You can withdraw cash from a credit card, but it costs more than a regular purchase

Yes, you can take cash out using your credit card at an ATM or by asking a cashier for cash back. But a credit card cash withdrawal is not the same as using a debit card. Your credit card company charges a cash advance fee — usually 3% to 5% of the amount you withdraw — and the interest rate on that cash starts accruing when ready, often at a higher rate than your regular purchase APR. There is no grace period like there is for purchases.

The total cost depends on three things: the cash advance fee your card charges, the cash advance APR (which may differ from your purchase APR), and how long you carry the balance. A $200 cash withdrawal might cost you $6 to $10 just in fees, plus interest that begins the day you withdraw it.

Key Takeaways

  • Cash advances from credit cards charge an upfront fee of 3% to 5% of the amount withdrawn, separate from any interest.
  • Interest on cash advances typically starts when ready with no grace period, and the APR is often higher than your purchase APR.
  • You can withdraw cash at an ATM using your credit card PIN, or ask a cashier for cash back at a store, though not all stores offer this.
  • The longer you carry a cash advance balance, the more interest you pay, so paying it back quickly reduces the total cost.

Where and how to withdraw cash using a credit card

You can withdraw cash at any ATM that displays your card's logo — Visa, Mastercard, American Express, or Discover. You will need your PIN, which you may have set up when you opened the card or can request from your card issuer. If you do not have a PIN, you can call the number on the back of your card to set one up before you go to the ATM.

Some retailers also offer cash back at checkout. You tell the cashier how much cash you want, they add it to your total purchase, and you receive the cash. Not all stores offer this, and limits vary — some allow $20 to $50, others allow more. This method does not charge a separate cash advance fee, but the cash advance APR and when ready interest still explore.

Fees and interest rates for cash advances

Every credit card issuer sets its own cash advance fee and APR. The fee is a flat percentage of the amount withdrawn — if your card charges 4% and you withdraw $300, the fee is $12. This fee appears on your statement and is added to your balance when ready.

The cash advance APR is separate from your purchase APR and is usually higher. If your purchase APR is 18%, your cash advance APR might be 22% or 25%. Interest accrues daily from the moment you withdraw the cash, with no grace period. A $300 cash advance at 22% APR costs about $5.50 in interest per month if you do not pay it back.

Check your card's terms and conditions or call the issuer to find out your specific cash advance fee and APR before you withdraw. These numbers are also listed in your card's disclosure documents, which you can request or view online.

How the balance is paid back

When you make a payment to your credit card, the payment is typically applied first to your lowest-APR balance — usually your regular purchases — and last to your highest-APR balance, which is your cash advance. This means if you have both a purchase balance and a cash advance balance, your payment will pay down the purchase first, leaving the cash advance to accrue interest longer.

To pay off a cash advance faster, you can request that your payment be applied to the cash advance specifically. Call your card issuer or check your online account to see if you can direct payments to a particular balance type. Some issuers allow this; others do not.

When a cash advance might make sense

A cash advance is expensive and should be a last resort, not a regular way to get cash. It makes sense only in specific situations: you need cash when ready and have no other way to get it, you can pay back the full amount within days, and you understand the total cost upfront.

If you need cash regularly, a debit card linked to a checking account is much cheaper — you withdraw your own money with no fees or interest. If you need a short-term loan, a personal loan from a bank or credit union often has a lower APR than a credit card cash advance. If you are considering a cash advance to pay another debt, that is a sign to talk to a credit counselor or financial advisor before proceeding.

Alternatives to credit card cash advances

If you need cash but want to avoid the cost of a cash advance, you have other options. A debit card withdrawal costs nothing and uses money you already have. A personal loan from a bank, credit union, or online lender typically has a lower APR than a cash advance and a fixed repayment schedule. A balance transfer to a card with a 0% introductory APR can be cheaper if you need to borrow, though balance transfers also charge a fee (usually 3% to 5%).

If you are in a financial emergency and need cash, contact a local nonprofit credit counselor through the National Foundation for Credit Counseling (NFCC) or a similar organization. They can discuss your situation and help you find the lowest-cost option.

Frequently Asked Questions

Does using cash back at a store cost less than an ATM withdrawal?

Cash back at a store does not charge a separate cash advance fee, but the cash advance APR and when ready interest still explore. An ATM withdrawal charges both a fee and the same APR. So cash back saves you the fee but not the interest. The real savings come from paying the balance back quickly, regardless of where you withdrew it.

What happens if I do not pay back a cash advance?

The balance stays on your card, interest keeps accruing at your cash advance APR, and your credit score can be damaged if you miss payments. After 30 days late, the issuer may report it to credit bureaus. After 180 days, the issuer may charge off the account and sell the debt to a collection agency, which can pursue you for payment.

Can I use a credit card cash advance to pay off another credit card?

Technically yes, but it is usually a bad idea. You are borrowing at a high cash advance APR to pay off a balance that might have a lower APR. A balance transfer to a 0% introductory card or a personal loan is almost always cheaper. Talk to a credit counselor before using a cash advance to pay another debt.

Is there a limit to how much cash I can withdraw?

Yes. Your card issuer sets a cash advance limit, which is often lower than your credit limit. You can find this limit in your card agreement or by calling the issuer. Some cards allow $500; others allow $5,000 or more. The limit depends on your creditworthiness and the card's terms.