead. The ATM will show the fee before you confirm the withdrawal.
Do I have to pay interest on a cash advance right away?
Interest starts accruing immediately, but you do not owe it until your statement closes. If you pay back the cash advance before your statement date, you will owe the fee but less interest. If you carry the balance into the next month, interest compounds daily on the unpaid amount.
What is the difference between a cash advance and a balance transfer?
A cash advance gives you physical cash and charges a fee plus high interest. A balance transfer moves debt from one card to another and may have a lower introductory rate. Both are expensive, but a balance transfer can make sense if you are moving high-interest debt to a card with a 0 percent promotional period.
Will a cash advance show up on my credit report?
The cash advance itself does not appear separately, but it counts toward your credit card balance and credit utilization ratio. High utilization can lower your score temporarily. If you miss payments, the missed payment will show on your report and damage your score more significantly.
Can I get a cash advance with a secured credit card?
Most secured cards allow cash advances, but the fee and interest rate are the same as a regular credit card. Some secured card issuers charge higher cash advance fees, so check your card's terms before you withdraw. Call the number on the back of your card to confirm what options are available.