You can withdraw cash from a credit card at an ATM, through a bank teller, or sometimes at a store, but each method charges fees and interest that start when ready.

A cash advance is a withdrawal of money from your credit card's available credit. Unlike a purchase, which may have a grace period before interest accrues, cash advances begin charging interest the moment you take the money out. You also pay an upfront fee — typically 3 to 5 percent of the amount withdrawn, with a minimum charge of $5 to $10.

Because of these costs, a cash advance is expensive compared to using a debit card or getting cash back at a store with a purchase. But if you need cash and have no other option, knowing how each method works and what it will cost helps you choose the cheapest route.

Key Takeaways

  • Cash advances charge a fee (usually 3 to 5 percent) and interest that starts right away, making them much more costly than regular purchases.
  • ATM withdrawals are the most common method, but the fee appears on your statement and the interest rate is often higher than your purchase rate.
  • Bank teller withdrawals may have lower fees than ATMs at some institutions, so calling ahead to ask is worth the time.
  • The interest rate for cash advances is set by your card issuer and is typically 2 to 5 percentage points higher than your purchase APR.
  • Paying back a cash advance quickly reduces the total interest you pay, since interest compounds daily on the outstanding balance.

Withdrawing cash at an ATM

The most straightforward way to get cash from a credit card is to insert it into an ATM and select "withdrawal" or "cash advance." You enter the amount you want, the machine dispenses the cash, and the transaction posts to your account within one to three business days.

ATM withdrawals carry two separate charges. First, your card issuer charges a cash advance fee — usually 3 to 5 percent of the amount withdrawn, with a floor of $5 to $10. Second, the ATM operator (often a bank or network like Cirrus or Plus) may charge an additional fee of $2 to $5 if you use an out-of-network machine. Some card issuers waive their fee if you use an in-network ATM, but this varies by card and issuer.

The interest rate on the cash advance is set by your card issuer and appears in your card's terms. It is almost always higher than your purchase APR — sometimes by 5 percentage points or more. Interest accrues daily from the moment you withdraw the cash, with no grace period.

Getting cash from a bank teller

You can walk into a branch of your card issuer's bank and ask a teller to withdraw cash against your credit card. This method avoids ATM operator fees and sometimes carries a lower cash advance fee than an ATM withdrawal, depending on the bank's policy.

Call your card issuer's customer service line or visit their website to confirm whether teller withdrawals are available and what fee they charge. Some banks charge the same fee for both methods; others charge less at the teller. You will need to bring a photo ID and your card.

The interest rate and daily accrual are the same as an ATM withdrawal — interest starts when ready and compounds daily. The main advantage is avoiding the ATM operator fee and potentially paying a lower cash advance fee.

Cash advances through third-party services

Some credit card issuers allow you to request a cash advance through their mobile app or website, which is then deposited into your bank account. This method avoids the ATM entirely and can be faster than visiting a branch, though the fee and interest rate remain the same.

Not all issuers offer this option, and the process varies. Check your card issuer's app or log into your online account to see whether this feature is available. If it is, you can usually request the advance and receive the funds within one to two business days.

What a cash advance costs you

The total cost of a cash advance depends on three things: the upfront fee, the interest rate, and how long you carry the balance.

Suppose you withdraw $500 from an ATM. Your card issuer charges a 4 percent cash advance fee ($20) and an 24 percent cash advance APR. If you pay back the $500 plus the $20 fee within one month, you will owe roughly $10 in interest, for a total cost of $30. If you carry the balance for six months, interest compounds daily and you will owe roughly $60 in interest, for a total cost of $80.

By contrast, if you had charged the same $500 as a purchase at a 20 percent purchase APR and paid it back in six months, you would owe roughly $50 in interest and no upfront fee — a savings of about $30. This is why a cash advance should be a last resort.

Limits on how much you can withdraw

Your card issuer sets a cash advance limit, which is often lower than your credit limit. For example, you might have a $5,000 credit limit but only a $1,000 cash advance limit. This limit is set by the issuer based on your creditworthiness and account history.

You can find your cash advance limit in your card's terms, on your statement, or by calling customer service. Some issuers allow you to request an increase to your cash advance limit, though approval is not may provide.

If you try to withdraw more than your limit, the ATM or teller will decline the transaction. You can then withdraw a smaller amount or contact your issuer to request a temporary increase.

Alternatives to a cash advance

Before you withdraw cash from a credit card, consider whether another option would cost less. If you have a debit card linked to a bank account, using it at an ATM costs nothing or a small fee, depending on your bank. If you are making a purchase, asking for cash back at a store is free and faster than an ATM trip.

If you need cash and have no debit card, a personal loan from a bank or credit union typically charges lower interest than a cash advance, though it takes longer to process. A payday loan is faster but often more expensive. Borrowing from a friend or family member costs nothing but may strain the relationship.

If you are in a financial emergency, contact a local nonprofit credit counselor through the National Foundation for Credit Counseling (NFCC) or your state's attorney general's office. They can discuss your options and help you make a plan.

Frequently Asked Questions

Does a cash advance hurt my credit score?

A cash advance itself does not directly lower your score, but it increases your credit utilization — the amount of available credit you are using. If your utilization jumps from 10 percent to 50 percent, your score may drop temporarily. Paying back the advance quickly brings your utilization down and your score recovers.

Can I use a credit card to withdraw cash at a store?

Most stores do not allow cash withdrawals directly from a credit card. You can ask for cash back when you make a purchase with a debit card, but credit cards do not support this feature. Your only options are an ATM, a bank teller, or a cash advance through your issuer's app or website.

What happens if I do not pay back a cash advance?

If you do not pay back a cash advance, the balance accrues interest at your cash advance APR and is reported to credit bureaus. After 30 days, it appears as a late payment on your credit report. After 180 days, your issuer may charge off the account and sell the debt to a collection agency.

Is the cash advance fee the same for all card issuers?

No. Cash advance fees vary by issuer and sometimes by card type within the same issuer. Most charge 3 to 5 percent with a minimum of $5 to $10, but some charge flat fees instead. Check your card's terms or call customer service to find out your specific fee.

Can I get a cash advance from a credit card I do not have in my wallet?

No. You need the physical card to withdraw cash at an ATM or from a teller. Some issuers allow you to request a cash advance through their app or website without the card, but this is not universal. Check your issuer's website or app to see whether this option is available.