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, or a cash-like payment to someone else's account. Each method costs differently and affects your credit differently, so the cheapest option depends on what you need the money for and how quickly you need it.
A cash advance is the most direct method. You go to an ATM, bank branch, or convenience store, insert your card, and withdraw cash up to your credit limit. The money hits your account when ready. A balance transfer check is a physical check the card issuer mails to you, drawn against your credit line — you deposit it like any other check. A cash-like transfer is when you send money from your card to someone else's bank account using a service like PayPal or Venmo, then withdraw it as cash; this is technically not a cash advance but functions like one for cost purposes.
Key Takeaways
- Cash advances charge a fee (usually 3 to 5 percent of the amount) plus a higher interest rate than regular purchases, starting when ready with no grace period.
- Balance transfer checks often have lower fees than ATM cash advances but still charge interest from day one and may take several days to clear.
- The interest rate on cash advances is typically 5 to 10 percentage points higher than your regular purchase rate, making them expensive for anything beyond a few weeks.
- If you need cash for a planned expense, a personal loan or line of credit from a bank or credit union is almost always cheaper than any credit card cash method.
Cash advance fees and interest rates
When you take a cash advance, your card issuer charges two separate costs: an upfront fee and a higher interest rate. The upfront fee is usually 3 to 5 percent of the amount you withdraw — so a $500 cash advance costs $15 to $25 when ready. Some cards charge a flat fee instead (often $5 to $10), which is cheaper for larger amounts but more expensive for small ones.
The interest rate on cash advances is not the same as your purchase rate. Most issuers charge 5 to 10 percentage points more for cash advances than for regular purchases. If your purchase rate is 18 percent, your cash advance rate might be 25 percent. Unlike purchases, there is no grace period — interest starts accruing the day you withdraw the cash, even if you pay it back when ready.
Balance transfer checks usually have a lower upfront fee (often 1 to 3 percent) but the same high interest rate. The advantage is that you have a few days for the check to clear, which can matter if you are timing a payment. The disadvantage is that you cannot control the fee — the issuer sets it, and you either accept it or do not use the check.
How much you can withdraw
Your cash advance limit is usually lower than your total credit limit. Many issuers set it at 20 to 50 percent of your credit line, though some allow you to withdraw up to your full limit. You can find your cash advance limit by calling the number on the back of your card or logging into your online account.
The limit exists partly to protect the issuer from fraud and partly to discourage cash advances, since they are more profitable than purchases. If you need more cash than your limit allows, you cannot increase it for a single transaction — you would have to request a higher cash advance limit, which the issuer may or may not grant.
Where to get a cash advance
You can withdraw a cash advance at any ATM that displays your card's logo — Visa, Mastercard, American Express, or Discover. Most ATMs in banks, grocery stores, and convenience stores accept major cards. Some ATMs charge an additional fee ($2 to $3) on top of your card issuer's fee, so using an ATM at your own bank usually costs less.
You can also visit a bank branch in person and ask the teller for a cash advance. This method avoids ATM fees but requires you to go during business hours. Some card issuers also allow you to request a cash advance by phone and have the money deposited directly into your bank account, though this is less common and may take one to two business days.
Why cash advances are expensive compared to alternatives
A cash advance is one of the most expensive ways to borrow money. If you need $500 and take a cash advance at 25 percent interest, you pay $15 to $25 upfront plus $10.42 per month in interest if you do not pay it back when ready. Over six months, the total cost is roughly $77. Over a year, it is roughly $150.
A personal loan from a bank or credit union typically charges 8 to 15 percent interest with no upfront fee, making it far cheaper for amounts over a few hundred dollars. A line of credit works similarly. Even a payday loan, despite its bad reputation, is often cheaper than a cash advance if you pay it back within two weeks. If you have time to plan, these alternatives are worth exploring.
The only scenario where a cash advance makes sense is when you need a small amount of cash for a very short time — a few days to a week — and have no other option. Even then, the cost adds up quickly.
How a cash advance affects your credit score
A cash advance counts as a new balance on your credit card, which increases your credit utilization ratio — the percentage of your available credit you are using. If you have a $5,000 limit and take a $1,000 cash advance, your utilization jumps from 0 to 20 percent (or higher if you already had a balance). High utilization temporarily lowers your credit score, usually by 10 to 50 points depending on how much you borrow.
The impact is temporary — your score recovers as you pay down the balance. However, if you carry the cash advance balance for months, the high utilization will drag on your score the entire time. Additionally, the high interest rate means the balance grows if you do not pay it aggressively, making it harder to pay off and keeping your utilization high longer.
When to use a cash advance and when to avoid it
Use a cash advance only when you need cash when ready and have no other option. Examples include an unexpected car repair that requires cash payment, a medical expense at a facility that does not take cards, or a family emergency where you need money fast and cannot wait for a loan to process.
Avoid a cash advance if you are trying to pay off debt, building credit, or borrowing for a planned expense. In those cases, a personal loan, line of credit, or even a 0 percent balance transfer card (if you have good credit) will cost you less. Do not use a cash advance to fund everyday spending or to cover a shortfall in your budget — that signals a deeper cash flow problem that a cash advance will only make worse.
Frequently Asked Questions
Can I use a credit card cash advance to pay another credit card bill?
Technically yes, but most card issuers treat a payment to another credit card as a cash advance, not a regular purchase. This means you pay the cash advance fee and interest rate even though you are not actually withdrawing cash. It is almost always cheaper to transfer a balance directly between cards or to pay the bill from a bank account.
What happens if I cannot pay back a cash advance?
The balance stays on your card and accrues interest at the high cash advance rate. If you do not pay for several months, the issuer may report the debt to credit bureaus, which damages your credit score. You could also face late fees, a higher interest rate on your entire card balance, and eventually a collections account if the debt goes unpaid for long enough.
Is a balance transfer check cheaper than an ATM cash advance?
Usually yes, because the upfront fee is lower (1 to 3 percent instead of 3 to 5 percent). However, the interest rate is the same, so the savings only matter if you are borrowing a large amount. For a $500 advance, you might save $10 to $15 with a check, but you have to wait for it to clear and you cannot control when the issuer sends it.
Can I get a cash advance with a debit card?
No. Debit cards draw directly from your bank account, so there is no credit line to advance against. If you need cash and do not have it in your account, you would need to use a credit card, take out a loan, or use another method.
Does taking a cash advance hurt my credit when ready?
Yes. The moment you take the advance, your utilization ratio increases, which can lower your score by 10 to 50 points within a few days. The impact is temporary and recovers as you pay the balance down, but it is when ready.