You can withdraw cash from a credit card at an ATM, but it costs more than a regular purchase
A cash advance is a withdrawal of cash from your credit card account. You can get one at an ATM using your card and PIN, at a bank teller window, or sometimes at a store that offers cash back. The money appears in your account when ready, but the card issuer charges you a fee — usually 3 to 5 percent of the amount withdrawn — plus a higher interest rate than you pay on regular purchases, often 20 to 30 percent.
Because cash advances are expensive, most people use them only when they have no other option. If you need cash regularly, a debit card or a trip to your bank is cheaper. If you are considering a cash advance to pay off debt or cover an emergency, there are usually better alternatives.
Key Takeaways
- Cash advances charge a fee of 3 to 5 percent plus interest that starts accruing when ready, with no grace period like you get on purchases.
- You can withdraw cash at an ATM, a bank branch, or sometimes a store, but the fee and interest rate are the same regardless of where you withdraw.
- The interest rate on a cash advance is typically higher than your purchase APR and begins charging the day you withdraw, not at the end of a billing cycle.
- If you need cash for an emergency, a personal loan or a cash advance from your employer may cost less than using your credit card.
How to withdraw cash at an ATM
Insert your credit card into an ATM that displays your card network's logo — Visa, Mastercard, American Express, or Discover. Enter your PIN, select "Withdrawal" or "Cash Advance," and choose the amount. The ATM will dispense the cash and print a receipt showing the transaction and any fee charged.
Not all ATMs accept credit cards. Bank ATMs usually do, but ATMs in convenience stores or gas stations may not. If the ATM rejects your card, try a different machine or visit a bank branch instead. Some card issuers also limit how much you can withdraw in a single transaction — check your card's terms or call the number on the back of your card to find out your limit.
How to get a cash advance at a bank or store
You can also withdraw cash by visiting a bank branch and asking a teller for a cash advance on your credit card. Bring your card and a photo ID. The teller will process the transaction, charge the same fee as an ATM would, and hand you the cash.
Some retailers, like grocery stores or pharmacies, offer cash back when you make a purchase with a credit card. This is not a cash advance — it is a regular purchase with an additional cash withdrawal. Cash back does not charge a separate fee and does not carry the higher interest rate of a true cash advance, so it is cheaper if you need a small amount of cash and can make a purchase at the same time.
What fees and interest you will pay
A cash advance fee is a flat percentage of the amount withdrawn, usually 3 to 5 percent with a minimum charge of $2 to $10. If you withdraw $200, you might pay $6 to $10 in fees alone. That fee is added to your credit card balance when ready.
Interest on a cash advance begins accruing the day you withdraw the money — there is no grace period. Your cash advance APR is typically 5 to 10 percentage points higher than your purchase APR. If your purchase rate is 18 percent, your cash advance rate might be 25 percent. Interest compounds daily, so the longer you carry the balance, the more you owe. A $500 cash advance at 25 percent APR costs about $10 in interest per month if you do not pay it down.
How cash advances affect your credit score
A cash advance counts as a balance on your credit card, which increases your credit utilization ratio — the percentage of your available credit you are using. A higher utilization ratio can lower your credit score. The impact is temporary and disappears once you pay off the balance, but it can affect your score for the month the advance is reported.
The cash advance itself does not appear separately on your credit report. Your credit card issuer reports only the total balance you owe, which includes the cash advance, regular purchases, and any other charges. Paying off the cash advance quickly minimizes the damage to your score.
Cheaper alternatives to a cash advance
If you need cash for an emergency, consider these options first. A personal loan from a bank or credit union usually charges 6 to 36 percent APR with no upfront fee, making it cheaper than a cash advance if you need more than a few hundred dollars. A payday loan from an employer or credit union is faster and often has a lower rate than a credit card cash advance, though payday loans from other lenders are typically expensive.
If you have a savings account, withdrawing from savings costs nothing and does not affect your credit. If you have a 0 percent introductory APR offer on a new credit card, you could transfer a balance from another card to that card and avoid interest for a set period — though balance transfers also charge a fee, usually 3 to 5 percent. Borrowing from family or friends, if possible, costs nothing.
How to pay off a cash advance
Your credit card statement will show the cash advance as a separate line item from your regular purchases. When you make a payment, the card issuer applies it to the balance with the highest interest rate first — usually the cash advance. Pay more than the minimum to reduce the balance faster and lower the total interest you owe.
Some card issuers allow you to set up automatic payments. Check your online account or call the number on the back of your card to see if this option is available. Automatic payments may support you do not miss a due date and help you pay off the balance on a schedule.
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 withdraw only $400 in cash. Some card issuers set a separate, lower cash advance limit — check your card agreement or call your issuer to find out what yours is.
What happens if I do not pay back a cash advance?
Interest and fees continue to accrue, and your balance grows. If you do not pay for 30 days or more, the late payment is reported to the credit bureaus and damages your credit score. After 180 days of non-payment, the card issuer may close your account and send the debt to a collection agency.
Can I use a credit card cash advance to pay off another credit card?
Technically yes, but it is a bad idea. You would pay a 3 to 5 percent cash advance fee plus 20 to 30 percent interest on top of the balance you are trying to pay off. A balance transfer to a 0 percent APR card or a personal loan is much cheaper.
Is there a daily limit on how much I can withdraw?
Yes. Your card issuer sets a daily ATM withdrawal limit, often $500 to $1,000 per day, separate from your overall credit limit. You can ask your issuer to raise this limit, but it may take a few days to process. If you need a large amount, visit a bank branch instead — tellers can sometimes process larger withdrawals.
Do I have to use my PIN to get a cash advance?
At an ATM, yes. At a bank branch or store, you usually do not need a PIN — a photo ID is enough. If you have forgotten your PIN, you can call your card issuer to reset it or visit a bank branch to withdraw cash without one.