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Sunday, January 23, 2022

“Can You Withdraw Money From a Credit Card?” (Here’s How)

Can You Withdraw Money From A Credit Card Heres How

credit card advice

Mike Randall
By: Mike Randall
Updated: October 23, 2019
Advertiser Disclosure

Can you withdraw money from a credit card? Here’s how this less common use case for credit cards works. And the short answer is, yes, you can use your credit card to take out a little cash in an emergency. But let’s take a look at this scenario in more detail.

Most credit cards have a cash advance option for holders in good standing that allows them to withdraw money from a credit card.

There are, however, a few things to consider when it comes to using your credit card at an ATM, not the least of which is the high price you’ll pay.

Yes, You Can Withdraw Money From a Credit Card — But It’s Expensive

There are a number of costs associated with a credit card cash advance, starting with the fee. Most credit cards charge a cash advance fee, which typically range from 3% to 5% of the transaction amount.

Next is the interest. Many credit cards charge a higher APR for cash advances than other types of transaction, with rates pushing 30% not uncommon. Worse, that interest will start accruing as soon as your purchase hits your statement. That’s because, unlike new purchases, there’s no grace period for cash advances.

Earning Cash Back on Purchases Is a Better Idea

Instead of paying exorbitant interest rates and fees on a cash advance, have you considered using a credit card with cash back rewards?

Many issuers today offer credit cards that will give you up to 5% cash back on your purchases, not to mention 0% interest rate introductory period on purchases those purchases. Some even give a cash bonus of $100 or more in the first few months of owning the card.

Here are the top cash back credit cards you could get approved for today:

CASH BACK RATING
★★★★★
4.9
OVERALL RATING
4.8/5.0
  • Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases.
  • To earn cash back, pay at least the minimum due on time.
  • Balance Transfer Only Offer: 0% intro APR on Balance Transfers for 18 months. After that, the variable APR will be 13.99% – 23.99%, based on your creditworthiness.
  • Balance Transfers do not earn cash back. Intro APR does not apply to purchases.
  • If you transfer a balance, interest will be charged on your purchases unless you pay your entire balance (including balance transfers) by the due date each month.
  • There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).
  • The standard variable APR for Citi Flex Plan is 13.99% – 23.99% based on your creditworthiness. Citi Flex Plan offers are made available at Citi's discretion.
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
N/A
0% Intro APR Period 18 months on Balance Transfers
13.99% – 23.99% (Variable)
$0
Excellent, Good

Additional Disclosure: Citi is a CardRates advertiser.

CASH BACK RATING
★★★★★
4.8
OVERALL RATING
4.8/5.0
  • One-time $200 cash bonus after you spend $500 on purchases within 3 months from account opening
  • Earn unlimited 1.5% cash back on every purchase, every day
  • No rotating categories or sign-ups needed to earn cash rewards; plus, cash back won't expire for the life of the account and there's no limit to how much you can earn
  • 0% intro APR on purchases and balance transfers for 15 months; 14.99%-24.99% variable APR after that
  • $0 annual fee and no foreign transaction fees
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
0% for 15 months
0% for 15 months
14.99% - 24.99% (Variable)
$0
Excellent, Good
Discover it® Cash Back Review

at Discover Card'ssecure website

CASH BACK RATING
★★★★★
4.8
OVERALL RATING
4.9/5.0
  • INTRO OFFER: Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300.
  • Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate.
  • Plus, earn unlimited 1% cash back on all other purchases - automatically.
  • Redeem cash back in any amount, any time. Rewards never expire.
  • Use your rewards at Amazon.com checkout.
  • No annual fee.
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
0% Intro APR for 14 months
0% Intro APR for 14 months
11.99% - 22.99% Variable APR
$0
Good/Excellent
Citi Custom Cash℠ Card Review

at the issuer'ssecure website

CASH BACK RATING
★★★★★
4.8
OVERALL RATING
4.7/5.0
  • Earn $200 in cash back after you spend $750 on purchases in the first 3 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.
  • 0% Intro APR on balance transfers and purchases for 15 months. After that, the variable APR will be 13.99% - 23.99%, based on your creditworthiness.
  • Earn 5% cash back on purchases in your top eligible spend category each billing cycle, up to the first $500 spent, 1% cash back thereafter. Also, earn unlimited 1% cash back on all other purchases.
  • No rotating bonus categories to sign up for – as your spending changes each billing cycle, your earn adjusts automatically when you spend in any of the eligible categories.
  • No Annual Fee
  • Citi will only issue one Citi Custom Cash℠ Card account per person.
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
0% 15 months Purchases and Balance Transfers
0% 15 months Purchases and Balance Transfers
13.99% – 23.99% (Variable)
$0
Excellent, Good

Additional Disclosure: Citi is a CardRates advertiser.

Fortiva® Mastercard® Credit Card Review

at the issuer'ssecure website

CASH BACK RATING
★★★★★
4.8
OVERALL RATING
4.6/5.0
  • With the Fortiva® Mastercard® Credit Card, you earn up to a 3% cash back reward
  • Make contactless payments through Mobile Wallet
  • Periodic Credit Increase Reviews
  • Free access to your Vantage 3.0 score from Equifax†
  • † Your credit score will be available in your online account 60 days after your account is opened. (Registration required) The free VantageScore 3.0 credit score provided by Equifax is for educational purposes only and may not be used by The Bank of Missouri (the issuer of this card) or other creditors to make credit decisions.
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
N/A
N/A
29.99% Variable
As low as $85
Fair

4 Things to Know About Cash Advances

So how do you go about withdrawing money using a credit card? Here are four things you should know about cash advances:

1. You’ll Need a PIN

If you’ve never withdrawn money from an ATM using your credit card, you first need to contact your card issuer to ensure that your account is set up to allow cash withdrawals. They will then issue you a PIN number that you can use at an ATM.

2. You Can Get Cash Immediately at a Bank Branch

If you need cash immediately and have access to a bank branch, you can usually take out a cash withdrawal on the spot. However, you still need to have a PIN assigned if you later want to use your card at an ATM.

3. Using Your Credit Card for Cash is Different Than Using It for Purchases

cash-advance-3In addition to the higher interest rate for cash advances, there are fees that can equal as much as 3 to 5 percent of the amount withdrawn. Also, some cards begin accruing interest on the cash withdrawal as soon as it’s made — in other words, no grace period.

4. Cash Advances Have Limits

Lastly, credit card cash withdrawals are almost always limited to a set amount, called the cash credit limit — usually around $300 to $500. That’s because this type of loan should be considered only in a true emergency.

Consider a Cash Advance Only as a Last Resort

As you can see, it is fairly easy to withdraw money from a credit card. As long as you have the right type of account, are in good standing with your payments, and contact your bank to make sure your account is set up properly, it should be no problem. Just remember this type of loan can be quite expensive and should be considered only as a last resort.

In a non-emergency situation, consider borrowing from someone you know. An alternative to a cash advance from a credit card is to have a friend or family member wire money to you, which can usually be done in a fairly short amount of time. As long as you have the ability to pay them back, this can be a much lower cost option to withdrawing money from a credit card.

Advertiser Disclosure

CardRates.com is a free online resource that offers valuable content and comparison services to users. To keep this resource 100% free, we receive compensation from many of the offers listed on the site. Along with key review factors, this compensation may impact how and where products appear across the site (including, for example, the order in which they appear). CardRates.com does not include the entire universe of available offers. Editorial opinions expressed on the site are strictly our own and are not provided, endorsed, or approved by advertisers.