You cannot withdraw cash directly from a credit card like you would from a debit card or bank account

A credit card is a borrowing tool, not a deposit account. When you use a credit card to buy something, you are borrowing money from the card issuer. You do not have a pool of your own cash sitting in the card to withdraw. The card company is lending you funds, and you repay them later.

If you need cash, you have three actual options: a cash advance, a balance transfer to a bank account (offered by some issuers), or simply withdrawing from your own bank account if you have funds there. Each works differently, costs differently, and affects your credit card balance in different ways.

Key Takeaways

  • A cash advance lets you withdraw cash at an ATM using your credit card PIN, but charges a fee (usually 3 to 5 percent) and a higher interest rate than regular purchases.
  • Interest on a cash advance starts accruing immediately — there is no grace period like there is for purchases.
  • Some card issuers offer balance transfers to your bank account, which may have lower fees than a cash advance but still charge interest if you do not pay it back quickly.
  • The cash advance amount counts toward your credit limit, so withdrawing $500 reduces the amount you can spend on purchases.
  • Cash advances appear on your credit report as a separate line item and can signal financial stress to lenders.

How a cash advance works and what it costs

A cash advance is the most direct way to get cash from a credit card. You go to an ATM, insert your card, enter your PIN, and withdraw cash up to your daily limit. The issuer immediately adds that amount to your credit card balance, just like a purchase would.

The cost is higher than a regular purchase. Most issuers charge a cash advance fee of 3 to 5 percent of the amount withdrawn — so a $500 withdrawal costs $15 to $25 in fees alone. Some cards charge a flat fee instead (for example, $10 per advance). Check your card's terms or call the issuer to find your specific fee.

The interest rate on a cash advance is also higher than your purchase APR. While a purchase might carry an APR of 18 percent, a cash advance might be 22 or 25 percent. More importantly, interest starts accruing immediately. With a purchase, you usually get a grace period (often 21 to 25 days) before interest kicks in. With a cash advance, interest begins the day you withdraw the money. There is no grace period.

The cash advance amount counts against your credit limit. If your limit is $5,000 and you withdraw $500 in cash, you now have only $4,500 available to spend on purchases.

Daily limits and where you can withdraw

Your card issuer sets a daily cash advance limit, which is often lower than your total credit limit. You might have a $5,000 credit limit but only be able to withdraw $500 per day in cash. This limit exists to protect the issuer from large sudden losses.

You can withdraw cash at any ATM that displays your card network's logo (Visa, Mastercard, American Express, or Discover). You can also visit a bank branch or some retail locations and ask for a cash advance over the counter, though this is less common now.

Out-of-network ATMs — machines that do not belong to your card issuer's partner network — may charge an additional ATM operator fee on top of your card issuer's cash advance fee. This fee is usually $2 to $3 and goes to the ATM operator, not your card issuer. Always use an in-network ATM if possible to avoid this extra charge.

Balance transfers to your bank account

Some card issuers offer a different option: transferring your available credit directly to your bank account. This is not the same as a balance transfer between credit cards. Instead, the issuer deposits money into your checking or savings account, and you owe that amount on your credit card.

This option is less common than cash advances, and not all issuers offer it. If your card does, the fee is usually similar to a cash advance fee (3 to 5 percent), and interest still accrues from day one. The advantage is that you get the money in your bank account rather than in cash, which can be safer and easier to manage.

To learn about your card offers this, log into your online account or call the issuer's customer service line. They can tell you whether the option is available and what the terms are.

How cash advances affect your credit and account

A cash advance shows up on your credit report as a separate transaction type. Credit scoring models treat cash advances differently from regular purchases — they are seen as a sign that you may be short on cash, which can lower your credit score slightly.

The cash advance also increases your credit utilization ratio. If you have a $5,000 limit and carry a $500 cash advance plus $1,000 in purchases, your utilization is 30 percent. High utilization (above 30 percent) can hurt your score. Paying down the cash advance quickly helps bring this number down.

When you make a payment to your credit card, the issuer applies it to your balance in a specific order set by law. Payments typically go first to the highest-interest debt on the card. Since a cash advance has a higher interest rate than purchases, your payment will usually go toward the cash advance first, which is actually in your favor.

Alternatives to a credit card cash advance

If you need cash, a credit card cash advance should usually be your last choice because of the fees and high interest rate. Consider these alternatives first:

  • Withdraw from your own bank account. If you have a checking or savings account with available funds, this is always the cheapest option. No fees, no interest.
  • Use a debit card. If you have a debit card linked to your bank account, you can withdraw cash at any ATM for free or a small fee.
  • Ask for a personal loan. If you need a larger amount, a personal loan from a bank or credit union usually has a lower interest rate than a credit card cash advance.
  • Borrow from family or friends. If possible, this avoids fees and interest entirely.
  • Use a payday loan or short-term lender. These are expensive, but sometimes less expensive than a cash advance if you pay back quickly. Compare the total cost before choosing.

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

If you have no other option and must take a cash advance, these steps will reduce the damage:

  • Withdraw only what you need. The fee is a percentage, so a smaller withdrawal means a smaller fee. A $200 advance costs less than a $500 advance.
  • Use an in-network ATM. This avoids the extra ATM operator fee.
  • Pay it back as fast as possible. Interest accrues daily, so every day you carry the balance costs you money. If you can pay it back within a week, do so.
  • Pay more than the minimum. Your minimum payment will cover interest and a small portion of principal. Paying extra reduces the principal faster and saves interest.
  • Check your card's terms before withdrawing. Some cards have lower cash advance fees or rates than others. If you have multiple cards, use the one with the lowest fee.

Frequently Asked Questions

Can I withdraw cash from a credit card without a PIN?

No. You need a PIN to withdraw cash at an ATM. If you do not have a PIN set up, contact your card issuer to request one. You can usually set it up online or by phone. Some issuers allow you to withdraw cash over the counter at a bank branch without a PIN, but you will need to show ID and the card itself.

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

A cash advance puts cash in your hand at an ATM. A balance transfer moves money from one credit card to another credit card (or sometimes to a bank account). Balance transfers between cards often have a lower fee and interest rate, but they are meant for paying off other debts, not for getting spending cash. A balance transfer to your bank account is rare and works like a cash advance.

Does a cash advance hurt my credit score?

Yes, usually. A cash advance increases your credit utilization ratio and signals to lenders that you may be in financial stress. Both factors can lower your score. The impact is temporary — paying down the balance quickly will bring your score back up. However, the damage is usually smaller than missing a payment or defaulting.

Can I use a credit card to withdraw cash from a bank teller?

Yes. You can visit a bank branch and ask the teller for a cash advance. You will need to show your credit card and a valid ID. The teller will process it the same way an ATM would — the amount is added to your balance, and you pay the cash advance fee and interest. Some banks charge an additional fee for over-the-counter cash advances.

What happens if I cannot pay back a cash advance?

The cash advance becomes part of your credit card balance. If you do not pay it, interest continues to accrue at the higher cash advance rate. The balance will grow each month, and if you miss payments, your credit score will drop and the issuer may pursue collection action. Paying at least the minimum is critical to avoid default.