Withdrawing cash using your credit card is called a cash advance. Most credit cards allow you to withdraw money from a credit card up to a certain limit, like you would with a debit card.
Should you take out cash on your credit card?
You could pay less in fees if you avoid using a credit card in a cash machine, but if you cannot avoid it in an emergency, make sure you understand how much it will cost.
How much does a cash advance credit card cost?
You will have to pay:
A cash advance fee of around 3% of the amount you withdraw (usually with a minimum charge of £3 or more)
Interest on the amount you withdraw from the day you take the cash out, usually at a higher rate than your normal APR, often higher by several percentage points, ranging from 15% to 30%
If you use cash advance when travelling, there could added fees for doing so, such as a dynamic currency conversion (DCC) fee, which is typically higher then your credit providers currency conversion fee.
Here is a closer look at how much they cost and how to keep your costs down.
What else counts as a cash advance?
As well as cash withdrawals, the following may be considered as cash advances by your credit card company:
Paying your mortgage or utility bills
Buying travel money
Buying gift vouchers
Writing cheques from your credit card (only offered by some providers)
Find the best cash withdrawal credit card for you
If you think you will need to withdraw cash on a credit card, choose one that will be as cheap as possible.
The above table includes credit cards available in the UK and shows the cash withdrawal fee and interest rate for each one. You can sort the results to show the cheapest fees or interest rates.
The comparison also shows the maximum amount you can withdraw and the card's APR.
You can also keep your costs down by withdrawing all the money you need in one go and paying off your balance straight away.
How else can you get the cash you need?
If you need a large amount of cash it could be cheaper to use a money transfer credit card. These let you send money from the card to your bank account, which you could then withdraw.
They charge a fee, but some come without interest for several months. This guide explains how much money transfer cards cost.
Does withdrawing cash from a credit card affect your credit score?
Yes, withdrawing cash on your credit will leave a mark on your credit file and can therefore impact your credit score. This because a cash advance acts is a signal to banks and lenders that you don't have enough cash in your bank account to withdraw the money you need.