The Ultimate Guide to Credit Cards
Sunday, December 8, 2019

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

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

credit card advice

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

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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
★★★★★
5.0
OVERALL RATING
5.0/5.0
  • Earn a $150 Bonus after you spend $500 on purchases in your first 3 months from account opening.
  • Earn unlimited 1.5% cash back on all purchases.
  • 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 16.49 - 25.24%.
  • 3% intro balance transfer fee when you transfer a balance during the first 60 days your account is open, with a minimum of $5
  • No annual fee
  • No minimum to redeem for cash back
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
0% Intro APR on Purchases 15 months
0% Intro APR on Balance Transfers 15 months
16.49% - 25.24% Variable
$0
Good/Excellent
Discover it® Cash Back Review

at Discover Card'ssecure website

CASH BACK RATING
★★★★★
4.9
OVERALL RATING
5.0/5.0
  • INTRO OFFER: Discover will match ALL the cash back you've earned at the end of your first year, automatically. There's no signing up. And no limit to how much is matched.
  • Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com and more up to the quarterly maximum, each time you activate.
  • Plus, earn unlimited 1% cash back on all other purchases - automatically.
  • Redeem cash back any amount, any time. Rewards never expire.
  • Use your rewards at Amazon.com checkout.
  • Get an alert if we find your Social Security number on any of thousands of Dark Web sites.* Activate for free.
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
0% for 14 months
0% for 14 months
13.49% - 24.49% Variable
$0
Good/Excellent
CASH BACK RATING
★★★★★
4.8
OVERALL RATING
4.8/5.0
  • Earn a one-time $300 cash bonus after you spend $3000 on purchases within the first 3 months from account opening
  • Earn unlimited 4% cash back on dining and entertainment, 2% at grocery stores and 1% on all other purchases. Plus, earn 8% cash back on tickets at Vivid Seats through May 2020.
  • 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
  • No foreign transaction fees
  • Capital One cardholders get access to premium experiences in dining, entertainment and more
  • $0 intro annual fee for the first year, $95 after that
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
N/A
N/A
16.24% - 25.24% (Variable)
$0 intro for first year; $95 after that
Excellent, Good
CASH BACK RATING
★★★★★
4.8
OVERALL RATING
4.8/5.0
  • Earn a one-time $150 cash bonus after you spend $500 on purchases within the first 3 months from account opening
  • Earn unlimited 3% cash back on dining and entertainment, 2% at grocery stores and 1% on all other purchases
  • 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 for 15 months; 15.74% - 25.74% variable APR after that
  • 0% intro APR on balance transfers for 15 months; 15.74% - 25.74% variable APR after that; 3% fee on the amounts transferred within the first 15 months
  • No foreign transaction fee
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
0% for 15 months
0% for 15 months
15.74% - 25.74% (Variable)
$0
Excellent, Good
Ink Business Cash℠ Credit Card Review

at the issuer'ssecure website

CASH BACK RATING
★★★★★
4.8
OVERALL RATING
4.6/5.0
  • Earn $500 bonus cash back after you spend $3,000 on purchases in the first 3 months from account opening
  • Earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year
  • Earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year
  • Earn 1% cash back on all other card purchases with no limit to the amount you can earn
  • 0% introductory APR for 12 months on purchases
  • Employee cards at no additional cost
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
0% Intro APR on Purchases 12 months
N/A 12 months
14.74% - 20.74% Variable
$0
Good/Excellent

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.