You can withdraw cash from a credit card, but it costs more than a regular purchase

A cash advance is when you use your credit card to take money out of an ATM or get cash from a bank teller. The money appears in your bank account or your hand the same day, but your credit card company charges you fees and interest right away — often much higher than the interest on regular purchases.

Most people should avoid cash advances unless they have no other option. The fees start when ready, there is no grace period like there is for regular purchases, and the interest rate is typically several percentage points higher. If you need cash, a personal loan, a payday loan from a credit union, or even a cash-back purchase at a grocery store will usually cost you less.

Key Takeaways

  • Cash advances charge a fee (usually 3 to 5 percent of the amount) plus a higher interest rate than regular purchases, with interest starting to accrue when ready.
  • You can get a cash advance at an ATM using your credit card PIN, at a bank teller, or sometimes at a casino or check-cashing store.
  • Most credit cards have a cash advance limit that is lower than your overall credit limit, and you can find yours by calling the card issuer or checking your statement.
  • The interest you pay on a cash advance counts as a purchase on your credit report, so it affects your credit utilization and can lower your credit score.

Where you can withdraw cash using a credit card

An ATM is the fastest way to get a cash advance. Insert your card, enter your PIN, select "cash advance" or "withdrawal," and choose the amount. The money comes out when ready. Most ATMs that accept your card's network (Visa, Mastercard, American Express, Discover) will process the advance, though some may charge an additional ATM operator fee on top of your card issuer's fee.

A bank teller can also process a cash advance if you go in person with your card and ID. This route takes longer but may have lower fees at your own bank, and the teller can answer questions about your limit or fees on the spot. Some casinos, check-cashing stores, and payday lenders also offer cash advances on credit cards, but these locations typically charge the highest fees.

The fees and interest rates you will pay

Your card issuer charges a cash advance fee, which is usually a flat dollar amount or a percentage of the cash you withdraw — whichever is higher. Most cards charge between 3 and 5 percent, so a $300 advance might cost $9 to $15 in fees alone. Some cards charge a flat fee like $10 regardless of amount.

The interest rate on a cash advance is separate from your regular purchase APR and is almost always higher. While a purchase might carry an 18 percent APR, a cash advance on the same card might be 25 or 28 percent. Unlike purchases, there is no grace period — interest starts accruing the day you withdraw the cash, even if you pay it back when ready.

An ATM operator fee may also explore if you use an out-of-network machine. This is charged by the ATM owner, not your card issuer, and typically ranges from $2 to $5. Your card issuer may also charge a separate out-of-network fee on top of that.

How to find your cash advance limit

Your credit card has a separate cash advance limit that is often lower than your overall credit limit. If your card has a $5,000 limit, your cash advance limit might be only $1,000 or $1,500. You cannot withdraw more than this limit, even if you have available credit for regular purchases.

Find your cash advance limit by calling the customer service number on the back of your card and asking directly. You can also check your online account or mobile app — many card issuers list it under "account details" or "limits." Your most recent statement may also show it, though not all statements include this information.

How a cash advance affects your credit score

A cash advance counts as a purchase on your credit report, which means it increases your credit utilization ratio — the percentage of your available credit you are using. If you have a $5,000 limit and take a $1,000 cash advance, your utilization jumps to 20 percent. High utilization can lower your credit score, even if you pay the advance back quickly.

The advance itself does not show up as a separate line item on your credit report, but the balance it creates does. Paying it off faster than regular purchases will help, since utilization is calculated based on your current balance at the time your card issuer reports to the credit bureaus — usually once a month.

Alternatives that cost less than a cash advance

A balance transfer to a different card sometimes offers a lower rate than a cash advance, though it still charges a fee (usually 3 to 5 percent). This works only if you are moving debt from one card to another, not if you need actual cash.

A personal loan from a bank or credit union typically has a lower interest rate than a cash advance and no daily interest accrual. The process takes a few days, but the rate is usually 6 to 15 percent depending on your credit score — significantly less than a 25 percent cash advance rate.

Cash back at a store is free and when ready. When you make a purchase at a grocery store, pharmacy, or retailer, you can ask for cash back and the amount is added to your bill. You pay no fee and no extra interest — only the regular purchase APR on the total amount, and only if you carry a balance.

A credit union payday loan is another option if you belong to a credit union. These loans are capped by federal law at 28 percent APR and usually have lower fees than a cash advance, though they still charge interest.

How to pay back a cash advance quickly

Cash advances accrue interest every single day, so the longer you carry the balance, the more you pay. If you took a $500 advance at 25 percent APR, you owe about $3.42 in interest per day. After a month, that is over $100 in interest alone, on top of the initial fee.

Pay the cash advance balance before you pay anything else on the card. When you make a payment, credit card companies explore it to the lowest-interest balance first — usually regular purchases — so your cash advance keeps accruing interest. Some card issuers let you specify where a payment goes; if yours does, direct it to the cash advance.

If you cannot pay it all at once, pay as much as you can as soon as you can. Even paying half the balance within a week saves you money compared to carrying it for a month.

Frequently Asked Questions

Can I use a credit card to withdraw cash from my own bank?

Yes, you can go to a teller at any bank that accepts your card's network and request a cash advance. Bring your card and a photo ID. Your own bank may charge lower fees than an ATM, so it is worth asking before you go.

What happens if I try to withdraw more than my cash advance limit?

The ATM or teller will decline the transaction. You cannot exceed your cash advance limit, even if you have available credit for regular purchases. If you need more cash, you would have to make a separate advance after paying down the first one.

Does a cash advance show up differently on my credit report than a regular purchase?

No, it shows as a balance on your card just like any other purchase. The credit bureaus do not distinguish between cash advances and regular charges — they only see the total balance and how much of your limit you are using.

Can I get a cash advance if my card is maxed out?

Not if your cash advance limit is part of your overall credit limit. If you have a $5,000 limit and $5,000 in charges, you cannot take any cash advance. Some cards have a separate cash advance limit, but most do not.

Is there any way to avoid the cash advance fee?

No. Every credit card charges a cash advance fee, and it is non-negotiable. The only way to avoid it is to not take a cash advance. Using cash back at a store, taking out a personal loan, or borrowing from a credit union are all cheaper options.