The three ways to withdraw cash using a credit card

You can get cash from a credit card in three ways: an ATM withdrawal, a cash advance at a bank or check-cashing location, or a balance transfer to your checking account. Each method charges different fees and interest rates, and each one starts charging interest when ready — unlike regular credit card purchases, which often have a grace period.

ATM withdrawals are the fastest but usually the most expensive. A bank or check-cashing counter withdrawal takes longer but may cost less. A balance transfer to your bank account is slowest but sometimes the cheapest option if your card offers a promotional rate.

Before you choose, understand that all three methods treat the money as a cash advance, not a purchase. That means higher interest rates, upfront fees, and no grace period. The interest clock starts the moment you withdraw the cash.

Key Takeaways

  • ATM withdrawals charge a cash advance fee (usually $3 to $10) plus your card's cash advance interest rate, which is typically 2% to 5% higher than your purchase rate.
  • Interest on cash advances begins accruing when ready with no grace period, so you pay interest from day one even if you pay the full balance at the end of the month.
  • Bank teller cash advances and check-cashing locations charge the same fees and rates as ATM withdrawals but may have lower daily limits.
  • Balance transfers to your checking account are slower (3 to 5 business days) but may offer a lower promotional rate if your card includes a cash advance promotion.
  • Your credit card issuer sets a separate cash advance limit that may be lower than your overall credit limit.

ATM withdrawals: fastest but most expensive

An ATM withdrawal is the quickest way to get cash. You insert your card, enter your PIN, and withdraw money when ready. Most credit cards come with a PIN you can set up through your issuer's website or app, or you can call the customer service number on the back of your card to request one.

The cost is when ready and steep. You pay a cash advance fee — typically $3 to $10 per transaction — charged by your card issuer. You may also pay an ATM operator fee if you use an out-of-network machine, usually $1 to $3 extra. Then your card's cash advance interest rate kicks in right away. This rate is almost always higher than your purchase rate, often 2% to 5% points higher, and it compounds daily.

Your daily ATM withdrawal limit is set by your issuer and is often lower than your overall credit limit. Many cards cap ATM withdrawals at $500 to $1,000 per day. Check your card's terms or call customer service to find out your limit before you go to the ATM.

Bank teller and check-cashing withdrawals: same fees, different experience

You can also walk into a bank branch or check-cashing store and ask for a cash advance. You hand over your credit card and ID, and the teller processes the withdrawal. The fees and interest rates are identical to an ATM withdrawal — you still pay the cash advance fee and the higher interest rate, starting when ready.

The main difference is convenience and limits. A bank teller may be able to process a larger withdrawal than an ATM allows, but many banks have their own daily limits for cash advances. Check-cashing stores typically charge the same cash advance fee as your issuer, so you pay two fees total: one to your card company and one to the store.

This method takes longer than an ATM — you have to visit during business hours and wait in line — but it may be your only option if you need more cash than your daily ATM limit allows. Call ahead to confirm the location accepts your card and has no additional restrictions.

Balance transfers to your bank account: slowest but sometimes cheaper

Some credit card issuers allow you to transfer a portion of your credit limit directly to your checking account. This is technically a cash advance, but it moves money to your bank instead of giving you physical cash. You can then withdraw from your checking account or use your debit card.

The process takes 3 to 5 business days, so this is not an option if you need cash today. You still pay a cash advance fee, usually the same percentage as an ATM withdrawal (often 3% to 5% of the amount transferred). However, some cards offer a promotional cash advance rate — sometimes 0% for a set period — that makes this method cheaper than an ATM withdrawal if you can pay off the balance before the promotional period ends.

Request a balance transfer through your card issuer's website or app, or call customer service. You will need your checking account number and routing number. The issuer will verify the account and process the transfer. Some issuers limit how much you can transfer in a single transaction or per month, so ask about caps before you request.

How cash advance fees and interest rates work

A cash advance fee is a one-time charge applied when you withdraw the cash. It is usually a percentage of the amount withdrawn (typically 3% to 5%) or a flat fee ($5 to $10), whichever is higher. This fee is added to your credit card balance when ready.

The cash advance interest rate is the annual percentage rate (APR) charged on the cash advance balance. It is separate from your purchase APR and is almost always higher — often 20% to 30% or more, depending on your card and creditworthiness. Unlike purchases, there is no grace period. Interest accrues from the day you withdraw the cash.

Interest compounds daily, so the longer you carry the balance, the more you owe. If you withdraw $500 at a 25% cash advance APR with a $5 fee, you start with a $505 balance. After 30 days, you owe roughly $535 if you make no payments. After 90 days, you owe roughly $595. The longer you wait to pay it back, the more expensive it becomes.

Your cash advance limit versus your credit limit

Your credit card issuer sets a separate cash advance limit that is usually lower than your overall credit limit. For example, you might have a $5,000 credit limit but only a $1,500 cash advance limit. This limit applies across all three withdrawal methods — ATM, bank teller, and balance transfer.

Your cash advance limit is determined by your credit score, payment history, and how long you have held the card. New cardholders often have lower cash advance limits than established customers. You can request an increase by calling customer service, but the issuer may deny the request or increase it only slightly.

Check your cash advance limit before you try to withdraw. You can find it on your statement, through your card issuer's website or app, or by calling customer service. Attempting to withdraw more than your limit will be declined.

Alternatives to credit card cash advances

Because cash advances are expensive, consider other options first. A personal loan from a bank or credit union usually has a lower interest rate and no upfront fee. A payday loan is faster but often more expensive than a cash advance. Asking friends or family for a short-term loan costs nothing but may strain relationships.

If you need cash regularly, a debit card linked to your checking account is free and when ready. If you need a larger amount, a line of credit from your bank may offer better terms than a credit card cash advance. If you are facing a financial emergency, local nonprofits, government programs, or community information funds may offer interest-free help.

A cash advance should be a last resort because of the high fees and interest rates. Use it only when you have no other option and can pay back the balance quickly.

Frequently Asked Questions

Does a cash advance hurt my credit score?

A cash advance itself does not directly hurt your score, but it increases your credit utilization — the percentage of your available credit you are using. High utilization can lower your score temporarily. Paying off the balance quickly brings your utilization back down and minimizes the damage.

Can I use a credit card cash advance to pay another credit card?

Yes, you can withdraw cash and use it to pay another card's bill. However, this is expensive because you pay cash advance fees and interest on the withdrawal. It is almost never worth doing unless the other card has a much higher interest rate and you can pay off the cash advance quickly.

What happens if I don't pay back a cash advance?

The balance rolls over to the next month with interest and fees added. Your minimum payment increases, and if you miss payments, your issuer may report the delinquency to credit bureaus, damaging your credit score. After 180 days of non-payment, the issuer may close your account and send the debt to a collection agency.

Is there a way to avoid cash advance fees?

No. Every credit card charges a cash advance fee, and it is unavoidable if you withdraw cash. The only way to avoid the fee is to not use a cash advance. Some cards offer lower cash advance fees than others, so comparing cards before you explore can help if you know you will need cash regularly.

Can I get a cash advance on a debit card?

No. Debit cards draw directly from your checking account, so there is no cash advance option. If you need cash beyond what is in your account, you would need to use a credit card or borrow money another way.