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, or a cash-like payment to someone else's account. Each one costs differently and works differently, so the choice depends on what you need the money for and how quickly you need it.
A cash advance is the most direct method. You go to an ATM, bank branch, or convenience store and withdraw money using your credit card PIN, just like a debit card. The money hits your account when ready. A balance transfer check is a physical check the card issuer mails to you, drawn against your credit line — you deposit it like any other check. A cash-like transfer means paying someone else's bill or sending money to another person's account using your credit card as the funding source, which some card issuers allow through their app or website.
All three methods treat the money as a loan against your credit limit, not as a purchase. That matters because the fees and interest rates are usually higher than what you pay on regular purchases.
Key Takeaways
- Cash advances charge an upfront fee (usually 3 to 5 percent of the amount) plus a higher interest rate than purchases, with interest starting to accrue when ready.
- Balance transfer checks often have lower fees than ATM cash advances but take several business days to clear and still carry higher interest rates than purchases.
- Interest on cash advances and balance transfers begins accruing the day you take the money, with no grace period like you get on purchases.
- The total cost of getting cash from your credit card can be 10 to 15 percent or more depending on the fee, interest rate, and how long you carry the balance.
Cash advances at ATMs and banks
A cash advance at an ATM is the fastest way to get cash. You insert your credit card, enter your PIN, and withdraw money. Most card issuers charge a fee of 3 to 5 percent of the amount you withdraw, with a minimum fee (often $2 to $10). So a $500 cash advance might cost $15 to $25 in fees alone.
Interest starts accruing the same day you withdraw the money. Unlike purchases, there is no grace period — you do not get 21 days interest-free. The interest rate on cash advances is typically 2 to 3 percentage points higher than the rate on purchases. If your purchase APR is 18 percent, your cash advance APR might be 21 or 22 percent.
You can also get a cash advance at a bank branch by showing your credit card and ID. Some banks charge an additional fee for this service on top of your card issuer's fee, so call ahead. The process is slower than an ATM but gives you a chance to ask questions.
Balance transfer checks
Balance transfer checks are physical checks your card issuer sends to you, usually unsolicited. You can deposit them into your bank account and use the money however you want. The fee is often lower than an ATM cash advance — sometimes 1 to 3 percent instead of 3 to 5 percent — but the interest rate is the same as a cash advance, and interest starts accruing when ready.
The main drawback is timing. The check takes 3 to 7 business days to clear, depending on your bank. If you need cash today, this method will not work. Also, balance transfer checks often come with promotional rates — sometimes 0 percent APR for 6 to 12 months — but only if you read the fine print carefully. Some issuers advertise a low rate but explore it only to balance transfers between credit cards, not to checks.
Check the terms on the check itself or call your card issuer before depositing. The fee and rate should be printed on the check or in the accompanying letter.
How the fees and interest add up
The total cost of a cash advance depends on three things: the upfront fee, the interest rate, and how long you carry the balance. Here is a concrete example: a $1,000 cash advance with a 4 percent fee ($40) and a 22 percent APR.
If you pay it back in one month, you owe roughly $40 (fee) plus $18 (one month of interest), for a total of $58. If you carry it for six months, you owe $40 plus about $110 in interest, for a total of $150. If you carry it for a year, the total cost is roughly $40 plus $220 in interest, or $260 total.
Compare this to a regular purchase on the same card at 18 percent APR with no upfront fee. If you carry a $1,000 purchase for a year, you pay only about $180 in interest — $80 less than the cash advance. The difference grows the longer you carry the balance.
When a cash advance makes sense
A cash advance is most useful when you need cash for a short time and have a plan to pay it back quickly. Examples include paying a contractor who does not take cards, covering an unexpected cash-only expense, or bridging a gap until a paycheck arrives. If you can pay it back within a month or two, the total cost stays manageable.
A cash advance makes less sense if you are already carrying a credit card balance or if you do not have a clear way to pay the money back soon. Adding a high-interest cash advance on top of existing debt can trap you in a cycle where interest charges grow faster than your payments shrink the balance.
If you are considering a cash advance because you are short on money for basic expenses, look first at whether a personal loan, a line of credit, or help from a local nonprofit might cost less. A personal loan typically charges 6 to 36 percent APR depending on your credit, which is often lower than a credit card cash advance rate.
Alternatives to credit card cash advances
If you need cash but want to avoid the high fees and interest, consider these options first. A personal loan from a bank or credit union usually charges less interest than a cash advance and lets you borrow a larger amount. A line of credit works similarly and may have an even lower rate if you have good credit.
If you need a small amount of cash quickly, some employers offer paycheck advances or loans against future earnings. Some banks and credit unions offer overdraft protection or short-term loans to members. A cash-back transaction at a grocery store or pharmacy lets you get a small amount of cash (usually $20 to $100) with no fee, though you have to make a purchase.
If you are in a financial emergency, local nonprofits, community action agencies, and religious organizations sometimes offer emergency loans or grants. The 211 helpline (dial 211 or visit 211.org) can connect you to local resources.
How to minimize the cost if you do take a cash advance
If you decide a cash advance is your best option, take steps to keep the cost as low as possible. First, withdraw only what you need. Every dollar you advance costs you the upfront fee plus interest, so do not round up.
Second, pay it back as fast as you can. Even an extra payment or two in the first month cuts the total interest significantly. Set a specific payoff date before you withdraw the money, and treat it like a bill you cannot miss.
Third, check whether your card issuer offers a lower-fee option. Some cards have a cash advance fee of 2 percent instead of 5 percent, or a flat fee instead of a percentage. If you have multiple cards, use the one with the lowest cash advance fee.
Fourth, do not take a cash advance to pay off another cash advance. This extends the debt and multiplies the fees. If you are stuck in a cycle of cash advances, that is a sign you need a different solution — either a consolidation loan, a conversation with a credit counselor, or a change to your budget.
Frequently Asked Questions
Does getting a cash advance hurt my credit score?
A cash advance itself does not directly hurt your score, but it does increase your credit utilization — the percentage of your available credit you are using. High utilization can lower your score slightly. If you pay the balance off quickly, the effect is temporary. If you carry the balance, the utilization stays high and can drag your score down for months.
Can I get a cash advance if my credit card is maxed out?
No. A cash advance is drawn from your available credit, so you need unused credit limit to take one. If your card is at its limit, you cannot advance any cash. You would need to pay down the balance first or use a different card with available credit.
What is the difference between a cash advance and a balance transfer?
A balance transfer moves debt from one credit card to another, usually to take advantage of a lower interest rate. A cash advance gives you actual cash. Balance transfers are meant for existing debt; cash advances are for getting money to spend. Both charge fees and interest, but balance transfers sometimes offer promotional 0 percent rates.
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, then pay it to another card, so you have paid a fee to move money between cards. A balance transfer (moving the debt directly from one card to another) costs less and is designed for this purpose.
How long does a cash advance stay on my credit report?
The cash advance itself does not appear on your credit report as a separate item. The balance appears as part of your credit card balance. Once you pay it off, it stops affecting your utilization. If you miss payments, the missed payment appears on your report and stays for seven years.