Three ways to turn your credit card into cash
You can get cash from a credit card in three ways: a cash advance at an ATM or bank, a balance transfer check, or a cash-like payment to yourself through a peer-to-peer app. Each one costs you differently and works on a different timeline. A cash advance is fastest but most expensive. A balance transfer check takes a few days but may have a lower rate. A peer app transfer is cheapest but only works if you have a linked bank account.
All three methods charge you a fee upfront — usually 3 to 5 percent of the amount — plus interest that starts accruing when ready, with no grace period like you get on purchases. If you need cash, it is worth understanding which method costs least for your situation and how much you will owe back.
Key Takeaways
- A cash advance at an ATM or bank counter is available within minutes but charges a fee of 3 to 5 percent plus a higher interest rate than purchases.
- Balance transfer checks arrive by mail in 3 to 7 business days and may offer a lower promotional rate, but you still pay an upfront fee.
- Peer-to-peer payment apps like Venmo or PayPal let you send money to yourself or a friend at no extra cost, though your card issuer may still charge a cash advance fee.
- Interest on cash from a credit card starts the day you withdraw it — there is no interest-free period — so the longer you carry the balance, the more you pay.
- Your credit card company sets a separate cash advance limit, which may be lower than your overall credit limit.
Cash advances at an ATM or bank branch
A cash advance is the most direct way to get money. You insert your credit card into an ATM or walk into a bank branch and ask the teller for a cash advance. The money appears in your hand or your account within minutes. Your card issuer charges a fee — typically 3 to 5 percent of the amount you withdraw — and that fee is added to your balance when ready.
Interest on a cash advance is higher than interest on purchases. Your card's purchase APR might be 18 percent, but the cash advance APR is often 22 to 28 percent or higher. Interest begins accruing the moment you withdraw the cash; there is no grace period. If you withdraw $500 and pay it back in 30 days, you will owe roughly $30 to $35 in interest alone, plus the upfront fee of $15 to $25.
Your card issuer also sets a separate cash advance limit, which is often much lower than your credit limit. You might have a $5,000 credit limit but only a $1,000 cash advance limit. Check your card's terms or call the number on the back to find out what your limit is before you go to the ATM.
Balance transfer checks
Many credit card companies mail you checks that work like a balance transfer — you write a check to yourself or to someone else, and the amount is charged to your credit card at a promotional rate. These checks usually arrive within 3 to 7 business days of your request. The fee is the same as a cash advance — 3 to 5 percent — but the interest rate may be lower, sometimes 0 percent for 6 to 12 months if you have a promotional offer running.
To use a balance transfer check, call your card issuer or log into your online account and request one. Write the check, deposit it into your bank account, and the funds appear there within 1 to 2 business days. The amount is charged to your credit card at the rate and terms printed on the check itself. Read the fine print carefully: the promotional rate applies only to that check, and if you miss a payment, the rate may jump to the standard cash advance rate.
Balance transfer checks are useful if you need cash but can wait a week and your card offers a 0 percent promotional period. They are slower than an ATM but cheaper than a standard cash advance if the promotional rate applies. However, if no promotional offer is running on your account, the interest rate will be the same as a cash advance, making the slower delivery time a disadvantage.
Peer-to-peer payment apps
Apps like Venmo, PayPal, Square Cash, and Google Pay let you send money from your credit card to another person or to your own bank account. If you send money to a friend and they send it back, or if you send it to yourself through a linked bank account, you can effectively convert your credit card into cash without going to an ATM. Some apps charge no fee for credit card transfers, though others charge 1 to 3 percent.
The catch is that your credit card company may still treat this as a cash advance and charge you their own fee and interest rate. Some issuers have updated their policies to treat peer-to-peer transfers as purchases instead, which means no cash advance fee and a lower interest rate — but this varies by card and by app. Before you use this method, contact your card issuer and ask whether transfers through a specific app count as a cash advance or a purchase.
If your issuer treats the transfer as a purchase, this is the cheapest way to get cash from a credit card. You pay only the app's fee (if any) and the purchase interest rate, with a grace period on the interest. If your issuer treats it as a cash advance, you pay both the app fee and the card's cash advance fee, plus a higher interest rate with no grace period — making it more expensive than walking to an ATM.
Comparing the cost of each method
The cost of getting cash from your credit card depends on which method you choose and what terms your card issuer offers. An ATM cash advance costs the most upfront and charges the highest interest rate, but it is available when ready. A balance transfer check costs the same upfront fee but may offer a promotional 0 percent rate if your card has one running. A peer-to-peer app is cheapest if your issuer treats it as a purchase, but it becomes expensive if your issuer treats it as a cash advance.
| Method | Fee | Interest Rate | Grace Period | Speed |
|---|---|---|---|---|
| ATM cash advance | 3–5% | 22–28%+ APR | None | Minutes |
| Balance transfer check | 3–5% | 0% promo or 22–28%+ APR | None | 3–7 days |
| Peer-to-peer app (if treated as purchase) | 0–3% | Purchase APR (18%+) | Yes, usually 21 days | 1–2 days |
| Peer-to-peer app (if treated as cash advance) | 3–8% | 22–28%+ APR | None | 1–2 days |
The cheapest option depends on your card's terms and your issuer's policies. If your card offers a 0 percent promotional rate on balance transfer checks and you can wait a week, that method costs you only the upfront fee. If your issuer treats peer-to-peer transfers as purchases, that method is cheapest because you get a grace period on interest. If you need cash when ready and have no promotional offer, an ATM cash advance is fastest but most expensive.
What to know before you withdraw
Your cash advance limit is separate from your credit limit. If you have a $5,000 credit limit and a $1,000 cash advance limit, you can only withdraw $1,000 in cash, even though you could charge $5,000 in purchases. Some card issuers let you raise your cash advance limit by calling customer service, but this takes time and is not always approved.
Interest on cash advances starts when ready — the day you withdraw it — and accrues daily. There is no 21-day grace period like there is on purchases. If you carry a $500 cash advance for 30 days at 25 percent APR, you will owe about $10 in interest. If you carry it for 90 days, you will owe about $30. The longer you wait to pay it back, the more interest you accumulate.
When you make a payment to your credit card, the payment is applied first to your highest-interest balance. If you have both a purchase balance at 18 percent and a cash advance balance at 25 percent, your payment goes to the cash advance first. This is good — it means you pay off the expensive debt faster — but it also means your purchase balance sits longer and accrues interest. Plan your repayment carefully if you have multiple balances.
Alternatives to getting cash from a credit card
If you need cash urgently, there are cheaper options than a credit card cash advance. A personal loan from a bank or credit union typically charges 6 to 36 percent APR with no upfront fee, and the interest does not start until you receive the money. A payday loan is faster but much more expensive, with APRs often exceeding 400 percent. A line of credit from your bank may offer a lower rate if you have an existing relationship with them.
If you need cash for an emergency and have no other option, a cash advance is available when ready, but understand that you are paying a premium for speed. If you have time to wait, a personal loan or a balance transfer check with a promotional rate will cost you less in the long run. If you regularly need cash from your credit card, that may signal that you should build an emergency fund or reconsider your spending — cash advances are expensive and should be a last resort, not a habit.
Frequently Asked Questions
Does getting a cash advance hurt my credit score?
A cash advance itself does not hurt your score, but it does increase your credit utilization — the percentage of your available credit you are using. If you have a $5,000 limit and withdraw $1,000 in cash, your utilization jumps to 20 percent. High utilization can lower your score temporarily. Paying back the cash advance quickly brings your utilization back down and recovers your score.
Can I get a cash advance from a credit card I just opened?
Yes, most card issuers allow cash advances when ready after you open the account. However, your cash advance limit may be lower than your overall credit limit, especially if you are new to the card. Check your welcome materials or call customer service to find out your cash advance limit.
What happens if I cannot pay back a cash advance?
If you do not pay back a cash advance, the interest and fees keep accruing, and the balance is reported to credit bureaus. Your credit score will drop, and after 30 days of missed payments, the card issuer may report it as delinquent. After 180 days, they may charge off the account and sell the debt to a collection agency. You can still negotiate a settlement or payment plan with the issuer or collector.
Is there a way to get a cash advance without paying a fee?
No. All cash advances from a credit card charge an upfront fee of at least 3 percent. The only way to avoid the fee is to not take a cash advance. Peer-to-peer apps may not charge their own fee, but your card issuer will still charge a cash advance fee unless they treat the transfer as a purchase — which varies by card and app.
Can I use a credit card cash advance to pay another credit card?
Technically yes, but it is expensive. You would pay the cash advance fee and interest rate on the money you withdraw, then use that cash to pay the other card. Most people use a balance transfer instead, which lets you move the balance directly from one card to another without withdrawing cash. A balance transfer also charges a fee but may offer a lower promotional rate.