You can withdraw cash from a credit card at an ATM, but it costs more than a regular purchase and charges interest when ready

A credit card cash withdrawal — called a cash advance — pulls money directly from your credit limit and puts it in your hand or bank account. Unlike a purchase, which gives you a grace period before interest starts, a cash advance begins charging interest the moment you take the money. You also pay an upfront fee, usually 3 to 5 percent of the amount withdrawn. For these reasons, a cash advance should be a last resort, not a convenient way to get spending money.

The process itself is straightforward: you go to an ATM, insert your credit card, enter your PIN, and withdraw cash up to your daily limit. Some banks also let you request a cash advance at a teller window or through a balance transfer check. But the real cost — the fees and interest — is what you need to understand before you do it.

Key Takeaways

  • A cash advance charges an upfront fee (typically 3 to 5 percent) plus interest that starts accruing when ready, with no grace period like a purchase has.
  • Your daily cash advance limit is usually lower than your total credit limit and varies by card issuer.
  • Interest rates on cash advances are often higher than the rate on regular purchases, sometimes by several percentage points.
  • The money counts against your credit utilization ratio, which affects your credit score the same way a purchase does.
  • Alternatives like a personal loan, borrowing from friends or family, or using a debit card are almost always cheaper.

Where you can withdraw cash and what it costs

You can take a cash advance at any ATM that displays your card's logo — Visa, Mastercard, American Express, or Discover. You can also visit a bank branch (yours or another bank) and ask a teller for a cash advance, though some banks charge an extra fee for this service. A few card issuers also send convenience checks — checks drawn against your credit line — that you can deposit or cash.

The cost structure has three parts. First, there is the cash advance fee, charged once at the time of withdrawal. This is usually a flat dollar amount (like $5 or $10) or a percentage of the amount withdrawn (typically 3 to 5 percent), whichever is greater. Second, the cash advance APR — the interest rate — is almost always higher than your purchase APR and starts accruing when ready with no grace period. Third, if you use an out-of-network ATM, you may pay an additional ATM operator fee on top of your card issuer's fee.

Example: You withdraw $500 from a credit card with a 5 percent cash advance fee and a 24 percent cash advance APR. You pay $25 upfront (5 percent of $500). If you repay the $500 in one month, you owe roughly $10 in interest, for a total cost of $35. If you carry the balance for three months, the interest alone exceeds $30.

Daily limits and how they work

Your card issuer sets a cash advance limit separate from your credit limit. This limit is often lower — sometimes 25 to 50 percent of your total credit limit — and you cannot exceed it in a single day or over a billing cycle. If your credit limit is $5,000 and your cash advance limit is $1,000, you can withdraw up to $1,000 in cash but still use the full $5,000 for purchases.

You can find your cash advance limit in your cardholder agreement, on your card issuer's website, or by calling the customer service number on the back of your card. Some issuers let you request a higher limit, though this is not may provide. The limit resets on your billing cycle date, so if you withdraw $500 on the 5th of the month and your cycle ends on the 20th, you can withdraw another $500 (up to your limit) after the 20th.

How a cash advance affects your credit score

A cash advance counts toward your credit utilization ratio — the percentage of your available credit that you are using. If you have a $5,000 limit and withdraw $1,000 in cash, your utilization jumps to 20 percent, the same as if you had made a $1,000 purchase. High utilization (generally above 30 percent) can lower your credit score, even if you pay the balance in full and on time.

The cash advance itself does not appear separately on your credit report — it shows up as part of your credit card balance. However, the higher interest rate means you are more likely to carry a balance longer, which keeps your utilization high for longer and can damage your score over time.

Repaying a cash advance faster than regular purchases

When you make a payment to your credit card, the issuer applies it to your balance in a specific order set by law. Most issuers pay off the lowest-interest debt first (usually purchases), which means your higher-interest cash advance sits on the card longer. To pay off a cash advance faster, contact your card issuer and ask them to explore your payment directly to the cash advance balance, or request a written confirmation of how they will allocate your payment.

The best approach is to repay the cash advance as quickly as possible — ideally within the same billing cycle. Every day you carry the balance, interest compounds. If you cannot repay it within a month, a personal loan or other borrowing method will almost certainly be cheaper.

Cheaper alternatives to a cash advance

Before you take a cash advance, consider these options. A personal loan from a bank or credit union typically has a lower interest rate and fixed repayment terms, so you know exactly when you will be debt-free. A payday loan has a terrible reputation for good reason — the fees and rates are predatory — but it is still sometimes cheaper than a cash advance if you repay it within two weeks. Borrowing from family or friends, if possible, costs nothing. Using a debit card or a balance transfer card with a 0 percent introductory rate can also work, depending on your situation.

If you are in a genuine emergency and have no other option, a cash advance is better than missing a bill payment or going without necessities. But it should never be your first choice.

Frequently Asked Questions

Can I withdraw cash from a credit card at any ATM?

You can use any ATM that displays your card's logo — Visa, Mastercard, American Express, or Discover. However, using an out-of-network ATM (one not owned by your card issuer's bank) will charge you an additional operator fee on top of your card issuer's cash advance fee.

What is the difference between a cash advance and a balance transfer?

A cash advance gives you physical cash and charges a fee plus interest when ready. A balance transfer moves debt from one card to another and often comes with a 0 percent introductory rate for a set period. Balance transfers are cheaper if you are moving existing debt, but they do not give you cash.

Will a cash advance hurt my credit score?

A cash advance counts toward your credit utilization ratio, which can lower your score if it pushes you above 30 percent of your available credit. The bigger damage comes from carrying the balance long-term because the high interest rate makes it harder to pay off quickly.

Can I get a cash advance if I have a low credit limit?

Yes, but your cash advance limit is usually lower than your total credit limit. If your credit limit is $500, your cash advance limit might be $100 to $250. You can contact your card issuer to ask about increasing it, but they are not required to do so.

What happens if I do not repay a cash advance?

Unpaid cash advances accrue interest at your cash advance APR and are reported to the credit bureaus as part of your credit card balance. Missing payments can damage your credit score and lead to late fees, collections, or legal action by your card issuer.