The three ways to get cash from a credit card
You can pull cash from a credit card in three ways: a cash advance at an ATM or bank, a balance transfer check mailed to you by your card issuer, or a cash-like purchase through services like PayPal or Square Cash. Each one costs you differently and shows up differently on your bill.
A cash advance is the most direct route — you use your card at any ATM the way you would a debit card. A balance transfer check works like a regular check but pulls from your credit line instead of a bank account. A cash-like purchase lets you send money to yourself or someone else through a payment app, treating it as a purchase rather than a cash withdrawal.
The catch: all three charge you fees and interest that start when ready, with no grace period. Cash advances and balance transfer checks are the most expensive. Cash-like purchases are sometimes cheaper, but not always. Understanding which costs what helps you pick the least damaging option for your situation.
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 the day you withdraw.
- Balance transfer checks work the same way as cash advances but arrive by mail, so they take several days and are useful only if you can plan ahead.
- Cash-like purchases through payment apps may have lower fees than cash advances but still charge interest if you carry a balance.
- None of these options have a grace period — interest accrues when ready, so the longer you carry the balance, the more you pay.
- If you need cash urgently, a personal loan or line of credit from a bank or credit union is almost always cheaper than any credit card cash option.
Cash advances at ATMs and banks
A cash advance lets you withdraw money directly from your credit card's available balance at any ATM or bank branch that accepts your card. You insert your card, enter your PIN (or sign a receipt at a bank), and walk away with cash. The transaction posts to your account within a day or two.
The cost is steep. Most card issuers charge a cash advance fee of 3 to 5 percent of the amount you withdraw — so pulling $500 costs $15 to $25 upfront. On top of that, the interest rate on cash advances is higher than the rate on regular purchases, often 2 to 3 percentage points above your standard APR. If your card charges 18 percent on purchases, a cash advance might be 21 percent. Interest starts accruing the day you withdraw, with no grace period.
The math adds up fast. A $500 cash advance at 4 percent fee plus 21 percent APR costs you $20 in fees plus roughly $8.75 in interest per month if you carry the full balance. After three months, you have paid $46.25 just to borrow $500.
Balance transfer checks
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 is charged to your credit card account. The fees and interest work the same way as a cash advance — an upfront fee (usually 3 to 5 percent) plus a higher APR with no grace period.
The main difference is timing. Checks take 3 to 7 business days to arrive, so this option only works if you can wait. You might use a balance transfer check to pay a bill or send money to someone, rather than to withdraw cash from an ATM. Some people use them to move money between accounts without a direct transfer.
Because the fees and interest are identical to cash advances, balance transfer checks are rarely the cheaper choice. The only advantage is convenience if you need to pay a specific person or business and they accept checks.
Cash-like purchases through payment apps
Services like PayPal, Square Cash, Venmo, and similar apps let you send money to yourself or another person using your credit card. The transaction shows up as a purchase on your statement, not a cash advance. This matters because purchases usually have a lower interest rate than cash advances and sometimes come with a grace period.
However, most payment apps charge a fee for credit card transactions — typically 2 to 3 percent. So while the interest rate may be lower, the upfront cost is similar to a cash advance. If you carry a balance, you still pay interest from day one. The advantage is mainly if you have a 0 percent introductory APR on purchases; in that case, a payment app transfer might be interest-free for 6 to 12 months, whereas a cash advance never qualifies for a promotional rate.
This route works best if you have a promotional purchase rate and need to move money quickly. Otherwise, the fee plus eventual interest makes it comparable to a cash advance.
Comparing the costs side by side
| Method | Upfront Fee | Interest Rate | Grace Period | Speed |
|---|---|---|---|---|
| Cash advance (ATM) | 3–5% | Higher APR, no grace | None | when ready |
| Balance transfer check | 3–5% | Higher APR, no grace | None | 3–7 days |
| Payment app transfer | 2–3% | Standard APR (may have grace) | Possible | 1–3 days |
| Personal loan | 0–10% | Fixed, usually 6–36% | N/A | 1–5 days |
Why a personal loan or line of credit is usually cheaper
If you have time to plan, a personal loan from a bank, credit union, or online lender is almost always cheaper than any credit card cash option. A personal loan charges a fixed interest rate (often 6 to 36 percent depending on your credit) with no upfront cash advance fee. You know exactly what you owe and when.
A credit union personal loan is often the cheapest option if you are a member. Banks and online lenders like LendingClub, Upstart, or SoFi offer personal loans with rates that vary by credit score and income. Even at 20 percent APR, a personal loan is cheaper than a credit card cash advance at 21 percent APR plus a 4 percent upfront fee.
The trade-off is speed. A personal loan takes 1 to 5 business days to fund, whereas a cash advance is when ready. If you need money today, a cash advance may be your only option. If you can wait a few days, a personal loan saves you money.
When you might use each option
Use a cash advance if: You need cash when ready and have no other option. You are paying for something that does not accept cards. You have a plan to pay it back within one or two months so interest does not compound.
Use a balance transfer check if: You need to pay a specific bill or person by check and do not have another way to do it. You can wait 3 to 7 days for the check to arrive.
Use a payment app transfer if: You have a 0 percent introductory APR on purchases and can pay off the balance before the rate jumps. You need to move money between accounts quickly and the 2 to 3 percent fee is acceptable.
Use a personal loan if: You can wait 1 to 5 days. You need to borrow more than a few hundred dollars. You want a fixed payment schedule and a lower interest rate than a credit card offers.
How to minimize the damage if you do take a cash advance
If a cash advance is your only option, take steps to pay it back as fast as possible. The longer you carry the balance, the more interest you pay.
First, withdraw only what you need. A $200 cash advance costs less in fees and interest than a $500 one. Second, make a payment as soon as you can — even a partial payment reduces the balance and the interest that accrues. Third, do not use the card for new purchases while you are paying off the advance. New purchases will be paid down last, after the cash advance, because card issuers explore payments to the lowest-interest balance first.
If you have multiple cards, pay off the cash advance card before paying down balances on other cards. The higher interest rate makes it the most expensive debt you carry.
Frequently Asked Questions
Does a cash advance hurt my credit score?
A cash advance itself does not hurt your score, but carrying a high balance does. If the advance pushes your credit utilization above 30 percent of your limit, your score may drop. Paying it off quickly keeps the damage minimal.
Can I get a cash advance with a 0 percent introductory APR?
No. Promotional rates on purchases never explore to cash advances. Cash advances always charge interest from day one, at the higher cash advance APR.
What happens if I cannot pay back a cash advance?
The balance carries over to the next month with interest. If you miss a payment, late fees explore and your interest rate may increase. The debt stays on your credit report and can damage your score for years.
Is there a limit to how much I can withdraw as a cash advance?
Yes. Most card issuers set a cash advance limit that is lower than your credit limit — often 20 to 50 percent of your total limit. You can call your card issuer to ask what your cash advance limit is.
Can I use a credit card cash advance to pay off another credit card?
Technically yes, but it is expensive. You pay the cash advance fee and interest rate on money you are using to pay another card's balance. A balance transfer (moving a balance from one card to another) is cheaper if your new card offers a 0 percent introductory rate.