What a Bank of America cash advance is and how it works

A cash advance on a Bank of America credit card lets you withdraw cash against your credit limit at an ATM, bank branch, or through a balance transfer check. Unlike a regular purchase, a cash advance is treated as a loan from the card issuer — you pay interest on it when ready, there is no grace period, and fees explore from the moment you take the money out.

Bank of America charges a cash advance fee of either a flat dollar amount or a percentage of the amount withdrawn, whichever is greater. The exact fee depends on your card type and current terms. You can find your card's specific fee in your cardholder agreement or by logging into your Bank of America online account and checking the rates and fees section.

The interest rate on a cash advance is usually higher than the rate on purchases. This rate also varies by card and is listed in your agreement. Interest begins accruing the day you take the advance — there is no interest-free period like there often is for purchases.

Key Takeaways

  • Bank of America cash advances charge a fee (flat or percentage) plus a higher interest rate than purchases, with interest starting when ready.
  • You can withdraw cash at any ATM using your card PIN, at a Bank of America branch, or request a balance transfer check mailed to you.
  • Your cash advance counts against your total credit limit, reducing the amount available for purchases.
  • Repaying a cash advance should be a priority because the interest rate and lack of a grace period make it more expensive than other forms of borrowing.

How to take a cash advance at an ATM

The fastest way to get a cash advance is at any ATM that accepts your card. Insert your Bank of America credit card, select "Cash Advance" or "Withdraw Cash" from the menu (the exact wording varies by ATM), and enter your PIN. The ATM will show you the fee amount before you confirm the transaction.

You can withdraw up to your cash advance limit, which is usually lower than your total credit limit. Bank of America sets this limit based on your account history and creditworthiness. To find your current cash advance limit, log into your online account, call the customer service number on the back of your card, or visit a branch.

ATMs at Bank of America branches do not charge an additional surcharge, but ATMs outside the Bank of America network may charge their own fee on top of your cash advance fee. The ATM will disclose this fee before you complete the withdrawal.

Getting a cash advance at a Bank of America branch

You can also request a cash advance in person at any Bank of America branch. Bring your credit card and a valid ID. Tell the teller you want a cash advance, state the amount, and they will process it at the counter. You will pay the same fee and interest rate as an ATM withdrawal.

Branch staff can also answer questions about your cash advance limit and current rates. If you are unsure whether a cash advance is the right choice for your situation, a banker can explain other options available to you, such as a personal loan or a line of credit.

Using a balance transfer check for a cash advance

Bank of America sometimes mails balance transfer checks to cardholders. These checks are drawn against your credit line and function as a cash advance. You can deposit the check into any bank account and use the funds as cash.

Balance transfer checks carry the same cash advance fee and interest rate as ATM withdrawals. The fee is deducted from the check amount or added to your balance — read the check documentation to confirm. These checks expire after a set period, usually 30 to 60 days, so use them promptly if you decide to use them at all.

Not all cardholders receive these checks, and you can request that Bank of America stop sending them by calling customer service or adjusting your account settings online.

Understanding cash advance fees and interest

Your total cost for a cash advance includes two separate charges: the upfront fee and the ongoing interest. The fee is charged once, at the time you take the advance. Interest accrues daily on the outstanding balance until you pay it off completely.

Because there is no grace period, interest begins on day one. If you take a $500 cash advance on the first of the month and pay it back on the last day of the month, you will owe interest for the entire month, even if you pay in full by the due date. This is different from purchases, where you typically have 21 to 25 days before interest starts.

To estimate your total cost, multiply your advance amount by the daily interest rate (your annual rate divided by 365) and multiply by the number of days you carry the balance. Then add the upfront fee. For example, a $500 advance at 25% APR held for 30 days costs roughly $10.27 in interest, plus your cash advance fee.

How a cash advance affects your credit and available credit

A cash advance reduces your available credit when ready. If your credit limit is $5,000 and you take a $1,000 cash advance, your available credit drops to $4,000. This affects your credit utilization ratio — the percentage of your total credit limit you are using — which is a factor in your credit score.

The cash advance itself does not appear separately on your credit report. It shows up as part of your overall credit card balance. However, if you carry the balance and miss payments, those missed payments will be reported and will damage your credit score.

Paying off a cash advance quickly helps protect your credit score and saves you money on interest. Prioritize paying down the cash advance balance before making new purchases on the card.

Alternatives to a cash advance

Before taking a cash advance, consider whether another option might cost less or suit your situation better. A personal loan from Bank of America or another lender often has a lower interest rate than a cash advance, no upfront fee, and a fixed repayment schedule. You can explore for a personal loan online or at a branch.

A line of credit works similarly to a personal loan but lets you borrow only what you need and pay interest only on the amount you use. Bank of America offers lines of credit to existing customers. If you need cash regularly, a line of credit may be cheaper than repeated cash advances.

If you need a small amount of cash for an emergency, ask whether your employer offers paycheck advances or whether a local credit union offers short-term loans at lower rates. These options may cost less than a credit card cash advance.

Frequently Asked Questions

Can I take a cash advance if I do not have a PIN?

You will need a PIN to withdraw cash at an ATM. If you do not have one, visit a Bank of America branch with your card and ID, and a teller can set up a PIN for you or process the cash advance directly at the counter.

What is the difference between a cash advance and a balance transfer?

A cash advance gives you cash; a balance transfer moves debt from one card to another. Both charge fees and interest, but balance transfers sometimes offer a lower introductory rate for a limited time. Cash advances do not have an introductory period.

Will taking a cash advance hurt my credit score?

The advance itself does not hurt your score, but it increases your credit utilization, which may lower your score slightly. Paying it off quickly will minimize the impact. Missing payments on the advance will damage your score.

How long does it take to pay off a cash advance?

That depends on how much you owe and how much you pay each month. Bank of America will explore your payments to the highest-interest debt first, so if you have both purchases and a cash advance, the advance gets paid down first. Use your online account to see how long payoff will take at your current payment rate.

Can I take a cash advance on a Bank of America debit card?

No. Cash advances are only available on credit cards. With a debit card, you can withdraw cash directly from your checking account at an ATM or branch with no fee or interest.