The main ways to get cash from a credit card
You can take money from a credit card in four ways: a cash advance at an ATM or bank, a balance transfer to your checking account, a convenience check, or a cash-like purchase such as buying a money order or gift card. Each method costs differently and affects your credit differently. A cash advance is the fastest but most expensive. A balance transfer takes longer but may cost less if you have good credit. Convenience checks work like regular checks but carry cash advance fees. Buying money orders or gift cards avoids some fees but is slower and may not work at all retailers.
The reason these methods exist is that credit cards are designed to let you borrow money for purchases, not to function as a cash machine. When you take cash out, the card issuer treats it as a loan that starts accruing interest when ready — there is no grace period like there is for regular purchases. This is why cash advances are expensive and should be a last resort, not a regular habit.
Key Takeaways
- Cash advances charge a fee (usually 3 to 5 percent of the amount) plus a higher interest rate than regular purchases, with interest starting when ready.
- Balance transfers move money to your bank account and may offer a lower rate for a set period, but require a transfer fee and good credit to may have access to for promotional rates.
- Convenience checks work like regular checks but are treated as cash advances, so they carry the same high fees and interest rates.
- Money orders and gift card purchases avoid some fees but take longer and may not solve your actual cash need.
- Using a credit card to get cash should be temporary — if you need cash regularly, the fees will quickly exceed what you borrowed.
Cash advances: fastest but most expensive
A cash advance is money you withdraw from an ATM or at a bank teller window using your credit card. You can usually withdraw up to a percentage of your credit limit — often 20 to 50 percent, depending on your card and issuer. The withdrawal happens when ready, but the cost is high.
Every cash advance charges a fee, typically 3 to 5 percent of the amount you withdraw. On a $500 withdrawal, that is $15 to $25 in fees alone. The interest rate is also higher than your regular purchase rate — often 5 to 10 percentage points higher — and interest starts accruing the day you withdraw, with no grace period. If your regular APR is 18 percent, your cash advance APR might be 28 percent. On $500 at 28 percent, you pay roughly $11.67 in interest per month if you do not pay it back when ready.
Cash advances report to credit bureaus as a type of credit use, which can lower your credit score slightly because they show you are borrowing cash rather than using credit for purchases. If you use cash advances repeatedly, lenders may see you as higher risk.
Balance transfers: slower but potentially cheaper
A balance transfer moves money from your credit card to your bank account. You request the transfer through your card issuer's website or app, provide your bank account details, and the money arrives in 3 to 7 business days. The amount you can transfer is usually your available credit, though some issuers cap it lower.
Balance transfers charge a fee, typically 3 to 5 percent, similar to cash advances. However, if you have good credit and your card offers a promotional rate, you may pay 0 percent interest for 6 to 21 months. This makes balance transfers cheaper than cash advances if you can pay back the money within the promotional period. After the promotional period ends, the regular APR kicks in.
The trade-off is time. A cash advance is when ready; a balance transfer takes a week. If you need cash today, a balance transfer will not work. Also, not all cards offer balance transfer promotions, and the best rates go to people with credit scores above 700. If your score is lower, you may pay interest from day one, which erases the advantage over a cash advance.
Convenience checks and other card-issued checks
Some credit card issuers send you checks that draw from your credit line. You write a check to yourself or to someone else, and the amount is treated as a cash advance. These checks are convenient because they feel like regular checks, but they carry the same fees and interest rates as ATM cash advances — usually 3 to 5 percent plus a higher APR starting when ready.
Convenience checks are useful only if you need to pay a specific person or business that does not take credit cards. For getting cash into your own account, a balance transfer is usually better. For paying a bill, using your regular credit card is almost always better because you avoid the cash advance fee and interest.
Money orders, gift cards, and other workarounds
Some people try to avoid cash advance fees by buying a money order or gift card with their credit card, then cashing or spending the money order or gift card. This does not work the way they hope. A money order purchased with a credit card is treated as a cash advance by most issuers, so you pay the same fee and interest. A gift card is treated as a regular purchase, so you avoid the cash advance fee, but you have not actually gotten cash — you have bought something you cannot use for your actual need.
The only scenario where this makes sense is if you genuinely need to buy something at a specific retailer and your credit card is your only payment method. In that case, buying a gift card with your credit card is the same as using your credit card to buy anything else — no extra fees. But if your goal is to get cash, this method wastes time and money.
What happens to your credit score and credit limit
Cash advances and balance transfers both use your available credit, which lowers the amount you can borrow in the future. If your credit limit is $5,000 and you take a $1,000 cash advance, your available credit drops to $4,000 until you pay back the $1,000. This is the same as any other credit use.
However, cash advances and balance transfers may hurt your credit score more than regular purchases because they signal to lenders that you are borrowing cash rather than using credit for its intended purpose. Credit scoring models treat cash advances as riskier than purchases. If you use cash advances repeatedly, your score may drop faster than if you use your card for regular purchases.
Your credit utilization ratio — the percentage of your credit limit you are using — also affects your score. If you take a large cash advance, your utilization jumps, which can lower your score temporarily. Once you pay it back, your score recovers.
When to use each method and when to avoid them entirely
Use a cash advance only if you have an emergency and no other way to get cash. The fees and interest are too high for regular use. If you find yourself taking cash advances every month, you have a cash flow problem that a credit card cannot solve — you need to cut expenses or increase income.
Use a balance transfer if you have good credit, you need cash for more than a week, and your card offers a 0 percent promotional rate. Pay back the money before the promotional period ends so you do not pay interest. If your card does not offer a promotional rate, a balance transfer is no cheaper than a cash advance.
Use a convenience check only if you need to pay someone who does not take credit cards and you cannot use a regular bank transfer or payment app. Otherwise, skip it.
Avoid money orders and gift cards as a way to get cash. They do not solve your problem and waste time and money.
Frequently Asked Questions
Can I take a cash advance on a credit card I just opened?
Usually yes, but the amount may be limited. New cardholders often have a lower cash advance limit than their overall credit limit. Check your card agreement or call your issuer to find out your cash advance limit. Some issuers also charge higher fees for new cardholders.
What is the difference between a cash advance and a regular purchase?
A regular purchase has a grace period — you do not pay interest if you pay the full balance by the due date. A cash advance has no grace period; interest starts accruing the day you withdraw the money. Cash advances also charge a separate fee and usually have a higher interest rate.
Will a cash advance hurt my credit score?
It may, slightly. A cash advance lowers your available credit and raises your utilization ratio, both of which can lower your score temporarily. It also signals to credit bureaus that you are borrowing cash, which some scoring models treat as riskier than regular purchases. The impact is usually small if you pay it back quickly.
Can I transfer money from my credit card to someone else's bank account?
No. A balance transfer moves money from your credit card to your own bank account only. To send money to someone else, you would need to withdraw cash or use a payment app like Venmo or PayPal. Using your credit card through a payment app may also trigger cash advance fees, depending on how the app processes the transaction.
What should I do if I cannot pay back a cash advance?
Contact your card issuer and ask about a payment plan or hardship program. Many issuers offer options for people who are struggling. Do not ignore the debt — interest will accumulate and your credit score will drop. The sooner you contact your issuer, the more options you may have.