Yes, you can take cash out with a credit card, but it costs more than a regular purchase
You can withdraw cash from a credit card at an ATM or by asking a bank teller for a cash advance. The card issuer treats this differently from a purchase — they charge you a fee upfront, usually 3% to 5% of the amount you withdraw, and the interest rate on that cash starts accruing immediately, often at a higher rate than your regular purchase APR. There is no grace period like there is for purchases.
Most people use cash advances only when they have no other option, because the cost adds up fast. If you withdraw $500 and pay a 5% fee plus 25% APR, you are paying $25 upfront plus interest that compounds daily until you pay it back.
Key Takeaways
- Cash advances charge a fee (usually 3% to 5%) plus a higher interest rate than purchases, with no grace period.
- You can get cash at an ATM using your credit card PIN, or at a bank teller window, or sometimes at a store checkout.
- Interest on a cash advance starts the day you withdraw it, not at the end of your billing cycle like a purchase.
- Paying back a cash advance should be your priority because the interest rate is typically 5% to 10% higher than your purchase rate.
Where you can withdraw cash with a credit card
An ATM is the most common place. Look for one that accepts your card's network (Visa, Mastercard, American Express, or Discover). You will need your PIN — the four-digit code you set up when you got the card. If you do not have a PIN, call the number on the back of your card and ask the issuer to set one up; it usually takes a few minutes.
You can also walk into a bank branch and ask a teller for a cash advance. Bring your card and ID. Some grocery stores and pharmacies offer cash back at checkout if you make a purchase, though that is technically a debit transaction, not a cash advance — it does not trigger the same fees.
Some credit card issuers also let you request a cash advance by phone or through their app, and they will deposit it into your bank account instead of handing you physical cash. This method avoids ATM fees but still charges the cash advance fee and interest.
The fees and interest rates you will pay
Every cash advance comes with two costs: an upfront fee and interest.
The cash advance fee is a percentage of the amount you withdraw, usually between 3% and 5%. Some cards cap it at a flat dollar amount (like $10 minimum), so a small withdrawal might cost you $10 even though 3% would be less. Check your card's terms or call the issuer to find out your specific fee.
The interest rate on cash advances is almost always higher than your purchase APR. If your purchase rate is 18%, your cash advance rate might be 25% or 28%. This rate is fixed in your card agreement, so you can look it up by logging into your account or calling the issuer.
Unlike a purchase, interest starts accruing the day you withdraw the cash — there is no grace period. If you withdraw $500 on the 1st of the month and pay it back on the 30th, you owe interest for all 30 days, even if you normally get a 21-day grace period on purchases.
ATM fees on top of your card's cash advance fee
If you use an ATM that is not run by your card issuer's bank, you may also pay an ATM operator fee. This is separate from the cash advance fee your card issuer charges. An out-of-network ATM might charge $2 to $3 per withdrawal.
To avoid this extra cost, use an ATM owned by the same bank that issued your card, or find a network ATM your issuer participates in. Many card issuers publish ATM locators on their websites or apps.
If you use a bank teller instead of an ATM, you typically avoid the ATM operator fee, but you still pay the card issuer's cash advance fee and interest.
How a cash advance affects your credit and your account
A cash advance counts toward your credit utilization — the percentage of your total credit limit you are using. If your limit is $2,000 and you take a $500 cash advance, your utilization jumps to 25%. High utilization can lower your credit score, even if you pay it back quickly.
The cash advance also appears on your credit report as a separate transaction type, though it does not hurt your score more than a regular purchase would. What matters is how much of your limit you are using and how long you carry the balance.
If you carry a balance on your card, your card issuer may apply your payment to the lowest-interest debt first — usually your purchases — and leave the cash advance balance to accrue interest longer. Check your card agreement or call the issuer to understand their payment allocation method.
When a cash advance makes sense and when it does not
A cash advance is worth considering only in specific situations. If you need cash for an emergency and have no other way to get it — no savings, no access to a debit card, no time to visit your bank — a cash advance is better than missing a payment or going without. The damage to your credit from one cash advance is less than the damage from a missed bill.
A cash advance does not make sense if you have other options. A personal loan from a bank or credit union usually has a lower interest rate and no upfront fee. A payday loan is predatory and worse than a cash advance. Borrowing from family or friends, if possible, costs nothing. Even using a debit card to withdraw from your own savings account is free.
If you are considering a cash advance to pay another bill or to cover everyday expenses, that is a sign your credit card is being used as a short-term loan, not a payment tool. That pattern leads to debt that grows faster than you can pay it back.
How to pay back a cash advance quickly
Treat a cash advance as your top priority. Every day you carry the balance, interest is compounding at a rate 5% to 10% higher than your purchase rate. If you took a $500 advance at 25% APR, you owe about $3.42 in interest per day.
Pay more than the minimum payment if you can. The minimum covers only a small portion of interest, so the balance shrinks slowly. If you can pay the full amount back within a week or two, do it — the total interest will be much smaller than if you stretch it over months.
If you cannot pay it back quickly, look at whether you can transfer the balance to a different card with a lower rate, or whether a personal loan would cost less. Some cards offer balance transfer options, though they also charge a fee (usually 3% to 5%) and have their own APR.
Frequently Asked Questions
Can I use my credit card to withdraw cash at any ATM?
You can use your card at any ATM that displays your card network's logo (Visa, Mastercard, American Express, or Discover). You will need your PIN. Out-of-network ATMs may charge an operator fee on top of your card issuer's cash advance fee, so using your issuer's ATM is cheaper.
What is the difference between a cash advance and a balance transfer?
A cash advance is money you withdraw as cash; a balance transfer is moving debt from one card to another. Both charge fees and interest, but a balance transfer sometimes offers a lower introductory rate for a set period. Cash advances have no introductory period — interest starts immediately at the full rate.
Does a cash advance hurt my credit score?
A cash advance itself does not hurt your score, but it increases your credit utilization, which can lower your score temporarily. Carrying a high balance or missing payments on the cash advance will hurt your score more. Paying it back quickly minimizes the damage.
Can I get a cash advance if my card is maxed out?
No. A cash advance counts toward your credit limit, so you need available credit to withdraw cash. If your limit is $2,000 and you have already charged $2,000, you cannot take a cash advance until you pay down the balance.
What should I do if I cannot pay back a cash advance?
Contact your card issuer and explain your situation. Some issuers offer hardship programs that lower your interest rate or let you pause payments temporarily. Ignoring the debt will damage your credit and lead to collection calls. Addressing it early gives you more options.