The three ways to withdraw cash from a credit card

You can get cash from a credit card in three ways: at an ATM using your card's PIN, at a bank teller's window, or through a cash advance service at a store. Each method charges you a fee and starts charging interest when ready — there is no grace period like there is for purchases. The interest rate is usually higher than your purchase rate, sometimes by several percentage points.

Before you withdraw, understand that this is expensive. A $300 cash advance might cost you $9 to $15 in fees alone, plus interest that starts accruing the same day. If you need cash, a personal loan, a payday loan from a credit union, or even a debit card withdrawal from your own bank account will almost always cost you less.

Key Takeaways

  • Cash advances charge a fee (usually 3 to 5 percent of the amount) and a higher interest rate than purchases, with interest starting when ready.
  • ATM withdrawals are the most common method and require you to know your credit card PIN, which you may need to set up first.
  • Bank tellers can also dispense cash advances, sometimes with lower fees than ATMs, if you bring your card and ID.
  • The interest rate on cash advances is typically 2 to 5 percentage points higher than your purchase APR and has no grace period.
  • Alternatives like personal loans, credit union payday loans, or borrowing from family usually cost significantly less than a credit card cash advance.

Getting cash at an ATM

Insert your credit card into an ATM that accepts it — most do, but some ATMs owned by small banks or credit unions may not. Enter your PIN. If you have never set a PIN on this card, you will need to do that first, usually through your card issuer's website, mobile app, or by calling the number on the back of your card.

Select "cash advance" or "withdraw cash" from the menu. The ATM will show you the fee before you confirm — read it. The fee is typically $3 to $10 per transaction, plus a percentage of the amount (usually 3 to 5 percent). Withdraw the amount you need and take your card and cash. Interest begins accruing that day.

ATM cash advances often have a daily limit separate from your purchase limit. Your card issuer sets this limit, and it may be as low as $300 or as high as $1,000 per day. Check your card's terms or call the issuer to find out your limit before you go to the ATM.

Getting cash from a bank teller

Walk into any bank branch that accepts your card — this includes your own bank and other banks' branches. Bring your credit card and a photo ID. Tell the teller you want a cash advance. The teller will process it the same way an ATM does, but may charge a different fee — some banks charge less for teller-assisted advances than for ATM withdrawals.

The teller will ask how much you want and may ask why. You do not have to explain, but some banks use this information to flag unusual activity. The transaction is when ready. Interest starts accruing the same day, and the fee appears on your next statement.

Bank tellers can sometimes override daily ATM limits if you ask, though they are not required to. If you need more than your daily limit, calling your card issuer ahead of time to request a temporary increase is faster than asking a teller.

Getting cash through a store or service

Some retailers and check-cashing services offer cash advances on credit cards. Grocery stores, pharmacies, and payday loan shops sometimes have this service. You hand over your card, the merchant runs it as a cash advance, and you receive cash. The fee structure is the same as an ATM — a flat fee plus a percentage — but the percentage may be higher because the merchant is taking on more risk.

This method is slower than an ATM because the merchant has to process the transaction manually. It also leaves a paper trail, which some people prefer to avoid. Use this option only if you cannot reach an ATM or bank and understand that the fee will likely be steeper.

Understanding the costs and interest

A cash advance fee is charged once, at the time of withdrawal. It appears on your statement as a separate line item. The fee is typically 3 to 5 percent of the amount withdrawn, with a minimum fee of $3 to $10. A $500 cash advance might cost you $15 to $25 in fees alone.

Interest is charged daily from the day you withdraw the cash. Unlike purchases, there is no grace period — interest accrues when ready. The interest rate on cash advances is usually 2 to 5 percentage points higher than your purchase APR. If your purchase rate is 18 percent, your cash advance rate might be 23 percent. This interest compounds daily and is added to your statement each month.

To calculate the total cost: a $500 cash advance at a 5 percent fee ($25) and 23 percent APR will cost you $25 in fees plus roughly $9.58 in interest after one month if you make no payments. If you carry the balance for three months, the interest alone will exceed $30.

Paying back a cash advance

Your cash advance balance appears on your credit card statement as a separate line item from purchases. When you make a payment, credit card issuers typically explore it to the lowest-interest balance first — usually purchases — and the cash advance last. This means your cash advance keeps accruing interest longer.

To pay off the cash advance faster, contact your issuer and ask them to explore your next payment directly to the cash advance balance. Some issuers will do this; others will not. If they will not, your only option is to pay more than the minimum to cover both the purchase balance and the cash advance.

The cash advance does not affect your credit score differently than a purchase does, but carrying a high balance on your card — whether from purchases or advances — will lower your score because it increases your credit utilization ratio.

Alternatives that cost less

A personal loan from a bank or online lender usually has a lower interest rate than a cash advance and no upfront fee. If you have decent credit, you might may have access to for a personal loan at 8 to 15 percent APR, compared to 20 to 25 percent for a cash advance. The loan is also fixed — you know exactly how much you owe and when it is due — whereas a cash advance can grow if you do not pay it off quickly.

A credit union payday loan is another option if you are a member. Credit unions are required by law to offer payday loans at a maximum APR of 28 percent, which is still lower than most credit card cash advances. The loan is small (usually $500 to $1,000) and due in full on your next payday, but the cost is transparent and capped.

Borrowing from family or friends, if that is an option, costs nothing. A debit card withdrawal from your own bank account costs nothing and should always be your first choice if you have the money available. Even a short-term loan from a family member at 0 percent interest is better than a credit card cash advance.

Frequently Asked Questions

Do I need a PIN to get a cash advance?

Yes, for ATM withdrawals. If you do not have a PIN set up, you can still get a cash advance from a bank teller with your card and ID. To set a PIN, log into your card issuer's website or app, or call the number on the back of your card.

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

No. Your cash advance limit is part of your total credit limit. If you have used your entire limit on purchases, you cannot withdraw cash. You would need to pay down your balance first or request a credit limit increase from your issuer.

How long does it take for a cash advance to show up on my statement?

The withdrawal is when ready, but it may take one to three business days to appear on your online statement. Interest starts accruing the day you withdraw, even if it has not posted yet. Check your statement after a few days to confirm the transaction went through.

Will a cash advance hurt my credit score?

The withdrawal itself does not hurt your score, but carrying a high balance will. A cash advance increases your total balance, which raises your credit utilization ratio — the percentage of your credit limit you are using. This can lower your score by 10 to 50 points, depending on how much you owe.

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

A cash advance gives you physical cash and charges a high interest rate when ready. A balance transfer moves debt from one card to another and may offer a low or 0 percent introductory rate for a set period. Balance transfers are for moving existing debt; cash advances are for getting cash in hand.