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, or a cash-like payment method such as a money order or casino chips. Each one costs differently and affects your balance in different ways.

A cash advance is the most direct method. You go to an ATM, insert your card, enter your PIN, and withdraw money just as you would from a debit card. The cash appears in your hand immediately. However, the card issuer charges a fee (usually 3 to 5 percent of the amount withdrawn, with a minimum of $5 to $10), and interest starts accruing on that cash the same day — there is no grace period like there is for purchases.

A balance transfer moves money from your credit card to a bank account you control. You request this through your card issuer's website or by phone, and the funds arrive in your bank account within a few business days. This method also carries a fee (typically 3 to 5 percent) and interest, but it gives you time to move the money before interest kicks in on some cards.

A cash-like transaction — such as buying a money order, wire transfer, or gambling chips — is treated as a cash advance by your card issuer, even though you are not physically withdrawing bills. These carry the same fees and interest as a direct ATM withdrawal.

Key Takeaways

  • Cash advances charge a fee of 3 to 5 percent upfront and begin accruing interest immediately with no grace period.
  • Your credit card issuer sets a separate cash advance limit, which is often lower than your overall credit limit.
  • Interest rates on cash advances are typically higher than rates on regular purchases and vary by card and issuer.
  • Balance transfers to a bank account may offer a brief window before interest starts, depending on your card's terms.
  • Withdrawing cash from a credit card should be a last resort because the cost compounds quickly compared to other borrowing methods.

How cash advance fees and interest work

When you take a cash advance, two costs hit your account immediately. The first is the cash advance fee, charged upfront as a percentage of the amount withdrawn. If you withdraw $500 and the fee is 4 percent, you owe $20 in fees plus the $500 itself. This fee appears on your statement as a separate line item.

The second cost is interest, which begins accruing the day you withdraw the cash. Unlike purchases, which often have a grace period (usually 21 to 25 days before interest starts), cash advances have no grace period. If you withdraw $500 on January 15 and pay it back on January 20, you still owe interest for those five days. The interest rate on cash advances is also typically 2 to 5 percentage points higher than your regular purchase APR.

Interest compounds daily. If your cash advance APR is 24 percent and you withdraw $500, you owe roughly $3.29 in interest on day one, $6.59 by day two, and so on. The longer the cash sits, the more interest accumulates. After 30 days, you would owe approximately $100 in interest alone.

Your cash advance limit is separate from your credit limit

Your card issuer assigns you a cash advance limit that is independent of your overall credit limit. You might have a $5,000 credit limit but only a $1,000 cash advance limit. This means you can charge $5,000 in purchases but withdraw only $1,000 in cash.

You can find your cash advance limit by logging into your account online, calling the customer service number on the back of your card, or checking your most recent statement. Some issuers allow you to request an increase to this limit, though approval is not may provide and depends on your account history and creditworthiness.

If you try to withdraw more than your cash advance limit, the ATM will decline the transaction. You cannot exceed this limit by visiting a bank branch or using a different ATM.

Where you can withdraw cash from a credit card

You can withdraw a cash advance at any ATM that displays your card's logo (Visa, Mastercard, American Express, or Discover). Most ATMs in banks, grocery stores, and convenience stores accept credit cards for cash advances, though some machines restrict this to debit cards only.

You can also visit a bank branch in person and ask a teller for a cash advance. This method works even if you do not have an account at that bank, though the teller may charge an additional fee on top of your card issuer's fee. Bank tellers can also process larger amounts than some ATMs allow.

Some card issuers also allow you to request a cash advance by phone or through their mobile app, with the funds deposited into your bank account. This is technically a balance transfer rather than a direct withdrawal, but the fees and interest are the same.

How a cash advance affects your credit score

Taking a cash advance does not directly lower your credit score, but it can indirectly harm it in two ways. First, the cash advance increases your credit utilization ratio — the percentage of your available credit you are using. If you have a $5,000 limit and take a $1,000 cash advance, your utilization jumps to 20 percent. High utilization (above 30 percent) can lower your score.

Second, if you cannot pay off the cash advance quickly, the interest charges will increase your balance, which further raises your utilization and may cause you to miss payments. Missed payments are reported to credit bureaus and cause more significant score damage than the cash advance itself.

The cash advance itself does not appear separately on your credit report — it is simply part of your credit card balance. However, the payment history and utilization tied to that balance do affect your score.

When a cash advance makes sense and when it does not

A cash advance is rarely the best way to borrow money because of the high fees and immediate interest. However, it may be necessary in specific situations: you need cash for an emergency and have no other way to get it, you are in a location where card payments are not accepted, or you need physical currency for a transaction that requires it.

A cash advance does not make sense if you have other options available. A personal loan from a bank or credit union typically carries a lower interest rate and does not charge an upfront fee. A payday loan, while expensive, may be cheaper than a cash advance if you plan to repay it within two weeks. Even a balance transfer card with a 0 percent introductory period is cheaper than a cash advance if you can transfer the balance before interest kicks in.

If you are considering a cash advance to pay another debt, pause and calculate the total cost. A $500 cash advance at 4 percent fee plus 24 percent APR costs $20 upfront plus roughly $10 in interest per month. Over six months, you would pay $80 in fees and interest alone — money that goes nowhere except to your card issuer.

How to pay off a cash advance

When you make a payment on your credit card, the issuer applies it to your balance in a specific order set by federal law. Payments go first to the balance with the highest interest rate, then to lower-rate balances. Since cash advances have the highest interest rate, your payments will reduce the cash advance balance before reducing purchase balances.

This means if you have both a purchase balance and a cash advance balance, paying $200 toward your card will reduce the cash advance by $200 (assuming the cash advance is the highest-rate balance), not split between the two. This is actually in your favor because you are paying off the most expensive debt first.

To minimize interest, pay off the cash advance as quickly as possible. Even paying it off one week early saves you money. If you cannot pay it off in full, make the largest payment you can afford, because every dollar you pay reduces the daily interest accrual.

Frequently Asked Questions

Can I use a credit card cash advance to pay another credit card?

Yes, you can withdraw cash and deposit it into another card's account, but this is expensive and pointless. You pay the cash advance fee and interest on the withdrawn amount, then the receiving card charges you interest on the deposit. You end up paying interest twice on the same money. If you need to move a balance between cards, a balance transfer (which moves the balance directly without cash) is much cheaper.

What happens if I cannot pay back a cash advance?

The cash advance becomes part of your credit card balance and accrues interest like any other debt. If you miss payments, the issuer reports the missed payment to credit bureaus, which damages your credit score. After 180 days of missed payments, the card issuer may charge off the account and sell the debt to a collection agency. You can still be sued for the amount owed.

Do all credit cards allow cash advances?

Most credit cards allow cash advances, but some do not. Secured cards, student cards, and certain specialty cards may not offer this feature. Check your card's terms or call the issuer to confirm whether cash advances are available on your account.

Is there a way to get cash from a credit card without paying a fee?

No. Every cash advance method — ATM withdrawal, bank teller withdrawal, or balance transfer to a bank account — charges a fee set by your card issuer. The fee is mandatory and cannot be waived. The only way to avoid the fee is to not take a cash advance.

How long does it take to get cash from a credit card?

An ATM withdrawal is instant — you get the cash immediately. A balance transfer to your bank account takes 1 to 3 business days. A cash advance requested by phone or app typically arrives in your bank account within 1 to 2 business days. A bank teller cash advance is immediate if you visit in person.