The main ways to get cash from a credit card
You can get money from a credit card in four ways: a cash advance at an ATM or bank, a balance transfer to your checking account, a convenience check, or a cash-like transaction such as buying gift cards or cryptocurrency. Each method charges different fees and interest rates, and some start charging interest when ready rather than after a grace period. The cheapest option depends on what you need the money for and how quickly you can pay it back.
Cash advances are the most common method. You use your card's PIN at an ATM or ask a bank teller for cash, and the money appears in your account within minutes. Balance transfers move money from your credit card to a bank account you control, usually within one to three business days. Convenience checks are physical checks linked to your credit card account that you can write to yourself or deposit. Cash-like purchases — gift cards, cryptocurrency, or gambling chips — count as cash advances for fee and interest purposes, even though you are not receiving actual currency.
Key Takeaways
- Cash advances charge an upfront fee (usually 3 to 5 percent of the amount) plus a higher interest rate than regular purchases, with interest starting when ready rather than after a grace period.
- Balance transfers to your bank account may have lower fees than ATM cash advances but still charge interest from day one, and the transfer takes one to three business days.
- Convenience checks work like regular checks but are treated as cash advances, so they carry the same fees and when ready interest charges as ATM withdrawals.
- Your credit card's cash advance limit is often lower than your overall credit limit, and you can find it in your cardholder agreement or by calling your card issuer.
- If you need money regularly, a personal loan or line of credit usually costs less than repeated cash advances.
Cash advances at ATMs and banks
A cash advance is a short-term loan against your credit card balance. You withdraw money at an ATM using your card and PIN, or you visit a bank branch and ask the teller for a cash advance. The money is available when ready, but you pay for that speed through fees and interest.
Most cards charge a cash advance fee of 3 to 5 percent of the amount you withdraw, with a minimum fee of $5 to $10. So a $500 withdrawal costs $15 to $25 in fees alone. Interest starts accruing the same day you withdraw the money — there is no grace period like there is for regular purchases. The interest rate on cash advances is typically 2 to 3 percentage points higher than your regular purchase APR. If your card charges 18 percent on purchases, the cash advance rate might be 21 percent.
Your cash advance limit is separate from your credit limit. A card with a $5,000 credit limit might only allow $1,500 in cash advances. You can find your cash advance limit in your cardholder agreement, on your online account, or by calling the customer service number on the back of your card.
Balance transfers to your bank account
Some card issuers offer balance transfers that move money directly from your credit card to a checking or savings account you own. This is different from a traditional balance transfer, which moves debt from one credit card to another. The process is faster than waiting for a check to clear and avoids the need to visit an ATM.
Balance transfer fees are usually 3 to 5 percent, similar to cash advance fees, though some cards charge slightly less. Interest starts when ready, just as with ATM cash advances. The transfer typically takes one to three business days, depending on your bank. You initiate the transfer through your card issuer's website or by phone, and you need your bank account number and routing number ready.
Not all cards offer this feature. Check your cardholder agreement or call your issuer to see whether balance transfers to your bank account are available on your card. Some issuers limit how often you can request a transfer or cap the amount you can move in a single transaction.
Convenience checks and cash-like purchases
Convenience checks are physical checks that your card issuer mails to you, linked to your credit card account. You can write them to yourself, deposit them into your bank account, or give them to someone else as payment. They work like regular checks but are treated as cash advances for fee and interest purposes — you pay the cash advance fee and the higher interest rate, with interest starting when ready.
Cash-like purchases include gift cards, prepaid cards, cryptocurrency, casino chips, or lottery tickets. These count as cash advances even though you are not receiving actual money. You pay the cash advance fee and interest rate, and the interest clock starts the day of purchase. This makes them one of the most expensive ways to get money from a credit card, especially if you are buying something you plan to convert back to cash later.
The advantage of convenience checks is that they do not require a PIN or a trip to an ATM. The disadvantage is that they are straightforward to lose or misplace, and you have no record of the transaction until the check clears. If you use them, keep them in a find location and record the check number and amount in your records.
How the fees and interest add up
A $500 cash advance on a card with a 4 percent fee and 21 percent APR costs $20 upfront. If you pay back the full amount in one month, you owe roughly $8.75 in interest (21 percent annual rate ÷ 12 months × $500). Total cost: $28.75, or about 5.75 percent of the amount borrowed.
If you carry the $500 balance for six months, the interest compounds and you pay roughly $52.50 in interest charges on top of the $20 fee. Total cost: $72.50, or about 14.5 percent of the amount borrowed. The longer you carry the balance, the more the interest compounds, and the more expensive the cash advance becomes.
Compare this to a personal loan from a bank or credit union, which might charge 8 to 12 percent APR with no upfront fee. A $500 personal loan at 10 percent APR over six months costs about $13 in interest — less than one-quarter of what the credit card cash advance costs. If you need money regularly or expect to carry a balance for more than a month, a personal loan or line of credit is almost always cheaper.
When a cash advance makes sense
A cash advance is most useful when you need money for a true emergency and can pay it back within a few weeks. Examples include a car repair that your insurance does not cover, a medical bill your health plan denied, or a security deposit for an apartment you are moving into when ready. In these cases, the speed of getting cash outweighs the cost of the fees and interest.
A cash advance makes less sense if you are using it to cover regular expenses, pay other debts, or fund a purchase you could delay. If you are regularly taking cash advances to cover your monthly bills, that is a sign that your income does not match your spending, and a cash advance is treating the symptom rather than the problem. In that situation, a budget review or a conversation with a credit counselor is more useful than borrowing more money.
If you have other options — a personal loan, a line of credit, borrowing from family, or selling something you own — those are usually cheaper than a cash advance. Use a cash advance only when you have no other realistic option and you can repay it quickly.
How to minimize the cost if you do take a cash advance
If you decide a cash advance is necessary, you can reduce the total cost by paying it back as quickly as possible. Every dollar you pay toward the cash advance balance stops accruing interest, so paying an extra $100 toward it each week saves you money compared to paying it off slowly.
Some cards allow you to set up automatic payments from your bank account. Setting up an automatic payment for the full cash advance amount on your next payday ensures you do not forget and lets you avoid carrying the balance longer than necessary. Check your online account or call your issuer to see whether this option is available.
You can also reduce the fee by withdrawing only what you actually need. A $300 cash advance costs less in fees than a $500 advance, even though the interest rate is the same. Plan ahead for what you need so you do not withdraw extra money out of habit or caution.
Frequently Asked Questions
Can I take a cash advance if my credit is bad?
Yes. Your cash advance limit is based on your existing credit card account, not on a new credit check. As long as you have an active card with available cash advance limit, you can withdraw cash. The card issuer has already decided to lend to you; a cash advance is just a different way of using that credit.
What happens if I do not pay back a cash advance?
The unpaid balance stays on your credit card, accrues interest at the cash advance rate, and is reported to the credit bureaus as part of your credit card debt. If you do not pay for several months, the card issuer may close your account, report you to a debt collector, or pursue legal action. Your credit score will drop significantly.
Is a cash advance the same as a balance transfer?
No. A balance transfer moves debt from one credit card to another card, usually with a promotional low interest rate. A cash advance puts money in your pocket or bank account and charges a higher interest rate from day one. They are different products with different costs and purposes.
Can I use a credit card cash advance to pay off another credit card?
Technically yes, but it is almost always a bad idea. You pay a cash advance fee on the money you withdraw, then you pay the higher cash advance interest rate on the balance. You end up paying more in fees and interest than if you had done a balance transfer instead. If you need to move debt between cards, a balance transfer is the right tool.
How long does a cash advance stay on my credit report?
The cash advance itself does not appear separately on your credit report. It is part of your credit card balance and is reported as revolving debt. Once you pay it off, it stops accruing interest, but the account history stays on your report for seven years as part of your credit card account history.