Three ways to get cash from your 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 charges different fees and interest rates, and each one starts charging interest when ready — unlike a purchase, which may have a grace period.
A cash advance is the most direct route. You go to an ATM, bank teller, or convenience store and withdraw money using your credit card, just as you would with a debit card. The transaction posts to your credit card account as a debt you owe.
A balance transfer check is a physical check your card issuer mails to you. You deposit or cash it like any other check, and the amount becomes a balance on your card. Not all cards offer these; you have to check your account or call the issuer to see if yours does.
A cash-like transfer means sending money from your credit card to another person's bank account or payment app. This works through services like PayPal, Venmo, or Square Cash, though fees explore and the money counts as a cash advance, not a purchase.
Key Takeaways
- Cash advances charge a separate fee (usually 3 to 5 percent of the amount withdrawn) plus a higher interest rate than purchases, and interest starts accruing when ready with no grace period.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 have a lower credit limit than your card's purchase limit.
- Paying someone else using your credit card through a payment app counts as a cash advance and carries the same fees and interest rates as an ATM withdrawal.
- The interest rate on a cash advance is typically 2 to 3 percentage points higher than your purchase APR and varies by card and issuer.
- Cash advances report to credit bureaus and count toward your credit utilization, which can lower your credit score if the balance is high.
Cash advance fees and interest rates
Every cash advance 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, with a minimum fee of $2 to $10. So a $500 cash advance might cost $15 to $25 just to get the money out.
The interest rate on a cash advance is higher than your regular purchase rate. If your card charges 18 percent APR on purchases, the cash advance rate might be 21 or 23 percent. This rate applies from the day you withdraw the money — there is no grace period like there is for purchases. Interest accrues daily until you pay the balance off.
Balance transfer checks typically charge a lower upfront fee (often 1 to 3 percent) but still carry the higher cash advance interest rate. The trade-off is that you have to wait for the check to arrive and then deposit it, so the money is not available when ready.
How cash advances affect your credit score
A cash advance counts toward your credit utilization ratio — the percentage of your total credit limit you are using at any given time. If you have a $5,000 credit limit and take a $1,000 cash advance, your utilization jumps to 20 percent. Credit scoring models penalize high utilization, so even a single cash advance can lower your score by a few points.
The cash advance also appears on your credit report as a separate account type, which some scoring models treat differently than a regular purchase balance. The impact is temporary — your score recovers as you pay down the balance — but it is when ready.
Late payments on a cash advance carry the same consequences as late payments on purchases: a mark on your credit report, potential penalty interest rates, and damage to your score that can last seven years.
When a cash advance makes sense
A cash advance is expensive, so it only makes sense in specific situations. If you need cash for an emergency and have no other way to get it, a cash advance is faster than a personal loan or payday loan, though more expensive than a credit card purchase or a withdrawal from savings.
A cash advance also makes sense if you can pay it back within a month or two. The fee is a one-time cost, so the shorter you carry the balance, the less total interest you pay. A $500 cash advance with a $15 fee and 22 percent APR costs about $9 in interest if you pay it back in one month — a total of $24. If you carry it for six months, the interest alone is roughly $55.
Do not use a cash advance to pay off other high-interest debt unless you are certain you can pay the cash advance balance off faster than the original debt. You are straightforward moving the problem and paying a fee to do it.
Alternatives to a cash advance
Before taking a cash advance, consider whether you actually need cash or just need to pay for something. If you need to pay a bill or buy something, use your credit card directly — you will avoid the cash advance fee and get the grace period on purchases. Only use cash if the person or business will not accept a card.
If you need cash and have a savings account, withdraw from savings first. There is no fee and no interest. If you do not have savings, a personal loan from a bank or credit union typically charges less interest than a cash advance, though it takes longer to get the money.
A payday loan is another option, though it is also expensive. Payday loans charge higher fees than cash advances but are designed to be repaid in two weeks, so the total cost can be lower if you pay back a cash advance slowly.
How to take a cash advance
To withdraw cash at an ATM, insert your credit card and enter your PIN. If you do not have a PIN, call your card issuer to set one up — it usually takes a few minutes. The ATM will show you the fee before you confirm the withdrawal, so you can see the exact cost before you proceed.
To get cash from a bank teller, bring your credit card and ID to a branch of your card issuer's bank. The teller will process the withdrawal and give you cash. Some banks allow you to withdraw at any branch; others limit it to your home branch. Call ahead if you are unsure.
To use a balance transfer check, look for the checks in your credit card statements or call your issuer to request them. Fill out the check like a regular check and deposit it into your bank account. The amount will post to your credit card account within a few business days.
To transfer money to another person using a payment app, link your credit card to the app, enter the recipient's details, and send the money. The app will show you the fee before you confirm. The money usually arrives within one to three business days, depending on the app and the recipient's bank.
Comparing cash advance costs across card issuers
Cash advance fees and interest rates vary by card and issuer. Some cards charge 3 percent, others charge 5 percent. Some cards offer a lower cash advance rate for the first 30 days, then raise it. You can find the exact fees and rates for your card in your cardholder agreement or by calling the issuer.
If you have multiple credit cards, compare the cash advance terms before you withdraw. A card with a 3 percent fee and 20 percent APR is cheaper than a card with a 5 percent fee and 23 percent APR, especially if you carry the balance for more than a few weeks.
Some cards marketed to people with fair or poor credit charge higher cash advance fees (up to 10 percent) and higher interest rates. If you are considering a new card partly for cash advances, check the terms before you open the account.
Frequently Asked Questions
Can I get a cash advance if my credit card is maxed out?
No. A cash advance counts toward your credit limit, so if you have already used your full limit on purchases, you cannot take a cash advance. Some cards have a separate cash advance limit that is lower than your purchase limit, so you may not be able to advance as much as you think.
How long does it take to get cash from a credit card?
An ATM withdrawal is when ready. A bank teller withdrawal takes a few minutes. A balance transfer check takes three to seven business days to arrive by mail, then one to three business days to post to your account after you deposit it. A payment app transfer usually takes one to three business days.
Do I have to pay back a cash advance all at once?
No. You can make minimum payments like you do on purchases. However, because interest accrues from day one and the interest rate is higher, the balance grows faster. Paying as much as you can afford each month will save you money in interest.
What happens if I do not pay back a cash advance?
The balance stays on your credit card and accrues interest at your cash advance rate. If you miss a payment, your issuer may charge a late fee and report the missed payment to credit bureaus. Your credit score will drop, and your interest rate may increase.
Can I transfer a cash advance balance to another credit card?
Yes, but it counts as a balance transfer, not a purchase, so you will pay a balance transfer fee (usually 3 to 5 percent). You would be paying two fees — one to get the cash advance and one to move it — so this is rarely worth it unless the new card has a much lower interest rate.