The three ways to get cash from a credit card
You can pull 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 someone else's account. Each one costs you differently and hits your credit differently, so the method matters.
A cash advance is the most direct route. You go to an ATM, insert your credit card, and withdraw money like you would from a debit card. A bank teller can also process a cash advance over the counter. The money lands in your hand or account within minutes. But the cost is steep: most cards charge a fee of 3 to 5 percent of the amount you withdraw, plus interest that starts accruing when ready — often at a higher rate than your regular purchase APR.
A balance transfer check is a paper check your card issuer mails to you. You deposit it like any other check, and the amount becomes a balance on your credit card. The fee is usually 3 to 5 percent as well, and interest accrues from day one. The advantage is that you get the money without visiting an ATM, and you can deposit it into a bank account rather than withdraw it as cash.
A convenience check or cash-like transfer works similarly to a balance transfer check but may have different terms. Some cards offer these with promotional rates or lower fees for a limited time. Read the fine print on any offer your card issuer sends.
Key Takeaways
- Cash advances charge a fee of 3 to 5 percent upfront and interest rates that are usually higher than your regular purchase rate, starting when ready with no grace period.
- Balance transfer checks work like cash advances but let you deposit money into a bank account instead of withdrawing it as physical cash.
- Interest on cash advances and balance transfers begins accruing the day you take the money, unlike purchases which may have a grace period.
- If you need cash, a personal loan or line of credit from a bank or credit union usually costs less than a credit card cash advance.
- Repeated cash advances can signal financial stress to lenders and may lower your credit score over time.
Why cash advances cost so much more than regular purchases
Credit card companies charge more for cash advances because they see them as riskier. When you buy something, the merchant guarantees the transaction and the card issuer can dispute it if something goes wrong. When you withdraw cash, there is no merchant, no receipt, and no way to reverse it. The card issuer is lending you unsecured money.
The fee itself is a one-time charge — typically 3 to 5 percent, sometimes higher — taken from the amount you withdraw. A $300 cash advance with a 4 percent fee costs you $12 right away. But the real damage comes from interest. Most cards charge a separate, higher APR for cash advances than for purchases. Where your purchase APR might be 18 percent, your cash advance APR could be 24 or 28 percent. And unlike purchases, which often have a grace period of 21 to 25 days before interest kicks in, cash advance interest starts accruing the moment you withdraw the money.
If you carry that $300 cash advance for a month at 25 percent APR, you will owe roughly $6.25 in interest on top of the $12 fee. Over a year, the interest alone would exceed $75. That is why cash advances are meant to be short-term solutions, not ongoing borrowing.
How to find your cash advance limit and terms
Your credit card may have a separate cash advance limit that is lower than your total credit limit. A card with a $5,000 limit might only allow you to withdraw $1,500 in cash. You can find this limit by logging into your online account, calling the customer service number on the back of your card, or checking your most recent statement.
When you call or log in, also ask for the exact cash advance APR and fee structure. Card issuers sometimes offer promotional rates — for example, 0 percent APR on balance transfer checks for the first six months — but these are time-limited and may require you to meet certain conditions. Write down the rate, the fee percentage, and when any promotional period ends.
If your card does not offer cash advances, or if your limit is too low, you can request an increase. Some issuers will raise your cash advance limit if you ask, though they may run a hard inquiry on your credit report. Others will not budge. It never hurts to ask, but do not expect it.
Cheaper alternatives to credit card cash advances
Before you use a cash advance, consider these lower-cost options. A personal loan from a bank, credit union, or online lender usually carries an APR of 6 to 36 percent depending on your credit score — often much lower than a credit card cash advance rate. You borrow a fixed amount, receive it in one lump sum, and repay it in equal monthly installments. There is no daily interest accrual and no surprise fees.
A line of credit from a bank or credit union works like a cash advance but with lower rates and fees. You draw money as you need it, pay interest only on what you use, and can repay it flexibly. Credit unions often offer these at rates below 18 percent.
If you have a 401(k) or similar retirement account, you may be able to borrow against it. A 401(k) loan typically charges interest at the prime rate plus 1 or 2 percent — currently around 8 to 9 percent — and you repay it to yourself, not to a lender. The downside is that if you leave your job, you usually have to repay the loan within 60 days or face taxes and penalties.
A payday loan is another option, but it is often more expensive than a credit card cash advance. Payday loans charge fees of $15 to $20 per $100 borrowed, which works out to an APR of 400 percent or higher. Use them only if you have no other choice and can repay within two weeks.
How a cash advance affects your credit score
A single cash advance will not destroy your credit score, but it can lower it by a few points. The withdrawal itself does not show up on your credit report — only the balance does. What matters to your score is how much of your available credit you are using.
If you have a $5,000 credit limit and a $1,500 cash advance limit, and you withdraw $1,000, your total credit card balance rises by $1,000. If you had no other balance, your credit utilization jumps from 0 percent to 20 percent. Credit scoring models penalize high utilization, so your score may drop 5 to 15 points depending on your starting score and the scoring model used.
The bigger risk is what a cash advance signals to future lenders. If you take multiple cash advances or use them repeatedly, lenders see it as a sign that you are short on cash and may be a higher risk. This can make it harder to get approved for new credit or cause you to receive higher interest rates on loans and cards.
When a cash advance makes sense
A cash advance is rarely the best choice, but there are narrow situations where it is the least bad option. If you have an emergency that requires cash — a car repair, a medical bill, or a security deposit — and you cannot get a personal loan or line of credit in time, a short-term cash advance may be worth the cost. The key is to repay it as fast as possible.
If you do take a cash advance, treat it like a debt you need to eliminate. Do not let it sit on your card while you make minimum payments. Set a repayment important date — ideally within one or two months — and put that money toward the cash advance balance before you pay anything else on the card. The longer it sits, the more interest you will owe.
Also check whether your card issuer offers any promotional rates on cash advances or balance transfers. Some cards occasionally waive the fee or offer 0 percent APR for a limited time. These promotions are rare and usually only available to customers with good credit, but they are worth asking about before you withdraw.
Step-by-step: How to take a cash advance
At an ATM: Insert your credit card, enter your PIN (which you may need to set up first by calling your card issuer), select "cash advance" or "withdrawal," enter the amount, and confirm. The ATM will dispense cash and charge your card. Some ATMs charge an additional fee of $2 to $5 on top of your card issuer's fee.
At a bank or credit union branch: Bring your credit card and a photo ID to a teller. Tell them you want a cash advance. They will process it, charge your card, and give you cash. This method avoids ATM fees but requires a trip during business hours.
For a balance transfer check: Wait for the check to arrive in the mail from your card issuer, or request one by calling customer service. Deposit it into your bank account like any other check. The funds will be available within one to three business days, depending on your bank. The amount will appear as a balance on your credit card statement.
Frequently Asked Questions
Can I use a credit card cash advance to pay off another credit card?
Technically yes, but it is a bad idea. You would be paying a 3 to 5 percent fee and a high interest rate to move debt from one card to another. A balance transfer to a card with a 0 percent promotional rate is cheaper. If you want to consolidate debt, a personal loan is usually the best option.
What happens if I cannot repay a cash advance?
The balance stays on your credit card and accrues interest. If you miss payments, your credit score will drop, late fees will pile up, and the card issuer may freeze your account or send the debt to a collection agency. If you are struggling, contact your card issuer to ask about hardship programs or payment plans.
Do I need a PIN to take a cash advance?
At an ATM, yes. If you do not have a PIN set up, call your card issuer to create one before you try to withdraw. At a bank branch, you do not need a PIN — just your card and ID. For a balance transfer check, no PIN is needed.
Is there a limit to how much I can withdraw?
Yes. Your card issuer sets a separate cash advance limit, which is often lower than your total credit limit. You can find this limit in your online account or by calling customer service. Some cards also limit how much you can withdraw per day at an ATM, even if your cash advance limit is higher.
Can I get a cash advance with a debit card?
No. Debit cards draw from money you already have in your bank account. What you can do with a debit card is withdraw cash from an ATM for free (if it is your bank's ATM) or for a small fee (if it is another bank's ATM). If you need to borrow money, you need a credit card or a loan.