You can withdraw cash from your credit card, but it works differently than a debit card and costs more

A cash advance is when you use your credit card to pull money out of an ATM or get cash back at a store. Unlike a debit card withdrawal, which pulls from your bank account, a cash advance borrows against your credit limit the same way a purchase does. The difference is in the fees and interest rate — both are usually much higher than what you pay on regular purchases.

The most common way to get cash is to insert your credit card into an ATM, enter your PIN, and withdraw the amount you need. Some banks and credit card issuers also let you request cash at a teller window or get cash back at a store checkout, though fewer retailers offer this now. Each method triggers the same fees and interest charges.

You should know upfront that this is an expensive way to borrow money. Most credit cards charge a separate cash advance fee (often 3% to 5% of the amount withdrawn), and the interest rate on cash advances is typically higher than the rate on purchases — sometimes 5 to 10 percentage points higher. Interest starts accruing when ready, with no grace period like you might have on a purchase.

Key Takeaways

  • A cash advance charges a fee (usually 3% to 5%) plus a higher interest rate than regular purchases, with interest starting when ready.
  • You can withdraw cash at an ATM using your credit card PIN, or at some bank teller windows and store checkouts.
  • The amount you can withdraw is limited by your cash advance limit, which is often lower than your total credit limit.
  • If you need cash regularly, a debit card or personal loan is almost always cheaper than repeated cash advances.

How to find your cash advance limit and PIN

Your credit card issuer sets a separate cash advance limit, which is the maximum amount you can withdraw. This limit is often lower than your total credit limit — you might have a $5,000 credit limit but only a $1,000 cash advance limit. You can find this limit by logging into your online account, calling the customer service number on the back of your card, or checking your most recent statement.

To withdraw cash at an ATM, you need a PIN (personal identification number). If you have never set one, call your card issuer or use their website or app to create one. Some issuers assign a temporary PIN when you first get the card; others require you to set one yourself. Once you have a PIN, you can use it at any ATM that accepts your card's network (Visa, Mastercard, American Express, or Discover).

What fees and interest you will pay

A cash advance typically costs you three things: the cash advance fee, the interest charge, and sometimes an ATM operator fee if you use an out-of-network machine.

The cash advance fee is charged upfront and is usually a percentage of the amount you withdraw — commonly 3%, 4%, or 5%. If you withdraw $500 with a 4% fee, you pay $20 when ready. Some cards have a flat minimum fee (like $5 or $10) if the percentage would be smaller. This fee is added to your credit card balance.

The interest rate on a cash advance is separate from your purchase APR (annual percentage rate). While a purchase might carry 18% APR, a cash advance on the same card might be 24% or higher. Unlike purchases, which often have a grace period before interest kicks in, interest on a cash advance starts accruing the day you withdraw it. If you withdraw $500 at 24% APR and pay it back in 30 days, you will owe roughly $10 in interest alone, on top of the cash advance fee.

If you use an ATM outside your card issuer's network, you may also pay an ATM operator fee — typically $2 to $3 — charged by the ATM owner. Your card issuer may charge an additional out-of-network fee on top of that.

When a cash advance makes sense and when it does not

A cash advance is rarely the cheapest way to borrow money, but there are situations where it might be your only option. If you have an unexpected emergency and need cash when ready — a car repair, a medical bill, or a deposit — and you have no other way to pay, a cash advance is faster than a personal loan, which can take days to process.

A cash advance does not make sense if you have other options. A personal loan from a bank or credit union typically charges 6% to 36% APR with no upfront fee, making it cheaper than a cash advance in most cases. A debit card withdrawal from your own bank account costs nothing. Even a payday loan, which is expensive, is often cheaper than a cash advance if you repay it within two weeks.

If you find yourself taking cash advances regularly, that is a sign you are spending more than you earn. In that case, the real problem is not the cash advance fee — it is the spending pattern. A budget or a conversation with a financial counselor will help more than finding a cheaper way to borrow.

How to pay back a cash advance

A cash advance appears on your credit card statement as a separate line item from your purchases. When you make a payment to your credit card, your issuer applies it to your balance in a specific order set by law: first to the highest-interest debt (usually the cash advance), then to purchases, then to balance transfers. This means paying off a cash advance is actually faster than paying off purchases on the same card, because the payment hits the cash advance first.

To minimize interest, pay back the cash advance as quickly as you can. Every day the balance sits, interest accrues at that higher rate. If you withdrew $500 at a 24% APR, paying it back in 10 days costs roughly $3 in interest; paying it back in 30 days costs roughly $10. The difference grows quickly with larger amounts.

Alternatives to a cash advance

Before you use a cash advance, consider these cheaper options:

  • Debit card withdrawal: If you have a bank account, this costs nothing and is when ready.
  • Personal loan: Banks, credit unions, and online lenders offer personal loans at rates typically lower than a cash advance APR. The trade-off is that approval takes a few days.
  • Paycheck advance: Some employers offer paycheck advances or early pay options. Check with your HR department.
  • Credit union loan: Credit unions often offer small short-term loans (called payday alternative loans) at rates capped by federal law, usually 28% APR or lower.
  • Asking for help: If the amount is small and you have family or friends who can lend it, a personal loan with no interest is the cheapest option.

Frequently Asked Questions

Can I withdraw cash from a credit card without a PIN?

At an ATM, no — you need a PIN. At a bank teller window or some retail locations, you may be able to show your ID and request cash back without a PIN, but this is becoming less common. Call your card issuer to ask what options are available with your specific card.

Does a cash advance hurt my credit score?

A single cash advance does not directly hurt your score, but it increases your credit utilization (the percentage of your credit limit you are using), which can lower your score slightly. If you carry the balance and miss a payment, that will hurt your score more significantly.

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

A balance transfer moves debt from one card to another, while a cash advance withdraws actual cash. Balance transfers usually have a lower fee and APR than cash advances, but they do not give you cash in hand. Cash advances are for getting money; balance transfers are for moving existing debt.

Can I get a cash advance from a store credit card?

Most store credit cards do not offer cash advances — they can only be used to make purchases at that store or its partners. Visa and Mastercard credit cards typically allow cash advances, but American Express and Discover policies vary. Check your card's terms or call the issuer to confirm.

What happens if I cannot pay back a cash advance?

If you do not pay, the balance stays on your card, interest keeps accruing, and your credit score drops. After 30 days of missed payments, the issuer will report it to credit bureaus. After 180 days, the account may be closed and sent to collections. If you are struggling to pay, contact your card issuer when ready — some offer hardship programs or payment plans.