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 advance app. A cash advance at an ATM is the fastest — you insert your card, enter your PIN, and withdraw money within minutes. Balance transfer checks work like regular checks but draw from your credit line instead of a bank account. Cash advance apps like MoneyLion or Earnin let you borrow against future income, though they are not technically credit card cash and work differently.
The catch is cost. Cash advances charge a fee (usually 3 to 5 percent of the amount) plus a higher interest rate than regular purchases — often 20 to 30 percent, starting when ready with no grace period. A $500 cash advance can cost $15 to $25 in fees alone, plus interest that begins accruing the same day. Balance transfer checks carry similar fees and rates. If you need cash, a personal loan or credit union loan almost always costs less.
Key Takeaways
- Cash advances charge an upfront fee of 3 to 5 percent plus a higher interest rate than purchases, with interest starting when ready.
- You can withdraw cash at an ATM using your credit card PIN, at a bank teller, or through a balance transfer check.
- Interest rates on cash advances vary by card and issuer but typically range from 20 to 30 percent, with no grace period.
- A personal loan or credit union loan will almost always cost less than a credit card cash advance, even with a lower credit score.
Cash advances at ATMs and bank tellers
To withdraw cash at an ATM, insert your credit card and enter your PIN. The ATM will show your available cash advance limit, which is usually lower than your credit limit — often 20 to 50 percent of it. You can withdraw up to that limit in one transaction or across multiple withdrawals. The fee appears on your next statement.
At a bank teller, you can also request a cash advance by showing your card and ID. The process is the same: the teller checks your available advance limit and hands you cash. Some banks charge a teller fee on top of the card issuer's fee, so ask before you proceed. Both methods post to your account within one business day.
Balance transfer checks and how they work
Balance transfer checks are physical checks issued by your credit card company that draw from your credit line instead of a bank account. You receive them in the mail (or can request them by phone), write one to yourself or a payee, and deposit it like a regular check. The amount counts as a cash advance on your credit card statement.
The advantage over an ATM withdrawal is that you can write a check for any amount up to your available advance limit without visiting an ATM or bank. The disadvantage is the same: you pay a cash advance fee and a higher interest rate. Some cards offer promotional rates on balance transfer checks for a limited time — for example, 0 percent for six months — but read the terms carefully, because the rate reverts to the standard cash advance rate after the promotion ends.
Fees and interest rates you will pay
Cash advance fees are charged as a percentage of the amount withdrawn, typically 3 to 5 percent. A $500 withdrawal costs $15 to $25. Some cards cap the fee at a flat amount (for example, $10 minimum, $50 maximum), so a very small advance might cost the minimum. Check your card's terms or call the issuer to find your exact fee percentage.
Interest rates on cash advances are separate from your purchase rate and usually higher — often 20 to 30 percent, depending on your card and creditworthiness. Unlike purchases, there is no grace period: interest begins accruing the day you withdraw the cash. If you carry a balance, the interest compounds daily. A $500 advance at 25 percent interest costs about $10 per month in interest alone, on top of the initial fee.
Some cards offer a promotional period on balance transfer checks — for instance, 0 percent for the first six months — but the standard cash advance rate applies after that period ends. Always confirm the exact rate and when it changes before you proceed.
Why a personal loan or credit union loan costs less
A personal loan from a bank, credit union, or online lender typically charges 6 to 36 percent interest, depending on your credit score and the lender. Even at the high end, 36 percent is lower than the 20 to 30 percent cash advance rate, and you avoid the upfront fee. A $500 personal loan at 20 percent over 12 months costs about $53 in interest — less than the cash advance fee plus three months of interest.
Credit unions often offer the lowest rates, especially if you are a member. Some offer small personal loans of $500 to $2,500 with rates as low as 8 to 12 percent and no process fee. If you have a checking or savings account at a credit union, ask about their personal loan options before using a cash advance.
Online lenders like Upstart, LendingClub, and Prosper approve loans in one to three business days and deposit funds directly to your bank account. You will need to provide income verification and consent to a credit check, but approval is often faster than a bank loan and the rates are competitive.
When a cash advance makes sense
A cash advance is rarely the best choice, but it can be the fastest option in a genuine emergency — for example, if you need cash when ready and have no other way to get it. If you can repay it within a month or two, the total cost may be acceptable. If you will carry the balance for months, the interest will compound and a personal loan becomes much cheaper.
A cash advance also makes sense if you have a promotional rate on a balance transfer check — for instance, 0 percent for six months — and you are certain you can repay it before the rate increases. In that case, you pay only the upfront fee and no interest, which is competitive with a personal loan.
How to minimize the cost if you do take a cash advance
If you decide to take a cash advance, repay it as quickly as possible. Every dollar you repay stops accruing interest when ready. If you have other credit card balances, your payment goes to the lowest-rate debt first (usually purchases), so the cash advance interest keeps compounding. Pay the cash advance balance in full before you make other payments.
Use a balance transfer check with a promotional rate if your card offers one. A 0 percent promotional period on a balance transfer check lets you borrow interest-free for a set time, usually three to twelve months. You still pay the upfront fee, but you avoid months of interest charges. Read the fine print to confirm when the promotional rate ends and what the standard rate will be.
Avoid taking multiple cash advances. Each one charges a separate fee and accrues interest separately. If you need $1,000, take one $1,000 advance rather than five $200 advances.
Frequently Asked Questions
Can I use a credit card cash advance to pay off another credit card?
Yes, but it is usually not a good idea. You pay a cash advance fee on the amount, plus a higher interest rate than a balance transfer. A balance transfer (moving debt from one card to another) is cheaper because it avoids the cash advance fee. If your card does not offer balance transfers, a personal loan is still cheaper than a cash advance.
What is the difference between my credit limit and my cash advance limit?
Your credit limit is the total you can borrow on your card for purchases and other transactions. Your cash advance limit is usually lower — often 20 to 50 percent of your credit limit — and is the maximum you can withdraw as cash. The issuer sets both limits based on your credit score and payment history. You can call your card issuer to ask if your cash advance limit can be increased.
Does a cash advance hurt my credit score?
A cash advance itself does not hurt your score, but carrying a high balance does. If the cash advance pushes your total credit card balance above 30 percent of your credit limit, your credit utilization increases and your score may drop. Paying off the advance quickly keeps utilization low and minimizes the impact.
Can I get a cash advance with a debit card?
No. Debit cards draw from your bank account, not a credit line, so they cannot offer a cash advance. You can withdraw cash at an ATM using your debit card PIN, but that is a regular withdrawal, not a cash advance. If you need to borrow money, you need a credit card, personal loan, or credit line.
What happens if I cannot repay a cash advance?
The balance carries over to your next statement and accrues interest at the cash advance rate. If you miss a payment, your card issuer may charge a late fee and report the missed payment to credit bureaus, which damages your credit score. If the balance goes unpaid for months, the issuer may close your account or send the debt to a collection agency. Contact your issuer when ready if you cannot make a payment — many offer hardship programs that lower your interest rate or pause payments temporarily.