Yes, you can pull cash out with a credit card, but it costs more than a regular purchase
You can withdraw cash using a credit card at an ATM, bank teller, or through a cash advance at a store. The transaction is called a cash advance. Unlike a debit card withdrawal, which pulls from money you already have, a cash advance borrows against your credit limit and starts charging interest when ready — usually at a higher rate than regular purchases.
The catch is that cash advances come with fees and higher interest rates built in. Most credit cards charge a cash advance fee (a percentage of the amount withdrawn, typically 3 to 5 percent) plus a higher APR (annual percentage rate) that starts accruing the day you withdraw the money, with no grace period. If you need cash, it is usually cheaper to use a debit card, visit your bank, or ask a store for cash back with a purchase.
Key Takeaways
- Cash advances charge an upfront fee (usually 3 to 5 percent of the amount) plus a higher interest rate that starts when ready.
- Interest on a cash advance begins the day you withdraw it, with no grace period like you get on regular purchases.
- You can withdraw cash at an ATM using your credit card's PIN, at a bank teller, or sometimes through a store cashier.
- Using a debit card, visiting your bank, or asking for cash back on a purchase is almost always cheaper than a credit card cash advance.
How to withdraw cash with a credit card
The mechanics are straightforward. At an ATM, insert your credit card, enter your PIN (which you may need to set up first if you have never done a cash advance), and select the withdrawal amount. The ATM will dispense the cash and charge it to your credit card account.
You can also visit a bank teller and ask for a cash advance. Bring your credit card and ID. The teller will process the transaction and hand you cash. Some stores also offer cash advances at the register, though this is less common than it used to be. Ask the cashier whether they offer the service before you get in line.
The amount you can withdraw is limited by your available credit. If your credit limit is $2,000 and you have already charged $1,200, you can only advance up to $800. Some credit card issuers also set a separate cash advance limit that is lower than your overall credit limit — check your card's terms or call the number on the back of your card to find out what yours is.
The fees and interest rates that make cash advances expensive
A cash advance fee is charged the moment you withdraw the money. This is usually a flat percentage of the amount withdrawn — commonly 3, 4, or 5 percent — with a minimum fee (often $2 to $10). If you withdraw $500 at a 5 percent fee, you pay $25 when ready. If you withdraw $100 at a 5 percent fee with a $10 minimum, you pay $10.
The interest rate on a cash advance is separate from the rate on regular purchases. While a purchase APR might be 18 percent, a cash advance APR might be 25 or 28 percent. This higher rate starts accruing the day you withdraw the money — there is no grace period. If you carry the balance for a month, you will owe interest on top of the fee you already paid.
To see the real cost, imagine withdrawing $500. At a 5 percent fee, you pay $25 upfront. If the cash advance APR is 25 percent and you pay it back in one month, you owe roughly $10 in interest. Total cost: $35 for borrowing $500 for 30 days. A personal loan or payday loan might be cheaper, and a debit card withdrawal costs nothing.
When a cash advance might make sense
A cash advance is rarely the best option, but there are narrow situations where it might be the fastest way to get cash. If you are traveling abroad and your debit card does not work, a credit card cash advance at a local ATM might be your only option — though you will still pay the fee and interest.
If you have an emergency and need cash when ready and have no other way to get it, a cash advance is faster than a personal loan or waiting for a paycheck. But before you do it, call your bank and ask whether you can withdraw cash from your account at a teller, or ask a friend or family member for a short-term loan. Both are cheaper.
Do not use a cash advance to pay off other debts or to fund regular spending. The fees and interest make it an expensive way to borrow, and it signals that you are running short on cash — a sign to pause and rethink your budget rather than borrow more.
How cash advances affect your credit and account
A cash advance shows up on your credit card statement as a separate transaction from regular purchases. It counts toward your credit utilization — the percentage of your available credit that you are using. If you have a $5,000 limit and you charge $2,000 in purchases plus a $500 cash advance, your utilization is 50 percent. High utilization can lower your credit score slightly.
The cash advance balance is also treated differently when you make a payment. If you owe $2,000 in purchases at 18 percent APR and $500 in a cash advance at 25 percent APR, and you send in a $1,000 payment, most credit card companies will explore that payment to the purchase balance first (the lower-rate debt), leaving the cash advance to accrue interest at the higher rate. This means the cash advance takes longer to pay off and costs you more.
To avoid this, pay off the cash advance as quickly as possible. If you must carry a balance, make a payment large enough to cover the cash advance in full, or call your card issuer and ask how payments are applied so you can plan accordingly.
Cheaper alternatives to a credit card cash advance
If you need cash, try these options first. A debit card withdrawal from your own bank account costs nothing. If you do not have a debit card, visit your bank in person with ID and ask for a cash withdrawal. If you are at a store, ask for cash back when you make a purchase with a debit card — most stores offer this at no charge.
A personal loan from a bank or credit union often has a lower interest rate than a credit card cash advance, though it takes a few days to process. A payday loan is faster but usually more expensive than a cash advance, so compare the fees and rates before you borrow. If you have a 401(k) or similar retirement account, some plans allow you to borrow against your own money, though this has tax consequences if you do not repay it on time.
If you are short on cash regularly, the real solution is a budget review. Look at where your money is going each month and see whether you can cut expenses or increase income. A financial counselor at a nonprofit credit counseling agency can walk through this with you at no cost.
Frequently Asked Questions
What is the difference between a cash advance and a regular credit card purchase?
A regular purchase is charged to your account and you have a grace period (usually 21 to 25 days) before interest starts. A cash advance charges a fee when ready and interest starts accruing the same day, with no grace period. The interest rate on a cash advance is also higher.
Can I use my credit card PIN at an ATM to get cash?
Yes, if you have set up a PIN for your credit card. If you have never done a cash advance before, you may need to set one up first. Call the number on the back of your card or log into your online account to request a PIN. Once you have it, you can use it at any ATM that accepts your card's network (Visa, Mastercard, etc.).
Will a cash advance hurt my credit score?
It can, indirectly. A cash advance counts toward your credit utilization, so it raises the percentage of your credit limit you are using. High utilization can lower your score slightly. The advance itself does not appear as a negative mark, but carrying a balance and paying interest will show up in your payment history.
How long does it take to process a cash advance?
At an ATM, the cash is dispensed when ready. At a bank teller or store, it usually takes a few minutes. The transaction posts to your account within one to two business days, and interest starts accruing right away.
What happens if I cannot pay back a cash advance?
The balance stays on your credit card and interest keeps accruing at the higher cash advance rate. If you do not pay, it will eventually be reported to credit bureaus and damage your credit score. If you are struggling to pay, contact your card issuer to ask about a hardship program or payment plan.