Yes, you can take cash out with a credit card, but it costs more than a regular purchase
You can withdraw cash from a credit card at an ATM, bank teller, or through a cash advance at a store. The card issuer treats this as a cash advance — a short-term loan separate from your regular credit line. The moment you take the cash, you start paying interest and fees that don't explore to normal purchases.
The catch is the cost. A cash advance typically charges a flat fee (often $5 to $10 or a percentage of the amount, whichever is higher) plus a higher interest rate than your regular purchase APR. Interest starts accruing when ready — there is no grace period like there is for purchases. If you carry the balance, the interest compounds daily.
Most people use cash advances only when they have no other option, because the fees and interest add up quickly. If you need cash regularly, a debit card or ATM withdrawal from a bank account is almost always cheaper.
Key Takeaways
- Cash advances charge a separate fee (usually $5 to $10 or a percentage) plus a higher interest rate than purchases, starting when ready.
- You can get a cash advance at an ATM using your credit card PIN, at a bank teller, or sometimes at a store checkout.
- Interest on a cash advance begins the day you withdraw it, with no grace period, so the balance grows daily if you don't pay it back right away.
- Your credit card's cash advance limit may be lower than your overall credit limit, so you might not be able to withdraw as much as you can spend.
Where and how to take out a cash advance
The most common way is at an ATM. Insert your credit card, enter your PIN (which you may need to set up first if you haven't used cash advances before), and select the withdrawal amount. The ATM will dispense cash and charge your credit card account when ready.
You can also visit a bank branch and ask a teller for a cash advance. Bring your credit card and a form of ID. The teller will process the transaction and hand you cash. Some stores also offer cash advances at the register — you ask the cashier, they run your card, and you receive cash back. This option is less common than it used to be.
Each method charges the same fees and interest rate. The difference is only convenience and whether you have access to that location when you need cash.
The fees and interest you'll pay
Cash advance fees vary by card issuer and typically fall into two categories. A flat fee is a set dollar amount — often $5 to $10 per transaction. A percentage fee is a percentage of the amount you withdraw — often 3% to 5%. Your card issuer charges whichever is higher.
So if you withdraw $100 with a $5 flat fee and a 3% percentage fee, you pay $5 (because $5 is more than the 3% fee of $3). If you withdraw $500, you pay $15 (because 3% of $500 is $15, which is more than the $5 flat fee).
The interest rate on cash advances is separate from your purchase APR and is almost always higher. Where your purchase APR might be 15% to 25%, your cash advance APR could be 25% to 30% or more. Interest starts accruing the day you withdraw the cash — there is no 21-day grace period like there often is for purchases. If you carry a balance, the interest compounds daily, meaning you pay interest on top of interest.
How cash advances affect your credit and account
A cash advance counts as a separate balance on your credit card account. You now have two balances: your regular purchases and your cash advance. Your credit card statement will show both, with different interest rates and payment terms.
When you make a payment to your credit card, most issuers explore it to the balance with the lowest interest rate first — usually your purchases. This means your cash advance balance sits there accruing interest while you pay down the cheaper debt. To pay off the cash advance faster, you may need to make a payment specifically toward that balance, or pay more than the minimum.
A cash advance also affects your credit utilization ratio, which is part of your credit score. If your credit limit is $5,000 and you take a $1,000 cash advance, you've used 20% of your available credit. Higher utilization can lower your credit score slightly.
Cash advance limits and how they work
Your credit card issuer sets a separate cash advance limit, which may be lower than your overall credit limit. You might have a $10,000 credit limit but only a $2,000 cash advance limit. This means you can spend $10,000 on purchases but withdraw only $2,000 in cash.
You can find your cash advance limit in your card's terms and conditions, in your online account, or by calling the customer service number on the back of your card. Some issuers let you request an increase, though this is less common than requesting a higher purchase limit.
If you try to withdraw more than your cash advance limit, the ATM or teller will decline the transaction. You cannot exceed this limit, even if you have available credit remaining on your card.
When a cash advance makes sense (and when it doesn't)
A cash advance is rarely the best option, but there are narrow situations where it might be your only choice. If you need cash when ready and have no access to a debit card, bank account, or ATM, a cash advance gets you money fast. If you can pay it back within a few days, the interest cost stays low.
A cash advance does not make sense if you're carrying a balance on your credit card already. Taking out more debt at a higher interest rate will make your situation worse. It also doesn't make sense if you need cash regularly — that's a sign you should open a checking account with a debit card, which lets you withdraw cash for free at most ATMs.
Before you take a cash advance, ask yourself: Can I pay this back within a week? If the answer is no, look for another option. A personal loan from a bank or credit union, a loan from family, or a payment plan with the person or business you owe money to will almost always be cheaper.
Alternatives to cash advances
If you need cash but want to avoid the high fees and interest, consider these options first. A debit card withdrawal from your bank account costs nothing and gives you access to your own money. A personal loan from a bank or credit union typically has a lower interest rate than a cash advance, though you'll need to be approved and wait a few days for the money.
Some employers offer paycheck advances or early pay options if you need cash before payday. Credit unions sometimes offer payday alternative loans, which are small, short-term loans with lower rates than payday lenders or cash advances. If you're in a bind, asking family or friends for a loan — even with a written agreement — is usually cheaper than a cash advance.
If you don't have a bank account, opening one is worth the effort. Most banks and credit unions offer free checking accounts with a debit card, which gives you access to ATMs and eliminates the need for cash advances.
Frequently Asked Questions
What's the difference between a cash advance and a regular credit card purchase?
A purchase goes on your credit card and you pay interest only if you carry a balance past your due date. A cash advance charges a fee when ready and interest starts the same day, even if you pay it back quickly. The interest rate is also higher for cash advances.
Can I use a credit card to withdraw cash from any ATM?
Most ATMs accept credit cards for cash advances, but some are set up only for debit cards. If an ATM won't accept your credit card, try another one or visit a bank branch. You may also pay a higher fee at an out-of-network ATM.
Do cash advances show up on my credit report?
A cash advance itself doesn't appear on your credit report, but the balance does. If you carry the balance and miss a payment, that missed payment will show up and hurt your credit score. Paying on time keeps your credit clean.
What happens if I can't pay back the cash advance?
The balance stays on your credit card and interest keeps accruing daily. If you miss payments, your credit score drops and the card issuer may increase your interest rate or close your account. Contact your card issuer if you're struggling — some offer hardship programs or payment plans.
Can I take a cash advance on a credit card I just opened?
Usually yes, but some new cards have a waiting period or require you to set up a PIN first. Check your card's terms or call customer service to confirm your cash advance limit is active and how to use it.