Yes, you can withdraw cash on a credit card, but it costs more than you might expect
You can take cash out of an ATM using your credit card, but the bank treats it differently than a purchase. The moment you withdraw cash, you start paying interest immediately — there is no grace period like you get with regular purchases. You also pay an upfront fee, usually 3% to 5% of the amount you withdraw. For a $100 cash withdrawal, you might pay $3 to $5 right away, plus daily interest charges starting that same day.
This is why cash withdrawals should be a last resort, not a regular habit. The combination of the fee and the interest rate makes it one of the most expensive ways to borrow money on a credit card.
Key Takeaways
- Cash withdrawals from a credit card charge a fee (usually 3% to 5%) and start accruing interest immediately with no grace period.
- The interest rate on cash withdrawals is often higher than the rate on regular purchases, even on the same card.
- You can withdraw cash at any ATM that accepts your card's network (Visa, Mastercard, American Express, or Discover), but bank ATMs may charge an additional surcharge.
- The total cost of a cash withdrawal can easily exceed 10% of the amount withdrawn when you combine the fee and the first month's interest.
How the cash withdrawal fee works
When you withdraw cash, your card issuer charges a cash advance fee on top of the amount you take out. This fee is a percentage of the withdrawal — typically 3%, 4%, or 5%, depending on your card and your bank. Some cards charge a flat fee instead (like $5 or $10), but percentage-based fees are more common.
The fee is added to your balance immediately. If you withdraw $200 with a 4% fee, you owe $208 right away. That extra $8 is not a separate charge — it becomes part of your credit card balance and you pay interest on it too.
Interest starts right away, with no grace period
Credit cards normally give you a grace period on purchases — usually 21 to 25 days — where you can pay off what you bought without paying any interest. Cash withdrawals do not get this grace period. Interest starts accruing the day you withdraw the money.
The interest rate on cash withdrawals is also often higher than your regular purchase APR. Your card might charge 18% APR on purchases but 24% APR on cash advances. Check your card's terms to see if there is a separate rate for cash withdrawals. Even if the rates are the same, the lack of a grace period means you are paying interest from day one.
Where you can withdraw cash and what it costs
You can withdraw cash at any ATM that displays your card's logo — Visa, Mastercard, American Express, or Discover. This includes ATMs at banks, grocery stores, gas stations, and independent ATM networks.
However, using an ATM outside your card issuer's network often triggers a second fee. If your card is issued by Bank A but you use an ATM from Bank B, Bank B may charge you a surcharge (usually $2 to $3). Your own bank may also charge an out-of-network fee. These fees are separate from the cash advance fee your card issuer charges. A single $100 withdrawal could cost you the cash advance fee plus two ATM surcharges — easily $8 to $13 before interest.
How much a cash withdrawal actually costs you
The real expense of a cash withdrawal adds up quickly. Here is what a $200 withdrawal might look like:
| Cost | Amount |
|---|---|
| Cash advance fee (4%) | $8 |
| Out-of-network ATM surcharge | $3 |
| Your bank's out-of-network fee | $2 |
| Interest for one month (at 24% APR) | $4 |
| Total cost | $17 |
That $200 withdrawal cost you $17 in fees and interest in just the first month. If you carry the balance longer, the interest keeps growing. This is why a cash withdrawal should only happen if you have no other option and you plan to pay it back within days.
Better alternatives to a credit card cash withdrawal
Before you use a credit card to get cash, consider other options. If you need cash for an emergency, a personal loan from a bank or credit union usually charges less interest than a credit card cash advance. A payday loan is faster but more expensive, so compare the rates first.
If you have a debit card, use that instead — there is no interest and the fees are usually lower. If you do not have a debit card, ask your bank about opening a checking account. If you need cash regularly, a checking account with a debit card is cheaper and simpler than using a credit card.
Some credit cards offer a 0% APR period on cash withdrawals as a promotional offer, though this is rare. Check your card's current terms to see if this applies to you. Even with 0% APR, you still pay the cash advance fee upfront, so it is not free — just cheaper than the normal rate.
Frequently Asked Questions
What is the difference between a cash advance and a regular purchase?
A regular purchase has a grace period (usually 21 to 25 days) where you can pay without interest. A cash advance charges interest from day one and usually has a higher APR. Both charge fees, but the cash advance fee is a percentage of the amount withdrawn, while purchase fees are rare on most cards.
Can I use my credit card at an ATM that is not my bank?
Yes, you can use any ATM that displays your card's network logo. However, you will likely pay a surcharge from that ATM's operator plus a fee from your own bank. Using your card issuer's own ATMs avoids these extra charges.
Does paying back a cash withdrawal quickly lower the interest?
Interest is calculated daily based on your balance. Paying back the withdrawal as soon as possible stops the interest from growing, but you still owe the cash advance fee upfront. Even a quick repayment costs you the fee plus a few days of interest.
Will a cash withdrawal hurt my credit score?
The withdrawal itself does not hurt your score, but it does increase your credit utilization (the percentage of your credit limit you are using). High utilization can lower your score slightly. Paying off the balance quickly brings your utilization back down.
Are there credit cards that do not charge cash advance fees?
Most credit cards charge a cash advance fee. Some cards marketed to people rebuilding credit may have lower fees or promotional periods with no fee, but these are exceptions. Check your card's terms before withdrawing cash.