You can withdraw cash from a credit card, but it costs more than a regular purchase and should be a last resort

A cash advance is when you use your credit card to pull money out of an ATM or get cash from a bank teller. The money goes into your pocket immediately, but the card company charges you a fee right away and starts charging interest the same day — with no grace period like you get on regular purchases. Most people should avoid this unless they have no other way to get emergency cash.

The three main ways to get cash from a credit card are: using an ATM with your PIN, asking a bank teller for cash over the counter, or getting cash back at a store checkout. Each one costs the same in fees and interest, but they differ in how fast you can do them and how much cash you can take out at once.

Key Takeaways

  • Cash advances charge a fee (usually 3 to 5 percent of the amount) plus a higher interest rate than regular purchases, starting immediately with no grace period.
  • You can get a cash advance at an ATM using your PIN, at a bank teller window, or sometimes at a store checkout, depending on your card and the location.
  • Your credit card company sets a separate cash advance limit, which is often lower than your overall credit limit.
  • The interest you pay on a cash advance is calculated daily from the moment you withdraw it, so the longer you carry the balance, the more it costs.
  • Safer alternatives to a cash advance include a personal loan, borrowing from family, or using a debit card if you have one.

What fees and interest rates you will pay

When you take a cash advance, your card company charges two separate costs: an upfront fee and ongoing interest. The upfront fee is usually between 3 and 5 percent of the amount you withdraw — so a $200 cash advance might cost $6 to $10 just to take it out. This fee appears on your statement right away.

The interest rate on a cash advance is almost always higher than the rate on regular purchases. While a purchase might have an APR (annual percentage rate) of 18 percent, a cash advance on the same card might be 25 percent or higher. Unlike purchases, there is no grace period — interest starts accruing the day you withdraw the money. If you carry a $200 cash advance for 30 days at 25 percent APR, you will owe roughly $4 in interest on top of the $6 to $10 fee.

Check your card's terms or call the customer service number on the back to find out your specific cash advance fee and APR before you withdraw. These numbers vary by card and by cardholder.

How to withdraw cash from an ATM

To use an ATM, you need a PIN (personal identification number) for your credit card. If you do not have one, call the customer service number on the back of your card and ask them to set one up — this usually takes a few minutes. Once you have a PIN, go to any ATM that accepts your card's network (Visa, Mastercard, American Express, or Discover).

Insert your card, enter your PIN, and select "cash advance" or "withdraw cash" from the menu. The ATM will ask how much you want to take out. Enter the amount and confirm. The ATM will dispense the cash and your card will be returned. The transaction shows up on your statement within one to two business days.

ATMs usually have daily limits on how much you can withdraw — often $500 to $1,000 per day, though this varies by card and by ATM. Your card company may also have a separate cash advance limit that is lower than your overall credit limit. For example, you might have a $5,000 credit limit but only a $1,000 cash advance limit.

Getting cash from a bank teller

You can also walk into a bank branch and ask a teller for a cash advance on your credit card. Bring your card and a form of ID. Tell the teller you want a cash advance and how much you need. The teller will process the transaction, charge you the same fee as an ATM would, and hand you the cash.

This method works even if you do not have a PIN set up yet, because the teller can verify your identity in person. It is slower than an ATM — you have to wait in line and the teller has to enter the transaction manually — but it can be useful if you need a large amount of cash and your ATM has a daily limit.

Not all banks offer cash advances on credit cards, so call ahead or ask when you arrive. Some banks only do this for customers who have an account with them.

Cash back at a store checkout

Some stores let you get cash back when you use your credit card to make a purchase. You buy something small (or nothing at all, depending on the store's policy) and ask for cash back. The store gives you the difference between your purchase and the amount you hand over.

This method does not charge a cash advance fee — you only pay the fee if the store is treating it as a cash advance rather than a regular purchase. Many stores treat small cash-back amounts as part of the purchase, so there is no extra charge. However, you should ask the cashier before you complete the transaction to confirm whether a fee will apply.

The downside is that you have to make a purchase, and the amount of cash back is usually capped at $100 to $200 per transaction. This works best if you need a small amount of cash and you were planning to buy something anyway.

Why a cash advance should be your last option

A cash advance is expensive because of the combination of the upfront fee, the higher interest rate, and the lack of a grace period. On a $500 cash advance at 5 percent fee and 25 percent APR, you pay $25 in fees plus interest that grows every day you carry the balance. If you pay it back in 30 days, you will have paid roughly $50 total. If you carry it for three months, you will pay roughly $150.

Compare this to a personal loan from a bank or credit union, which usually has a lower interest rate and lets you pay it back over a set period. Or ask family or friends if they can lend you the money interest-free. Even a payday loan, which is also expensive, is sometimes cheaper than a cash advance if you pay it back quickly.

If you find yourself needing cash advances regularly, that is a sign that your budget does not match your income. Consider talking to a credit counselor (many nonprofits offer this for free) about ways to build an emergency fund or reduce your expenses.

Your cash advance limit versus your credit limit

Your credit card company sets two separate limits: your overall credit limit and your cash advance limit. The cash advance limit is usually much lower — often 10 to 25 percent of your total credit limit. So if you have a $5,000 credit limit, your cash advance limit might be only $500 to $1,250.

This limit is set by the card company based on your credit history and account activity. You cannot change it yourself, but you can call customer service and ask if they will raise it. They may or may not agree, depending on your account.

If you try to withdraw more than your cash advance limit, the ATM or teller will decline the transaction. You will not be charged a fee for a declined transaction, but you also will not get the cash.

Frequently Asked Questions

Does a cash advance hurt my credit score?

A cash advance itself does not directly hurt your score, but carrying a high balance does. If you take out a large cash advance and do not pay it back quickly, your credit utilization (the amount of credit you are using compared to your limit) goes up, which can lower your score. Pay it back as soon as you can.

Can I use a credit card to withdraw money from another person's bank account?

No. A cash advance only gives you cash from your own credit card account. You cannot use it to access someone else's money. If you need to transfer money to someone else, use a bank transfer, wire transfer, or payment app instead.

What happens if I cannot pay back a cash advance?

The balance stays on your card and interest keeps accruing. If you do not make at least the minimum payment, your account will fall behind and your credit score will drop. After 30 days late, the card company may report it to credit bureaus. After 180 days, they may close your account or send it to a collection agency.

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

No. All cash advances charge a fee. However, some cards offer a lower cash advance fee or a promotional period with no fee for new cardholders — check your card's terms. If you want to avoid the fee entirely, use a debit card, ask for cash back at a store, or borrow from someone else.

Can I use a credit card to get cash at a casino or gambling venue?

Yes, but casinos treat it as a cash advance, so you will pay the full fee and interest rate. Many casinos have ATMs on the floor specifically for this. Be aware that gambling debt is not discharged in bankruptcy, so this is an especially risky way to borrow money.