Can You Pull Money Out of a Credit Card? Fees, Risks & Smarter Alternatives

Understand the Rules, Risks, and Smarter Alternatives Before You Use a Cash Advance

In moments of financial pressure, you might wonder: Can I pull money out of my credit card like I would from my debit card? The answer is yes—but in the UK, withdrawing cash from your credit card (also known as a cash advance) comes with hidden costs that can leave you worse off if you’re not careful.

This article goes beyond the basic “you can but it’s expensive” advice. Here, we uncover little-known facts about UK credit card cash withdrawals, offer practical alternatives, and explain how to reduce fees or even earn cashback on short-term borrowing.

Whether you’re considering this for emergencies or convenience, read on to make a financially sound decision.

What Is a Credit Card Cash Advance in the UK?

A credit card cash advance allows you to withdraw cash from an ATM, transfer funds to your current account, or even buy foreign currency or gambling chips using your credit limit.

In the UK, all major credit card providers allow this, but with strings attached:

• Interest rates for cash advances are typically 25%–35% APR.
• Daily ATM withdrawal limits usually range from £300 to £500.
• No interest-free grace period—interest starts accruing immediately.
• Cash handling fees of 2.5%–5% often apply.

Hidden Costs Most UK Consumers Don’t Know About

While most people understand that a credit card cash withdrawal is expensive, few realise the compounded impact of the following hidden costs:

1. Dual Interest Charges on Transfers

If you transfer the cash from a credit card to your bank account (via online banking or app), you may trigger both a cash advance fee and a balance transfer fee, unless clearly specified.

Example: Some Barclaycard users reported being charged twice for what they thought was a single transaction.

2. Negative Credit Score Signals

Cash withdrawals on a credit card are a red flag for lenders. These transactions are visible on your credit report and may be interpreted as a sign of financial distress—especially if done frequently.

3. Loss of Rewards or Cashback

Most UK reward credit cards exclude cash transactions from cashback or air miles. Worse still, frequent cash use may lead to account review or closure by the provider.

⚠️ Did you know? Some credit card providers in the UK block international cash transactions by default. You need to enable this manually in your mobile banking settings.

Cost Breakdown of Withdrawing £300 from a Credit Card in the UK

Bank/Provider	Cash Advance Fee	Daily Interest Rate	Total Cost in 30 Days
Barclaycard	3% (£9)	0.084% (APR 30.6%)	~£16.56
NatWest	3% + £3 min fee	0.08% (APR 29.9%)	~£16.20
American Express	Not allowed (UK)	—	—
Halifax	5% (£15)	0.088%	~£21.40

💡 Note: Fees and interest rates as of Q1 2025. Always check with your provider.

Smarter, Cheaper Alternatives to Pulling Cash from Your Credit Card

Before reaching for your credit card at an ATM, consider these more cost-effective alternatives:

✅ Use a 0% Money Transfer Credit Card

Some cards—like Virgin Money or Tesco Bank—offer 0% interest for 12–18 months on money transfers to your current account (usually with a small one-time fee of 3–4%).
Perfect for short-term borrowing without the high cash advance APR.

✅ Apply for a Short-Term Personal Loan

Services like Zopa, Tymit, or Klarna offer low-interest short-term loans with predictable repayment schedules. You can borrow a small amount (£200–£1,500) without impacting your credit card utilisation ratio.

✅ Use an Overdraft Facility with Caution

Some current accounts offer interest-free overdrafts (e.g., First Direct’s £250 buffer). If you need quick cash, this can be a cheaper way to bridge the gap—provided you repay within days or weeks.

When Might Pulling Cash from a Credit Card Be Justified?

While not ideal, there are specific cases where a cash withdrawal might be justified:

• Emergency car repair and the garage only accepts cash.
• Remote travel abroad where card payments are unavailable.
• One-time obligation where other funding is inaccessible.

If you must use this option:

• Withdraw the minimum amount
• Repay as soon as possible
• Consider switching to a 0% balance transfer card afterwards to avoid ongoing interest

Pulling Money Out of a Credit Card in the UK—A Last Resort

Yes, you can pull money out of your credit card in the UK—but it’s rarely advisable unless you have no other option. Between high interest, hidden fees, and long-term credit implications, cash advances can quickly turn into costly mistakes.

Explore smarter financial tools, such as 0% money transfer cards, short-term credit lines, and emergency savings funds, to protect your financial health. And if you must withdraw cash, treat it like a financial red alert—and act quickly to neutralise the cost.