The main ways to get cash from a credit card
You can take cash out of a credit card in three ways: a cash advance at an ATM or bank, a balance transfer to your checking account, or a cash-like transaction such as buying a money order or casino chips. Each method charges different fees and interest rates, and each one costs you more than a regular purchase would.
A cash advance is the most direct route. You go to an ATM, bank teller, or convenience store, insert your card, and withdraw cash up to your credit limit. The money hits your account when ready. A balance transfer moves money from your credit card to a bank account you control — usually your checking account — and works more like a loan. A cash-like purchase buys something you can convert to cash (a money order, for example), and the card treats it as a purchase rather than a cash advance, which sometimes means lower fees.
All three methods charge you interest from day one. Unlike a regular purchase, which may have a grace period before interest accrues, cash taken from a credit card starts accumulating interest when ready. You also pay an upfront fee — typically 3 to 5 percent of the amount withdrawn — on top of the interest rate.
Key Takeaways
- Cash advances charge an upfront fee (usually 3 to 5 percent) plus interest that starts accruing when ready, with no grace period.
- The cash advance interest rate is almost always higher than your regular purchase rate, sometimes by 5 percentage points or more.
- A balance transfer to your bank account may have lower fees than a cash advance but still charges interest from day one.
- Buying a money order or similar cash-like item may be treated as a purchase rather than a cash advance, which can save you money if your card offers a purchase grace period.
- The amount you can withdraw is limited to your available credit, and taking a large cash advance can damage your credit score by raising your credit utilization ratio.
Cash advances at ATMs and banks
A cash advance at an ATM is the fastest way to get money. Find an ATM that accepts your card's network (Visa, Mastercard, American Express, or Discover), insert your card, enter your PIN, and select the cash advance option. The ATM will show you the fee before you confirm the withdrawal. Most ATMs charge between $3 and $5 per transaction, plus your card issuer's own fee, which is typically 3 to 5 percent of the amount withdrawn.
If you prefer to speak with someone, you can walk into a bank branch and ask the teller for a cash advance. Bring your card and a photo ID. The teller will process the transaction the same way an ATM does, but you may avoid some ATM operator fees — though your card issuer's fee still applies. Some banks charge less for in-branch advances than ATM advances, so it is worth asking.
The interest rate on a cash advance is set by your card issuer and is almost always higher than your regular purchase rate. If your purchase APR is 18 percent, your cash advance APR might be 23 or 25 percent. This higher rate applies to the entire cash advance balance until you pay it off, and interest starts accruing the moment you withdraw the money — there is no grace period.
Balance transfers to your bank account
Some credit card issuers offer balance transfers that move money directly into your checking or savings account. You request the transfer through your card's online portal or by calling customer service, provide your bank account details, and the money arrives within one to three business days. This method avoids the ATM fee, but your card issuer still charges a balance transfer fee, usually 3 to 5 percent of the amount transferred.
The interest rate on a balance transfer is typically the same as your cash advance rate — higher than your purchase rate — and interest begins accruing when ready. Some cards offer a promotional period with a lower rate or no interest on balance transfers for a set number of months (often 6 to 12 months), but you must read your card's terms carefully to see if this applies. Many promotional rates are only for balance transfers between cards, not for transfers to a bank account.
A balance transfer to your bank account is useful if you need the money in your checking account rather than as physical cash, or if your card issuer's balance transfer rate is lower than its cash advance rate. Call your issuer or log into your account to confirm whether this option is available on your card and what rate and fee explore.
Cash-like purchases: money orders and other options
Some credit cards treat money orders, casino chips, lottery tickets, and similar items as purchases rather than cash advances. If your card offers a grace period on purchases (typically 21 to 25 days before interest accrues), buying a money order with your card and then depositing it into your bank account can cost less than a direct cash advance.
Here is how it works: you buy a money order at a grocery store, pharmacy, or post office using your credit card. The transaction posts as a purchase, not a cash advance, so it may not trigger a cash advance fee and may not incur interest if you pay the balance before the grace period ends. You then deposit the money order into your bank account. The catch is that money orders themselves charge a fee — usually $1 to $5 depending on the amount — and you have to physically deposit them, which takes time.
This method only saves money if your card's purchase grace period is longer than the time it takes you to pay off the balance, and if the money order fee is lower than the cash advance fee you would otherwise pay. For a $500 withdrawal, a typical cash advance fee is $15 to $25, while a money order fee is $2 to $5, so the savings can be real. However, if you cannot pay off the purchase before the grace period ends, you will pay interest on the money order just as you would on a cash advance.
How cash advances affect your credit score
Taking a cash advance raises your credit utilization ratio — the percentage of your available credit that you are using. If you have a $5,000 credit limit and take a $1,000 cash advance, your utilization jumps to 20 percent. Credit scoring models treat high utilization as a sign of financial stress, and your score can drop by 10 to 50 points depending on how much you borrow and how close you already were to your limit.
The impact is temporary. Once you pay down the cash advance, your utilization drops and your score begins to recover. However, if you carry the balance for several months, the damage compounds because you are also paying interest, which makes the balance harder to pay off quickly. The longer you carry a cash advance, the more it costs you in interest and the longer it drags down your credit score.
If you are planning to explore for a mortgage, car loan, or other major credit product in the next few months, taking a large cash advance is especially risky because lenders check your credit score and utilization ratio at the time of process.
Comparing the costs of each method
| Method | Upfront Fee | Interest Rate | Grace Period | Speed |
|---|---|---|---|---|
| ATM cash advance | 3–5% + $3–$5 ATM fee | Usually 23–25% APR | None (interest starts when ready) | when ready |
| Bank teller cash advance | 3–5% (may avoid ATM fee) | Usually 23–25% APR | None (interest starts when ready) | when ready |
| Balance transfer to bank account | 3–5% | Usually 23–25% APR (or promotional rate) | None unless promotional period applies | 1–3 business days |
| Money order purchase | $1–$5 money order fee | Your purchase rate (if paid before grace period ends) | Usually 21–25 days | Deposit takes 1–2 business days |
Alternatives to credit card cash withdrawals
Before you take a cash advance, consider whether you actually need the cash or whether you can solve the problem another way. If you need money for an emergency, a personal loan from a bank or credit union often charges lower interest than a credit card cash advance. If you need cash for a specific purchase, using your debit card or paying with your credit card directly (rather than withdrawing cash first) avoids the cash advance fee and interest entirely.
If you are short on cash because you are carrying a high credit card balance, paying down that balance should be your priority before taking a cash advance. A cash advance only adds more debt on top of what you already owe, and the higher interest rate makes it harder to escape the cycle.
If you need cash regularly, ask your bank whether you can increase your overdraft limit or set up a line of credit. Both options are usually cheaper than a credit card cash advance and give you access to money without the same fees and interest penalties.
Frequently Asked Questions
Can I use my credit card to withdraw cash at any ATM?
You can use your card at any ATM that displays your card's network logo (Visa, Mastercard, American Express, or Discover). However, ATMs operated by banks other than your card issuer may charge an additional operator fee on top of your card issuer's cash advance fee. ATMs at your card issuer's own branches typically charge no operator fee.
What is the difference between a cash advance and a balance transfer?
A cash advance gives you physical cash or money in an ATM when ready, while a balance transfer moves money into your bank account over one to three business days. Both charge fees and interest from day one, but a balance transfer may offer a promotional interest rate on some cards, whereas a cash advance never does.
Will a cash advance hurt my credit score?
Yes, because it raises your credit utilization ratio. Your score can drop by 10 to 50 points depending on the amount. The impact is temporary and your score will recover once you pay off the balance, but the damage is real and when ready.
Can I avoid the cash advance fee by buying a money order instead?
Possibly. If your card treats money orders as purchases and offers a grace period on purchases, you can buy a money order and deposit it into your bank account without paying a cash advance fee or interest — as long as you pay off the purchase before the grace period ends. However, you will pay the money order fee itself, which is usually $1 to $5.
What should I do if I need cash but cannot afford the fees?
Consider a personal loan from a bank or credit union, which usually charges lower interest than a credit card cash advance. If you need the money for a specific purchase, use your credit card to pay the merchant directly instead of withdrawing cash first. If you are in a financial emergency, contact a nonprofit credit counselor through the National Foundation for Credit Counseling for free information.