Taking money off a credit card means getting cash in your hand, not using the card to buy something
You can withdraw cash from a credit card in three main ways: at an ATM using your PIN, over the counter at a bank, or through a cash advance at a store. Each method charges you a fee and starts charging interest when ready—there is no grace period like there is for purchases. The cash advance fee is usually 3 to 5 percent of the amount you withdraw, and the interest rate is typically higher than your regular purchase rate. Most people should avoid this unless they have no other option, because the cost adds up fast.
Before you withdraw, know that the money you take out is a debt you owe right away. Unlike a purchase, which you can pay off interest-free during a grace period, cash advances start accruing interest the day you withdraw. If you need cash urgently, a personal loan, a payday loan from a licensed lender, or borrowing from a friend or family member will almost always cost you less.
Key Takeaways
- Cash advances charge a fee (usually 3 to 5 percent) plus a higher interest rate than purchases, with interest starting when ready.
- You can withdraw cash at an ATM with your PIN, at a bank teller window, or through a store cash advance, depending on your card.
- The interest rate on a cash advance is typically 2 to 5 percentage points higher than your regular purchase APR and has no grace period.
- A personal loan, credit union loan, or borrowing from someone you know will usually cost you significantly less than a credit card cash advance.
How to withdraw cash at an ATM
Insert your credit card into an ATM that accepts credit cards—not all ATMs do. Enter your PIN (the same one you use for debit transactions). Select "Withdrawal" or "Cash Advance." Enter the amount you want to withdraw. The ATM will show you the fee before you confirm. Take your cash and card when the transaction completes.
The fee appears on your statement within a few days. Interest begins accruing when ready on the amount you withdrew. If your card does not have a PIN, you will need to set one up through your card issuer's website or app, or by calling the number on the back of your card. Some ATMs charge an additional surcharge on top of your card issuer's fee—the ATM screen will tell you this before you complete the withdrawal.
Withdrawing cash at a bank teller window
Go to any branch of your card issuer's bank or a bank that accepts your card. Bring your credit card and a photo ID. Tell the teller you want a cash advance. The teller will process the transaction, charge you the cash advance fee, and give you the cash. You will receive a receipt showing the amount, the fee, and the interest rate that will explore.
This method works even if you do not have a PIN set up on your card. The teller can look up your account and process the advance directly. However, the fee is the same as an ATM withdrawal, and interest starts the same day. Some banks limit how much you can withdraw in a single day, so ask before you request a large amount.
Getting a cash advance at a store
Some retailers allow you to get cash back when you make a purchase, or to request a cash advance directly at the register. This is less common with credit cards than with debit cards, but some stores and gas stations offer it. Ask the cashier whether they can process a credit card cash advance. If they can, you will pay the same fee and interest rate as an ATM or bank withdrawal.
The advantage is convenience—you do not have to find an ATM or bank branch. The disadvantage is that not all stores offer this service, and you may feel pressured to make a purchase to justify asking. The fee and interest rate remain the same regardless of where you withdraw, so there is no financial benefit to choosing one location over another.
Understanding the fees and interest charges
A cash advance fee is a flat percentage of the amount you withdraw, usually 3 to 5 percent. On a $500 withdrawal, that is $15 to $25 just to get the cash. This fee appears on your next statement as a separate charge. Some cards have a minimum fee (for example, $5) even if the percentage would be less.
The interest rate on cash advances is almost always higher than your purchase rate. If your regular APR is 18 percent, your cash advance APR might be 23 percent. This higher rate applies only to the cash advance balance, not to purchases you make with the same card. Interest accrues daily from the day you withdraw, with no grace period. If you withdraw $500 at a 23 percent APR and pay nothing for a month, you will owe roughly $9.50 in interest alone, on top of the original $500 and the $15 to $25 fee.
Cheaper alternatives to a credit card cash advance
A personal loan from a bank or credit union typically charges 6 to 36 percent APR depending on your credit score, and you pay no upfront fee. Over six months, a $500 personal loan at 18 percent APR costs roughly $45 in interest—less than half the cost of a credit card cash advance. You also know the exact payment amount and due date from the start.
A credit union loan is often cheaper than a bank loan if you are a member. A payday loan from a licensed lender charges a flat fee (typically $15 to $20 per $100 borrowed) but is meant to be repaid in two weeks, so the total cost is lower if you can pay it back quickly. Borrowing from a friend or family member costs nothing if they do not charge interest, though it can strain the relationship if you do not repay on time.
If you need cash for an emergency, call your card issuer first and ask whether they offer a lower-rate cash advance or a promotional rate for new cardholders. Some issuers run limited-time offers. Even if they do not, it takes two minutes to ask, and you might save money.
How a cash advance affects your credit
A cash advance does not hurt your credit score directly, but it does increase your credit utilization—the percentage of your available credit you are using. If you have a $5,000 credit limit and you take a $500 cash advance, your utilization jumps from 0 to 10 percent (or higher if you already had a balance). High utilization can lower your score by a few points.
The bigger risk is that a cash advance makes it easier to fall behind on payments. Because interest starts when ready and the balance grows every day, you may owe more than you expected. If you miss a payment, your score will drop significantly, and your interest rate may increase. Pay the cash advance off as quickly as you can to avoid this.
Frequently Asked Questions
Can I take a cash advance if I have a zero balance on my card?
Yes. A cash advance is a separate transaction from your regular purchases, so your current balance does not matter. You will still pay the cash advance fee and the higher interest rate, even if you have never carried a balance before.
What is the maximum amount I can withdraw?
Most card issuers set a cash advance limit that is lower than your total credit limit—often 20 to 50 percent of your credit line. Your card issuer's website or app will show your cash advance limit. Some ATMs also have daily withdrawal limits, which may be lower than your card's limit.
Do I have to pay back a cash advance right away?
No, but interest accrues every day you do not pay it back. You must make at least the minimum payment by your due date, or you will be charged a late fee and your interest rate may increase. Paying the full balance as soon as possible is the cheapest option.
Will a cash advance show up on my credit report?
The cash advance itself does not appear as a separate item, but the balance does. If you carry the balance for more than 30 days, it will show up as part of your credit utilization and payment history, which can affect your score.
Can I use a credit card cash advance to pay another credit card?
Technically yes, but it is almost never a good idea. You will pay the cash advance fee and interest rate on the money you withdraw, then pay interest again on the card you transfer it to. You end up paying fees and interest twice. A balance transfer (moving a balance from one card to another at a lower rate) is cheaper if you may have access to.