Fact Checked Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors opinions or evaluations.
Most credit card lenders offer cardholders the ability to take out cash using an ATM. This is called a cash advance, and it comes with some major downsides and hefty fees. Just like with a debit card, cardholders can use their credit card at almost any ATM to withdraw cash. However, rather than taking money out of their bank account, the cash withdrawal appears as a charge on their credit card. Forbes Advisor does not recommend using a credit card for a cash advance.
Getting cash from your credit card at an ATM or bank branch is usually possible, though it’s not always the best idea This is called a cash advance, and it typically comes with hefty fees and high interest rates
Before you consider pulling cash from your credit card, let’s explore the details and see if there are better alternatives available.
When can I pull cash from a credit card?
You can generally pull cash from a credit card in the following ways:
- ATM: Most credit cards can be used at ATMs to withdraw cash, just like a debit card. However, you’ll likely incur a cash advance fee, typically 5% of the transaction amount or $10, whichever is greater. Additionally, the interest rate on cash advances is often much higher than the rate for regular purchases.
- Bank branch: Some banks allow you to get cash advances at their branches. This may be a better option than using an ATM, as you might avoid the ATM fee. However, you’ll still be subject to the cash advance fee and interest rate.
- Convenience checks: Some credit card companies offer convenience checks, which are blank checks that you can write against your credit card balance. These checks typically come with a fee, and the cash advance interest rate will apply to the amount of the check.
Should I pull cash from a credit card?
Pulling cash from a credit card should be a last resort, as it’s often an expensive option. Here’s why:
- High fees: You’ll likely be charged a cash advance fee, which can be a significant percentage of the amount you withdraw.
- High interest rates: Cash advances typically have a much higher interest rate than regular purchases, and interest starts accruing immediately. This can quickly lead to a large amount of debt.
- Negative impact on credit score: Taking out a cash advance can negatively impact your credit score, especially if you don’t pay it back quickly.
Alternatives to pulling cash from a credit card
If you need cash consider these alternatives before resorting to a cash advance:
- Use a debit card: If you have a debit card linked to a checking account, you can use it to withdraw cash from an ATM without incurring any fees.
- Transfer money from a savings account: If you have money in a savings account, you can transfer it to your checking account and then withdraw it as cash.
- Ask a friend or family member for a loan: This can be a cheaper option than taking out a cash advance, but make sure you have a clear repayment plan in place.
- Get a personal loan: Personal loans typically have lower interest rates than cash advances, and you can often get a longer repayment period.
The bottom line
Although using a credit card to withdraw cash is a convenient option, it’s important to understand the costs involved. Before utilizing a cash advance, think about your options. If you do, make sure to repay the loan as soon as you can to avoid accruing high interest costs.
FAQs
- How can I get cash from my credit card without charges?
Finding a credit card without any cash advance fees and paying off the advance right away are the only ways to avoid paying fees when using your credit card to withdraw cash. There will still be a small interest charge, but it can be reduced by making quick payments.
- How can I get cash off my credit card without a PIN?
You can usually request a cash advance from a teller at your card-issuing bank’s branch without needing a PIN. You might also be able to request a check or bank transfer, but the options available will depend on your issuer.
- Can you get cash from a store credit card?
Many closed-loop store cards don’t offer cash advances. However, some co-branded store cards that offer cash advances are more likely to be network-associated cards for making purchases or transacting with vendors other than the card’s co-branding store.
One-time Cash Advance Fees
If a cardholder takes out cash from an ATM, the credit card company will typically charge a one-time fee ranging from 3% to 5% or $8% to 10% (whichever is higher). The terms and conditions of the card will specify the precise cost, so carefully review them before making a cash advance withdrawal (or, better yet, before applying for the card). This is an expensive way to get cash because the cardholder may have to pay cash advance fees in addition to ATM fees.
What Is a Cash Advance?
A cash advance is a cash withdrawal from an ATM using a credit card. Instead of buying something from a store, the credit card company is effectively selling the cardholder cash. Money withdrawn from an ATM gets added to the account balance and will be reflected in monthly statements. One-time fees and high interest rates often accompany cash advances. The average APR for a cash advance is generally higher than APRs for regular purchase transactions. For these reasons, cash advances should be used only as a last resort or in an emergency situation.