The three ways to withdraw cash from a credit card

You can get cash from a credit card in three ways: a cash advance at an ATM using your PIN, a balance transfer to your bank account (offered by some issuers), or a cash-like purchase through money orders or casino chips. Each one costs differently and affects your account in different ways.

A cash advance is the most common method. You go to any ATM that accepts your card, enter your PIN, and withdraw cash up to your daily limit — typically $500 to $1,000, though your issuer sets the actual amount. The transaction posts to your account immediately as a cash advance, not a regular purchase.

Balance transfers to bank accounts are less common but available from some issuers like American Express and certain premium cards. You request the transfer through your online account or by phone, and the issuer deposits funds directly into your linked bank account within one to three business days.

Cash-like purchases — buying money orders, wire transfers, or casino chips — are treated as cash advances by your card issuer even though you are not withdrawing from an ATM. These trigger the same fees and interest rates as a direct ATM withdrawal.

Key Takeaways

  • Cash advances charge a separate fee (usually 3 to 5 percent of the amount withdrawn) plus a higher interest rate than regular purchases, starting to accrue immediately with no grace period.
  • Your daily ATM withdrawal limit is set by your card issuer and is often much lower than your credit limit — you cannot withdraw your full available balance in one day.
  • Interest on a cash advance begins accruing the moment you withdraw the money, not at the end of the billing cycle like a purchase would.
  • Balance transfers to your bank account, when available, usually have lower fees than ATM cash advances but still charge interest from day one.
  • Paying off a cash advance does not reduce the balance faster than a regular purchase — your payment goes to the lowest-interest debt first unless your issuer allows you to direct it.

Cash advance fees and how they are calculated

Every cash advance charges a transaction fee calculated as a percentage of the amount you withdraw. This fee is charged immediately and added to your balance. Most issuers charge between 3 and 5 percent, though some charge a flat fee of $5 to $10 if that is higher.

If you withdraw $500, a 4 percent fee costs $20. If you withdraw $1,000, the fee is $40. This fee appears on your statement as a separate line item and is not refundable even if you pay back the cash advance within days.

Some cards waive the cash advance fee for the first 30 or 60 days after account opening, or for cardholders with excellent payment history. Check your card's terms or call the issuer to confirm whether your card charges a fee and at what rate.

Interest rates on cash advances

Cash advances carry a separate, higher interest rate than purchases on the same card. While a purchase might have an APR of 18 percent, a cash advance on the same card might be 24 or 28 percent. This rate is set in your card agreement and does not change based on your credit score after you open the account.

Interest begins accruing the day you withdraw the cash — there is no grace period. If you withdraw $500 on the 5th of the month and do not pay it back until the 20th, you owe interest for those 15 days, even if you pay before your statement closes.

The daily interest charge is calculated by multiplying your cash advance balance by the daily rate (APR divided by 365). On a $500 advance at 25 percent APR, the daily charge is roughly $0.34 per day. Over 30 days, that is about $10.27 in interest alone, on top of the upfront fee.

Daily withdrawal limits and how they work

Your card issuer sets a daily ATM withdrawal limit separate from your credit limit. This limit is typically $500 to $1,000 per day, though some cards allow $1,500 or more. You cannot withdraw more than this amount in a single day, even if your available credit is higher.

The limit resets at midnight each day, usually based on your card issuer's time zone. If you withdraw $500 on Monday and want to withdraw another $500 on Tuesday, you can — but you cannot withdraw $1,000 on Monday and then $500 on Tuesday if your limit is $1,000 per day.

You can request a higher daily limit by calling your issuer's customer service line. Some issuers will increase it temporarily for a stated reason (travel, emergency), while others require you to wait 30 days between requests. There is no may provide your request will be approved.

How cash advances affect your credit score and account

A cash advance does not directly lower your credit score the moment you take it, but it does increase your credit utilization ratio — the percentage of your available credit you are using. If you have a $5,000 limit and withdraw $1,000 in cash, your utilization jumps to 20 percent. High utilization can lower your score by 10 to 50 points depending on your overall credit profile.

The cash advance balance is reported to the credit bureaus as part of your total card balance. It does not appear separately on your credit report, so lenders see only that you owe more on the card, not that the debt is a cash advance.

If you miss a payment on a cash advance, it is treated the same as a missed purchase payment — it will be reported as late after 30 days and can damage your credit. The higher interest rate means the balance grows faster if you carry it month to month.

How payments are applied to cash advances

When you make a payment on a card with both purchases and a cash advance, your issuer applies the payment to the lowest-interest debt first — usually your purchases. The cash advance sits and accrues interest at the higher rate while you pay down the purchase balance.

This means if you have a $2,000 purchase at 18 percent APR and a $500 cash advance at 25 percent APR, and you send in a $500 payment, that payment goes entirely to the purchase. The cash advance balance stays at $500 and continues accruing interest at the higher rate.

Some issuers allow you to direct your payment to a specific balance type by calling customer service or using their online portal. Ask whether your issuer supports this before you take a cash advance — if they do, you can pay down the cash advance faster and save on interest.

Alternatives to cash advances

If you need cash urgently, a cash advance is often the most expensive option available to you. 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 carry the balance for more than a few weeks.

A payday loan or line of credit from your bank may also be cheaper, though payday loans carry their own risks and high fees. If you have a savings account, withdrawing from savings costs nothing and avoids debt entirely.

If you are in a true emergency and have no other options, a cash advance is faster than a personal loan — you have the money within minutes. But if you have time to explore other routes, the interest and fees on a cash advance make it one of the most expensive ways to borrow.

Frequently Asked Questions

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

Yes. Most banks will process a cash advance at the teller window if you present your card and ID, even if you do not have an account there. The fee and interest rate are the same as an ATM withdrawal. Some banks charge an additional fee for teller-processed cash advances, so ask before you proceed.

What happens if I withdraw a cash advance and then pay it back the next day?

You still owe the upfront transaction fee and one day of interest. If you withdrew $500 at a 4 percent fee, you owe $20 in fees plus roughly $0.34 in interest. The fee is not refundable, so paying back the cash quickly saves only the interest charges, not the fee itself.

Does a cash advance show up differently on my credit report than a regular purchase?

No. Your credit report shows only your total balance on the card, not how much is a purchase versus a cash advance. Lenders see that you owe money on the card but cannot tell from your credit report alone that part of it came from a cash advance.

Can I take a cash advance on a card that is already maxed out?

No. A cash advance counts against your credit limit just like a purchase does. If you have used your full limit, you cannot take a cash advance until you pay down the balance and free up available credit.

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

A balance transfer moves debt from one card to another (or to your bank account with some issuers) and typically has a lower fee — 3 to 5 percent versus 3 to 5 percent for a cash advance, but sometimes with a 0 percent introductory rate. A cash advance is a withdrawal of cash with no introductory period. Balance transfers are less common and not available on all cards.