Using a credit card to get cash might seem convenient in the moment. But using your credit card to withdraw money isn’t the same as making normal card purchases, and it can cost more than you expect.

Here’s a clear breakdown of how credit card cash withdrawals work, what they cost, and what to consider before using your card to withdraw money.

The Knowledge Round-Up

  • Withdrawing cash from a credit card is called a cash advance

  • Credit card cash withdrawal charges usually include a fee and immediate interest

  • Interest rates on cash withdrawals are often higher than on purchases

  • The cash withdrawal limit is usually lower than your overall credit limit

  • Foreign withdrawals may include extra charges

  • Paying off your balance quickly reduces interest costs

Can You Withdraw Cash From a Credit Card?

Yes, most credit cards allow cash withdrawals. This is known as a cash advance. You can usually use your card at a cash machine with your PIN, similar to using a debit card.

However, withdrawing cash from a credit card is treated differently from regular spending. It often comes with additional credit card fees and higher interest rates.

What Happens If You Withdraw Cash From a Credit Card?

A cash withdrawal triggers immediate charges. 

In most cases:

  • A cash withdrawal fee is added straight away

  • Interest is charged from the day the money is taken out

  • The amount reduces your available credit limit

Unlike standard card purchases, there is typically no interest-free period. Interest starts to build immediately, even if you normally pay your balance in full each month.

Is It Expensive to Withdraw Cash From a Credit Card?

In most cases, yes. Credit card withdrawal charges usually include:

  1. A transaction fee

Often around 3% of the amount of cash withdrawn, sometimes with a minimum amount.

  1. Higher interest rates

Cash advances often have higher interest rates than standard purchases, and interest accrues daily.

For example, withdrawing £400 could result in:

  • An upfront fee

  • Daily interest until the credit card balance is cleared.

Using your card to withdraw money abroad can be even more expensive due to foreign transaction fees and less favourable exchange rates.

What Is the Cash Withdrawal Limit on a Credit Card?

The cash withdrawal limit is usually lower than your full credit limit.

For example, a credit limit of £2,000 could have a cash advance limit of £1,000.

Most providers set the cash withdrawal limit at between 20% and 60% if your total credit limit.

The exact amount of cash available can be found in your online banking or on your credit card statement.

What Counts as a Cash Advance

Cash advances are not limited to using a cash machine.

Transactions often treated as cash withdrawals include:

  • Transferring money from your credit card to your bank account (money transfer)

  • Buying foreign exchange

  • Certain gambling transactions

  • Some bill payments

These can trigger the same fees and interest rates as ATM withdrawals. 

Can You Withdraw Cash Abroad With a Credit Card?

Yes, but it is usually more expensive. In addition to standard cash withdrawal charges, overseas transactions may include:

  • A foreign transaction fee

  • Currency conversion charges 

  • Higher overall costs

Using a debit card for cash withdrawals abroad is often cheaper, though fees can still apply depending on your bank.

How Does Withdrawing Cash From a Credit Card Affect Your Credit Score?

A single cash withdrawal does not automatically damage your credit. 

However:

  • It increases your credit card balance

  • It reduces your available credit

  • It may increase overall borrowing

If the balance remains high or only the minimum payment is made for long periods, it could impact your credit profile over time.

Thinking About Your Credit Card Options?

Withdrawing cash from a credit card is possible, but it’s rarely the most cost-effective option. Between cash withdrawal fees, higher interest rates, and lower cash limits, the costs can add up quickly.

If access to cash, lower interest rates or fewer fees matter to you, it may be worth reviewing your current card. Different credit cards come with different terms, including how they handle cash withdrawal.

Compare Credit Cards

Related Guides

Explore related topics to further build your CreditKnowledge:

How Many Credit Cards Can I Have?

How to Repay a Credit Card Bill

How To Check Your Credit Report

CreditKnowledge is a credit broker, not a lender.

Editorial Disclaimer: This content is provided for general informational purposes only and should not be considered financial advice. It is not intended to provide personalised recommendations or guarantees of any outcome, including changes to your credit score or approval decisions from lenders. Credit scoring models and lending decisions vary between providers and are based on a range of factors.

This content reflects general information at the time of publication and is not endorsed by any bank, lender, or financial institution. You should always consider your own circumstances and, where appropriate, seek independent financial advice before making financial decisions. Nothing in this content should be interpreted as a recommendation to take, or refrain from taking, any specific financial action.

Page Last Reviewed: 25.05.2026