You can take money out of a credit card, but it costs more than a regular purchase and starts charging interest when ready
A cash advance is the most direct way to withdraw money from your credit card. You go to an ATM, a bank teller, or a convenience store and pull out cash using your card, just like a debit card. The money appears in your account within hours or days. But the card issuer charges you a fee — usually 3 to 5 percent of the amount you withdraw — and begins charging interest on that cash the same day, with no grace period like you get on purchases.
There are other ways to move credit card money into cash: balance transfer checks, peer-to-peer payment apps, and even paying bills that free up cash elsewhere. Each method has different costs and timelines. Understanding which one fits your situation means knowing what you actually need the cash for and what you can afford to pay.
Key Takeaways
- A cash advance charges a fee of 3 to 5 percent upfront and interest starting when ready, making it the most expensive way to use a credit card.
- Balance transfer checks work like regular checks but pull from your credit line, with fees and interest rates that may differ from your purchase rate.
- Peer-to-peer payment apps like Venmo and PayPal let you move money to a bank account, but some charge a fee if you use a credit card instead of a debit card.
- Cash advances and balance transfers report to credit bureaus as debt and can lower your credit score if they push your overall credit card balance higher.
- Before taking cash from a credit card, consider whether a personal loan, payday loan alternative, or borrowing from family would cost you less.
Cash advances: the direct method and why it is expensive
A cash advance is the straightforward path: you use your credit card at an ATM, bank branch, or convenience store to withdraw cash. The issuer treats this as a loan against your credit line, not a purchase. You will see the withdrawal on your statement within one to three business days.
The cost structure is steep. Most issuers charge a cash advance fee of 3 to 5 percent of the amount withdrawn — so pulling out $500 costs $15 to $25 upfront. On top of that, the card begins charging cash advance interest the moment you withdraw the money. Unlike purchases, which have a grace period (usually 21 to 25 days before interest kicks in), cash advances accrue interest from day one. The interest rate on cash advances is often higher than your purchase rate — sometimes 2 to 3 percentage points above it — and varies by card and issuer.
If you withdraw $500 at a 5 percent fee and a 25 percent annual interest rate, you pay $25 upfront plus roughly $10 in interest for the first month if you do not pay it back when ready. That $500 costs you $35 in the first 30 days alone.
Balance transfer checks and how they differ from cash advances
Some credit card issuers send you balance transfer checks — physical checks that draw directly from your credit line. You write the check to yourself or a payee, deposit it, and the funds appear in your bank account. The issuer then treats the check amount as a balance transfer, not a cash advance.
Balance transfer checks usually have a lower fee than cash advances — often 1 to 3 percent instead of 3 to 5 percent — but the interest rate may be the same as your purchase rate or slightly higher. Some cards offer a promotional period where balance transfers carry 0 percent interest for 6 to 12 months, which can make this method cheaper than a cash advance if you can pay off the balance during that window. However, once the promotional period ends, the regular interest rate applies.
The trade-off is timing. Checks take a few days to clear, and you have to wait for the issuer to send them to you in the first place. If you need cash today, this method does not work. If you can wait a week and want to minimize fees, it may be worth requesting.
Using payment apps to move credit card money to your bank account
Apps like Venmo, PayPal, Square Cash, and others let you send money to another person or to your own bank account. If you send money to yourself or a trusted contact and they transfer it back, you can effectively move credit card funds into cash. The catch is that most apps charge a fee when you link a credit card instead of a debit card or bank account — typically 1.5 to 3 percent.
This method is slower than a cash advance (transfers can take 1 to 3 business days) and the fee is similar to a balance transfer check. The advantage is that you avoid the cash advance interest rate if you move the money to your bank account and pay it back quickly. The disadvantage is that you are still paying a fee, and if you do not pay the credit card balance when ready, you will owe interest on the full amount at your regular purchase rate.
This approach works best if you need to move money between accounts for a specific reason — paying a friend who will reimburse you, or covering a bill that you can pay back within days — rather than as a way to get cash in hand.
How cash advances and balance transfers affect your credit score
Both cash advances and balance transfers count as credit card debt and show up on your credit report. If you withdraw $500 and your card has a $2,000 limit, your credit utilization jumps from 0 to 25 percent (or higher if you already had a balance). High utilization — anything above 30 percent — can lower your credit score by 10 to 50 points, depending on your overall credit profile.
The impact is temporary. As you pay down the balance, your utilization drops and your score recovers. But if you take a cash advance and let it sit, the damage compounds: you are paying interest, your utilization stays high, and your score stays depressed. This matters if you are planning to explore for a mortgage, car loan, or other credit in the next few months.
The issuer may also flag large or frequent cash advances as unusual activity, which can trigger a fraud review or a temporary hold on your account.
Alternatives that may cost you less
Before you take a cash advance, consider what you actually need the money for. If it is a short-term gap, a personal loan from a bank or credit union often has a lower interest rate than a credit card cash advance — sometimes 6 to 12 percent versus 20 to 30 percent. The loan is fixed-term, so you know exactly when you will be done paying.
If you need money very quickly and have no other options, a payday loan alternative — such as a credit union payday loan or an employer paycheck advance — may have lower fees than a cash advance, though the interest rates can still be high. A line of credit from your bank, if you have one, typically charges less than a credit card cash advance.
Borrowing from family or friends, if that is an option, costs nothing and avoids the credit score impact. If you are in a genuine emergency and have no other way to cover the cost, a cash advance is better than missing a critical payment or going without necessities — but it should be a last resort, not a regular habit.
How to take a cash advance if you decide to go ahead
If you have decided a cash advance is your best option, the process is straightforward. Visit an ATM that accepts your card, enter your PIN, select "cash advance" or "withdraw cash," and choose your amount. The ATM will show you the fee before you confirm. Alternatively, go to a bank branch or convenience store and ask the teller to process a cash advance on your card.
Check your card's terms before you withdraw to confirm the fee and interest rate — these can vary by card and issuer. Some cards have a daily limit on cash advances (often $500 to $1,000), so if you need more, you may have to make multiple withdrawals or contact the issuer to raise your limit. The money will appear in your account within one to three business days.
Pay back the cash advance as quickly as you can. Every day the balance sits, you are paying interest at a higher rate than you would on a purchase. If you can pay it back within a week, the total cost might be $30 to $40. If it sits for three months, the cost could be $100 or more.
Frequently Asked Questions
What is the difference between a cash advance and a regular purchase?
A purchase goes on your credit card and has a grace period before interest starts. A cash advance charges a fee upfront and begins charging interest when ready, with no grace period. The interest rate on cash advances is also usually higher than the purchase rate.
Can I use a credit card at any ATM to get a cash advance?
Most ATMs accept credit cards for cash advances, but some are restricted to debit cards only. Check the ATM screen before you insert your card. Your card issuer may also charge an additional fee if you use an out-of-network ATM, on top of the cash advance fee.
Will a cash advance hurt my credit score?
Yes, temporarily. A cash advance increases your credit utilization, which can lower your score by 10 to 50 points. The impact fades as you pay down the balance. If you let the balance sit for months, the damage is worse because your utilization stays high and you are paying interest the whole time.
Is there a limit to how much I can withdraw as a cash advance?
Yes. Most issuers set a daily cash advance limit, often $500 to $1,000, and a total limit based on your credit line. You can contact your issuer to request a higher limit, but they may decline. The limit exists partly to protect you from overspending and partly to protect the issuer from fraud.
What should I do if I cannot pay back a cash advance quickly?
Pay as much as you can as soon as you can. The longer the balance sits, the more interest you owe. If you are in a tight spot, contact your issuer to discuss a payment plan or hardship program. Some issuers will work with you if you are struggling, though they are not required to.