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

You can take cash out of an ATM using your credit card, just like you would with a debit card. The transaction is called a cash advance. The moment you withdraw the money, your credit card issuer treats it as a loan you owe them — and charges you fees and interest right away, even if you normally get a grace period on purchases.

Most people should avoid cash advances unless they have no other option. The fees are steep, the interest rate is usually higher than your regular purchase rate, and interest starts accruing when ready with no grace period. If you need cash urgently, a personal loan, payday loan, or even a short-term loan from a friend or family member will almost always cost you less.

Key Takeaways

  • A cash advance charges you a fee (usually 3 to 5 percent of the amount withdrawn) plus a higher interest rate than purchases, with no grace period.
  • Interest on a cash advance begins accruing the day you withdraw it, even if you pay your bill in full at the end of the month.
  • You can withdraw cash at any ATM that displays your card's logo, up to your card's cash advance limit, which is often lower than your credit limit.
  • Your credit card statement will show the cash advance separately from regular purchases, and you will pay interest on it until the balance is zero.
  • If you need cash regularly, a debit card or a line of credit with a lower interest rate will cost you far less over time.

How much does a cash advance cost

A cash advance charges you two things: an upfront fee and ongoing interest. The upfront fee is usually between 3 and 5 percent of the amount you withdraw — so withdrawing $200 might cost you $6 to $10 right away. Some cards charge a flat fee instead (like $5 or $10), which is better if you are withdrawing a large amount but worse if you are withdrawing a small amount.

The interest rate on a cash advance is separate from your purchase rate and is almost always higher. While a purchase might carry an APR of 15 to 20 percent, a cash advance APR might be 25 to 30 percent or more. Unlike purchases, there is no grace period — interest starts accruing the day you withdraw the cash, not at the end of your billing cycle.

If you withdraw $200 with a 4 percent fee and a 25 percent APR, you pay $8 upfront. If you pay it back in 30 days, you will owe roughly $9.67 in interest, for a total cost of about $17.67. If you carry the balance for three months, the interest alone will exceed $15.

Where you can withdraw cash and what your limit is

You can withdraw cash at any ATM that displays your credit card's logo — Visa, Mastercard, American Express, or Discover. You are not limited to your bank's ATM network. Walk up to any ATM, insert your card, select "cash advance" or "withdraw cash," enter your PIN, and choose the amount.

Your credit card issuer sets a cash advance limit, which is separate from your credit limit. If your credit limit is $5,000, your cash advance limit might be $1,500 or $2,000. You cannot withdraw more than this limit, even if you have available credit. You can usually find your cash advance limit in your card's terms and conditions or by calling the customer service number on the back of your card.

Some ATMs charge their own fee on top of your card issuer's fee — typically $2 to $3 per transaction. Out-of-network ATMs (ones that do not belong to your bank) are more likely to charge this fee. Your card issuer will tell you the ATM fee before you complete the withdrawal, so you can cancel if you want.

How a cash advance appears on your statement and how to pay it back

Your credit card statement will list the cash advance separately from your regular purchases. It will show the amount withdrawn, the fee charged, and the interest accrued so far. The cash advance balance is treated as its own debt — you cannot pay off just the interest or just the fee and leave the principal. You have to pay down the entire balance.

When you make a payment to your credit card, the issuer applies it to your balances in a specific order set by law. Most cards pay off purchases first, then cash advances. This means if you have both a $500 purchase and a $200 cash advance, and you send in a $300 payment, the full $300 goes toward the purchase, and the cash advance keeps accruing interest untouched. To pay off a cash advance faster, contact your issuer and ask them to explore your payment directly to the cash advance balance.

The cash advance will remain on your statement and accrue interest until you pay it off completely. Unlike a purchase, there is no grace period and no way to avoid the interest — you are paying it from day one.

When a cash advance might make sense

A cash advance is rarely the right choice, but there are narrow situations where it might be your only option. If you need cash when ready and have no access to a debit card, no ATM for your bank account, and no way to borrow from someone else, a cash advance is faster than waiting for a personal loan or a payday loan to process.

Even then, the math usually does not work in your favor. A payday loan, a personal loan from a credit union, or even a short-term loan from a friend will almost always cost you less than a cash advance. If you find yourself needing cash advances regularly, that is a sign you should look at your budget or talk to a financial counselor about building an emergency fund.

Alternatives that cost less

If you need cash and do not have it on hand, here are cheaper options than a cash advance:

  • Use a debit card or withdraw from your bank account. This costs nothing if you use your bank's ATM and usually $1 to $3 at an out-of-network ATM — far less than a cash advance fee and interest.
  • Ask your bank for a short-term personal loan. Banks and credit unions often offer personal loans at 8 to 15 percent APR, with a fixed repayment schedule. You know exactly what you will pay.
  • Use a payday loan as a last resort. Payday loans are expensive (often 400 percent APR or higher), but they are sometimes cheaper than a cash advance if you repay within two weeks.
  • Borrow from family or friends. If possible, this is the cheapest option — no fees, no interest, and no impact on your credit.
  • Use a 0 percent balance transfer card. If you have time to wait for approval, some cards offer 0 percent APR on balance transfers for 6 to 21 months. You can transfer a cash advance from another card and pay no interest during the promotional period.

How a cash advance affects your credit score

A cash advance does not hurt your credit score directly — the withdrawal itself is not reported to the credit bureaus. However, it can hurt your score indirectly in two ways.

First, a cash advance increases your credit utilization ratio, which is the amount of available credit you are using. If you have a $5,000 credit limit and a $1,500 cash advance limit, and you withdraw $1,000, you are now using $1,000 of your $1,500 cash advance limit (67 percent utilization). High utilization signals risk to lenders and can lower your score. Second, if you carry the cash advance balance for months, you will miss payments or pay late, which will damage your score. The cash advance itself is not the problem — the debt it creates is.

Frequently Asked Questions

Can I use a credit card to withdraw cash at a bank teller instead of an ATM?

Yes. Walk into any bank branch and ask the teller for a cash advance on your credit card. You will need your card and a form of ID. The fee and interest rate are the same as an ATM withdrawal — there is no advantage to using a teller instead of an ATM.

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

A cash advance is withdrawing cash from an ATM or teller. A balance transfer is moving debt from one credit card to another. Cash advances charge a fee and high interest when ready. Balance transfers sometimes offer 0 percent APR for a promotional period, making them cheaper if you are moving existing debt. You cannot use a balance transfer to get cash in your hand.

Will my credit card company let me withdraw my entire credit limit as a cash advance?

No. Your cash advance limit is set separately and is usually much lower than your credit limit — often 20 to 50 percent of your total limit. You cannot change this limit yourself, but you can call your issuer and ask if they will raise it. They may or may not agree.

Do I have to pay back a cash advance when ready?

No, but you should. Interest starts accruing the day you withdraw the cash, and there is no grace period. The longer you carry the balance, the more interest you pay. If you can pay it back within a few days, the cost is manageable. If you will carry it for months, the interest will add up quickly.

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

Only if you have available cash advance limit. Your cash advance limit is separate from your credit limit. If your credit limit is $5,000 and you have charged $5,000, you are maxed out on purchases — but you might still have $1,000 of cash advance limit available. Check your statement or call your issuer to see your cash advance limit.