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 PIN, at a bank teller's window, or through a cash advance app or service. Each method charges you a fee and starts charging interest when ready — there is no grace period like you get with regular purchases. The cash advance fee is usually 3 to 5 percent of the amount you withdraw, plus a higher interest rate (often 20 to 30 percent) than your regular purchase rate.
Most people use an ATM because it is the fastest and most private option. You insert your card, enter your PIN, and withdraw cash just like you would from a bank account. The transaction posts to your credit card statement within one to three business days, and interest starts accruing from that day forward.
If you do not know your PIN or do not have one, you can call your credit card issuer to request one, or you can visit a branch of your card's issuing bank and ask a teller to process a cash advance for you. This takes longer but works the same way — you pay the fee and interest when ready.
Key Takeaways
- Cash advances charge a separate fee (usually 3 to 5 percent) on top of your regular credit card interest rate.
- Interest on a cash advance starts the day you withdraw it, with no grace period, so the longer you carry the balance the more you pay.
- Your cash advance limit is often lower than your credit limit, and some cards do not allow cash advances at all.
- ATMs are the fastest way to withdraw cash, but you need your PIN; calling your card issuer or visiting a bank branch are slower alternatives.
How to find your cash advance limit and PIN
Your cash advance limit is separate from your credit limit and is usually much lower. You can find it by logging into your online account, calling the customer service number on the back of your card, or checking your most recent statement. Some cards do not offer cash advances at all, particularly secured cards or cards designed for people rebuilding credit.
If you do not have a PIN, you can request one by calling customer service or through your online account portal. The issuer will either give you a temporary PIN over the phone or mail you one. This process usually takes three to five business days. Some issuers let you set your own PIN when ready online; others require you to wait for a mailed PIN before you can use an ATM.
Before you request a PIN, confirm that your card actually allows cash advances. If it does not, the issuer will tell you when you call, and you will need to use one of the other methods (bank teller or cash advance app) if you need cash urgently.
What happens when you use a cash advance app or service
Some third-party apps and services let you withdraw cash from your credit card without going to an ATM or bank. These services charge their own fee on top of your credit card's cash advance fee, making them more expensive than an ATM withdrawal. They are useful only if you have no ATM access and cannot reach a bank branch.
The most common services are apps that let you request cash and have it delivered, or that let you withdraw cash at a retail location like a grocery store or pharmacy. The app charges a fee (usually $5 to $10), your credit card issuer charges its cash advance fee, and then your credit card interest starts accruing. You end up paying two separate fees plus interest, so this option is worth using only in an emergency.
Read the app's terms carefully before you use it. Some apps require you to link your card to their platform, which means giving them access to your card details. Make sure the app is from a company you recognize and trust.
The cost of a cash advance: fees and interest
A cash advance costs more than a regular credit card purchase in two ways. First, you pay an upfront fee when you withdraw the cash — usually 3 to 5 percent of the amount, with a minimum fee of $5 to $10. So if you withdraw $500, you might pay $15 to $25 in fees alone.
Second, your credit card issuer charges a higher interest rate on the cash advance than on regular purchases. While your purchase APR might be 18 percent, your cash advance APR might be 28 percent. This higher rate applies only to the cash advance balance, not your entire card balance. Interest starts accruing the day you withdraw the cash, with no grace period.
The longer you carry a cash advance balance, the more interest you pay. If you withdraw $500 at a 28 percent APR and pay nothing for three months, you will owe roughly $535 in interest alone. This is why cash advances are expensive — they are meant for emergencies, not regular spending.
How a cash advance affects your credit score
A cash advance itself does not hurt your credit score, but carrying a high balance does. When you withdraw cash, your available credit decreases, which raises your credit utilization ratio — the percentage of your total credit limit that you are using. If your utilization goes above 30 percent, it can lower your score.
The impact is temporary. Once you pay down the cash advance balance, your utilization drops and your score recovers. However, if you carry the balance for months, the damage compounds because you are also paying high interest, which makes the balance harder to pay off.
A cash advance does not show up differently on your credit report than a regular purchase — it is just a balance on your credit card. The credit bureaus do not distinguish between cash and purchases; they only see that you owe money.
When a cash advance makes sense and when it does not
A cash advance makes sense only in a genuine emergency when you need cash when ready and have no other option. Examples include a car repair you need to pay for in cash, a medical bill that requires cash payment, or an urgent travel expense. In these cases, the convenience of getting cash quickly might be worth the fee and interest.
A cash advance does not make sense for everyday spending, even if you are short on cash. The fees and interest are too high to justify using a credit card as a substitute for a bank account. If you regularly need cash, open a checking account or use a debit card instead. If you are short on money regularly, a cash advance will only make your financial situation worse.
Before you take a cash advance, ask yourself whether you can pay it back within a month. If you cannot, the interest will compound and you will end up paying far more than the original amount. If you can pay it back quickly, a cash advance is a last resort — not a regular money source.
Frequently Asked Questions
Can I use a credit card cash advance to pay another credit card bill?
Technically yes, but it is a bad idea. You will pay the cash advance fee and interest on the first card, then pay interest on the second card when you use the cash to pay it. You end up paying two sets of interest and a fee, which costs far more than just paying the second card directly. Most people in this situation should contact their card issuer about a lower interest rate or a balance transfer instead.
What is the difference between a cash advance and a balance transfer?
A balance transfer moves debt from one card to another, usually at a lower interest rate for a promotional period. A cash advance withdraws actual cash from your card and charges a higher interest rate when ready. Balance transfers are for moving existing debt; cash advances are for getting cash in hand. Balance transfers usually have a lower fee and better interest rate, so they are cheaper if you are trying to move debt between cards.
Will my credit card issuer deny my cash advance request?
Yes, if your cash advance limit is zero or if your card does not allow cash advances. Some cards, particularly those for people rebuilding credit, do not offer cash advances at all. If your limit is zero, you can call and ask for an increase, but the issuer is not required to grant one. If your card does not allow cash advances, you will need to use a different card or a different method.
How long does it take for a cash advance to show up on my statement?
An ATM withdrawal usually posts within one to three business days. A bank teller withdrawal posts the same day or the next business day. A cash advance app or service may take longer, depending on how the service processes the transaction. Check your online account to see when the transaction posted; that is when interest starts accruing.
Can I dispute a cash advance if I change my mind?
No. Once you withdraw cash, the transaction is complete and you cannot reverse it. You can only pay the balance down. If you believe the cash advance fee was charged in error, you can call customer service and ask them to review it, but they will not remove it unless there was a genuine mistake in the amount charged.