The main ways to get cash from a credit card
You can get cash from a credit card in three ways: a cash advance at an ATM or bank, a balance transfer check mailed by your card issuer, or a cash-like purchase through services like PayPal or Square Cash. Each method charges different fees and interest rates, and each one costs you more than a regular purchase would.
A cash advance is the most direct route. You insert your credit card into an ATM, enter a PIN (which you may need to set up first with your card issuer), and withdraw cash up to your credit limit. The transaction posts when ready, and interest begins accruing the same day — there is no grace period like there is for regular purchases. Most cards charge a fee of 3 to 5 percent of the amount withdrawn, plus a flat fee of $2 to $10.
Balance transfer checks work differently. Your card issuer mails you a check that draws against your credit line. You deposit or cash the check, and the amount becomes a balance on your card. These checks often carry a lower fee than ATM cash advances — sometimes 1 to 3 percent — but they may also come with a lower interest rate for a set period (often 6 to 12 months). The catch is that you have to wait for the check to arrive and clear.
Cash-like purchases let you buy something that converts to cash almost when ready. You can load money onto a prepaid card, send it to yourself through a payment app, or buy a gift card and resell it. These routes avoid the "cash advance" label and its fees, but they come with their own costs: transaction fees from the payment service, or a loss when you resell a gift card below face value.
Key Takeaways
- Cash advances charge 3 to 5 percent plus a flat fee, with interest starting when ready and no grace period.
- Balance transfer checks often cost 1 to 3 percent and may offer a lower interest rate for the first 6 to 12 months.
- Cash-like purchases through payment apps or prepaid cards avoid the cash advance label but carry their own transaction costs.
- Interest rates on cash advances are typically higher than rates on regular purchases, even on the same card.
- All three methods should be considered a last resort because the total cost — fees plus interest — adds up quickly.
How much it costs to get cash from a credit card
The cost of a cash advance depends on three things: the fee percentage, any flat fee, and the interest rate. A $500 cash advance on a card with a 3 percent fee, a $5 flat fee, and a 24 percent APR will cost you $20 in upfront fees alone. If you pay it back over three months, you will owe roughly $30 more in interest, for a total cost of $50 on a $500 withdrawal.
Balance transfer checks are cheaper upfront but the math changes if you carry the balance. A $500 balance transfer check with a 1 percent fee costs $5 to obtain. If your card offers 0 percent APR for 12 months on balance transfers, you pay only that $5 fee if you clear the balance within the year. But if you miss the important date and the rate jumps to 24 percent, you will owe interest on the remaining balance at that higher rate.
The interest rate on a cash advance is usually 2 to 5 percentage points higher than the rate on regular purchases. If your card charges 18 percent on purchases, the cash advance rate might be 23 percent. This difference matters most if you carry the balance for more than a month or two.
Cash advances at ATMs versus banks
An ATM cash advance is faster but may cost more. You can withdraw cash 24 hours a day, and the money is in your hand when ready. However, ATMs often charge an additional fee on top of your card issuer's fee — typically $2 to $3 per transaction. Some ATMs charge more, especially if they are in a casino, hotel, or nightclub.
A bank cash advance is slower but may be cheaper. You walk into a branch, show your credit card and ID, and the teller withdraws cash for you. Most banks do not charge an extra fee for this service beyond what your card issuer charges. The downside is that you have to go during business hours and wait in line.
If you need cash regularly, the ATM fees add up. A $100 ATM withdrawal with a $3 ATM fee plus a 3 percent card issuer fee ($3) costs you $6 in fees alone — 6 percent of the amount withdrawn. The same $100 at a bank branch costs only the 3 percent card issuer fee.
When a cash advance makes sense
A cash advance is worth considering only in specific situations. If you need cash for an emergency and have no other source — no savings, no access to a personal loan, no family member who can lend — then a cash advance is better than missing a bill payment or going without. The cost is high, but the alternative may be worse.
A cash advance also makes sense if you can pay it back within a few days. The interest accrues daily, so the longer you carry the balance, the more you pay. If you know you will have the cash to repay it by the end of the week, the interest cost stays small.
A balance transfer check makes sense if your card offers a 0 percent introductory rate on balance transfers and you can clear the balance before the rate expires. This is useful if you are consolidating debt from another card at a higher rate, not for obtaining spending cash.
A cash advance does not make sense if you have a savings account with money in it, access to a personal loan at a lower rate, or a credit line with a lower interest rate. It also does not make sense as a way to fund regular spending or to cover a shortfall you cannot close any other way.
How to set up a PIN for credit card cash advances
Most credit cards require a PIN to withdraw cash at an ATM, even though you do not need one to make a purchase. If you have never set up a PIN, you will need to do so before your first cash advance attempt.
Call the customer service number on the back of your card and ask to set up a PIN. The representative will verify your identity and let you choose a four-digit number. Some card issuers also let you set a PIN through their mobile app or website. Write down the PIN and store it somewhere safe — not in your wallet next to the card.
If you forget your PIN, call customer service again and request a reset. The new PIN will be mailed to your address on file, which usually takes 5 to 10 business days. Plan ahead if you think you might need a cash advance soon.
Alternatives to credit card cash advances
Before you use a cash advance, explore other options. A personal loan from a bank or credit union typically charges 6 to 36 percent APR, which is lower than most credit card cash advance rates. The process takes a few days, but if you are not in an when ready crisis, the savings are worth the wait.
A payday loan is faster — you can often get cash the same day — but the cost is much higher. Payday loans charge 300 to 400 percent APR when annualized, making them more expensive than a credit card cash advance. Use a payday loan only if a cash advance is not an option and the emergency cannot wait.
A line of credit from your bank, if you have one, usually charges a lower rate than a cash advance. Some banks offer overdraft protection that lets you borrow small amounts at a set fee. A credit card balance transfer to a 0 percent card is another option if you have time to open a new account and wait for approval.
If you have friends or family who can lend you money, borrowing from them is almost always cheaper than any formal lending product. The only cost is the relationship, which is worth protecting by being clear about repayment terms and sticking to them.
How cash advances affect your credit score
A cash advance itself does not show up separately on your credit report — it appears as a balance on your credit card account. However, it can hurt your credit score in two ways.
First, a cash advance increases your credit utilization ratio, which is the percentage of your available credit that you are using. If you have a $5,000 credit limit and you take a $1,000 cash advance, your utilization jumps to 20 percent. High utilization signals risk to lenders and can lower your score by 10 to 50 points, depending on how high it goes. The impact is temporary — your score recovers as you pay down the balance.
Second, if you carry the cash advance balance and miss a payment, that missed payment stays on your credit report for seven years. A single missed payment can lower your score by 100 points or more. This is the real credit risk of a cash advance: not the advance itself, but the debt that follows if you cannot pay it back quickly.
Frequently Asked Questions
Can I get a cash advance if my credit card is maxed out?
No. A cash advance draws from your available credit, not from a separate pool. If your credit limit is $5,000 and you have already charged $5,000, you cannot take a cash advance. You would need to pay down the balance first or request a credit limit increase from your card issuer.
What happens if I cannot pay back a cash advance?
The balance stays on your card and interest continues to accrue at the cash advance rate. If you miss a payment, it will be reported to the credit bureaus and will damage your credit score. Your card issuer may also increase your interest rate or close your account. Contact your card issuer when ready if you think you will miss a payment — some offer hardship programs that lower your rate temporarily.
Is a cash advance the same as a balance transfer?
No. A cash advance gives you physical cash and charges a higher interest rate with no grace period. A balance transfer moves debt from one card to another and often comes with a lower introductory rate. Balance transfers are meant for existing debt; cash advances are for obtaining spending cash.
Can I use a credit card cash advance to pay another credit card bill?
Technically yes, but it is a bad idea. You would be borrowing at the cash advance rate (usually 23 to 25 percent) to pay off debt at a lower rate (usually 18 to 22 percent). You would pay more in interest, not less. If you need to move debt between cards, a balance transfer is the right tool.
Do all credit cards allow cash advances?
Most do, but not all. Some secured cards and prepaid cards do not offer cash advances. Check your card's terms or call customer service to confirm. Even if your card allows cash advances, your card issuer may set a limit lower than your credit limit — for example, you might be able to charge $5,000 but only withdraw $1,000 in cash.