Yes, you can pull cash from a credit card, but it costs more than a purchase and the interest starts immediately
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 regular purchase: you pay an upfront fee (usually 3% to 5% of the amount), a higher interest rate (often several percentage points above your purchase APR), and interest accrues from the moment you withdraw the money — there is no grace period like there is for purchases.
If you need $200 in cash and your card charges a 4% cash advance fee plus a 24% cash advance APR, you pay $8 immediately and then roughly $4 per month in interest if you carry the balance. That same $200 spent as a purchase might cost you nothing if you pay the full statement balance by the due date.
Key Takeaways
- Cash advances charge a fee upfront (typically 3% to 5% of the amount withdrawn) plus a higher interest rate than purchases, with no grace period.
- You can get a cash advance at any ATM using your PIN, or by visiting a bank branch and asking a teller for one.
- Interest on a cash advance begins accruing immediately, so even a short-term withdrawal costs more than using the card to buy something.
- Some cards offer 0% introductory rates on purchases but not on cash advances, making cash advances especially expensive during promotional periods.
- If you need cash regularly, a debit card, bank account withdrawal, or personal loan will cost you far less than repeated credit card cash advances.
How to actually withdraw cash from your credit card
The simplest method is to use an ATM. Insert your credit card, enter your PIN (which you may need to set up if you have never done a cash advance before), select the withdrawal amount, and the machine dispenses cash. The transaction posts to your credit card account as a cash advance, not a purchase.
If you do not have a PIN set up, call the number on the back of your card and ask the issuer to assign one. This usually takes a few minutes on the phone. Some issuers also let you set a PIN through their mobile app or website.
The second method is to visit a bank branch — either your card issuer's branch or another bank — and ask a teller for a cash advance. You hand over your card, the teller processes the transaction, and you receive cash. This method works even if you do not have a PIN set up, though the teller may ask for ID.
What fees and interest rates you will see
The cash advance fee is a one-time charge calculated as a percentage of the amount you withdraw. Most cards charge between 3% and 5%, though some charge a flat dollar amount instead (for example, $10 minimum). A few cards charge both a percentage and a minimum. Check your card's terms or call the issuer to find your exact fee — it is listed in the Schumer Box on your card's disclosure documents or in your online account.
The cash advance APR is the interest rate applied to the balance. This rate is almost always higher than your purchase APR and varies by card. A card with a 18% purchase APR might have a 24% or 27% cash advance APR. Unlike purchases, there is no grace period: interest starts accruing the day you withdraw the money.
Some cards offer a 0% introductory APR on purchases for 6 to 21 months, but this promotional rate almost never applies to cash advances. If you take a cash advance during a 0% purchase promotion, you pay the regular cash advance APR on that money from day one.
Why cash advances are expensive compared to other options
A $300 cash advance with a 4% fee and 24% APR costs you $12 upfront plus roughly $6 in interest over one month if you do not pay it back immediately. A $300 purchase on the same card costs you $0 if you pay the statement balance in full by the due date.
Even if you need the cash for only a few days, the fee alone makes it costly. A $500 cash advance with a 5% fee costs $25 just to get the money out, regardless of how quickly you repay it. A personal loan, a payday loan (despite its reputation), or even a cash-back transaction at a grocery store checkout costs less for short-term cash needs.
The only scenario where a cash advance makes sense is an emergency when you have no other option and you can repay it within days. Otherwise, plan ahead and use a debit card, withdraw from savings, or ask for a personal loan.
How cash advances affect your credit score and available credit
A cash advance counts as a balance on your credit card, just like a purchase does. It increases your credit utilization ratio — the percentage of your total credit limit that you are using — which can lower your credit score if the ratio climbs above 30%. If you have a $5,000 limit and take a $1,500 cash advance, your utilization jumps to 30% (or higher if you already had a purchase balance).
The cash advance also reduces your available credit immediately. If you have a $5,000 limit and withdraw $500 in cash, you have $4,500 left to spend on purchases. This can be a problem if you need the card for an emergency purchase later in the month.
Paying off the cash advance quickly helps. Once you pay down the balance, your utilization drops and your available credit returns. Credit bureaus update utilization monthly, so paying off a cash advance before your statement closes can prevent a score dip.
Cash advances on different types of cards
Most credit cards allow cash advances, but the terms vary widely. Rewards cards often charge higher cash advance fees and APRs than basic cards, because the issuer assumes you will use the card for purchases (where you earn rewards) rather than cash advances. A premium travel card might charge 5% for a cash advance while a basic card charges 3%.
Some cards marketed to people rebuilding credit also allow cash advances, though the fees and rates tend to be steep. Student cards and secured cards typically allow cash advances as well.
Business credit cards usually allow cash advances, but the terms are set separately from personal cards. If you own a business and need cash, check your business card's disclosure documents for the specific fee and APR.
Alternatives to cash advances that cost less
If you need cash and want to avoid the fee and high interest, consider these options first: withdraw from your savings account or checking account at an ATM (no fee, no interest); use a debit card to buy something and ask for cash back at checkout (no fee); take out a personal loan from a bank or credit union (usually 6% to 36% APR, lower than most cash advance rates, and you get a fixed repayment schedule); or ask a friend or family member for a short-term loan.
If you find yourself needing cash advances regularly, that is a sign your budget does not match your income. A cash advance is a symptom, not a solution. Consider meeting with a financial counselor (many nonprofits offer this for free) to understand where the gap is.
Frequently Asked Questions
Can I use a credit card to withdraw cash from a bank teller without a PIN?
Yes. Walk into any bank branch with your credit card and ID, ask the teller for a cash advance, and they will process it without a PIN. You will still pay the cash advance fee and APR. Some banks may ask why you need the cash or verify your identity more thoroughly than an ATM would.
Does a cash advance show up differently on my credit report than a purchase?
No. Both appear as a balance on your credit card account. The credit bureaus see your total credit card balance, not the breakdown between purchases and cash advances. However, your card issuer tracks them separately for billing purposes, so the cash advance APR applies only to the cash advance portion.
What happens if I do not pay back a cash advance?
The balance carries over to your next statement and accrues interest at the cash advance APR every month. If you miss payments, the issuer may report the delinquency to credit bureaus, which damages your credit score. Late fees also apply. The debt does not go away unless you pay it or the account is closed and charged off.
Can I take a cash advance on a credit card I just opened?
Usually yes, but some issuers restrict cash advances for new accounts. Call the issuer or check your account online to see if cash advances are available. Even if they are, the fee and APR still apply from day one.
Is there a limit to how much cash I can withdraw?
Yes. Your card issuer sets a cash advance limit, which is often lower than your total credit limit. You might have a $5,000 credit limit but only a $1,000 cash advance limit. Check your account online or call the issuer to find out your limit. Some ATMs also have daily withdrawal limits that are separate from your card limit.