You can get cash from a credit card through an ATM withdrawal, a bank teller transaction, or convenience checks mailed by your card issuer. This is called a cash advance, and while it works, it’s one of the most expensive ways to access money. Before you do it, you should understand the fees, interest rules, and limits that make cash advances costlier than a regular credit card purchase.
How to Withdraw Cash at an ATM
The most common way to get cash off a credit card is at an ATM. Insert your credit card, select “cash advance” or “credit” (the wording varies by machine), enter your PIN, and choose the amount. If you’ve never set a PIN for your credit card, call the number on the back of your card to request one. Some issuers mail a PIN when you first open the account, while others require you to set one yourself through their app or website.
Not every ATM accepts credit card cash advances, so look for machines that display your card’s network logo (Visa, Mastercard, etc.). Keep in mind that the ATM operator will often charge its own fee on top of what your credit card company charges, typically $2 to $5 per transaction.
Other Ways to Get a Cash Advance
You can also walk into a bank branch and request a cash advance from a teller. Bring your credit card and a government-issued ID. The teller processes it similarly to a withdrawal, and the amount is charged to your credit card. This can be useful if you need a larger amount than an ATM’s daily withdrawal cap allows.
Some credit card issuers also mail convenience checks tied to your account. You can write one of these checks to yourself and deposit it into your bank account. These checks are treated as cash advances, not purchases, so all the same fees and interest rules apply.
What a Cash Advance Costs
Cash advances come with two layers of cost that make them significantly more expensive than using your card for a regular purchase.
The first is an upfront fee. A typical cash advance fee is 5% of the amount you withdraw, and many issuers set a minimum of $5 or $10, whichever is greater. So withdrawing $500 would cost you $25 in fees before interest even enters the picture. If you use an ATM, the machine’s operator fee is added on top of that.
The second, and bigger, cost is interest. Cash advances carry a higher interest rate than purchases on most cards. You’ll find your cash advance APR listed on your monthly statement or in your cardholder agreement, and it’s often several percentage points above your purchase rate. On a card with a 22% purchase APR, the cash advance rate might be 27% or higher.
No Grace Period on Cash Advances
This is the detail that catches most people off guard. When you buy something with a credit card, you typically have a grace period of 21 to 25 days to pay it off before interest kicks in. Cash advances have no grace period at all. Interest starts accruing the moment the transaction goes through, and it compounds daily. Even if you pay the full balance by your next due date, you’ll still owe interest for every day between the withdrawal and your payment.
This also means that carrying a cash advance balance alongside regular purchases creates a split balance on your account, with two different interest rates running at the same time. Thanks to the Credit Card Act of 2009, any payment you make above the minimum is applied to the highest-interest balance first. That helps, but it still means minimum payments go toward the cheaper purchase balance while the expensive cash advance balance keeps growing.
Your Cash Advance Limit Is Lower Than Your Credit Limit
You can’t withdraw your full credit line as cash. Your card issuer sets a separate cash advance limit that’s a fraction of your total credit limit. Some issuers cap it at 20% to 30% of your available credit, though the exact percentage varies. If your credit limit is $5,000 and your cash advance limit is 20%, you could withdraw up to $1,000 (assuming no existing balance eating into your available credit).
To find your specific cash advance limit, check your most recent credit card statement, log into your issuer’s app or website, or call the number on the back of your card.
Peer-to-Peer Apps Can Trigger Cash Advance Fees
You might think you can sidestep the ATM by sending yourself money through a payment app using your credit card. Be careful here. While some specific card and app combinations treat peer-to-peer transfers as purchases, most credit card issuers classify a wide range of cash-like transactions as cash advances. This includes money orders, wire transfers, cashier’s checks, and in many cases, sending money to another person through a payment app.
If your card issuer codes the transaction as a cash advance, you’ll pay the same 5% fee and the same higher interest rate with no grace period. The classification depends on your specific card’s terms and how the app’s payment processor categorizes the transaction, so you can’t assume it will be treated as a regular purchase. Check your cardholder agreement before trying this route.
When a Cash Advance Might Make Sense
A cash advance is rarely the cheapest option for borrowing money. Between the upfront fee, the higher interest rate, and the immediate interest accrual, even a small withdrawal gets expensive quickly. A $300 cash advance with a 5% fee and a 27% APR costs you $15 on day one, plus roughly $6.75 in interest over the first month if unpaid.
That said, a cash advance can serve as a last resort in genuine emergencies when you need physical cash and have no other source. If you do take one, pay it off as fast as possible. Every day the balance sits on your card, interest compounds. Making a payment the next day is dramatically cheaper than waiting until your statement due date.
Before pulling cash from a credit card, consider whether a bank overdraft, a small personal loan, or borrowing from someone you trust could get you through at a lower cost. If the cash advance is your only option, withdraw only what you need and treat repayment as urgent.