Can you withdraw cash from a credit card? It’s a question many people in the UK ask when they suddenly need cash on hand and their current account balance is too low. While credit cards are primarily associated with cashless payments in shops and online, most credit card providers also allow you to withdraw cash from your available credit limit at ATMs. But this is an option that comes with specific costs and risks. In this article, we’ll explain when and how you can withdraw cash using a credit card, what it means financially, and whether it’s really the best idea.
Is withdrawing cash from a credit card actually possible?
The vast majority of credit cards issued in the UK allow for cash advances, meaning you can use your credit limit to take out cash, not just make card payments. Technically it’s the same as using a debit card – you insert your card at an ATM, choose the amount, and take your cash.
However, your card issuer immediately treats this very differently from a standard purchase. A cash advance is considered a special type of transaction, governed by different rules from card payments – and typically far more expensive. That’s why this feature is something to think through carefully before using.
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What costs are involved with cash withdrawals on a credit card?
The biggest drawback is that interest starts accruing immediately on cash advances. Unlike purchases made with your credit card, which may come with an interest-free period of up to 56 days, cash withdrawals don’t benefit from this grace period. From the day of the transaction, your cash advance starts incurring interest at a rate often higher than that on personal loans.
Then there’s the cash advance fee itself. In the UK, this is typically around 3% to 5% of the transaction amount, with a minimum fee (for example £3 or £5). That means if you withdraw £200, you’ll immediately pay £6–£10 in fees, plus interest starts building up right away. For this reason, cash withdrawals on a credit card are best treated strictly as an emergency solution.
When might withdrawing cash from a credit card actually make sense?
There are some situations where a cash advance can be genuinely helpful. For example, if you’re travelling and a local business only accepts cash, having immediate access to funds from your credit card could save the day. Or perhaps you urgently need to pay someone who doesn’t accept cards or bank transfers.
If you decide to take out cash this way, it’s smart to have a clear repayment plan. The faster you pay off the amount withdrawn, the less interest you’ll pay overall, helping keep the cost under control. In practice, this option works best as a temporary bridge – a very short-term loan to cover a pressing need.
What should you remember if you decide to take out cash anyway?
If you do have to withdraw cash using your credit card, make sure you fully understand the terms. Check the cash advance fee your card issuer charges, the interest rate on cash transactions, and the repayment schedule to avoid letting debt spiral. Being aware of all the charges is essential for responsible card use, especially in tighter financial times.
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It’s also wise to set up text or app notifications from your bank to remind you when your payment is due. This helps you avoid late fees and maintain a healthy credit history, which could make a big difference when applying for larger borrowing in future.
Summary
A credit card gives you the option to take out cash from an ATM, but it’s significantly more expensive than simply paying with your card. Before you decide on a cash advance, carefully check all the costs and consider whether a direct card payment or bank transfer might be a better alternative. Modern fintech platforms like Fenige.com help businesses and consumers complete card payments worldwide without needing physical cash. It’s often safer, more convenient, and far cheaper.
