The main ways to get cash from a credit card
You can pull money directly from a credit card in three ways: a cash advance at an ATM or bank, a balance transfer to a checking account, or a convenience check. Each one costs you differently and hits your credit report in different ways, so the cheapest option depends on what you need the money for and how long you'll carry the balance.
A cash advance is the most straightforward: you use your card at an ATM or walk into a bank and withdraw cash like you would from a debit card. The catch is that cash advances charge a fee (usually 3 to 5 percent of the amount) plus a higher interest rate than regular purchases — often 5 to 10 percentage points higher. Interest starts accruing when ready, with no grace period.
A balance transfer moves money from your credit card to your bank account, usually through your card issuer's website or app. This also charges a fee (typically 3 to 5 percent) and a higher interest rate, though some cards offer a promotional period with 0 percent interest for 6 to 21 months if you transfer within a certain window.
Convenience checks are physical checks your card issuer mails to you that you can deposit or cash. They work like a cash advance — same fees, same interest rate — but you don't need an ATM or bank branch.
Key Takeaways
- Cash advances and balance transfers both charge upfront fees of 3 to 5 percent plus interest rates that are higher than your regular purchase rate, with no grace period.
- A balance transfer to your bank account may offer a promotional 0 percent interest period lasting several months if you act within the card issuer's window.
- Cash advances are the fastest way to get physical cash but the most expensive if you carry the balance beyond a month or two.
- Your credit utilization and payment history both affect whether getting cash from your card will damage your credit score, and by how much.
Why cash advances and balance transfers cost more than regular purchases
Credit card issuers treat cash-like transactions as riskier than purchases. When you buy something, the merchant is responsible for delivering the goods or service, which gives the card company some recourse if you dispute the charge. When you take cash, there's no merchant and no product — just you and the money. That's why they charge a higher interest rate and an upfront fee.
The fee is non-negotiable and shows up on your statement when ready. If you take a $500 cash advance and your card charges 4 percent, you owe $20 right away, whether you pay it back in a week or carry it for months. The interest, by contrast, only accrues on the balance you're holding. If you pay back the $500 plus $20 fee within a few days, you'll owe almost no interest. If you carry it for three months, the interest will be substantial.
Balance transfers to your bank account work the same way on the fee side, but the interest picture can be better. Some cards offer a 0 percent promotional rate for balance transfers — meaning you pay the upfront fee but no interest for 6, 12, or even 21 months, depending on the card. This makes sense only if you plan to pay down the balance during that window. Once the promotional period ends, the regular interest rate kicks in.
How getting cash from your credit card affects your credit score
A cash advance or balance transfer will lower your credit score in two ways: it raises your credit utilization (the percentage of your available credit you're using), and it creates a hard inquiry on your report if you're opening a new card to do it.
Credit utilization makes up about 30 percent of your credit score. If you have a $5,000 credit limit and you take a $2,000 cash advance, your utilization jumps from 0 to 40 percent. That drop in score is usually temporary — once you pay down the balance, your score rebounds. But if you're planning to explore for a mortgage or car loan soon, the timing matters.
The damage is usually smaller if you're transferring money between accounts on the same card (moving from your credit line to your bank account) versus opening a new card to do it. A new card process triggers a hard inquiry, which can lower your score by a few points and stays on your report for a year.
When a cash advance makes sense
A cash advance is worth the cost only if you need physical cash for a short time and can pay it back quickly. If you're facing an emergency — a car repair, a medical bill, a security deposit — and you can repay the full amount within a month, the fee and interest will be minimal. A $500 advance at 4 percent fee plus 25 percent annual interest, paid back in one month, costs you roughly $20 in fees plus $10 in interest.
A cash advance makes less sense if you're using it to cover regular expenses or if you can't pay it back within a few months. Carrying a $2,000 balance at 25 percent interest for six months will cost you $250 in interest alone, on top of the $80 upfront fee. At that point, you're paying 16.5 percent of the original amount just to borrow it.
If you're considering a cash advance because you need money and have no other options, look first at whether a personal loan, a line of credit from your bank, or a payment plan with the creditor you owe might be cheaper. Personal loans typically charge 6 to 36 percent interest depending on your credit, which is often lower than a credit card cash advance rate.
Balance transfers as an alternative to cash advances
A balance transfer to your bank account is usually cheaper than a cash advance if your card offers a promotional 0 percent period. You pay the same upfront fee (3 to 5 percent), but you owe no interest for the promotional window — typically 6 to 21 months. This gives you time to pay down the balance without interest piling up.
The catch is that you have to act fast. Most cards limit the promotional period to the first 60 days after you open the account or the first 90 days after your first statement closes. If you miss that window, the regular interest rate applies to the transferred balance. Check your card's terms before you transfer.
A balance transfer also makes sense if you're consolidating debt from multiple cards. You can transfer balances from other cards to one card with a 0 percent promotional rate, then focus on paying down one balance instead of juggling several. Just remember that new purchases on that card will accrue interest at the regular rate, so it's best to use a different card while you're paying off the transfer.
Steps to take a cash advance or balance transfer
For a cash advance at an ATM: Insert your credit card, select "cash advance" or "withdrawal," enter the amount, and confirm. You'll see the fee and interest rate on the ATM screen before you complete the transaction. The money appears in your account when ready, and the charge shows up on your next statement.
For a cash advance at a bank: Walk into a branch with your credit card and ID, tell the teller you want a cash advance, and they'll process it the same way. Some banks charge an additional fee on top of your card issuer's fee, so ask before you proceed.
For a balance transfer to your bank account: Log into your credit card's website or app, find the balance transfer or cash transfer option, enter your bank account details, and specify the amount. The money usually arrives in your checking account within 1 to 3 business days. The fee and interest rate will be shown before you confirm.
For convenience checks: Wait for them to arrive in the mail from your card issuer, fill in the amount and payee (or your own name if you're cashing it), and deposit or cash it like a regular check. The charge posts to your credit card account within a few days.
Alternatives to getting cash from your credit card
Before you take a cash advance, consider whether you actually need the cash or whether you need to pay for something. If you're taking cash to pay a bill, you might be able to pay that bill directly with your credit card instead — no cash advance fee, and you get the regular grace period on purchases.
If you need cash for an emergency and don't have savings, a personal loan from your bank or a credit union is often cheaper. Personal loans charge fixed interest rates (usually lower than credit card rates) and don't have upfront fees. You'll need to be approved, which takes a few days, but if you're not in a rush, it's worth comparing rates.
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. If you have an existing relationship with your bank, they may approve you quickly.
If you're in a genuine financial crisis — you can't pay rent, utilities, or medical bills — look into local information programs before you borrow. Many cities and nonprofits offer emergency grants or low-interest loans for specific hardships. Your local 211 service (dial 211 or visit 211.org) can point you to programs in your area.
Frequently Asked Questions
Can I use a credit card cash advance to pay off another credit card?
Technically yes, but it's almost always a bad idea. You're paying a cash advance fee (3 to 5 percent) plus a higher interest rate to borrow money that you then use to pay off a balance that might have a lower interest rate. A balance transfer between cards is cheaper because you avoid the cash advance fee, and a personal loan is usually cheaper than both.
What's the difference between a cash advance and a balance transfer?
A cash advance gives you physical cash (or money in your bank account) and charges a higher interest rate with no grace period. A balance transfer moves money from one card to another (or to your bank account) and may offer a promotional 0 percent interest period. Both charge an upfront fee, but balance transfers can be cheaper if you use the promotional rate.
Will a cash advance hurt my credit score?
Yes, but usually temporarily. It raises your credit utilization, which can lower your score by 10 to 50 points depending on how much you borrow. Once you pay it back, your score recovers. If you're opening a new card to do the transfer, the hard inquiry will also lower your score by a few points for about a year.
How long does it take to get money from a balance transfer?
Balance transfers to your bank account usually arrive within 1 to 3 business days. Transfers between credit cards on the same issuer can be when ready or take a few days. ATM cash advances are when ready. Check your card issuer's website for their specific timeline.
Can I take a cash advance if I'm near my credit limit?
Yes. A cash advance counts toward your credit limit, so if you have $1,000 available and you take a $500 cash advance, you'll have $500 left to spend. Some card issuers set a separate cash advance limit that's lower than your overall credit limit, so check your terms.