The three ways to take cash out using a credit card

You can get cash from a credit card in three ways: using an ATM with your card's PIN, asking a bank teller for a cash advance at a branch, or using a convenience check that came with your card. All three treat the money as a loan you owe when ready — not a purchase you can pay off over time. The moment you withdraw the cash, interest starts accruing, usually at a higher rate than your regular purchase APR.

The most common route is the ATM. You insert your card, enter your PIN, and withdraw cash up to your daily limit (often $500 to $1,000, depending on your card issuer and account history). A bank teller can process larger amounts if you visit a branch in person. Convenience checks work like regular checks but draw from your credit line instead of a bank account — you write one to yourself or to someone else, and the amount becomes a cash advance.

Each method charges a fee upfront, usually 3% to 5% of the amount withdrawn. A $200 cash advance might cost you $6 to $10 before you even leave the ATM. That fee gets added to your balance when ready.

Key Takeaways

  • Cash advances charge interest from day one, with no grace period like purchases have, so the cost grows every single day you carry the balance.
  • Most cards charge a flat fee (often $5 to $10) or a percentage fee (3% to 5%) on top of the interest, whichever is higher.
  • Your cash advance APR is usually 5% to 10% higher than your purchase APR, and some cards charge 25% or more.
  • Your daily ATM withdrawal limit is separate from your credit limit, so you may not be able to withdraw as much cash as you could charge as a purchase.

Why cash advances cost more than regular purchases

When you buy something with a credit card, you get a grace period — usually 21 to 25 days — before interest starts charging. If you pay the full balance by the due date, you pay no interest at all. Cash advances skip this grace period entirely. Interest begins accruing the moment you withdraw the money.

The interest rate itself is also higher. Your card's purchase APR might be 18%, but the cash advance APR could be 25% or 28%. Card issuers charge more because cash advances are riskier for them — they have no merchant involved to dispute the transaction, and the money is already in your hands.

On top of the interest, you pay an upfront fee. Most cards charge either a flat fee ($5 to $10) or a percentage of the amount (3% to 5%), whichever costs more. A $500 cash advance with a 5% fee costs $25 before any interest. If you carry that balance for a month, you'll owe roughly $12 in interest on top of the fee.

How to find your cash advance limit and daily withdrawal limit

Your credit card statement or online account shows two separate limits. Your cash advance limit is how much total you can borrow as cash — often 20% to 50% of your credit limit, so a $5,000 credit limit might allow only $1,000 in cash advances. Your daily withdrawal limit is how much you can take out in a single transaction, usually $500 to $1,000.

These limits exist to protect both you and the card issuer. They prevent you from draining your entire credit line in one day and limit the card issuer's exposure if your card is stolen. You can request a higher limit by calling the customer service number on the back of your card, but the issuer may decline if your account is new or your credit score is low.

Check your card's terms or log into your online account to see your specific limits before you go to an ATM. Trying to withdraw more than your limit allows will be declined, and some ATMs charge a fee even for failed attempts.

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

A cash advance is expensive, so use it only when you have no other option and can pay it back quickly. If you need cash for an emergency and have no access to a debit card, ATM, or bank account, a cash advance is better than missing a bill or going without. If you can pay back the full amount within a week or two, the total cost stays manageable.

A cash advance does not make sense if you're carrying a balance on your card already. Adding a high-interest cash advance on top of existing debt makes your balance grow faster and takes longer to pay off. It also doesn't make sense if you have other options: a personal loan from a bank, a loan from family or friends, or even a payday loan (which is also expensive but sometimes charges less than a credit card cash advance, depending on the amount and how quickly you repay).

Never take a cash advance to pay another credit card or to fund a purchase you can't afford. Both are signs that your debt is growing faster than your income, and a cash advance will make that problem worse.

How cash advances affect your credit score

A cash advance doesn't hurt your credit score at the moment you take it out. However, it does increase your credit utilization — the percentage of your available credit you're using. If your credit limit is $5,000 and you take a $1,000 cash advance, your utilization jumps to 20%. High utilization (above 30%) can lower your credit score by a few points.

The bigger damage comes if you carry the cash advance balance month to month. Missing a payment or paying late will show up on your credit report and lower your score significantly. Paying interest for months also means the balance grows, which keeps your utilization high for longer.

If you take a cash advance, treat it as urgent debt. Pay it off as fast as you can to bring your utilization back down and avoid the compounding interest.

Alternatives to cash advances

Before you use a cash advance, consider these options. A debit card withdrawal from your own bank account costs nothing and carries no interest. A personal loan from a bank or credit union usually charges 6% to 36% APR — often less than a cash advance — and gives you a fixed repayment schedule so you know exactly when you'll be debt-free. A line of credit from your bank works similarly and may have a lower rate if you have good credit.

If you need cash urgently and have no bank account, a prepaid card can be loaded with money from a paycheck or transfer. Some employers offer paycheck advances or early access to earned wages through apps like Earnin or Dave, which charge a small fee but no interest. A personal loan from friends or family costs nothing if they don't charge interest, though it can strain relationships if repayment becomes difficult.

A payday loan is another option, though it's also expensive. Payday lenders typically charge $15 to $20 per $100 borrowed, which works out to 400% APR if you don't repay within two weeks. That's worse than most credit card cash advances, but better than some if you can repay very quickly.

Steps to take a cash advance safely

If you've decided a cash advance is your best option, follow these steps to minimize the damage. First, check your card's cash advance APR and fee in your account or by calling customer service. Know exactly how much the withdrawal will cost before you proceed. Second, withdraw only what you need — not your full limit — to keep the interest charges as small as possible.

Third, make a plan to pay it back before you take the money out. If you can pay the full amount within a week, do it. If it will take longer, calculate how much interest you'll owe and make sure you can afford it. Fourth, set a reminder to pay on time — a late payment on a cash advance hurts your credit score and adds penalty interest on top of the already-high rate.

Finally, don't take another cash advance while you're paying off the first one. Each new advance resets the clock on interest and adds another upfront fee, making your debt spiral faster.

Frequently Asked Questions

Can I use a credit card to withdraw cash at any ATM?

Most ATMs accept credit cards, but some accept only debit cards. Look for an ATM at your card issuer's bank or a network ATM (like Allpoint or MoneyPass) — these are more likely to accept credit cards. ATMs at other banks may decline your card or charge an additional fee on top of your card's cash advance fee.

What's the difference between a cash advance and a balance transfer?

A cash advance gives you physical cash and charges a high APR from day one. A balance transfer moves debt from one card to another and often has a lower introductory rate (sometimes 0%) for a set period. Balance transfers are for moving existing debt; cash advances are for getting cash in hand.

Will taking a cash advance hurt my credit score when ready?

Not when ready, but it can lower your score within a few weeks if it raises your credit utilization above 30%. The bigger damage comes if you miss a payment or carry the balance for months, which shows up on your credit report and lowers your score significantly.

Can I take a cash advance if my credit is bad?

Yes, as long as your card is open and active. Your cash advance limit is set by the card issuer and doesn't change based on your current credit score. However, if your account is very new or you've missed payments, the issuer may have set your cash advance limit very low.

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

The balance stays on your card and interest keeps accruing. If you miss a payment, the card issuer reports it to credit bureaus, which lowers your credit score. They may also raise your APR, increase your minimum payment, or close your account. Contact your card issuer when ready if you can't pay — they may offer a hardship plan that lowers your payment temporarily.