The main ways to take money out of 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 to a checking account, or a cash-like transaction such as buying a money order or casino chips. Each one costs differently and affects your credit card balance in different ways.
A cash advance is the most direct method. You go to an ATM, bank teller, or convenience store and withdraw cash using your credit card, just as you would with a debit card. The money appears in your hand when ready, but the transaction starts accruing interest right away — usually at a higher rate than regular purchases — and most card issuers charge an upfront fee of 3 to 5 percent of the amount withdrawn.
A balance transfer moves money from your credit card into a bank account you control. You contact your card issuer and request the transfer, and the funds arrive in your checking account within a few business days. This method also carries a fee, typically 3 to 5 percent, but the interest rate may be lower than a cash advance, depending on your card's terms.
A cash-like transaction — such as purchasing a money order, wire transfer, or casino chips — counts as a cash advance on your credit card statement, even though you are not withdrawing physical cash. These carry the same fees and interest rates as a traditional cash advance.
Key Takeaways
- Cash advances from ATMs charge an upfront fee of 3 to 5 percent and begin accruing interest when ready, with rates typically higher than your regular purchase rate.
- Balance transfers to your bank account also charge 3 to 5 percent but may offer a lower interest rate depending on your card's terms.
- Cash-like purchases such as money orders and wire transfers count as cash advances and carry the same fees and interest rates.
- Interest on cash advances starts accruing the day you withdraw the money, with no grace period like you may have on regular purchases.
- Your credit card issuer sets limits on how much you can withdraw as a cash advance, which is often lower than your total credit limit.
Cash advances at ATMs and banks
To withdraw cash at an ATM, insert your credit card and enter your PIN. The ATM will show you the maximum amount available — this is your cash advance limit, which your card issuer sets separately from your overall credit limit. You can withdraw up to that amount, and the transaction posts to your account within one business day.
If you prefer to work with a person, visit a bank branch or credit union and ask the teller for a cash advance. Bring your credit card and a photo ID. The teller will process the transaction the same way an ATM does, and you will receive cash when ready. Some banks charge an additional fee on top of what your credit card issuer charges.
The fee structure for cash advances is fixed by your card issuer and appears in your card's terms and conditions. Most cards charge either a flat fee (such as $5 or $10) or a percentage of the amount withdrawn (typically 3 to 5 percent), whichever is greater. This fee is added to your balance when ready.
Interest begins accruing on the same day you withdraw the cash. Unlike regular purchases, which may have a grace period before interest kicks in, cash advances have no grace period. Your card issuer will charge you interest every day until the balance is paid off, at a rate that is usually 2 to 5 percentage points higher than your regular purchase APR.
Balance transfers from your credit card to a bank account
To transfer money from your credit card to your checking account, contact your card issuer directly — by phone, through their mobile app, or on their website. Look for an option labeled "balance transfer," "cash transfer," or "account transfer." You will need your bank account number and routing number, which you can find on a check or by logging into your bank's website.
The issuer will ask how much you want to transfer and confirm your bank account details. The money typically arrives in your checking account within 2 to 5 business days. Some issuers offer next-business-day transfers for an additional fee.
Balance transfers carry the same upfront fee as cash advances — usually 3 to 5 percent of the amount transferred. However, the interest rate may differ. Some cards charge the same rate as a cash advance; others charge the regular purchase rate. Check your card's terms or call the issuer to confirm which rate applies to balance transfers on your specific card.
Like cash advances, interest begins accruing when ready with no grace period. The transferred amount will appear on your credit card statement as a separate line item, and you will pay interest on it until it is paid off.
Cash-like purchases that count as cash advances
Certain transactions are treated as cash advances by your credit card issuer, even though you are not withdrawing physical cash. These include money orders, wire transfers, casino chips, lottery tickets, and some cryptocurrency purchases. When you use your credit card for these transactions, the merchant processes it as a cash advance rather than a regular purchase.
You will pay the same cash advance fee and interest rate as you would for an ATM withdrawal. The transaction will appear on your statement labeled as a cash advance, and interest will begin accruing when ready. Some card issuers do not allow these transactions at all, so check your card's terms before attempting one.
Money orders are the most common cash-like transaction. You can buy them at banks, post offices, grocery stores, and convenience stores. The fee your card issuer charges is separate from the money order fee charged by the seller — you will pay both.
Understanding cash advance limits and how they work
Your card issuer sets a cash advance limit that is separate from your overall credit limit. If your credit limit is $5,000, your cash advance limit might be $1,500 or $2,000. You cannot exceed this limit in a single withdrawal or series of withdrawals, even if you have unused credit available.
The cash advance limit is determined by your credit score, payment history, and how long you have held the card. New cardholders often have lower cash advance limits than established ones. You can request an increase by calling your card issuer, but there is no may provide they will grant it.
When you withdraw cash, the amount counts against both your cash advance limit and your overall credit limit. If you withdraw $500 and your total credit limit is $5,000, you now have $4,500 in available credit remaining. This affects your credit utilization ratio, which is part of your credit score calculation.
Fees and interest rates you will pay
Cash advances and balance transfers carry multiple costs. The upfront fee is charged once, at the time of the transaction, and ranges from a flat amount to a percentage of what you withdraw. A $500 cash advance with a 5 percent fee costs $25 when ready.
Interest accrues daily from the moment you withdraw the money. If your cash advance APR is 25 percent and you withdraw $500, you will pay approximately $3.42 in interest for the first month (before any payments). The longer you carry the balance, the more interest accumulates.
Your card issuer applies your monthly payment to balances in a specific order set by law. Most cards pay off regular purchases first, then balance transfers, then cash advances last. This means if you have both a purchase balance and a cash advance balance, your payment will reduce the purchase balance first, leaving the higher-interest cash advance to accrue interest longer.
To minimize the cost, pay off cash advances as quickly as possible. Even a payment of $50 per month on a $500 cash advance will reduce the total interest you pay significantly compared to making minimum payments.
Alternatives to getting cash from your credit card
Before taking a cash advance, consider whether another option might cost less or serve your needs better. If you need cash for an emergency, a personal loan from a bank or credit union often has a lower interest rate than a credit card cash advance. If you need money for a specific purchase, using your debit card or paying with the credit card directly (rather than withdrawing cash first) avoids the cash advance fee entirely.
If you are short on cash temporarily, asking your employer for an advance on your paycheck or borrowing from a friend or family member costs nothing. If you need ongoing access to cash, a line of credit from your bank may offer better terms than repeated cash advances.
If you already have a cash advance balance and want to pay it off faster, a balance transfer to a card with a 0 percent introductory APR can reduce the interest you pay — though you will pay a balance transfer fee for this move as well.
Frequently Asked Questions
What is the difference between a cash advance and a regular credit card purchase?
A regular purchase has a grace period before interest starts (usually 21 to 25 days), while a cash advance begins accruing interest when ready. Cash advances also charge a higher interest rate and an upfront fee, whereas regular purchases do not. The interest rate on a cash advance is typically 2 to 5 percentage points higher than your regular purchase APR.
Can I use a credit card cash advance to pay off another credit card?
Technically yes, but it is not recommended. You will pay a cash advance fee and a higher interest rate, making it more expensive than a balance transfer. If you want to move debt between cards, use your card issuer's balance transfer feature instead, which may offer a lower rate and the same or lower fee.
Does a cash advance hurt my credit score?
A cash advance itself does not directly damage your score, but it increases your credit utilization ratio — the amount of credit you are using compared to your total limit. This can lower your score temporarily. Additionally, if you carry the balance and miss payments, that will harm your score more significantly.
How long does a balance transfer to my bank account take?
Most balance transfers arrive within 2 to 5 business days. Some card issuers offer expedited transfers that arrive the next business day, but these usually charge an additional fee. Weekend and holiday transfers may take longer.
What happens if I cannot pay back a cash advance?
If you do not pay, the balance will continue to accrue interest at your cash advance APR. Your minimum payment will increase, and if you miss payments, your credit score will drop and your card issuer may close your account or pursue collection action. Contact your card issuer when ready if you are struggling to pay — they may offer a hardship program or payment plan.