You can withdraw cash from a credit card, but it costs more than a regular purchase

A cash advance is when you use your credit card to take out cash instead of buying something. You can do this at an ATM, at a bank teller window, or sometimes at a store checkout. The money goes into your bank account or your wallet as actual cash.

The catch is that cash advances charge you fees and interest right away — often higher than what you pay on regular purchases. Most people should use a debit card or visit their bank for cash instead. But if you need cash urgently and have no other option, here is how it works and what it will cost you.

Key Takeaways

  • Cash advances charge a fee (usually 3 to 5 percent of the amount) plus interest that starts accruing when ready, with no grace period like regular purchases have.
  • You can withdraw cash at an ATM using your credit card PIN, at a bank teller window with your card and ID, or sometimes at a store checkout.
  • The interest rate on a cash advance is typically higher than your regular purchase APR, and interest compounds daily until you pay it back.
  • Paying back a cash advance should be your priority because the fees and interest add up quickly — even a small withdrawal can cost you $20 to $50 in charges.

Where you can actually withdraw cash

The most common way is at an ATM. You insert your credit card, enter your PIN (which you may need to set up first if you have never done a cash advance), and withdraw the amount you need. The ATM will show you the fee before you confirm — usually $2 to $5 per transaction on top of your card issuer's fee.

You can also go to a bank branch — either your own bank or the bank that issued your credit card — and ask a teller for a cash advance. Bring your card and a photo ID. The teller will process it the same way an ATM does, and you will see the fees listed on the receipt.

Some grocery stores and retailers offer cash back at checkout when you use a credit card, though this is less common than it used to be. Ask the cashier whether your store offers it. The fee structure is the same as an ATM.

What fees and interest you will pay

A cash advance typically costs you two separate charges. First, there is a cash advance fee, which is a percentage of the amount you withdraw — usually between 3 and 5 percent. If you withdraw $200, that fee could be $6 to $10 right away. Some cards have a flat fee instead (like $10 per transaction), so check your card agreement to know which applies to yours.

Second, interest starts accruing when ready. Unlike a regular purchase, which has a grace period (usually 21 to 25 days before interest kicks in), a cash advance charges interest from day one. The interest rate is often 2 to 3 percentage points higher than your regular purchase APR. If your purchase rate is 18 percent, your cash advance rate might be 21 percent. That interest compounds daily until you pay the balance off.

To see what this costs in real numbers: a $300 cash advance at a 4 percent fee plus 22 percent APR will cost you $12 in fees when ready, plus roughly $5.50 in interest after one month if you make no payments. After three months, the interest alone will be around $17. The longer you carry the balance, the more you pay.

How to set up your PIN if you have never done this

Most credit cards do not come with a PIN automatically. You need to set one up before you can use the card at an ATM. Call the customer service number on the back of your card and ask to set a PIN for cash advances. They will ask you to create a four-digit number and confirm it. This usually takes less than five minutes.

Some card issuers let you set your PIN online through their website or app instead of calling. Log in to your account, look for "PIN" or "ATM PIN" in the settings, and follow the prompts. If you forget your PIN later, you can reset it the same way or by calling customer service again.

Why you should avoid cash advances when you can

The fees and interest make cash advances expensive compared to other ways of getting cash. If you have a debit card linked to a checking account, use that instead — debit card withdrawals at your own bank's ATM are usually free, and there is no interest charge because you are spending your own money, not borrowing.

If you do not have a debit card, visit your bank in person and withdraw cash from your checking or savings account. That is free and when ready. A cash advance should only be your choice if you truly have no other way to get cash right now and the situation is urgent.

Relying on cash advances is also a sign that your budget may be stretched. If you are regularly short on cash, that is worth looking at separately — it often means your spending is outpacing your income, and a cash advance just delays the problem while adding cost.

How to pay back a cash advance quickly

Once you have withdrawn the cash, treat paying it back as a priority. The longer the balance sits, the more interest you owe. Make a payment as soon as you can, even if it is before your full statement is due.

When you make a payment to your credit card, the card issuer applies it to your balance in a specific order set by law. Payments go first to the highest-interest debt — so if you have both regular purchases and a cash advance on the same card, your payment will go toward the cash advance first, which is what you want. This means your payment is working as efficiently as possible.

If you can pay back the entire cash advance within a few days, the total cost will be just the fee plus a few days of interest — maybe $15 to $20 total. If it takes you a month, the cost could easily double. The math is straightforward: the faster you pay it back, the less it costs.

Alternatives if you need cash but do not have a credit card

If you do not have a credit card and need cash, a cash advance is not your only option. A personal loan from a bank or credit union often has a lower interest rate than a credit card cash advance, though it takes longer to process (usually a few days). Payday loans are faster but often more expensive, so compare the cost carefully.

If you have a job, some employers offer paycheck advances — you can borrow against your next paycheck with little or no fee. Ask your HR or payroll department whether this is available to you. Some banks also offer overdraft protection, which lets you withdraw more than you have in your account, though this also comes with fees.

If the cash is for an emergency (medical, car repair, housing), look into whether local nonprofits or government programs offer emergency information. These are free or very low-cost and do not require you to borrow at all.

Frequently Asked Questions

Can I withdraw more cash than my credit limit?

No. Your cash advance limit is part of your overall credit limit. If your limit is $1,000 and you have already charged $600 in purchases, you can only withdraw up to $400 in cash. Some cards set a separate, lower cash advance limit — for example, 50 percent of your credit limit — so check your card agreement or call customer service to find out what yours is.

Does a cash advance hurt my credit score?

The withdrawal itself does not hurt your score, but carrying a high balance does. If your cash advance pushes your total balance close to your credit limit, your credit utilization goes up, which can lower your score. Paying it back quickly brings your utilization back down and protects your score.

What if I do not have a PIN set up and need cash right now?

Go to a bank branch instead of an ATM. A teller can process a cash advance without a PIN — you just need your card and photo ID. This takes a few minutes and costs the same as an ATM withdrawal. You can set up your PIN later for future ATM use.

Is there a limit to how much cash I can withdraw at once?

ATMs usually have a daily withdrawal limit (often $500 to $1,000), and your card issuer may set a separate limit on cash advances. Your bank or card issuer can tell you what your specific limits are. A bank teller can sometimes process a larger withdrawal than an ATM allows, so ask if you need more than the ATM limit.

Can I get my cash advance fee back if I pay it off right away?

No. The fee is charged at the time of the withdrawal and is not refunded, even if you pay back the full amount the next day. The fee is the card issuer's cost for processing the transaction. Only the interest can be minimized by paying back quickly.