Yes, you can get cash back with most credit cards, but the method and cost depend on the card type and where you use it
Cash back with a credit card works differently than with a debit card. When you use a debit card at a store, you can ask for cash back and the amount comes straight from your bank account at no charge. With a credit card, you have fewer options and they usually cost money.
The most common way to get cash with a credit card is a cash advance — you withdraw money from an ATM or ask a bank teller for cash, and the card issuer treats it as a loan. This is not the same as the cash back rewards some cards offer. A cash advance charges interest immediately, often at a higher rate than your purchase APR, and usually includes an upfront fee of 3% to 5% of the amount you withdraw.
Some cards let you get cash back at the register when you make a purchase, similar to a debit card, but this is rare with credit cards and still may carry a small fee depending on your card agreement.
Key Takeaways
- A cash advance from an ATM or bank using your credit card charges an upfront fee (typically 3% to 5%) plus interest that starts accruing immediately, with no grace period.
- Cash back at the register during a purchase is available on some cards but is uncommon with credit cards and may still incur a fee.
- Interest rates on cash advances are usually higher than the rate on regular purchases, sometimes 5% to 10% above your standard APR.
- Cash back rewards (points you redeem for cash) are different from getting physical cash and do not involve fees or interest charges.
How a cash advance works and what it costs
When you use your credit card at an ATM or visit a bank branch to withdraw cash, the card issuer processes it as a cash advance. The fee is calculated as a percentage of the amount withdrawn — check your card's terms for the exact rate, which typically ranges from 3% to 5%. On a $200 withdrawal, that means you pay $6 to $10 just to get the cash.
Interest begins accruing on the same day you withdraw the money. Unlike purchases, which often have a grace period (usually 21 to 25 days before interest kicks in), cash advances start charging interest immediately. The interest rate is also higher — often 5% to 10% above your regular purchase APR. If your card charges 18% APR on purchases, the cash advance rate might be 23% to 28%.
The interest compounds daily, so the longer you carry the balance, the more you owe. If you withdraw $200 at a 25% APR and pay it back in 30 days, you will owe roughly $212 in total (the $200 plus the upfront fee plus 30 days of interest). This makes cash advances expensive compared to other ways to get cash.
Cash back at the register versus a cash advance
Some credit cards allow you to request cash back when you make a purchase at a store, just as you would with a debit card. This is different from a cash advance because the cash back is part of a transaction — you buy something and ask for extra cash from the register. However, this option is uncommon with credit cards. Most major card issuers do not offer it, and those that do may charge a small fee or limit the amount you can withdraw.
When cash back at the register is available, it typically does not trigger the same high interest rate as an ATM cash advance. However, you should check your card's terms to confirm whether a fee applies and whether interest accrues immediately or during your regular billing cycle. The safest approach is to contact your card issuer directly and ask whether your specific card supports this feature.
Why cash advances are expensive compared to alternatives
A cash advance is one of the most costly ways to borrow money on a credit card. The combination of an upfront fee, a higher interest rate, and immediate interest accrual means you pay significantly more than you would for a regular purchase or a personal loan.
If you need cash urgently, consider these alternatives first: use a debit card if you have one, ask friends or family for a short-term loan, visit your bank to see if they offer a personal line of credit at a lower rate, or look into a personal loan from a credit union or online lender. All of these typically cost less than a credit card cash advance.
If you do take a cash advance, pay it back as quickly as possible. Every day the balance sits on your card, interest accumulates at that higher rate. Prioritize paying off the cash advance before you make new purchases, because most card issuers apply your payments to the lowest-interest balance first (usually purchases) and leave the cash advance balance to grow.
How cash back rewards differ from getting physical cash
Cash back rewards are points or a percentage of your spending that you earn with certain credit cards and can redeem for cash or statement credits. This is completely different from withdrawing physical cash with a cash advance. Rewards cash back does not cost you anything — you earn it by spending money you were already planning to spend.
For example, a card that offers 1% cash back on all purchases means that for every $100 you charge, you earn $1 in rewards. You can usually redeem this cash back as a statement credit (which reduces your bill), a direct deposit to your bank account, or sometimes a check. There are no fees, no interest charges, and no upfront costs.
If you are looking for cash back, check whether your card offers a rewards program first. Earning cash back through rewards is free and requires no additional steps beyond using your card normally. A cash advance should only be a last resort when you genuinely need physical cash and have no other options.
Fees and interest rates to watch for
Before you take a cash advance, review your card's fee structure and interest rates. Your card issuer is required to disclose these in your card agreement or on their website. Look for the cash advance fee (stated as a percentage or a flat amount, whichever is greater), the cash advance APR, and whether there is a grace period.
Some cards charge a flat fee instead of a percentage — for example, $5 per cash advance regardless of the amount. Others charge a percentage with a minimum fee (such as 3% with a minimum of $5). Compare the two methods and see which costs less for the amount you plan to withdraw.
Also check whether your card issuer limits how much you can withdraw as a cash advance. Many cards set a cash advance limit that is lower than your credit limit. For example, you might have a $5,000 credit limit but only be able to withdraw $1,500 as a cash advance. This limit is separate from your purchase limit and is set by the issuer based on your creditworthiness.
How to minimize the cost if you must take a cash advance
If you have no alternative and must take a cash advance, take these steps to keep the cost as low as possible. First, withdraw only the amount you need — every dollar you advance costs you the upfront fee plus interest. Second, pay it back immediately. Set up a payment as soon as the cash advance posts to your account, or even before if your issuer allows advance payments.
Third, avoid making new purchases on the card while you are paying off the cash advance. Most issuers apply your payment to the lowest-interest balance first, which is usually your purchases. If you keep charging new purchases, your cash advance balance will sit and accumulate interest while you pay off the cheaper debt.
Fourth, ask your card issuer whether they offer a lower-cost option. Some issuers have promotional rates or special programs for customers in hardship. It is worth asking, especially if you have been a customer for a long time or have a good payment history.
Frequently Asked Questions
Does getting cash back at the register count as a cash advance?
Not always. Cash back at the register is technically a separate transaction from a cash advance at an ATM. However, some card issuers treat it the same way and charge the same fee and interest rate. Check your card's terms or call your issuer to confirm how they handle register cash back on your specific card.
Can I use my credit card at any ATM to get cash?
Most credit cards work at ATMs that display your card's logo (Visa, Mastercard, American Express, Discover). However, some ATMs charge an additional fee on top of your card issuer's cash advance fee. You may pay $3 to $5 from the ATM operator plus 3% to 5% from your card issuer, making the total cost $6 to $10 or more on a small withdrawal.
What happens if I do not pay back a cash advance?
The balance stays on your card and interest continues to accrue at the higher cash advance rate. If you miss payments, your credit score will drop, late fees will be added, and the issuer may increase your APR or close your account. The debt can also be reported to collection agencies if it goes unpaid long enough.
Is there a grace period for cash advances like there is for purchases?
No. Interest on a cash advance starts accruing immediately, usually the same day you withdraw the money. There is no grace period, even if your card offers one for regular purchases. This is one of the main reasons cash advances are so expensive.
Can I get a cash advance with a rewards credit card?
Yes, most rewards cards allow cash advances, but the cash advance does not earn rewards points. You will pay the cash advance fee and interest rate, and you will not earn any cash back or points on the withdrawal. The rewards program only applies to regular purchases.