Can I take cash out with a credit card?

Credit cards are widely used among the general population, as they are very convenient and allow you to borrow money while paying it off in smaller amounts over time. In addition, many credit cards give you rewards for making purchases. Using credit cards is a great way to build your credit, although it is easy to dig yourself into debt if you are not careful with your spending.

Since credit cards work by having you borrow money on short notice and pay back the money later, many cardholders may wonder if you can take cash out with a credit card. You can in fact take cash out with a credit card, and most credit cards will let you withdraw cash at an ATM or financial institution ― this is known as a cash advance. 

Although this may sound like good news, it is not recommended that you do this because it is likely you will be charged hefty fees and high interest rates for doing cash advances. Cash advances are a type of short-term loan and often come with very high fees. They can also signal to lenders that you’re being irresponsible with money during a credit check, and are treated differently from a normal credit card transaction ― most charge upfront fees that are a percentage of the total cash requested (with a minimum fee if your withdrawal is small enough).

Cash advances also often have higher interest rates than regular purchases and don’t have grace periods. There is also a limit to the amount of money you can withdraw from a cash advance.

Cash advance alternatives

A cash advance should be thought of as a last resort when you need extra money. Some alternatives include:

• Personal loans from a bank or online lender
• Peer-to-peer loans
• Home equity loans or lines of credit
• Personal lines of credit
• Borrowing from friends and family
• 401(k) loans or an early withdrawal from an individual retirement account
• Credit cards with 0% purchase APRs and low-APR personal loans

How to take cash out with a credit card

If you have looked at other options and are still convinced you really need a cash advance, you should first find out whether your card allows cash advances, how much money you can take out, and the associated fees before making the cash advance. This can be done by checking your latest statement and reading the terms of your agreement. It is also important that you know the PIN number for your credit card. 

To make a cash advance at an ATM, you can follow these instructions:

1. Find an ATM and insert your card.
2. Enter your PIN when prompted.
3. Rather than selecting “checking” or “savings,” pick the other option, which should be something like “credit,” “cash advance,” or “credit card.”

You can also go to a bank and withdraw money against the limit on your credit card. Always make sure the bank offers advances from your credit card issuer.

Another way to perform a cash advance is to do so online. You can take out an online cash advance loan when you apply with an online lender for a short-term loan. You can fill out an online application and find out how much money you qualify for once you are approved.

Conclusion

Through the process of cash advances, you can take out cash with a credit card. However, it is not recommended and should be seen as a last resort because of the hefty fees it often invokes. However, if you have exhausted all your other options, you can perform a cash advance at an ATM, bank or online.