The main ways to get cash from a credit card
You can get money from 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. Each one costs you differently and affects your balance in different ways.
A cash advance lets you withdraw cash using your credit card PIN at any ATM that accepts your card's network (Visa, Mastercard, American Express, or Discover). A balance transfer moves credit available on one card to another account — usually a bank account or another card. A convenience check is a physical check your card issuer mails you that draws against your credit line.
The catch: all three cost more than a regular purchase. You pay interest when ready (no grace period), plus an upfront fee. The fee is usually 3 to 5 percent of the amount, charged right away. Interest rates on cash advances are often higher than your regular purchase rate.
Key Takeaways
- Cash advances, balance transfers, and convenience checks all charge an upfront fee (typically 3 to 5 percent) plus interest with no grace period.
- Interest on a cash advance starts accruing the day you withdraw it, not at the end of the billing cycle like a purchase.
- Your credit card issuer sets the cash advance limit, which is usually lower than your total credit limit.
- If you need money regularly, a personal loan or line of credit will cost less than repeated cash advances.
Cash advances: how they work and what they cost
A cash advance is the most common way to pull money from a credit card. You go to an ATM, insert your card, enter your PIN, and withdraw cash up to your cash advance limit. Your card issuer sets this limit separately from your overall credit limit — it might be $500 even if your total limit is $5,000.
The fee hits when ready. Most issuers charge either a flat amount (like $5 to $10) or a percentage of the amount withdrawn (usually 3 to 5 percent), whichever is higher. A $200 cash advance at 5 percent costs $10 in fees alone. Interest starts accruing the same day at a rate that is typically 2 to 3 percentage points higher than your purchase APR.
Unlike a purchase, there is no grace period. If your purchase APR is 18 percent and your cash advance APR is 21 percent, you owe interest on day one. A $500 advance at 21 percent APR costs about $8.75 in interest per month if you do not pay it back.
Balance transfers and convenience checks
A balance transfer moves money from your credit card to another account — usually your bank checking account. You request it through your card issuer's app or website, and the money appears in your bank account within a few business days. The fee is the same as a cash advance (3 to 5 percent), and interest starts right away with no grace period.
A convenience check works differently mechanically but costs the same. Your issuer mails you a book of checks that draw against your credit line. You write one to yourself, deposit it in your bank account, and the amount is added to your credit card balance. The fee and interest rate are identical to a cash advance.
The advantage of a balance transfer or convenience check over a cash advance is that you avoid ATM fees and do not need a PIN. The disadvantage is the wait — a balance transfer takes 3 to 5 business days, and a convenience check takes even longer if it has to be mailed to you first.
Why cash advances are expensive compared to other borrowing
A cash advance is one of the most expensive ways to borrow money. Compare the costs: a $500 cash advance at 5 percent fee plus 21 percent APR costs $25 upfront plus roughly $8.75 in the first month of interest. Over a year, if you only make minimum payments, you could pay $150 or more in interest and fees combined.
A personal loan for $500 at the same APR would have no upfront fee and interest would be built into your monthly payment. A line of credit from your bank might charge 2 to 3 percent less in interest. Even a payday loan, which is predatory, often has a lower total cost if you repay it within two weeks.
Credit card companies offer cash advances because they are profitable, not because they are a good deal for you. If you find yourself needing cash advances regularly, that is a sign to look at a personal loan, a credit union line of credit, or a side income source instead.
How to request a cash advance from your card issuer
The easiest way is through your card issuer's mobile app or website. Log in, look for "Cash Advance" or "Get Cash" in the menu, enter the amount, and confirm. The money appears in your bank account within one to two business days. Some issuers let you set up a recurring cash advance, though this is rare.
You can also call the customer service number on the back of your card and request a cash advance over the phone. They will verify your identity and ask how much you need. They may ask why, but they are not required to approve or deny based on your answer — they use your account history and available credit limit.
At an ATM, insert your card, select "Withdraw Cash" or "Cash Advance," enter your PIN, and choose the amount. Not all ATMs accept all card types, so you may need to find one that displays your card network's logo. Bank teller windows also process cash advances if you bring your card and ID.
What happens to your credit if you take a cash advance
A cash advance does not hurt your credit score in the moment of withdrawal. However, it does increase your credit utilization ratio — the percentage of your available credit you are using. If you have a $5,000 limit and take a $500 cash advance, your utilization jumps from 0 to 10 percent (or higher if you already had a balance).
High utilization signals risk to credit scoring models and can lower your score by 10 to 50 points depending on how much you are using. The effect is temporary — once you pay down the balance, your score recovers. But if you are planning to explore for a mortgage or car loan soon, a large cash advance in the weeks before your process can cost you.
The bigger risk is behavioral. Cash advances are straightforward to take and expensive to repay. If you use them repeatedly, you can end up in a cycle where you are paying mostly interest and fees, not principal. This is how people end up with credit card debt that takes years to clear.
Alternatives to cash advances
If you need money but do not want to pay cash advance fees, consider these options first. A personal loan from a bank, credit union, or online lender usually has a lower APR and no upfront fee — you pay interest only on what you borrow. A line of credit works like a credit card but with a lower interest rate and no cash advance fees.
A credit union loan is often cheaper than a bank loan if you are a member. Credit unions typically charge lower rates and may waive fees for members in financial hardship. A side income source — freelance work, selling items, or a part-time job — solves the underlying problem (needing cash) without adding debt.
If you are in a true emergency and have no other option, a cash advance is better than a payday loan or title loan, which charge even higher rates. But if you have time to plan, a personal loan or line of credit will cost you significantly less.
Frequently Asked Questions
What is the difference between a cash advance and a regular credit card purchase?
A purchase goes on your balance and you have a grace period (usually 21 days) before interest starts. A cash advance charges a fee when ready and interest starts accruing the same day, with no grace period. The interest rate on a cash advance is also typically 2 to 3 percentage points higher than your purchase rate.
Can I take a cash advance if I have already maxed out my credit card?
No. Your cash advance limit is part of your total credit limit. If you have used your entire limit, you cannot take a cash advance. You would need to pay down your balance first or request a credit limit increase from your issuer.
How long does it take to get money from a balance transfer?
A balance transfer to your bank account usually takes 3 to 5 business days. The exact timing depends on your bank and your card issuer. A convenience check takes longer because it has to be mailed to you first, then you have to deposit it yourself.
Will taking a cash advance hurt my credit score?
Not when ready, but it increases your credit utilization ratio, which can lower your score by 10 to 50 points. The effect is temporary — your score recovers once you pay the balance down. If you are explore for a loan soon, avoid a large cash advance in the weeks before your process.
What happens if I cannot pay back a cash advance?
The balance stays on your credit card and interest continues to accrue. If you miss payments, your issuer may report it to the credit bureaus, which damages your credit score. After 180 days of missed payments, the issuer may charge off the account and sell the debt to a collection agency.