What getting cash from your credit card actually costs you
You can pull cash from your credit card in three ways: a cash advance at an ATM, a balance transfer check, or a cash-like purchase (like buying a money order). All three charge you more than a regular purchase does. A cash advance typically costs a fee of 3 to 5 percent of the amount withdrawn, plus a higher interest rate — often 5 to 10 percentage points above your regular purchase rate — that starts accruing when ready with no grace period. A balance transfer check works the same way but arrives by mail. Buying a money order or gift card codes as a cash advance on most cards, so you pay the same fees and rates.
The math matters. If you need $500 and your card charges a 4 percent cash advance fee plus 24 percent interest, you pay $20 upfront and then $10 per month in interest alone if you carry the balance. That $500 costs you $530 in the first month and keeps climbing. A personal loan or credit union loan, by contrast, spreads the cost over a fixed term and usually charges less interest overall.
Key Takeaways
- Cash advances charge a separate fee (usually 3 to 5 percent) plus a higher interest rate that starts when ready, with no grace period like purchases have.
- Balance transfer checks and cash-like purchases (money orders, gift cards) trigger the same cash advance fees and rates as ATM withdrawals.
- You can get cash at an ATM using your credit card's PIN, by mail using a balance transfer check, or through a cash-like purchase at a store.
- If you need cash for an emergency, a personal loan, credit union loan, or even a payday loan may cost less than a credit card cash advance depending on your situation.
Getting cash at an ATM with your credit card
The fastest way to get cash is to visit an ATM and insert your credit card like a debit card. You will need your credit card's PIN, which you may have set up when you opened the account or can request from your card issuer. The ATM will let you withdraw up to a daily limit set by your card issuer — often $500 to $1,000 per day, though this varies by card and bank.
The cash appears in your account when ready, but the fees and interest start right away. Your card issuer charges the cash advance fee upfront (deducted from the amount you receive or added to your balance), and interest accrues from the withdrawal date forward. There is no grace period, so interest compounds daily until you pay it back.
Getting cash by mail through balance transfer checks
Some credit card issuers send you blank checks tied to your credit card account. You write one to yourself, deposit it in your bank account, and the amount becomes a cash advance on your card. This takes longer than an ATM withdrawal — usually 5 to 10 business days for the check to arrive and another 1 to 3 days to clear — but it can be useful if you do not have your PIN or prefer not to use an ATM.
The fees and interest are identical to an ATM cash advance. You also may face a fee from your bank for depositing a check to a different institution's account, though most banks waive this. Check your card's terms to see if balance transfer checks are available on your account; not all cards offer them.
Cash-like purchases that trigger cash advance fees
Some purchases count as cash advances even though you are not withdrawing physical cash. Buying a money order, a gift card, or casino chips typically triggers the same cash advance fee and interest rate as an ATM withdrawal. Cryptocurrency purchases often do too, depending on your card issuer. Wire transfers and wire transfer services also usually count as cash advances.
The reason is that these transactions are treated as converting credit into cash or cash-equivalent value, not as purchases of goods or services. Before you buy a money order or gift card with your credit card, call your issuer and ask whether that transaction will be coded as a cash advance. If it will, the cost is the same as going to an ATM.
Comparing credit card cash to other borrowing options
A credit card cash advance is fast but expensive. Here is how it stacks up against other ways to borrow:
| Borrowing Method | Time to Get Cash | Typical Cost | Best For |
|---|---|---|---|
| Credit card cash advance | Same day (ATM) or 5–10 days (check) | 3–5% fee plus 20–30% interest | True emergencies when nothing else is available |
| Personal loan | 1–5 business days | 6–36% interest depending on credit | Larger amounts ($1,000+) you can repay over months |
| Credit union loan | 1–3 business days | 8–18% interest for members | Members who need cash and want lower rates than banks |
| Payday loan | Same day or next day | $15–$20 per $100 borrowed (400%+ annual rate) | Very short-term needs (1–2 weeks) only |
| Borrowing from friends or family | when ready | $0 if no interest agreed | Small amounts when you have a trusted relationship |
If you need $500 for an emergency and can repay it within a month, a credit card cash advance may be your only fast option. If you can wait a few days and need to carry the balance for several months, a personal loan from a bank or credit union will almost always cost less. A payday loan is faster but far more expensive unless you can repay it within two weeks.
How to minimize the cost if you must use a cash advance
If you decide a cash advance is your best option, take these steps to keep the cost as low as possible. First, withdraw only what you need. Every dollar you advance costs you the fee plus interest, so borrowing $300 instead of $500 saves you money when ready. Second, repay it as fast as you can. Interest compounds daily, so paying back the full amount within a week costs far less than carrying it for a month.
Third, check whether your card offers a lower cash advance rate for balance transfer checks than for ATM withdrawals — some do, though the difference is usually small. Fourth, if you have multiple credit cards, use the one with the lowest cash advance fee and interest rate. Finally, do not use a cash advance to pay off another debt unless that debt is costing you more in interest. Swapping one high-cost debt for another does not help.
When a cash advance makes sense and when it does not
A cash advance makes sense when you face a true emergency — a car repair you need to drive to work, a medical bill, an urgent home repair — and you have no other way to pay. It also makes sense if you can repay the full amount within a week or two, because the total interest cost stays low. If you have a credit union membership or can get a personal loan within a day or two, those are almost always cheaper.
A cash advance does not make sense if you are using it to pay everyday expenses because your paycheck is late, or if you plan to carry the balance for months. It also does not make sense if you are borrowing to pay off another credit card or loan at a lower rate — you are just moving the debt to a more expensive place. And it does not make sense if you are borrowing to invest, gamble, or buy something you do not need. The cost is too high to justify those uses.
Frequently Asked Questions
Does getting a cash advance hurt my credit score?
A cash advance itself does not show up separately on your credit report. However, it increases your credit card balance, which raises your credit utilization ratio — the percentage of your available credit you are using. A higher utilization ratio can lower your score by a few points. Paying back the advance quickly brings your utilization back down and limits the damage.
Can I get a cash advance if my credit card is maxed out?
No. The cash advance counts against your credit limit, just like a purchase does. If your card is maxed out, you cannot withdraw cash. You would need to pay down your balance first or request a credit limit increase from your issuer.
What is the difference between a cash advance and a balance transfer?
A balance transfer moves debt from one card to another (usually with a lower introductory rate), while a cash advance converts your credit line into physical cash. A balance transfer is for moving existing debt; a cash advance is for getting cash. Both charge fees and interest, but the rates and terms differ by card.
Can I avoid the cash advance fee?
No. Every credit card issuer charges a cash advance fee — it is built into the terms of the card. You cannot negotiate it away or waive it. Your only option is to use a different borrowing method or to repay the advance so quickly that the total cost stays low.
What happens if I only make the minimum payment on a cash advance?
The balance will grow because interest compounds daily and the minimum payment usually covers only the interest and fees, not the principal. A $500 cash advance at 25 percent interest will cost you roughly $125 in interest alone if you carry it for a year and only make minimum payments. Pay as much as you can toward the principal to reduce the total cost.