Can You Take Out Money From a Credit Card?
Yes — you can take out cash from a credit card, but it works very differently from using a debit card at an ATM. The feature is called a cash advance, and understanding how it works — and what it costs — is essential before you use it.
What Is a Credit Card Cash Advance?
A cash advance is when you use your credit card to withdraw physical cash, typically through an ATM, a bank teller, or a convenience check mailed by your issuer. Instead of spending your credit limit on purchases, you're borrowing cash directly against it.
Your card likely has a separate cash advance limit, which is usually lower than your overall credit limit. For example, if your credit limit is $5,000, your cash advance limit might be $1,000 or $1,500 — your card agreement will specify the exact amount.
How the Fees and Interest Work
This is where cash advances differ sharply from regular purchases — and why they're generally considered expensive borrowing.
Three costs typically apply:
- ATM or bank fee — the financial institution processing the withdrawal may charge a flat fee
- Cash advance fee — your card issuer charges either a flat amount or a percentage of the withdrawal, whichever is greater
- Higher APR — cash advances almost always carry a higher interest rate than your standard purchase APR
The most important difference from everyday spending: there is no grace period on cash advances. With regular purchases, you can avoid interest entirely by paying your balance in full before the due date. Cash advances start accruing interest from the moment the transaction posts — there's no buffer.
That means even if you pay your bill quickly, you'll owe some interest on the amount withdrawn.
Ways to Access Cash From a Credit Card
| Method | How It Works | Notes |
|---|---|---|
| ATM withdrawal | Use your card's PIN at any compatible ATM | Requires a PIN set up in advance |
| Bank teller advance | Present your card at a bank branch | May require ID; some banks charge an additional fee |
| Convenience checks | Issuer mails checks tied to your account | Treated as cash advances, not purchases |
| Digital transfers | Some issuers allow transfers to a bank account | Terms vary; may still be classified as a cash advance |
Not every card supports all methods. If you haven't set up a PIN, an ATM withdrawal isn't possible without requesting one from your issuer first.
How a Cash Advance Affects Your Credit 💳
Using a cash advance doesn't directly hurt your credit score the way a missed payment would — but it can have indirect effects worth knowing.
Credit utilization is one of the most influential factors in your score. It measures how much of your available revolving credit you're using. A large cash advance can spike your utilization ratio, especially if your credit limit is modest, and that increase can temporarily lower your score.
If the cash advance makes it harder to keep up with your minimum payments, the downstream damage from late or missed payments is far more significant. Payment history is consistently the heaviest-weighted factor across major scoring models.
When Is a Cash Advance Actually Used?
Cash advances are generally a last resort. The costs — between the upfront fee, elevated APR, and immediate interest accrual — make them one of the more expensive ways to borrow money.
That said, there are situations where access to physical cash is genuinely necessary and no other option is available. The feature exists for a reason. The key is going in with a clear picture of what it will cost.
The Factors That Determine Your Specific Situation
Not everyone faces the same cash advance terms. Several variables shape what your card offers and what it will cost you:
- Your card's cash advance limit — set by the issuer based on your creditworthiness at approval
- Your current available credit — you can only withdraw what's available within your cash advance limit
- Your card's fee structure — fee percentages and flat minimums vary across products
- Your card's cash advance APR — this is disclosed in your card agreement and Schumer Box
- Whether your card requires a PIN — some cards or issuers have restrictions on ATM access
These terms are specific to your card and your account. Two people with similar credit profiles might have meaningfully different cash advance limits or fee structures simply because they carry different products from different issuers.
What Your Card Agreement Will Tell You
Before using this feature, your card agreement is the right place to start. Look for:
- The cash advance APR (separate from your purchase APR)
- The cash advance fee (often listed as a percentage with a flat minimum)
- Your cash advance credit limit
- Any PIN requirements or restrictions
This information is disclosed in the Schumer Box — the standardized fee table required on all credit card agreements. It's usually one of the clearest parts of an otherwise dense document.
The Part Only Your Numbers Can Answer 🔍
Whether a cash advance makes sense — or what it will actually cost — depends entirely on the terms attached to your specific card. The mechanics are universal, but the fee percentage, the APR, and how much of your limit is available at any given moment are unique to your account.
The general rules are consistent. What varies is how those rules apply to your balance, your limit, and your card's rate structure right now.