Yes, you can withdraw cash from a credit card, but it works differently than a debit card and costs more

You can take cash out of an ATM using your credit card, but the transaction is treated as a cash advance, not a purchase. This matters because cash advances carry higher fees and interest rates than regular credit card charges. The moment you withdraw the money, interest begins accruing — there is no grace period like there is for purchases. Most credit cards charge a cash advance fee (usually 3% to 5% of the amount withdrawn, with a minimum fee of $5 to $10) plus a higher interest rate that applies only to that cash balance.

The process itself is straightforward: insert your card at an ATM, enter your PIN, and select the cash advance option. But the financial cost makes this an expensive way to get cash unless you have no other option. If you need money regularly, using your debit card or visiting your bank branch is almost always cheaper.

Key Takeaways

  • Cash advances charge a separate fee (typically 3% to 5% of the amount) plus a higher interest rate that starts accruing immediately with no grace period.
  • Your credit card's cash advance limit may be lower than your overall credit limit, and you can find this limit in your account statement or by calling your card issuer.
  • Interest on a cash advance compounds daily and is calculated from the withdrawal date, not from your statement closing date.
  • Paying off a cash advance should be your priority because the interest rate is higher than the rate on purchases, and the fee is non-refundable.

How cash advance fees and interest rates work

When you withdraw cash using your credit card, your card issuer charges you two separate costs. The first is the cash advance fee, which is a one-time charge calculated as a percentage of the amount you withdraw. This fee appears on your statement immediately and is not refundable, even if you pay back the cash advance within days. A $200 cash advance with a 4% fee costs you $8 right away, regardless of how quickly you repay it.

The second cost is the cash advance interest rate, which is higher than the purchase interest rate on the same card. While a purchase might carry an APR of 18%, a cash advance on that same card might be charged at 22% or higher. This rate is applied daily to your outstanding cash advance balance starting from the day you withdraw the money. Unlike purchases, which have a grace period (usually 21 to 25 days before interest kicks in), cash advances begin accruing interest immediately.

The total cost depends on how long you carry the balance. A $300 cash advance at 24% APR with a 5% fee costs you $15 in fees plus roughly $6 in interest if you pay it back in one month. If you carry it for six months, the interest alone reaches approximately $36.

Cash advance limits and how to find yours

Your credit card issuer sets a cash advance limit that is separate from your overall credit limit. You might have a $5,000 credit limit but only a $1,500 cash advance limit. This limit is determined by your card issuer based on your creditworthiness and account history, and it can be lower or higher than your purchase limit.

To find your cash advance limit, check your most recent statement — it is usually listed near your credit limit. You can also log into your online account or call the customer service number on the back of your card. If you try to withdraw more than your limit, the ATM will decline the transaction. Some card issuers allow you to request an increase to your cash advance limit, though this is not may provide.

Your cash advance limit counts against your overall credit limit. If your limit is $5,000 and you withdraw $1,000 in cash, you have $4,000 remaining for purchases. This means a large cash advance reduces the credit available for everyday spending.

Where you can withdraw cash and what ATMs charge

You can withdraw cash from any ATM that displays your card's logo (Visa, Mastercard, American Express, or Discover). This includes ATMs at banks, credit unions, convenience stores, and independent ATM networks. However, using an ATM outside your card issuer's network often triggers an additional out-of-network ATM fee charged by the ATM operator, typically $2 to $3 per transaction.

If your card is issued by a bank, using an ATM at that same bank usually avoids the out-of-network fee. For example, a Chase credit card holder using a Chase ATM typically avoids the operator fee. But the cash advance fee from your card issuer still applies regardless of which ATM you use.

Some credit card issuers reimburse out-of-network ATM fees as a cardholder benefit, though this is rare and usually only on premium cards. Check your cardholder agreement or call customer service to see if your card offers this benefit.

How interest accrues on cash advances

Interest on a cash advance is calculated daily using the daily periodic rate, which is your APR divided by 365. If your cash advance APR is 24%, your daily rate is roughly 0.066% per day. This rate is applied to your outstanding balance each day until you pay it off.

Unlike purchases, which may have a grace period, interest on cash advances begins accruing on the day you withdraw the money. If you withdraw $500 on the 5th of the month and pay it back on the 15th, you are charged interest for all 10 days. The interest is added to your statement and compounds — meaning interest accrues on top of interest if you do not pay the full balance.

Your statement will show the cash advance balance separately from your purchase balance. When you make a payment, your card issuer typically applies it to the lowest-interest balance first (usually purchases), which means your cash advance balance may continue to accrue interest even while you are making payments. To stop interest from accruing on a cash advance, you must pay the entire cash advance balance in full.

Why paying off a cash advance quickly matters

Because cash advances charge both an upfront fee and a higher interest rate, the cost of carrying a balance grows quickly. A $500 cash advance at 24% APR with a 5% fee costs you $25 in fees plus interest. If you pay it back in one month, the total cost is roughly $35. If you carry it for three months, the total cost reaches approximately $65.

The fee is non-refundable, so even if you repay the cash advance within days, you still owe the full fee. This makes cash advances most expensive when used for short-term needs where you could have used a debit card or borrowed from another source instead. If you must use a cash advance, prioritize paying it off before making other credit card payments, because the interest rate is higher on that balance.

If you find yourself regularly needing cash advances, it may signal that you should reconsider your payment methods or budget. Switching to a debit card, setting up a line of credit with your bank, or using a personal loan for larger needs are typically cheaper alternatives.

Alternatives to credit card cash advances

If you need cash, several options are cheaper than a credit card cash advance. A debit card withdrawal at your bank's ATM costs nothing and gives you access to your own money. If you use an out-of-network ATM with your debit card, you may pay a fee, but it is usually lower than a credit card cash advance fee plus interest.

A personal loan from a bank or credit union typically carries a lower interest rate than a cash advance, though it requires an application and approval process. A line of credit from your bank offers similar benefits and can be drawn on when needed. If you have a 401(k) or similar retirement account, some plans allow loans against your balance, though this carries tax and withdrawal penalties if not repaid on time.

For smaller amounts, asking friends or family for a short-term loan, using a payment plan with a merchant, or delaying the purchase until you have saved the cash are all cheaper than a cash advance. Credit card companies market cash advances as convenient, but convenience comes at a high cost.

Frequently Asked Questions

What is the difference between a cash advance and a balance transfer?

A cash advance gives you physical cash and charges a cash advance fee plus a higher interest rate. A balance transfer moves debt from one card to another and charges a balance transfer fee (usually 3% to 5%) plus a promotional or standard interest rate. Both are expensive, but a balance transfer is designed for moving existing debt, while a cash advance is for obtaining cash.

Can I get a cash advance if I have a 0% APR promotional offer?

No. The 0% promotional rate applies only to purchases or balance transfers, depending on the card's offer. Cash advances are charged at the card's standard cash advance APR from day one, regardless of any promotional offer on the account.

Does a cash advance hurt my credit score?

A cash advance itself does not directly hurt your score, but it increases your credit utilization (the amount of available credit you are using), which can lower your score slightly. If you carry the balance and miss payments, that will damage your score more significantly.

What happens if I cannot pay back a cash advance?

If you do not pay, the balance continues to accrue interest at the cash advance rate, and your card issuer may report the missed payment to credit bureaus after 30 days. This damages your credit score and may result in late fees, a higher interest rate on your entire card, or legal action if the debt is large enough.

Can I withdraw cash from a credit card at a bank teller instead of an ATM?

Yes. Many banks allow you to withdraw cash at a teller window using your credit card, and this is still treated as a cash advance with the same fees and interest rates. The method of withdrawal does not change the cost — only the convenience of where you withdraw it.