Three ways to take money 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, or a cash-like purchase (sometimes called a "convenience check" or money order). Each one costs you differently and starts charging interest on different schedules.
A cash advance is the most common route. You use your credit card at an ATM, bank teller, or money transfer service like MoneyGram to withdraw cash up to your card's cash advance limit — which is often lower than your total credit limit. A balance transfer check works like a regular check but draws from your credit line instead of a bank account. A convenience check is a check your card issuer mails you that you can cash or deposit.
The catch: all three methods charge you fees upfront and interest from day one, with no grace period like you get on regular purchases. Before you use any of them, understand what each one costs and whether a personal loan or other borrowing method might be cheaper.
Key Takeaways
- Cash advances charge a fee (usually 3 to 5 percent of the amount) plus a higher interest rate than regular purchases, and interest starts accruing when ready with no grace period.
- Balance transfer checks and convenience checks work similarly to cash advances in cost and interest, though some cards offer a promotional 0 percent rate on balance transfers for a limited time.
- Your cash advance limit is set by your card issuer and is often much lower than your total credit limit, so you may not be able to withdraw as much as you think.
- A personal loan, payday loan, or line of credit from your bank may cost less than a credit card cash advance, depending on your credit score and the amount you need.
Cash advances: fees, interest, and limits
A cash advance charges you a fee upfront — typically 3 to 5 percent of the amount you withdraw, though some cards charge a flat fee instead. That fee is added to your balance when ready. If you withdraw $500 at a 4 percent fee, you owe $520 right away.
Interest on a cash advance starts the day you withdraw it. There is no grace period like you get on regular purchases (where you have 21 to 25 days before interest kicks in). The interest rate on cash advances is also higher than the rate on regular purchases — often 2 to 5 percentage points higher. If your purchase APR is 18 percent, your cash advance APR might be 23 percent.
Your card issuer sets a separate cash advance limit, which is the maximum you can withdraw. This limit is often 20 to 50 percent of your total credit limit. If your card has a $5,000 limit, your cash advance limit might be $1,000. You can find your cash advance limit in your card agreement or by calling the number on the back of your card.
Balance transfer checks and convenience checks
Balance transfer checks and convenience checks are checks your card issuer sends you that you can cash or deposit into a bank account. They draw from your credit line instead of a bank account. The mechanics are similar to a cash advance: you pay a fee upfront (usually 3 to 5 percent), and interest starts accruing when ready.
The main difference is timing and convenience. You do not have to go to an ATM or bank — you just deposit the check. Some card issuers offer a promotional rate on balance transfer checks, such as 0 percent APR for 6 to 12 months, which makes them cheaper than a regular cash advance during that period. After the promotional period ends, the interest rate jumps to the regular cash advance rate.
Read the fine print on any check your card issuer sends you. Some checks have a lower limit than your cash advance limit, and some charge a different fee. The terms are printed on the check itself or in the letter that comes with it.
What it costs: comparing cash advance options
| Method | Fee | Interest rate | Grace period | When to use |
|---|---|---|---|---|
| ATM cash advance | 3–5% of amount | Higher than purchases (often 20–25%) | None — interest starts day one | You need cash when ready and have no other option |
| Balance transfer check | 3–5% of amount | Higher than purchases, but may have 0% promo rate | None during promo period; then none | Your card offers a 0% promotional rate and you can wait a few days to deposit |
| Convenience check | 3–5% of amount | Higher than purchases | None — interest starts day one | You prefer writing a check to using an ATM |
| Personal loan | None (built into rate) | Lower than cash advance (often 6–36% depending on credit) | Varies by lender | You have decent credit and can wait a few days for funding |
Cheaper alternatives to credit card cash advances
Before you take a cash advance, compare the cost to other borrowing options. A personal loan from a bank, credit union, or online lender often costs less, especially if you have fair or good credit. Personal loans typically charge 6 to 36 percent APR depending on your credit score and the lender, with no upfront fee. If you borrow $500 at 15 percent APR over 12 months, you pay about $41 in interest — far less than a cash advance fee plus interest.
A line of credit from your bank works similarly to a personal loan but lets you borrow only what you need and pay interest only on what you use. A credit union loan is often cheaper than a bank loan if you are a member. If you need money very quickly and have no credit, a payday loan is an option, but these charge extremely high interest rates (often 300 percent APR or higher) and should be a last resort.
If you have a 0 percent promotional rate on a balance transfer, that is the cheapest credit card option — but only if you pay off the balance before the promotional period ends. Once the rate jumps, you are paying the higher cash advance rate on whatever remains.
How to minimize the cost if you must take a cash advance
If you have decided a cash advance is your best option, take steps to pay it back as fast as you can. Interest compounds daily, so every day you carry the balance, the cost grows. Pay more than the minimum payment if you can — the minimum usually covers only interest and fees, leaving the principal untouched.
If you have multiple balances on your card, ask your card issuer how payments are applied. Most cards explore payments to the lowest-interest balance first, which means your cash advance (the highest-interest balance) sits and grows. Some card issuers let you direct payments to a specific balance; if yours does, put all extra payments toward the cash advance.
Do not take another cash advance to pay off the first one. That stacks fees and extends the time you are paying interest. If you are in a cycle of cash advances, that is a sign you need a different solution — a personal loan, a conversation with a credit counselor, or a budget adjustment.
Frequently Asked Questions
Can I use a credit card cash advance to pay another credit card?
Yes, you can withdraw cash and deposit it into another account, but it is expensive. You pay the cash advance fee and interest rate on the full amount. A balance transfer (moving the balance directly from one card to another) is usually cheaper because some cards offer 0 percent promotional rates on balance transfers. Check whether your card offers a balance transfer option before taking a cash advance.
What is the difference between my credit limit and my cash advance limit?
Your credit limit is the total amount you can charge on your card. Your cash advance limit is a separate, usually smaller limit set by your card issuer for cash withdrawals only. If your credit limit is $5,000, your cash advance limit might be $1,000. The two limits do not combine — if you withdraw $1,000 in cash, you still have $5,000 in purchase power, but you cannot withdraw more cash.
Does a cash advance hurt my credit score?
A cash advance itself does not hurt your score, but it increases your credit utilization (the percentage of your available credit you are using), which can lower your score slightly. If you pay it back quickly, the impact is temporary. Paying late or missing a payment will hurt your score more significantly.
Can I get a cash advance if I have bad credit?
Yes — if you have a credit card, you can take a cash advance up to your card's limit, regardless of your credit score. Your card issuer has already decided to extend credit to you. However, a cash advance is still expensive, and if your credit is poor, a personal loan or credit union loan may not be an option. Explore whether a friend or family member can lend you money before paying cash advance fees.
What happens if I cannot pay back a cash advance?
If you miss a payment, the card issuer will charge you a late fee and your interest rate may increase. The debt will be reported to credit bureaus and damage your credit score. If the debt goes unpaid for 180 days, the card issuer may close your account and send the debt to a collection agency. If you are struggling to pay, contact your card issuer to ask about hardship programs or a payment plan before you fall behind.