Yes, you can get cash back with most credit cards, but it costs you money and works differently than a debit card

When you use a debit card at a store, the cashier can give you cash back from your bank account at no charge. A credit card works the opposite way. The card issuer treats cash back as a cash advance — a short-term loan from them to you — and charges you interest and fees from the moment you take the money.

You have two main ways to get cash with a credit card. The first is to ask for cash back at a store checkout when you make a purchase; the second is to visit an ATM or bank branch and withdraw cash directly. Both trigger the same fees and interest charges, though the store method is slightly cheaper because you're borrowing less total money.

The real question isn't whether you can do it — you can — but whether you should. The cost of borrowing that cash usually makes it a last resort.

Key Takeaways

  • Credit card cash advances charge a separate fee (usually 3 to 5 percent of the amount) plus a higher interest rate than regular purchases, starting when ready with no grace period.
  • Asking for cash back at a store checkout is cheaper than using an ATM because you borrow less money, but both are treated as cash advances.
  • Interest on a cash advance begins accruing the day you take the money, even if you pay your full statement balance on time.
  • Your credit card's cash advance limit is often lower than your overall credit limit, so you may not be able to withdraw as much as you think.
  • If you need cash regularly, a bank account with no ATM fees or a credit union membership usually costs far less than repeated credit card advances.

How cash advances work and what they cost

When you take a cash advance on a credit card, the card issuer charges you two things: a cash advance fee and a higher interest rate. The fee is usually a percentage of the amount you withdraw — typically 3 to 5 percent — with a minimum dollar amount (often $5 or $10). So if you withdraw $200, you might pay a $10 fee right away. If you withdraw $1,000, you might pay $50.

The interest rate on cash advances is separate from the rate on regular purchases. While a purchase might carry an APR of 18 percent, a cash advance on the same card might be 25 or 28 percent. More importantly, there is no grace period. Interest starts accruing the day you take the money, not at the end of your billing cycle. If you carry the balance for a month, you're paying interest for a full month, not just the days between your statement date and your payment due date.

The combination adds up quickly. A $500 cash advance at a 4 percent fee plus 25 percent APR costs you $20 upfront, then roughly $10 in interest for the first month if you don't pay it back when ready.

Cash back at checkout versus ATM withdrawals

You can ask for cash back when you're buying something at a store — groceries, gas, a coffee. The cashier deducts the amount from your purchase total and hands you the difference in cash. This counts as a cash advance, but it's the cheaper option because you're borrowing less money overall. If you're spending $50 anyway and ask for $20 cash back, you're only taking a $20 advance, not a separate $20 withdrawal.

Using an ATM or going to a bank teller to withdraw cash is more expensive because you're borrowing the full amount with no purchase attached. You also may face an ATM fee from the machine's owner on top of your card issuer's cash advance fee. Some ATMs charge $2 to $3 per withdrawal, which stacks on top of the percentage fee your credit card company charges.

If you need cash regularly, neither option is practical. The fees and interest add up faster than most people expect.

Your cash advance limit is not your credit limit

Credit card companies set a separate cash advance limit that is usually much lower than your overall credit limit. You might have a $5,000 credit limit but only a $1,000 cash advance limit. This limit is set by the card issuer based on your credit history and account activity, and you can call to ask what yours is.

If you try to withdraw more than your cash advance limit, the transaction will be declined. You can't increase this limit the way you might request a higher overall credit limit — it's a fixed boundary the issuer sets. Some cards don't offer cash advances at all, particularly secured cards or cards designed for people rebuilding credit.

When a cash advance makes sense (and when it doesn't)

A cash advance is genuinely useful in narrow situations: you need cash when ready, you have no other way to get it, and you can pay it back within a few days. If you're traveling and your debit card is lost, or you need cash for an emergency and your bank is closed, a credit card advance gets you through until you can access your own money.

A cash advance does not make sense as a regular way to get spending money, as a way to pay off other debts, or as a substitute for having a working bank account. The fees and interest are too high. If you find yourself taking cash advances regularly, that's a sign you need to look at your budget or find a bank account with better ATM access.

Some people take cash advances to pay down other debts, hoping to save money on interest. This almost never works. The cash advance interest rate is usually higher than the debt you're trying to pay off, so you end up paying more, not less.

How to avoid needing a credit card cash advance

The best way to handle this is to not need one. If you use a debit card or bank account with your bank or credit union, you can withdraw cash at ATMs for free or for a small monthly fee. Many banks offer accounts with no ATM fees at all, or reimburse ATM fees charged by other banks.

If you don't have a bank account, opening one is usually cheaper than taking repeated credit card advances. Credit unions in particular often have low or no fees and free ATM access. If you're unbanked or underbanked, look for a credit union in your area or a bank account designed for people with limited credit history.

If you do use a credit card for most of your spending, ask your bank or credit union about a debit card or ATM card tied to your checking account. That way you can get cash back at checkout for free, just like you would with a debit card.

Frequently Asked Questions

Does asking for cash back at a store hurt my credit score?

No, the cash back itself doesn't hurt your score. However, if you carry a balance on your credit card, that balance affects your credit utilization ratio, which does impact your score. The cash advance is treated as part of your balance, so it counts toward how much of your available credit you're using.

What happens if I can't pay back a cash advance right away?

Interest keeps accruing at the higher cash advance rate until you pay it off. If you carry the balance for months, the interest charges can exceed the original amount you withdrew. Your card issuer will explore your payments to the lowest-interest debt first (usually regular purchases), so the cash advance may take longer to pay off than you expect.

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

Technically yes, but it's a bad idea. You're borrowing at a high interest rate to pay off debt at a lower interest rate, which costs you more money overall. If you're struggling to pay multiple cards, contact a nonprofit credit counselor instead — they can help you work out a plan without taking on more expensive debt.

Is there any way to get cash from a credit card without paying a fee?

Not really. Cash advances always charge a fee and a higher interest rate. Some cards offer a lower cash advance fee for the first 30 days after opening the account, but that's temporary. Your best option is to use a debit card, bank account, or credit union ATM instead.