The main ways to turn a credit card into cash
You can convert a credit card into cash through four methods: a cash advance from an ATM or bank teller, a balance transfer check, a peer-to-peer payment app, or a cash-like purchase. Each has different costs, speed, and terms. A cash advance is the fastest but most expensive. A balance transfer check takes longer but may have a lower rate. Payment apps are cheapest if you have a recipient. A cash-like purchase (buying a gift card or money order) is slowest and often pointless.
The critical difference between these methods is how the credit card company treats the transaction. A cash advance is not a purchase — it starts accruing interest when ready, usually at a higher rate than your purchase APR, and often includes an upfront fee of 3 to 5 percent of the amount withdrawn. A balance transfer check may have a lower rate but still charges a fee and a different APR. A payment app transfer to another person's account is treated as a purchase, so it uses your purchase APR and grace period — but only if the app reports it as a purchase, not a cash advance.
Key Takeaways
- A cash advance from an ATM or bank teller costs 3 to 5 percent upfront plus a higher interest rate starting when ready, with no grace period.
- Balance transfer checks charge a fee (usually 3 to 5 percent) and a separate APR, but may be lower than a cash advance rate if you have good credit.
- Peer-to-peer payment apps like Venmo or PayPal treat transfers as purchases if you send money to another person, so you keep your purchase APR and grace period.
- Buying a money order or gift card with your credit card is a purchase, not a cash advance, but converting it back to cash usually costs money and defeats the purpose.
- The cheapest option depends on how much you need, how long you can wait, and whether you have someone to send the money to.
Cash advances: fastest but most expensive
A cash advance lets you withdraw cash directly from your credit card at an ATM or bank teller. You will pay an upfront fee — typically 3 to 5 percent of the amount withdrawn — charged to your card when ready. You will also pay interest on the full amount from the day you withdraw it, with no grace period. The interest rate is usually 2 to 5 percentage points higher than your purchase APR.
The speed is the main advantage. You have cash in your hand within minutes. The cost is the main disadvantage. A $500 cash advance at 4 percent fee plus 25 percent APR costs $20 upfront, then $10.42 per month in interest if you pay nothing. Most people use a cash advance only when they need cash urgently and have no other option.
Your credit card issuer sets a cash advance limit, which may be lower than your credit limit. Call the number on the back of your card to find out your limit before you go to an ATM. Some ATMs charge an additional fee of $2 to $5 on top of your card issuer's fee.
Balance transfer checks: lower rate, longer timeline
A balance transfer check is a physical check your credit card issuer mails to you. You deposit it into your bank account, and the amount is treated as a balance transfer on your credit card. You pay a fee upfront — usually 3 to 5 percent — and a separate APR that may be lower than your cash advance rate, especially if you have good credit or if your issuer is running a promotional offer.
The main drawback is timing. The check takes 5 to 10 business days to arrive, and the promotional rate (if any) usually lasts only 6 to 12 months. After that, the rate jumps to your standard APR. You also cannot use the check to withdraw cash from an ATM — you must deposit it into a bank account.
Balance transfer checks are useful if you need cash but can wait a week or two, and if your credit score qualifies you for a lower promotional rate. If you do not receive checks in the mail, contact your issuer to request them or to see if you can arrange a balance transfer online instead.
Peer-to-peer payment apps: cheapest if you have a recipient
Apps like Venmo, PayPal, Square Cash, and Google Pay let you send money from your credit card to another person's account. If the app treats the transaction as a purchase (not a cash advance), you pay no upfront fee and keep your purchase APR and grace period. You can then ask the other person to send the money back to your bank account, or you can keep it in the app to spend later.
The catch is that not all apps treat credit card transfers as purchases. Some charge a 3 percent fee for credit card transfers. Some treat them as cash advances. Check your app's fee schedule before you transfer. Also, the person receiving the money may be suspicious if you send them cash and ask them to send it back — this can look like you are trying to circumvent the app's rules or hide a transaction.
This method works best if you have a legitimate reason to send money to someone else — splitting rent, paying back a friend, or sending money to a family member. It is cheapest if the app charges no fee and treats the transfer as a purchase.
Money orders and gift cards: technically possible but rarely worth it
You can buy a money order or gift card with your credit card, then cash the money order or sell the gift card for cash. A money order is treated as a purchase, so you avoid the cash advance fee and keep your purchase APR. However, money orders cost $1 to $5 each to buy, and you lose money in the conversion.
Gift cards are even worse. You pay full price for the card with your credit card, then sell it online for 80 to 95 cents on the dollar. You have paid interest on the full amount while losing 5 to 20 percent of the value. This method makes sense only if you were going to buy the gift card anyway and need the cash urgently.
How to choose between these methods
Start by asking: how much do I need, and how soon? If you need less than $100 and can wait a week, a balance transfer check is usually cheapest. If you need $500 or more and need it today, a cash advance is fastest but costs the most. If you have a friend or family member you can send money to, a peer-to-peer app is usually free or nearly free.
Next, check your card's terms. Call the number on the back and ask: what is my cash advance limit, what is the fee, and what is the APR? Ask the same questions about balance transfer checks. Compare the total cost of each option over the time you expect to carry the balance. If you plan to pay it back within a month, the upfront fee matters more than the interest rate. If you plan to carry it for six months, the interest rate matters more.
Finally, consider whether you actually need cash or whether you need to pay for something specific. If you need cash to pay a bill, a balance transfer check or peer-to-peer transfer to your bank account is better than a cash advance. If you need cash to pay someone in person, a cash advance is your only option.
What happens to your credit score
A cash advance, balance transfer, or peer-to-peer transfer all show up on your credit report as a balance on your credit card. This increases your credit utilization ratio — the percentage of your available credit you are using — which can lower your credit score by 5 to 50 points depending on how much you borrow and how much available credit you have.
The impact is temporary. Your score will recover as you pay down the balance. However, if you are planning to explore for a mortgage, car loan, or other credit in the next few months, converting your credit card to cash right now may hurt your chances of getting approved or getting a good rate.
Frequently Asked Questions
Can I get a cash advance if I have bad credit?
Yes. Your cash advance limit is usually set based on your credit limit, not your credit score. However, if your credit is very poor, your issuer may have set a low cash advance limit or no limit at all. Call to find out your limit before you try to withdraw.
What if I cannot pay back the cash advance?
The balance stays on your credit card and accrues interest. If you do not pay at least the minimum payment, your account will go into default, your credit score will drop, and the issuer may sue you or send your account to a collection agency. Contact your issuer to discuss a payment plan if you are struggling.
Is there a limit to how much cash I can withdraw?
Yes. Your issuer sets a cash advance limit, which is usually lower than your credit limit. Some ATMs also have daily withdrawal limits of $300 to $500. You can withdraw up to your limit, but you may need to make multiple withdrawals or go to a bank teller to withdraw a large amount in one day.
Do I have to pay interest on a balance transfer check if I pay it off quickly?
It depends on the terms. If your issuer is offering a promotional 0 percent APR on balance transfers, you will not pay interest during that period as long as you pay the full balance before the promotion ends. If there is no promotional rate, you will pay interest from the day you deposit the check, even if you pay it off within a few days.
Which method is cheapest overall?
A peer-to-peer transfer to another person is cheapest if the app charges no fee and treats it as a purchase. A balance transfer check is second cheapest if you may have access to for a promotional rate. A cash advance is most expensive. Money orders and gift cards are rarely worth the cost.