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 to your checking account, or a cash-like purchase using a special card feature. Each one costs differently and works differently, so the right choice 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, insert your credit card, and withdraw cash just like you would from a debit card. The transaction posts when ready, but you start paying interest right away — usually at a higher rate than your regular purchase APR. Most cards charge a fee of 3 to 5 percent of the amount you withdraw, on top of that interest.
A balance transfer moves money from your credit card to your bank account. This typically takes one to three business days and may have a lower fee than a cash advance, though the interest rate is usually the same. Some cards offer a promotional period with zero percent interest on balance transfers, which can make this the cheapest option if you pay back the money within that window.
A cash-like purchase uses a feature called a convenience check or a cash-equivalent transaction. Your card issuer mails you checks that draw against your credit line, or you can use the card to buy something you when ready resell or return. This is rarely the best choice because the fees and interest rates match or exceed a cash advance.
Key Takeaways
- Cash advances charge interest from the moment you withdraw the money, with fees typically between 3 and 5 percent of the amount, and interest rates higher than your purchase APR.
- Balance transfers to your bank account may have lower fees and sometimes come with a promotional zero percent interest period, though they take one to three business days to complete.
- Interest on cash from a credit card is not the same as interest on purchases — it usually starts accruing when ready and at a higher rate, with no grace period.
- The total cost of getting cash from a credit card depends on how long you carry the balance and which method you choose, so compare your card's terms before you withdraw.
Cash advances: how they work and what they cost
A cash advance is a short-term loan against your credit card's available balance. You can get one at any ATM that accepts your card, at a bank teller window, or sometimes through a money transfer service like MoneyGram or Western Union. The cash is yours when ready, but the cost starts accruing right away.
The fee is usually a flat percentage — often 3 to 5 percent of the amount you withdraw — with a minimum fee of $5 to $10. So if you withdraw $500, you might pay $15 to $25 just for the transaction. On top of that, interest begins accruing the same day. Most cards charge 20 to 30 percent APR on cash advances, which is typically 5 to 10 percentage points higher than the rate on regular purchases.
There is no grace period for cash advances. With a purchase, you might have 21 to 25 days before interest kicks in. With cash, interest starts when ready. If you withdraw $500 at 25 percent APR and pay it back in 30 days, you will owe roughly $10 in interest alone, plus the upfront fee. Over a year, that same $500 would cost you $125 in interest.
Your credit card issuer sets a separate cash advance limit, which may be lower than your overall credit limit. You can usually find this limit in your account details online or by calling the number on the back of your card. Some cards have a $500 limit; others allow you to advance up to half your credit limit.
Balance transfers: moving money to your bank account
A balance transfer moves funds from your credit card to your checking or savings account. Unlike a cash advance, which is a withdrawal, a balance transfer is treated as a transfer between accounts. The process is slower but sometimes cheaper.
To start a balance transfer, log into your credit card account online or call the issuer. You will provide your bank account number and routing number. The money typically arrives in one to three business days. Some issuers charge a fee of 3 to 5 percent, similar to a cash advance, though a few offer balance transfers with no fee during a promotional period.
The real advantage of a balance transfer is the promotional rate. Many cards offer zero percent APR on balance transfers for 6 to 21 months, depending on the card and your creditworthiness. If you transfer $2,000 at zero percent and pay it back within 12 months, you owe only the upfront fee — no interest. After the promotional period ends, the regular APR kicks in, so mark your calendar and plan to pay it off before that date.
Read the fine print carefully. Some cards charge the promotional rate only if you transfer from another card, not from your own card. Others require you to make a purchase within a certain time frame to keep the rate. And if you miss a payment during the promotional period, the zero percent rate may disappear and revert to the regular APR when ready.
When getting cash from a credit card makes sense
Getting cash from a credit card is expensive, so it only makes sense in specific situations. The most common one is a genuine emergency — a car repair, a medical bill, or an urgent expense you cannot cover any other way. If you have no savings and no other borrowing option, a cash advance is faster than a personal loan, which can take a week or more to fund.
A balance transfer with a promotional zero percent rate can make sense if you need cash for a specific purpose and you have a clear plan to pay it back before the rate expires. For example, if you need $3,000 for a home repair and your card offers zero percent for 12 months, you could transfer the money and pay $250 per month with no interest cost. But this only works if you actually stick to the repayment schedule.
A cash advance makes less sense if you already carry a balance on the card. The new cash advance will accrue interest at the higher rate, and your monthly payment will be split between the old balance and the new cash advance. This can trap you in a cycle where you pay interest on top of interest.
Do not use a cash advance to pay another credit card or to cover a purchase you could make with the card itself. You are paying a fee and higher interest for no real benefit. If you need cash to pay a bill, check whether the biller accepts credit card payments directly — you will save the cash advance fee.
How to minimize the cost if you do withdraw cash
If you have decided that a cash advance or balance transfer is necessary, here are the steps to keep the cost as low as possible.
First, compare the terms across your cards if you have more than one. Some cards charge 3 percent for a cash advance; others charge 5 percent. Some offer a promotional zero percent balance transfer rate; others do not. The card with the lowest fee and the best rate will save you money.
Second, withdraw only what you need. Every dollar you advance costs you a fee and interest. If you need $500, do not withdraw $600 just in case. The extra $100 will cost you an extra $3 to $5 in fees plus interest.
Third, pay it back as fast as you can. The longer the money sits on your card, the more interest you pay. If you can pay back a $500 cash advance in two weeks instead of two months, you cut the interest cost roughly in half. Set up a payment plan before you withdraw the money, not after.
Fourth, if you have a promotional zero percent balance transfer offer, use it. The fee is usually the same as a cash advance, but zero percent interest for 6 to 12 months is much cheaper than 25 percent APR. Just make sure you understand when the promotional period ends and have a plan to pay off the balance before then.
Alternatives to getting cash from a credit card
Before you withdraw cash from a credit card, consider whether another option might be cheaper or faster. A personal loan from a bank or credit union often has a lower interest rate than a credit card cash advance, even though it takes longer to process. If you have time, a personal loan is usually the better choice.
A payday loan is faster — you can get the money the same day — but the cost is often much higher than a credit card cash advance. Payday loans typically charge $15 to $20 per $100 borrowed, which works out to 400 percent APR or more. Use a payday loan only if you have no other option and can pay it back within two weeks.
If you have a 401(k) or similar retirement account, you may be able to borrow against it. The interest rate is usually lower than a credit card, and you are borrowing from yourself. However, if you leave your job, the loan may become due when ready. Check with your plan administrator about the terms before you borrow.
A credit card with a zero percent introductory APR on purchases is another option if you have time to explore. If you are approved, you can make a purchase with the card and have zero percent interest for 6 to 21 months. This does not give you cash, but it frees up cash you already have to use for the emergency instead.
How cash advances affect your credit score
A cash advance does not hurt your credit score directly — the transaction itself is not reported to the credit bureaus. However, it can hurt your score indirectly 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 advance $1,000, your utilization jumps to 20 percent. Credit scores favor lower utilization, so a high cash advance can lower your score by a few points. The effect is temporary — once you pay off the advance, your utilization drops and your score recovers.
Second, if the cash advance causes you to miss a payment or carry a balance longer than usual, that will hurt your score. Payment history is the biggest factor in your credit score, so any late payment will have a bigger impact than the cash advance itself.
The best way to protect your score is to pay off the cash advance as quickly as possible. This keeps your utilization low and ensures you do not miss any payments.
Frequently Asked Questions
Can I get a cash advance if my credit is bad?
Yes. A cash advance is a withdrawal against your existing credit limit, not a new loan, so the issuer does not re-check your credit. If you already have the card and available balance, you can get a cash advance regardless of your current credit score. However, your cash advance limit may be lower than your overall credit limit.
What is the difference between a cash advance and a balance transfer?
A cash advance is a withdrawal of physical cash that costs a fee and starts accruing interest when ready. A balance transfer moves money to your bank account and may have a lower fee or a promotional zero percent interest rate. Balance transfers take longer but are often cheaper if you pay back the money within the promotional period.
Do I have to pay back a cash advance all at once?
No. A cash advance is part of your credit card balance, so you can pay it back over time like any other purchase. However, interest accrues daily, so the longer you carry the balance, the more you pay. Most people pay back a cash advance as quickly as possible to minimize interest.
Can I use a credit card cash advance to pay another credit card?
Technically yes, but it is a bad idea. You are paying a 3 to 5 percent fee and 20 to 30 percent interest to move money from one card to another. If you are trying to pay down a high-interest card, a balance transfer to a zero percent promotional rate card is much cheaper.
What happens if I cannot pay back a cash advance?
The balance stays on your card and continues to accrue interest. If you miss payments, your credit score drops and the issuer may increase your interest rate or close the account. If the debt goes unpaid long enough, it may be sold to a collection agency. Contact your issuer as soon as you know you will have trouble paying — they may offer a hardship program or payment plan.