You can withdraw cash from a credit card, but it costs more than a regular purchase
Yes, you can take cash out of a credit card account. The process is called a cash advance, and it works through an ATM, a bank teller, or a convenience store that offers the service. The money comes directly from your credit card's available balance, not from a separate account.
The catch is that cash advances are expensive. You pay an upfront fee (usually 3 to 5 percent of the amount withdrawn), interest starts accruing immediately at a higher rate than regular purchases, and there is no grace period. A $200 cash advance can cost $6 to $10 in fees alone, plus interest from day one.
Most people use cash advances only when they have no other option — to pay for something that requires physical cash and cannot wait. If you are considering one, understanding the exact costs and mechanics first will help you decide whether it makes sense for your situation.
Key Takeaways
- Cash advances charge a fee upfront (typically 3 to 5 percent) plus a higher interest rate than purchases, with no grace period.
- You can withdraw cash at an ATM using your credit card PIN, at a bank teller by presenting your card and ID, or sometimes at a convenience store.
- Interest on a cash advance begins accruing the day you withdraw it, not at the end of a billing cycle like a purchase.
- Your credit card issuer sets a separate cash advance limit, which may be lower than your overall credit limit.
- Paying off a cash advance takes longer because payments are applied to purchases first, then to the cash advance balance.
How a cash advance works step by step
When you request a cash advance, the card issuer deducts the amount from your available credit and charges you a fee immediately. The fee appears on your next statement as a separate line item. At the same time, interest begins accruing on the withdrawn amount at the cash advance rate, which is usually 2 to 3 percentage points higher than your purchase APR.
The timing matters. If you withdraw $300 on the 5th of the month and your statement closes on the 25th, you are charged interest for all 20 days, even if you pay the full balance by the due date. With a purchase, you would have a grace period (usually 21 to 25 days) before interest kicks in. Cash advances have no grace period at all.
The money itself is yours to use immediately. There is no waiting period or verification step beyond confirming your identity and PIN. That speed is why some people use cash advances in emergencies, but the cost makes it a last resort.
Where you can withdraw cash from a credit card
An ATM is the most common method. You insert your credit card, enter your PIN, and select the cash advance option (usually labeled separately from a debit withdrawal). The ATM dispenses the cash and immediately charges the fee and begins accruing interest. Most ATMs allow cash advances, though some may decline if your card issuer has flagged the transaction as unusual.
A bank teller can also process a cash advance. Walk into any bank branch (yours or another institution), present your credit card and a photo ID, and ask for a cash advance. The teller verifies your identity, processes the transaction, and hands you the cash. This method is slower than an ATM but works if you need a large amount or prefer speaking to a person.
Some convenience stores and grocery stores offer cash advances at the register, though this is less common than it once was. You present your card, the cashier runs it as a cash advance (not a purchase), and you receive cash back. Fees and interest rates are the same as other methods.
Fees and interest rates for cash advances
The cash advance fee is charged once, at the time of withdrawal. It is calculated as a percentage of the amount withdrawn — typically 3 to 5 percent, though some cards charge a flat fee (like $10) if that is higher. A $500 cash advance with a 4 percent fee costs $20 upfront. This fee is added to your balance immediately and appears on your next statement.
The cash advance APR is separate from your purchase APR and is almost always higher. If your purchase rate is 18 percent, your cash advance rate might be 21 or 23 percent. This rate is applied daily to your outstanding cash advance balance, starting the day you withdraw the money. There is no grace period, so interest accrues even if you pay within days.
To estimate the total cost: a $300 cash advance with a 4 percent fee ($12) and a 22 percent APR costs $12 upfront, plus roughly $1.80 in interest for every 30 days the balance remains unpaid. If you repay it in 30 days, the total cost is about $13.80. If it takes 90 days, the cost rises to roughly $22.
Your cash advance limit is separate from your credit limit
Your card issuer sets a cash advance limit that is different from your overall credit limit. If your credit limit is $5,000, your cash advance limit might be $1,000 or $1,500. This limit is set by the issuer based on your creditworthiness and account history, and you cannot change it yourself.
You can find your cash advance limit by logging into your online account, calling the customer service number on the back of your card, or checking your most recent statement. The limit is often listed under "Account Details" or "Credit Information." If you need a higher limit, you can request an increase by calling customer service, though approval is not may provide.
If you attempt to withdraw more than your cash advance limit, the ATM or teller will decline the transaction. The limit exists partly to protect you from overspending and partly to limit the issuer's risk on high-interest transactions.
How payments are applied when you have a cash advance balance
When you make a payment on a card with both a purchase balance and a cash advance balance, the payment is applied to the purchase first, then to the cash advance. This means your cash advance stays on the books longer and accrues more interest, even if you are making regular payments.
Example: You have a $500 purchase balance at 18 percent APR and a $300 cash advance balance at 22 percent APR. You make a $400 payment. The issuer applies $400 to the purchase, leaving $100 of the purchase and the full $300 cash advance unpaid. Interest continues accruing on both, but the cash advance (at the higher rate) is now your entire remaining balance.
To pay off a cash advance faster, you can request that your payment be applied to it specifically. Some issuers allow this; others do not. Call customer service and ask whether you can direct a payment to the cash advance balance. If they allow it, make that request in writing or note it in the payment memo so there is a record.
Alternatives to a cash advance
Before withdrawing cash from a credit card, consider whether another option costs less. A personal loan from a bank or credit union typically charges 6 to 36 percent APR with no upfront fee, making it cheaper than a cash advance if you need the money for more than a few weeks. A payday loan is faster but more expensive, so it is only better if you can repay it within two weeks.
If you need cash for an emergency, a balance transfer to a card with a 0 percent introductory APR can be cheaper than a cash advance, though balance transfers also charge a fee (usually 3 to 5 percent) and do not work for cash — only for moving debt between cards. A line of credit from your bank, if you have one, usually charges less interest than a cash advance and may have no upfront fee.
If the amount is small and you can wait, borrowing from family or friends, asking your employer for an advance on your paycheck, or selling something you own avoids debt altogether. These options take longer to arrange but cost nothing.
What happens if you cannot repay a cash advance
If a cash advance balance goes unpaid, it behaves like any other credit card debt. Interest continues accruing at the cash advance rate, late fees are added if you miss a payment, and the balance is reported to the credit bureaus. Your credit score drops, and the issuer may lower your credit limit or close the account.
If the debt remains unpaid for 180 days (six months), the issuer typically charges it off — meaning they remove it from your active account and may sell it to a debt collection agency. At that point, a collector can contact you to demand payment, and the debt can appear on your credit report for up to seven years.
If you are struggling to repay a cash advance, contact your card issuer immediately. Some offer hardship programs that lower your interest rate or allow you to pause payments temporarily. These programs are not automatic, but asking costs nothing and may prevent the debt from spiraling.
Frequently Asked Questions
Can I use a credit card to withdraw money from my own bank account?
No. A credit card is a line of borrowed money, not access to your own funds. If you want to withdraw from your bank account, use your debit card or visit an ATM with your debit card. A credit card ATM withdrawal is always a cash advance — borrowed money with fees and interest.
What is the difference between a cash advance and a balance transfer?
A cash advance gives you physical cash and charges a higher interest rate with no grace period. A balance transfer moves debt from one card to another and may offer a 0 percent introductory rate. Both charge upfront fees. Use a cash advance only for cash; use a balance transfer to move existing debt between cards.
Will a cash advance hurt my credit score?
A cash advance itself does not directly damage your score, but it increases your credit utilization (the percentage of your limit you are using), which can lower your score slightly. If you fail to repay it on time, late payments and the growing balance will hurt your score more significantly.
Can I get a cash advance if my card is maxed out?
No. A cash advance counts against your available credit, so you can only withdraw up to your remaining available balance. If your credit limit is $5,000 and you have already charged $4,800, you can only withdraw $200 (or less, if your cash advance limit is lower).
How long does it take to process a cash advance at an ATM versus a bank teller?
An ATM processes a cash advance in seconds — you insert your card, enter your PIN, and receive cash immediately. A bank teller takes longer, usually 5 to 10 minutes, because they verify your identity and may ask questions about the transaction. Both methods charge the same fees and interest.