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 transaction such as buying a money order or casino chips. Each method charges different fees and interest rates, and each starts charging interest when ready — unlike a purchase, which may have a grace period. The method you choose depends on how much cash you need, how quickly you need it, and which fees you can afford.
A cash advance is the most direct route. You go to an ATM, bank, or casino cage with your card, enter your PIN, and withdraw money up to your credit limit. The cash is in your hand within minutes. A balance transfer check works differently: your card issuer mails you a check that you can deposit or cash, and the amount counts as a balance transfer on your card. Money orders and similar purchases are technically not cash advances, but they function the same way financially — you spend money on your card to get cash or cash-equivalent value.
Key Takeaways
- Cash advances charge a fee (usually 3 to 5 percent of the amount withdrawn) plus a higher interest rate than purchases, with interest starting when ready.
- Balance transfer checks may have lower fees than ATM cash advances but take several business days to arrive and clear.
- Some cards offer 0 percent introductory rates on balance transfers but not on cash advances, making them cheaper if you need time to repay.
- Buying money orders, gift cards, or casino chips on a credit card is treated as a cash advance by most issuers, triggering the same fees and rates.
- If you need cash regularly, a debit card or personal loan will cost far less than repeated credit card cash advances.
Cash advances at ATMs and banks
An ATM cash advance is the fastest way to get money. You insert your card, enter your PIN, and withdraw cash up to your daily limit — which is usually lower than your credit limit and varies by card. Most issuers set a daily ATM limit of $500 to $1,000, though some allow more. The money appears in your account when ready.
The cost is steep. You pay a cash advance fee, typically 3 to 5 percent of the amount withdrawn, with a minimum fee of $5 to $10. On a $500 withdrawal, that is $15 to $25 just to get the cash. You also pay interest on the full amount from the day you withdraw it — no grace period. The interest rate for cash advances is usually 2 to 3 percentage points higher than your purchase rate. If your purchase APR is 18 percent, your cash advance APR might be 21 percent.
A bank cash advance works the same way but may have different limits. Some banks charge a flat fee instead of a percentage, or they may waive the fee if you are a customer. Call your bank before you go in to ask what they charge.
Balance transfer checks
Balance transfer checks are mailed to you by your card issuer and work like regular checks — you write one to yourself or a payee and deposit or cash it. The amount is treated as a balance transfer on your card, not a cash advance, which means it may may have access to for a lower interest rate if your card has a 0 percent introductory offer on balance transfers.
The fee for a balance transfer check is usually 3 to 5 percent, the same as a cash advance, but the interest rate may be lower. If your card offers 0 percent APR on balance transfers for 12 months, that rate applies to the check. You have 12 months to repay with no interest, whereas a cash advance would charge interest from day one. This makes balance transfer checks useful if you need cash and have time to wait for the check to arrive and clear.
The downside is timing. The check takes 5 to 10 business days to arrive, and your bank may take another 1 to 3 business days to clear it. If you need cash today, this method will not work. Also, some issuers limit how many balance transfer checks you can request or how much you can transfer this way.
Money orders, gift cards, and other cash-like purchases
Buying a money order, gift card, or casino chips on a credit card is technically a purchase, not a cash advance — but most card issuers treat it as a cash advance anyway. You pay the cash advance fee and the higher cash advance interest rate, even though you did not withdraw cash from an ATM. The issuer's system flags these transactions as cash-like and applies the cash advance rules.
This matters because it closes a loophole some people try to use. If you buy a money order for $500 on your credit card, you might think you are making a purchase and will get a grace period. You will not. The issuer will charge you a cash advance fee and start charging interest when ready. The same applies to gift cards, casino chips, and similar items.
The one exception is if you buy a money order or gift card at a store that is classified as a regular merchant — for example, buying a gift card at a grocery store. Some issuers treat this as a purchase rather than a cash advance. Call your issuer before you buy to ask how they classify the transaction.
How much interest and fees will cost you
A $500 cash advance on a card with a 21 percent APR and a 5 percent fee costs $25 in fees alone. After one month, you owe an additional $8.75 in interest. After three months, you owe $26.25 in interest. If you repay slowly, interest will exceed the original fee.
Compare this to a personal loan. A $500 personal loan at 15 percent APR over 12 months costs about $41 in total interest — less than half what you would pay on a credit card cash advance if you took three months to repay. If you need cash regularly, a personal loan or a line of credit will cost far less over time.
Balance transfer checks are cheaper if your card has a 0 percent introductory rate. A $500 balance transfer check with a 3 percent fee costs $15, and you pay no interest for 12 months if you repay within that window. This is the cheapest credit card option for getting cash, but only if you can repay before the introductory rate ends.
Your credit limit and daily withdrawal limits
Your cash advance limit is usually the same as your credit limit, but your daily ATM withdrawal limit is separate and lower. If your credit limit is $5,000, you might be able to withdraw only $500 per day from an ATM. You can withdraw more by going to a bank branch and asking for a cash advance over the counter, which may have a higher daily limit or no daily limit at all.
Your issuer sets these limits based on your account history and credit score. You can call and ask to increase your daily ATM limit, but the issuer may decline. Some cards allow you to set your own limits through the mobile app or online account.
Keep in mind that a cash advance counts against your available credit. If you have a $5,000 limit and withdraw $500, your available credit drops to $4,500. You cannot use that $500 for purchases until you repay it.
When a cash advance makes sense
A cash advance is worth considering only in specific situations. If you have an emergency and need cash today, and you can repay it within a month or two, the fee and interest may be acceptable. If you have a 0 percent balance transfer offer and can use a balance transfer check, that is cheaper than an ATM cash advance.
A cash advance does not make sense if you need cash regularly or if you are already carrying a balance on your card. Adding a high-interest cash advance to existing debt will make it harder to pay down. If you find yourself taking cash advances often, that is a sign you need a different financial tool — a debit card with no overdraft fees, a personal line of credit, or a budget adjustment to cover unexpected costs.
Frequently Asked Questions
Can I use a credit card to withdraw cash at any ATM?
Yes, but you will pay a fee. Your card issuer charges a cash advance fee, and the ATM operator may charge an additional fee of $2 to $3. Some issuers waive the ATM operator fee if you use an ATM in their network, so check your card's terms to see which ATMs are free.
What is the difference between a cash advance and a balance transfer?
A cash advance is money you withdraw from an ATM or bank. A balance transfer is money you move from one card to another or receive as a check. Balance transfers may have a lower interest rate if your card offers a 0 percent introductory period, while cash advances always charge a higher rate and interest from day one.
Will a cash advance hurt my credit score?
A cash advance itself does not hurt your score, but it increases your credit utilization ratio — the amount of your credit limit you are using. If you use 30 percent of your limit on a cash advance, your score may drop slightly. The impact is temporary and recovers as you repay.
Can I get a cash advance on a secured credit card?
Yes, most secured cards allow cash advances, though some limit the amount or charge higher fees. Check your card's terms before you open the account. Secured cards are designed to build credit, so using them for cash advances defeats that purpose and costs you money in fees.
What happens if I cannot repay a cash advance?
The balance stays on your card and accrues interest at the higher cash advance rate. If you miss payments, your issuer may report it to credit bureaus, which will damage your credit score. If the debt is large enough, the issuer may pursue collection or legal action.