The main ways to get cash from a credit card
You can take money 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 transaction such as buying a money order or casino chips. Each method charges different fees and interest rates, and each affects your credit differently. A cash advance is the most direct but also the most expensive — you pay an upfront fee (usually 3 to 5 percent of the amount) plus a higher interest rate than you pay on purchases, often starting when ready with no grace period.
Balance transfers move debt from one card to another, not cash into your pocket, so they only help if you are trying to consolidate existing balances at a lower rate. Cash-like transactions (sometimes called "convenience checks" or equivalents) may have lower fees than cash advances but still charge interest from day one. Before you use any of these methods, understand that you are borrowing money at a cost, not accessing your own funds.
Key Takeaways
- A cash advance charges an upfront fee of 3 to 5 percent plus a higher interest rate than purchases, with interest accruing when ready and no grace period.
- You can withdraw cash at an ATM using your credit card PIN, or visit a bank teller and request a cash advance over the counter.
- Balance transfers move debt between cards and do not put cash in your hand; they are useful only if you are consolidating existing balances.
- The cost of a cash advance compounds quickly, so repay it as soon as possible to avoid paying hundreds in interest on a small withdrawal.
Cash advances at ATMs and bank tellers
A cash advance at an ATM is the fastest way to get money from your credit card. You insert your card, enter your PIN (which you may need to set up with your card issuer if you have not used it before), and withdraw cash up to your daily limit — typically $500 to $1,000, though your card issuer sets the actual amount. The ATM charges a fee (often $3 to $5 per transaction) on top of your card issuer's cash advance fee.
If you prefer not to use an ATM, you can visit a bank branch and ask the teller for a cash advance. Bring your credit card and a form of ID. The teller will process the transaction the same way an ATM does, but you avoid the ATM operator's fee — you pay only your card issuer's fee. This method takes longer but costs slightly less.
Your card issuer sets a separate cash advance limit, which may be lower than your overall credit limit. For example, you might have a $5,000 credit limit but only a $1,000 cash advance limit. Check your card's terms or call the issuer to find out your limit before you go to the ATM.
Fees and interest rates for cash advances
The cost of a cash advance has two parts: an upfront fee and ongoing interest. 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 (such as $10 per advance), which is cheaper for large withdrawals but more expensive for small ones.
Interest on a cash advance is higher than interest on purchases and starts accruing the day you withdraw the money. There is no grace period. If your card charges 18 percent APR on purchases, the cash advance rate might be 22 or 25 percent. The interest compounds daily, so a $500 advance at 25 percent APR costs about $3.42 per day in interest alone. After 30 days, you owe $102.60 in interest on top of the original $500 and the upfront fee.
Your card issuer applies your monthly payment to the lowest-interest debt first, so if you have both a purchase balance and a cash advance balance, your payment goes toward the purchase first. This means the cash advance sits and accrues interest while you pay down the cheaper debt. Pay the cash advance off separately and as quickly as possible to avoid this trap.
Balance transfers and how they differ from cash advances
A balance transfer moves an existing debt from one credit card to another, usually one with a lower interest rate or a promotional 0 percent APR period. You do not receive cash — the new card issuer pays off the old card on your behalf. Balance transfers are useful if you are consolidating multiple card balances or moving debt to a card with better terms, but they do not put money in your pocket.
Balance transfers charge a fee (usually 3 to 5 percent of the amount transferred) and may have a promotional interest rate for 6 to 21 months, after which the regular rate applies. If you transfer $3,000 at a 3 percent fee, you pay $90 upfront and owe $3,090 on the new card. If that card offers 0 percent APR for 12 months, you have a year to pay it down without interest charges — but only if you make no new purchases on that card, because purchases accrue interest at the regular rate when ready.
Balance transfers make sense only if you already carry a balance and can move it to a lower rate. If you need cash, a balance transfer will not help you.
Other ways to get cash-like value from your card
Some credit cards allow you to buy money orders, casino chips, lottery tickets, or other cash equivalents. These transactions are treated like cash advances — they charge the same upfront fee and interest rate, and interest accrues when ready. The only difference is that you receive a physical item instead of bills from an ATM. This method is rarely cheaper than a direct cash advance and adds an extra step, so it is not recommended unless your card specifically offers a lower rate for these transactions.
A few card issuers offer "balance transfer checks" — checks you can write against your credit line. These work like balance transfers: they move debt from one card to another or from another lender to your card, not cash into your account. If you write a check to yourself, it is treated as a cash advance with the associated fees and interest.
How a cash advance affects your credit score
A cash advance does not directly hurt your credit score the way a late payment does, but it can harm your score indirectly. When you take a cash advance, your credit utilization — the percentage of your available credit you are using — increases when ready. If you have a $5,000 limit and take a $1,000 cash advance, your utilization jumps to 20 percent. High utilization signals to lenders that you are relying heavily on credit, and credit scoring models penalize this.
The damage is temporary: once you pay off the cash advance, your utilization drops and your score recovers. But if you carry the balance for months, the high utilization will drag down your score for as long as it remains. Additionally, if the cash advance pushes you toward your credit limit, you risk triggering over-limit fees or a decline on future transactions.
The bigger risk is behavioral: taking cash advances often signals financial stress, and people who take them are more likely to miss payments or default. If you miss a payment on the cash advance, that missed payment stays on your credit report for seven years and causes far more damage than the advance itself.
Alternatives to credit card cash advances
Before you take a cash advance, consider whether you need the money for an emergency or a planned expense. If it is an emergency and you have no other option, a cash advance is faster than a personal loan but far more expensive. If you have time, a personal loan from a bank or credit union typically charges 6 to 36 percent APR — lower than a credit card cash advance rate — and does not charge an upfront fee.
A payday loan is faster than a personal loan but much more expensive, with APRs often exceeding 400 percent. A cash advance is usually cheaper than a payday loan, but only barely. If you have a 401(k) or similar retirement account, you may be able to borrow against it at a lower rate, though this carries its own risks.
If you need cash for a planned expense, a 0 percent APR credit card offer (for purchases, not cash advances) lets you spread the cost over months without interest. This is cheaper than a cash advance but requires you to open a new card and may have access to for the promotional rate.
Frequently Asked Questions
What is the difference between a cash advance and a regular credit card purchase?
A purchase is charged at your card's standard APR with a grace period — you pay no interest if you pay the full balance by the due date. A cash advance charges a higher APR with no grace period, meaning interest starts accruing when ready. A cash advance also charges an upfront fee (3 to 5 percent), while purchases do not.
Can I take a cash advance from a credit card I just opened?
Yes, most card issuers allow cash advances on new cards when ready, though your cash advance limit may be lower than your overall credit limit. Some issuers set a cash advance limit of zero for new cardholders and increase it after a few months of on-time payments. Call your issuer to check your limit.
What happens if I cannot pay back a cash advance?
If you miss a payment, the issuer charges a late fee and reports the missed payment to credit bureaus, damaging your credit score. Interest continues to accrue at the higher cash advance rate. If you miss multiple payments, the issuer may close your account and send the debt to a collection agency. Contact your issuer when ready if you cannot pay to discuss hardship options.
Is there a way to take a cash advance without paying a fee?
No. All credit card cash advances charge an upfront fee set by your card issuer — typically 3 to 5 percent of the amount withdrawn. Some cards offer lower fees than others, so if you take cash advances regularly, comparing card terms before opening an account can save you money. But there is no way to avoid the fee entirely.
Can I use a credit card cash advance to pay off another credit card?
Technically yes, but it is expensive and usually a bad idea. You would pay the cash advance fee (3 to 5 percent) plus the higher cash advance interest rate, which is more than you would pay by straightforward transferring the balance to a lower-rate card. A balance transfer is the correct tool for moving debt between cards.