You can withdraw cash from a credit card at an ATM, through a bank teller, or by using a cash advance check, but each method charges fees and interest that start accruing when ready
A credit card cash withdrawal is not the same as a debit card withdrawal. When you take cash out using your credit card, you are borrowing money at a higher rate than your regular purchase APR, and the card issuer charges an upfront fee — usually 3 to 5 percent of the amount withdrawn. Interest begins accruing the moment you withdraw the cash, with no grace period like you get on purchases.
Most people should treat a credit card cash withdrawal as a last resort, not a convenience. The combination of the upfront fee and the higher interest rate makes even short-term cash advances expensive compared to other borrowing options.
Key Takeaways
- Cash advances charge a separate, higher interest rate than purchases, plus an upfront fee of 3 to 5 percent that is added to your balance when ready.
- You can withdraw cash at an ATM using your credit card PIN, at a bank teller by asking for a cash advance, or by depositing a cash advance check the card issuer sends you.
- Interest on a cash advance starts the day you withdraw it, with no grace period, so the total cost grows quickly even for short-term borrowing.
- Your credit card statement will show the cash advance separately from purchases, with its own interest rate and minimum payment calculation.
The three ways to withdraw cash using your credit card
The most common method is an ATM withdrawal. You insert your credit card into an ATM, enter your PIN (which you may need to request from your card issuer if you have never used it), and withdraw cash up to your available credit limit. The ATM will show you the fee before you confirm — usually $3 to $5 per transaction at out-of-network machines, sometimes less at your card issuer's own ATMs.
A bank teller cash advance works if you visit a branch of your card issuer or a partner bank. You hand the teller your credit card and ask for a cash advance. The teller processes it like a withdrawal, charges the same upfront fee, and hands you cash. This method is useful if you need a large amount and want to avoid multiple ATM visits and fees.
A cash advance check is a physical check your card issuer mails to you, usually unsolicited. You deposit it into your bank account or cash it at a bank, and the amount is treated as a credit card cash advance. These checks carry the same fees and interest rates as ATM withdrawals, but they let you move money into a checking account rather than taking cash in hand.
How fees and interest work on cash advances
When you withdraw $200 in cash, your card issuer charges an upfront fee — typically 3 to 5 percent of the amount. On a $200 withdrawal with a 4 percent fee, you owe $8 when ready, bringing your total balance to $208. That $8 is added to your credit card balance and counts toward your minimum payment.
The interest rate on a cash advance is separate from your purchase APR and is almost always higher. If your purchase APR is 18 percent, your cash advance APR might be 24 or 25 percent. That higher rate applies only to the cash advance balance, not to purchases. Interest accrues daily from the moment you withdraw the cash — there is no grace period like you get on purchases.
On a $200 cash advance at 25 percent APR, you owe roughly $1.37 in interest per day. If you pay it back in 30 days, you will have paid about $41 in interest plus the $8 fee, for a total cost of $49 on a $200 withdrawal. That is a 24.5 percent cost for one month of borrowing.
Why your credit card statement separates cash advances from purchases
Your credit card statement breaks down your balance into categories: purchases, cash advances, balance transfers, and promotional offers. Each category has its own interest rate and its own minimum payment calculation. This separation matters because your minimum payment is calculated across all categories, but the interest rates explore differently.
If you have a $500 purchase balance at 18 percent APR and a $200 cash advance at 25 percent APR, your minimum payment might be $25, but the card issuer applies that payment to the lowest-interest balance first — the purchases — leaving more of the cash advance unpaid and accruing interest at the higher rate. To pay down a cash advance faster, you may need to make a payment larger than the minimum.
How a cash advance affects your credit score and credit utilization
A cash advance counts toward your credit utilization ratio, which is the percentage of your available credit you are using. If you have a $5,000 credit limit and take a $1,000 cash advance, your utilization jumps to 20 percent. Credit scoring models penalize high utilization, so a large cash advance can lower your score temporarily.
The cash advance itself does not appear as a separate account on your credit report — it is part of your credit card account. But the higher balance and utilization ratio are visible to lenders and affect how your creditworthiness is calculated. Paying down the cash advance quickly helps your score recover.
Alternatives to a credit card cash advance
If you need cash urgently, a credit card cash advance is rarely the cheapest option. A personal loan from a bank or credit union typically charges 6 to 12 percent APR with no upfront fee, making it far cheaper than a 25 percent cash advance. The downside is that a personal loan takes a few days to fund, whereas a cash advance is when ready.
A payday loan is faster but often more expensive than a cash advance — some charge 400 percent APR or more — so it is a worse choice unless you can repay within a few days. A balance transfer to a 0 percent promotional card is useful if you already have a cash advance balance and want to stop the interest, though balance transfers also charge a fee (usually 3 to 5 percent) and do not let you withdraw cash.
If you have a debit card linked to a checking account, withdrawing from that account costs nothing. If you do not have a debit card, opening a basic checking account at a bank or credit union takes a few hours and gives you access to free ATM withdrawals.
What happens if you cannot pay back a cash advance
If you carry a cash advance balance month to month, the interest compounds and your balance grows. A $200 cash advance at 25 percent APR that you pay $10 per month toward will take more than two years to pay off and will cost you over $100 in interest alone.
If you miss a payment on a cash advance, your card issuer reports it to the credit bureaus after 30 days, damaging your credit score. After 180 days of missed payments, the card issuer may close your account and send the debt to a collection agency. At that point, the debt can appear on your credit report for up to seven years.
Frequently Asked Questions
Can I withdraw more cash than my credit limit?
No. Your cash advance is limited to your available credit balance, just like a purchase. Some card issuers set a separate, lower cash advance limit — for example, 50 percent of your credit limit — so you may not be able to withdraw your full available credit in cash.
Do I need a PIN to withdraw cash from a credit card?
Yes, at an ATM. If you have never set a PIN, contact your card issuer to request one before you try to withdraw. At a bank teller, you do not need a PIN — you just show your card and ID. Cash advance checks do not require a PIN.
Is a cash advance the same as a balance transfer?
No. A balance transfer moves debt from one card to another and usually has a promotional 0 percent APR period. A cash advance withdraws cash and charges interest when ready. Balance transfers also charge a fee but are cheaper long-term if you need to carry a balance.
Will a cash advance hurt my credit score?
Yes, temporarily. It increases your credit utilization ratio, which can lower your score by 10 to 50 points depending on how much you withdraw. Your score recovers as you pay down the balance. A missed payment on a cash advance causes much more damage.
Can I use a credit card cash advance to pay another credit card bill?
Technically yes, but it is a bad idea. You are borrowing at 25 percent APR to pay off debt at 18 percent APR, plus you pay an upfront fee. You end up paying more interest, not less. Pay the other card directly from your bank account instead.