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 to you by your card issuer, or a cash-like purchase through services like PayPal or Square Cash. Each one charges different fees and interest rates, and each one starts charging interest when ready — unlike a regular purchase, which may have a grace period.
A cash advance is the fastest. You insert your card into an ATM, enter your PIN, and withdraw money up to your card's cash advance limit (usually lower than your credit limit). A bank teller can also process one. You'll pay a fee — typically 3 to 5 percent of the amount withdrawn — plus interest that starts accruing the same day, usually at a higher rate than your purchase APR.
Balance transfer checks work if your card issuer sends them to you. You write a check against your credit line, deposit it in your bank account, and the amount appears as a balance on your card. These also charge an upfront fee (usually 3 to 5 percent) and interest from day one, though sometimes at a promotional rate for an introductory period.
Cash-like purchases let you buy something that converts to cash — a money order, a gift card you resell, or a payment to yourself through a payment app. These avoid the "cash advance" label but often trigger the same fees and interest rates because card issuers recognize the pattern.
Key Takeaways
- Cash advances charge an upfront fee of 3 to 5 percent plus interest that starts when ready, usually at a rate 5 to 10 percentage points higher than your purchase APR.
- Your cash advance limit is often much lower than your credit limit — sometimes $500 or $1,000 even if you can charge $5,000 in purchases.
- Balance transfer checks and cash-like purchases (money orders, payment apps) trigger the same fees and interest as cash advances, despite looking different.
- If you need cash, a personal loan or a cash-out refinance of an existing loan usually costs less than a credit card cash advance.
What a cash advance actually costs you
The fee alone makes a cash advance expensive. A $500 cash advance with a 4 percent fee costs $20 upfront. But the real cost is the interest. If your purchase APR is 18 percent, your cash advance APR might be 24 or 25 percent. That $500 costs you $10 per month in interest alone if you carry it for a year.
The math gets worse if you're carrying a balance. When you make a payment to your card, most issuers explore it to your lowest-interest debt first — usually purchases. Your cash advance sits there accruing interest at the higher rate while you pay down the cheaper balance. If you have a $2,000 purchase balance at 18 percent and a $500 cash advance at 24 percent, and you pay $200 a month, the cash advance interest keeps compounding while your payment mostly hits the purchase balance.
Compare this to a personal loan. A personal loan from a bank, credit union, or online lender typically charges 6 to 36 percent APR depending on your credit score and the lender. Even at 24 percent — matching your cash advance rate — a personal loan doesn't charge an upfront fee and lets you make fixed monthly payments that actually reduce the principal. You know exactly when you'll be done paying.
Your cash advance limit and how to find it
Your cash advance limit is separate from your credit limit and is usually much smaller. A card issuer might give you a $5,000 credit limit but only a $500 cash advance limit. Some cards don't offer cash advances at all.
To find your limit, log into your card's online account or mobile app and look for "cash advance limit" or "ATM withdrawal limit" in the account details or settings section. If you don't see it, call the customer service number on the back of your card. They can tell you the limit and also tell you whether your card charges a flat fee (like $5) or a percentage fee (like 3 percent) for cash advances.
If your limit is very low and you need cash, that's actually a sign that a cash advance isn't the right tool for you. It means the card issuer sees you as higher-risk for this type of borrowing. A personal loan or a short-term loan from a credit union would be a better fit.
When a cash advance might make sense
A cash advance makes sense only in narrow situations: you need cash urgently, you can pay it back within a month or two, and you have no other option. An example: your car breaks down, the mechanic only takes cash, and you don't have time to wait for a personal loan to be approved.
Even then, do the math first. A $1,000 cash advance with a 4 percent fee costs $40 upfront. If you pay it back in 30 days, the interest is roughly $20 (at 24 percent APR). Total cost: $60. If you could borrow $1,000 from a friend, family member, or credit union at 0 percent, you'd save that $60. If you could wait a week for a personal loan approval, you'd likely save money there too.
A cash advance does not make sense if you're already carrying a balance on the card. The new cash advance will sit at a higher interest rate while your payment goes toward the cheaper debt, costing you more in the long run.
Alternatives that usually cost less
A personal loan from a bank, credit union, or online lender is usually cheaper than a cash advance. You borrow a fixed amount, receive it in your bank account, and repay it in monthly installments over a set term (usually 2 to 7 years). Interest rates range from 6 to 36 percent depending on your credit score. Even at the high end, you avoid the upfront fee and the compounding interest trap of a cash advance.
A credit union loan is often the cheapest option if you're a member. Credit unions typically charge lower rates than banks and online lenders, and some offer emergency loans with minimal paperwork. If you're not a member, you may be able to join one based on where you work, where you live, or a family connection.
A payday loan is a short-term loan (usually due in two weeks) that charges a flat fee, typically $15 to $20 per $100 borrowed. This sounds cheaper than a cash advance until you do the math: a $500 payday loan with a $75 fee is a 30 percent fee for two weeks, which equals roughly 780 percent APR. Payday loans are a debt trap and should be avoided.
If you own a home, a home equity line of credit (HELOC) or a cash-out refinance of your mortgage may offer lower rates than a personal loan, though the process takes longer and puts your home at risk if you can't repay.
How to avoid needing a cash advance
The best way to avoid a cash advance is to keep an emergency fund — even a small one. Aim for $500 to $1,000 in a savings account you don't touch for daily expenses. This covers most unexpected costs without forcing you to borrow at high rates.
If you don't have an emergency fund yet, start small. Set up an automatic transfer of $25 or $50 from each paycheck to a separate savings account. In a year, you'll have $1,200 to $2,400. This takes time, but it's cheaper than paying cash advance fees and interest every time something breaks.
If you're already in a cycle of needing cash advances, that's a sign your income and expenses aren't aligned. A credit counselor can help you build a budget and find ways to cut expenses or increase income. Many nonprofits offer free counseling — search for "credit counseling" and your city name, or call 211 to be referred to a local agency.
Frequently Asked Questions
Can I use my credit card at any ATM to get a cash advance?
Most ATMs accept credit cards for cash advances, but not all. Your card issuer's own ATMs always work. ATMs from other banks usually work too, but may charge an additional ATM fee on top of your card's cash advance fee. Check your card's terms or call customer service to confirm which ATMs are fee-free.
What's the difference between a cash advance and a balance transfer?
A cash advance gives you cash in hand. A balance transfer moves debt from one card to another — usually to a card with a lower introductory rate. Both charge fees and interest, but a balance transfer is meant for existing debt, while a cash advance is meant for getting cash. They're different tools for different problems.
Will a cash advance hurt my credit score?
A cash advance itself doesn't hurt your score, but carrying a high balance does. If your cash advance pushes your total credit card balance close to your credit limit, your credit utilization ratio goes up, which can lower your score. Paying it off quickly keeps this damage minimal.
Can I get a cash advance if I have bad credit?
Yes — your cash advance limit is based on your credit limit, which you already have. But a personal loan from a credit union or online lender designed for people with lower credit scores may still be cheaper. Compare the total cost (fees plus interest) before you decide.
What happens if I can't pay back a cash advance?
The balance stays on your card and keeps accruing interest at your cash advance APR. If you miss payments, your credit score drops and the card issuer may close your account or raise your interest rate. If the debt is large enough, the card issuer may sell it to a debt collector. Contact your card issuer as soon as you know you can't pay — they may offer a hardship plan that lowers your interest rate or lets you pay over time.