Can I withdraw cash from a credit card?
Yes, you can take cash out with a credit card. But it's worth knowing about the costs first.
Taking cash out this way is called a "cash advance". It's handy if you're stuck, but it can cost quite a bit more than using your card in shops.
3 min read
In a nutshell
- Taking cash out with your credit card is called a cash advance. It comes with fees and higher interest.
- You start paying interest straight away. There's no interest-free time like normal spending.
- It might affect your credit score if you use too much of your credit limit.
- There are usually better options, e.g. 0% money transfer cards, overdrafts, or using your debit card.
What is a cash advance on a credit card?
A cash advance means taking cash out using your credit card. You withdraw the cash the same way as you do with a debit card - but there's a big difference.
Cash advances cost more. You'll pay higher fees and more interest.
Other things that count as cash advances
You might be surprised at what counts as a cash advance. It's not just taking money from a cash machine. These things can count too:
• Buying foreign currency
• Buying gift vouchers
• Any gambling (lottery tickets, casino chips, betting)
• Paying some bills with your credit card
• Paying your mortgage with your credit card
Cash advances can be useful in specific situations. For instance, if you're in a store that doesn't accept card payments, or if there are restrictions on what you can pay for with your credit card, withdrawing cash gives you more flexibility.
Because of the high costs involved, it’s best to only use a cash advance for essential purchases when you don’t have any other way to pay.
What about 0% cards?
Even if you have a 0% deal on your credit card, it won't cover cash advances. You'll still pay the normal cash advance rate.
How does a cash advance work?
When you take a cash advance, the money gets added to your credit card bill.
Your card has a cash advance limit. This is part of your overall credit limit, but you can only use a portion of it for cash.
Where can you get a cash advance?
You can get a cash advance from:
• Any cash machine (ATM)
• Your card provider's branch (you'll need ID like a passport)
• Some shops when you buy something (called cashback)
• Post Office counters (if your card provider supports this service)
The important bit: Interest starts straight away. With normal card spending, you get up to 56 days before paying interest. Not with cash advances. The interest starts from day one.
This is why cash advances work best as an emergency option only.
What is a cash advance limit on a credit card?
Let's say your credit limit is £3,000. Your cash advance limit might be anywhere from £600 to £1,800 (20%-60% of your total limit).
Daily limits matter too. Even if your cash advance limit is £1,500, you can't take it all out at once. Most cash machines and card providers have daily limits. For credit cards, these are usually £300 to £500 per day.
So, if you need a cash advance, you might need to spread your withdrawals over a few days.
Where to find your limit:
• Check your monthly statement
• Look in your online banking app
• Contact your card provider
It's good to check before you try to withdraw. That way you won't get caught out.
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How much does it cost to take cash out on a credit card?
Taking cash out on a credit card costs more than using your card in shops. Here's what you'll pay:
| Fee type | How much |
| Cash advance fee | 3% of withdrawal (minimum £3) |
| Interest on cash | 25-30% APR (or higher) - starts from day one |
| ATM fee | £2-£3 (charged at some machines) |
| Foreign transaction fee | 2-3% (if abroad) |
Key difference from normal card spending: With purchases, you get up to 56 days interest-free. With cash advances, interest starts immediately.
Credit card cash withdrawal fees explained
Let's break down the fees with some real examples. This helps you see what you'd actually pay.
The fee structure:
Most providers charge 3% of what you withdraw. But there's a minimum fee of £3. Whichever is higher, that's what you pay.
Example 1 - Taking out £50:
3% of £50 = £1.50. But the minimum is £3. So you pay £3.
Example 2 - Taking out £200:
3% of £200 = £6. That's more than the £3 minimum. So you pay £6.
The total cost:
Let's say you take out £200 in the UK. Here's what it could cost you:
• Cash advance fee: £6
• Cash machine fee (if not your bank): £2
• Interest (starts immediately): About £0.15 per day at typical rates
• First day total: Around £8
And the interest keeps adding up every day until you pay it back.
This is why using a debit card is so much better – most cash machines are free to use, and there’s no interest to pay.
Does taking cash out with a credit card affect my credit score?
Taking cash out won't directly lower your credit score. But it can affect it in other ways.
Credit use
Lenders like to see you using less than 30% of your credit limit. If taking cash out pushes you over this, it might temporarily lower your score a bit.
An example:
Say you have a £2,000 credit limit. You take out £800 in cash. That's 40% of your limit. This might affect your score.
Multiple cash advances
Every cash advance appears on your credit file. One cash advance probably won't cause problems. But if lenders see you're taking out cash regularly, they might think you're struggling with money. This could make it harder to get credit later.
Cash advances stay on your credit file for up to six years.
Missing payments
This is the big one. If the cash advance makes it hard to pay your minimum payment, that will definitely hurt your score. Always make at least the minimum payment on time.
Alternatives to credit card cash withdrawals
You can't take cash out on a credit card without fees in the UK. But there are better options that cost much less.
Use your debit card
If you have available funds in your current account, it’s usually best to use your debit card. Most cash machines are free and there's no interest.
0% money transfer credit card
This is often the best option if you need a decent amount of cash.
Money transfer cards let you move money from the card to your bank account. You get 0% interest for 6 to 21 months (depending on the card). You pay a one-time fee (usually 3%). Then you can withdraw the money from your bank using your debit card for free.
This is much cheaper than a cash advance if you need more money and can pay it back within the 0% period.
Arranged overdraft
If you have a current account, ask your bank about an overdraft. Some banks give you a small overdraft interest-free, often around £250.
Important: Always arrange it first. Never just go overdrawn without asking. The fees for unarranged overdrafts are very high.
Need help with credit card debt?
If you're thinking about a cash advance because money's tight, it's important to know that free help is available.
Taking out cash when you're already struggling can sometimes make things harder. There are people who can help you find better solutions.
• StepChange - Free debt advice charity
• National Debtline - Free helpline
• MoneyHelper - Government-backed advice
• Citizens Advice - Free money advice
These organisations can help with budgeting, talking to creditors, and finding debt solutions. They're there to help, not judge.
Disclaimer: We make every effort to ensure content is correct when published. Information on this website doesn't constitute financial advice, and we aren't responsible for the content of any external sites.
