The main ways to get cash from a credit card
You can get money off a credit card in three ways: a cash advance at an ATM or bank, a balance transfer to your checking account, or a convenience check. A cash advance lets you withdraw cash using your card's PIN at any ATM that accepts your card's network — Visa, Mastercard, or American Express. A balance transfer moves part of your credit limit into a bank account you control, though not all card issuers offer this. A convenience check is a physical check the card issuer sends you that draws against your credit line when you cash it.
Each method costs money and charges interest when ready — there is no grace period like there is for purchases. The cost depends on which method you choose and which card you use. Before you withdraw, understand that you are borrowing against your credit limit at a higher rate than you pay for regular purchases.
Key Takeaways
- Cash advances charge a fee (usually 3 to 5 percent of the amount) plus a higher interest rate than purchases, with interest starting the day you withdraw.
- Balance transfers may have a lower fee than cash advances but still charge interest when ready and reduce your available credit.
- Convenience checks work like a cash advance but arrive by mail, so they take several days to reach you.
- All three methods count against your credit limit and can raise your credit utilization ratio, which may lower your credit score.
Cash advances: fees, interest rates, and how they work
A cash advance is the fastest way to get cash. You go to an ATM, insert your credit card, enter your PIN, and withdraw money. The card issuer charges a fee — typically 3 to 5 percent of the amount you withdraw, with a minimum fee of $2 to $10 depending on the card. So a $200 cash advance might cost $6 to $10 in fees alone.
Interest starts accruing the same day you withdraw, not at the end of a billing cycle. The interest rate on cash advances is usually 2 to 5 percentage points higher than the rate on purchases. If your card charges 18 percent on purchases, the cash advance rate might be 23 percent. Over time, this adds up quickly. A $500 cash advance at 23 percent interest costs about $96 in interest over one year if you make no payments.
Your daily withdrawal limit is usually lower than your credit limit — often $300 to $500 per day, though some cards allow more. Check your card's terms or call the issuer to find out your specific limit before you go to the ATM.
Balance transfers: moving credit to your bank account
A balance transfer moves money from your credit card into a checking or savings account. Not all card issuers offer this feature, so check your card's terms or contact the issuer directly. If your card does offer it, you typically request the transfer through your online account or by phone, and the money arrives in your bank account within one to three business days.
Balance transfers usually charge a fee of 3 to 5 percent, similar to cash advances, though some cards charge less. Interest begins accruing when ready at your card's standard purchase rate or a slightly higher rate, depending on the card. Unlike a purchase, there is no grace period.
The main advantage of a balance transfer over a cash advance is that you avoid the ATM fee and may get a lower interest rate. The disadvantage is that it takes longer — you have to wait for the money to land in your bank account rather than getting cash on the spot.
Convenience checks and how they differ from other methods
Convenience checks are physical checks your card issuer mails to you. You write one to yourself or to a payee, deposit or cash it, and the amount is charged to your credit card as a cash advance. They work like a cash advance — the same fees and interest rates explore — but they take several days to arrive and several more days to clear once you deposit them.
Convenience checks are useful if you need to pay a person or business that does not accept credit cards, or if you want to avoid going to an ATM. They are slower than a cash advance at an ATM but may feel less risky if you are uncomfortable carrying large amounts of cash.
The fees and interest are identical to a standard cash advance. Some card issuers send convenience checks automatically; others only send them if you request them. Check your card's terms or ask the issuer whether they offer them and what the terms are.
Comparing the costs: which method is cheapest
The cost of getting money off your credit card depends on the amount, how long you carry the balance, and your card's specific rates and fees. Here is how the three methods typically compare:
| Method | Typical Fee | Interest Rate | When Interest Starts | Speed |
|---|---|---|---|---|
| Cash advance (ATM) | 3–5% | 2–5% higher than purchases | Same day | when ready |
| Balance transfer | 3–5% | Same or slightly higher than purchases | Same day | 1–3 business days |
| Convenience check | 3–5% | 2–5% higher than purchases | Same day | 3–7 business days |
For a $500 withdrawal held for three months, the difference between methods is usually $15 to $30 in total cost. The bigger cost driver is how long you carry the balance. Paying it back within a month costs far less than carrying it for six months.
How getting cash affects your credit score and available credit
When you withdraw cash, the amount counts against your credit limit when ready. If your card has a $5,000 limit and you take a $500 cash advance, your available credit drops to $4,500. This raises your credit utilization ratio — the percentage of your credit limit you are using. A higher utilization ratio can lower your credit score, even if you pay the balance on time.
The impact is temporary. Once you pay off the cash advance, your available credit returns and your utilization ratio drops. But while the balance is outstanding, it works against you. If you are planning to explore for a loan or mortgage soon, avoid large cash advances in the weeks before you explore.
Cash advances also do not earn rewards points or cash back, unlike purchases on many cards. This is another reason they are more expensive than they appear — you lose the benefit you would have earned on a regular purchase.
Alternatives to consider before taking a cash advance
Before you use a cash advance, consider whether another option might cost less or work better for your situation. A personal loan from a bank or credit union often charges lower interest than a cash advance and does not count against a credit limit. Payday loans charge very high interest and should be avoided. A short-term loan from family or friends costs nothing if you can arrange it.
If you need cash for an emergency, a personal loan or a line of credit from your bank may be faster and cheaper than a credit card cash advance. If you need cash to pay a bill, ask whether the biller accepts credit card payments — you may be able to pay with your card directly rather than withdrawing cash first.
If you regularly need cash, consider whether you have access to a checking account with no ATM fees, or whether your bank offers a debit card that lets you withdraw cash free at any ATM in their network. These options cost nothing and are far cheaper than a credit card cash advance.
Frequently Asked Questions
Can I get a cash advance if my credit card is maxed out?
No. A cash advance draws from your available credit, so you must have unused credit on the card to withdraw cash. If your card is maxed out, you cannot take a cash advance until you pay down the balance and free up credit.
What happens if I do not pay back a cash advance?
The balance stays on your card and interest keeps accruing at the cash advance rate. If you miss payments, your card issuer may report it to credit bureaus, which damages your credit score. They may also close your account or pursue collection action.
Is there a grace period for cash advances like there is for purchases?
No. Interest on a cash advance starts the day you withdraw it. There is no grace period, so you begin paying interest when ready even if you pay the full balance when your bill arrives.
Can I transfer a cash advance balance to another credit card?
Yes, but only as a balance transfer on the new card, not as a purchase. The new card will charge its own balance transfer fee, so you would pay fees twice. This is usually not worth the cost unless the new card has a much lower interest rate.
Do cash advances show up differently on my credit report?
Cash advances appear on your credit card statement and count toward your credit utilization, but they do not show up as a separate account type on your credit report. They are part of your credit card balance.