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

You can take cash out using your credit card at an ATM, through a bank teller, or sometimes at a store checkout. The transaction is called a cash advance. Unlike a purchase, a cash advance starts charging interest immediately — there is no grace period — and you pay an upfront fee on top of the interest.

The fee is usually 3% to 5% of the amount you withdraw, charged right away. If you take out $500, you might pay $15 to $25 just to get the cash. Then interest accrues from day one at a rate that is often higher than your regular purchase APR. For most people, this is an expensive way to get cash and should only happen if you have no other option.

Key Takeaways

  • Cash advances charge a fee (typically 3% to 5%) and interest from the withdrawal date, with no grace period like purchases have.
  • The interest rate on a cash advance is usually higher than your purchase APR and varies by card and issuer.
  • You can withdraw cash at ATMs, bank teller windows, or some store checkouts, but the fee and rate apply regardless of where you go.
  • If you need cash regularly, a debit card or bank account withdrawal costs nothing and should be your first choice.

Where you can actually withdraw cash

ATMs are the most common route. Your credit card issuer owns or partners with an ATM network — Visa and Mastercard each have their own networks, and American Express and Discover have smaller ones. You can use any ATM that displays your card's logo, though some out-of-network ATMs charge an additional fee on top of your card's cash advance fee.

Bank tellers will also process a cash advance if you walk into a branch of your card issuer or a partner bank. This avoids the ATM fee but takes longer. Some grocery stores and pharmacies let you request cash back at checkout, which also avoids the ATM surcharge — though your card's cash advance fee still applies.

The fastest route is usually an ATM in your card issuer's network. Check your card's website or app to find the nearest one, or look for the network logo on the ATM itself before you insert your card.

The fees and interest that make cash advances expensive

The cash advance fee is a one-time charge taken from the amount you withdraw. Most cards charge 3% to 5% of the cash amount, with a minimum fee of $2 to $10. If you withdraw $100, you might pay $3 to $5. If you withdraw $1,000, you might pay $30 to $50. This fee appears on your statement as a separate line item.

The cash advance APR is the interest rate applied to the balance. This rate is almost always higher than your purchase APR — sometimes 5 to 10 percentage points higher. If your purchase APR is 18%, your cash advance APR might be 23% or 25%. Interest starts accruing immediately; there is no 21-day grace period like there is for purchases. If you carry the balance for a month, you will owe roughly 1/12 of the annual rate on top of the fee you already paid.

Example: You withdraw $500 at a 4% fee and 24% APR. You pay $20 upfront. If you pay it back in 30 days, you owe roughly $10 in interest, for a total cost of $30. If you carry it for three months, the interest alone could exceed $30.

How the payment applies when you owe both purchases and cash advances

If you have both a purchase balance and a cash advance balance on the same card, your payment goes to the lowest-APR balance first. This means your cash advance (which has the highest rate) stays on the card longer and costs you more in interest. You cannot choose to pay down the cash advance first — the card issuer decides the order.

The only way to pay off a cash advance faster is to pay more than the minimum. Any payment above the minimum goes toward the lowest-APR balance first, so you need to overpay significantly to chip away at the cash advance. This is another reason cash advances are expensive: the payment structure works against you.

When a cash advance makes sense (and when it does not)

A cash advance makes sense only in narrow situations: you need cash immediately, you have no other way to get it, and you can pay it back within a few days. If you are in a genuine emergency and can repay it before interest compounds, the upfront fee is the main cost.

A cash advance does not make sense if you need cash regularly, if you cannot pay it back quickly, or if you have other options. A debit card withdrawal costs nothing. A personal loan or line of credit usually has a lower rate. Even a payday loan, though expensive, might cost less than a cash advance if you carry the balance for weeks. Before you use a cash advance, ask yourself whether you could use your debit card, borrow from a friend, or wait until you can access your bank account.

How to minimize the cost if you do take a cash advance

Use an ATM in your card issuer's network to avoid the ATM operator fee. Check your card's app or website for the network map before you go. This saves $2 to $3 per transaction.

Withdraw only what you need. The fee is a percentage, so a smaller withdrawal costs less in absolute dollars. If you need $200, do not withdraw $500 to have extra on hand.

Pay it back as fast as possible. Interest accrues daily, so every day you carry the balance costs you money. If you can repay it within a week, do so. The longer you carry it, the more the interest compounds.

If you have multiple cards, check whether any of them offer a 0% APR promotion on cash advances. These are rare, but some cards do offer them for a limited time. Your card's terms document will list any promotional rates.

Alternatives that cost less

A debit card withdrawal costs nothing and should be your first choice if you have access to your bank account. You get the cash without a fee or interest.

A personal loan from a bank or credit union usually has a lower APR than a cash advance and lets you borrow a larger amount. The application takes a few days, so this works only if you are not in an immediate emergency.

A balance transfer to a card with a 0% promotional rate can move an existing cash advance balance to a lower-cost card, though you will pay a balance transfer fee (usually 3% to 5%) and the promotional rate expires after 6 to 21 months.

A line of credit from your bank, if you have one, usually charges interest but no upfront fee and may have a lower rate than a cash advance.

Frequently Asked Questions

Does a cash advance hurt my credit score?

The withdrawal itself does not hurt your score, but carrying a high balance does. Cash advances count toward your credit utilization ratio — the amount of available credit you are using. If your cash advance pushes your total balance above 30% of your credit limit, your score may drop. Paying it off quickly brings the ratio back down.

Can I take a cash advance if I have a 0% APR promotion on purchases?

No. The 0% rate applies only to purchases, not cash advances. Cash advances have their own APR, which is usually higher than your regular purchase rate. The promotional rate does not cover them.

What happens if I cannot pay back the cash advance?

It becomes part of your credit card balance and accrues interest at the cash advance APR. If you miss payments, late fees apply and your credit score drops. The balance can be reported to debt collectors if it goes unpaid for months. Contact your card issuer as soon as you know you cannot pay to discuss options like a hardship plan.

Is there a limit to how much cash I can withdraw?

Yes. Your card issuer sets a cash advance limit, which is usually lower than your credit limit. You can find your limit in your card's app or by calling the number on the back of your card. Some cards set the limit at 20% to 50% of your credit limit.

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

Technically yes, but it is a bad idea. You would pay the cash advance fee and interest on the new card while paying interest on the original card. You end up paying interest twice on the same debt. If you need to move a balance, use a balance transfer instead.