Yes, you can get cash back with most credit cards, but the method and cost depend on the card type and where you use it

Cash back with a credit card works differently than it does with a debit card. When you use a debit card at a store, you can ask the cashier for cash back and they subtract it from your account on the spot. With a credit card, you cannot do that at a checkout counter — the transaction posts as a purchase, not a withdrawal.

Instead, you have three real ways to get cash using a credit card: a cash advance at an ATM, a balance transfer check, or a convenience check. Each one charges you money upfront, and each one starts accruing interest when ready. This is very different from earning cash back rewards on purchases, which is information programs the card issuer gives you for spending.

Key Takeaways

  • A cash advance at an ATM lets you withdraw money using your credit card, but charges a fee (usually 3 to 5 percent) plus a higher interest rate than regular purchases.
  • Balance transfer checks and convenience checks work the same way as cash advances — they cost you a fee and start charging interest right away, with no grace period.
  • Cash back rewards on purchases are information programs you earn by spending, and they never cost you anything — do not confuse them with cash advances.
  • The cheapest way to get cash is usually to use your debit card, borrow from a friend, or visit your bank to withdraw from a savings account.

How a cash advance works at an ATM

A cash advance is a short-term loan from your credit card issuer. You go to an ATM, insert your credit card, enter your PIN, and withdraw cash just like you would with a debit card. The money appears in your hand when ready, but the credit card company charges you for it.

Most cards charge a cash advance fee of 3 to 5 percent of the amount you withdraw, with a minimum fee of $5 to $10. If you withdraw $200, you might pay $6 to $10 just for taking out the cash. On top of that, the interest rate for cash advances is usually 2 to 3 percentage points higher than your regular purchase APR, and it starts accruing the day you withdraw — there is no grace period like there is for purchases.

Not all ATMs accept credit cards for cash advances. Bank ATMs usually do, but many convenience store and airport ATMs do not. Your card issuer's website or app will tell you which ATMs accept your card, or you can call the number on the back of your card to ask.

Balance transfer checks and convenience checks

Some credit card issuers send you checks in the mail that you can write against your credit line. These are called balance transfer checks (if they are meant to pay off another card) or convenience checks (if they are just extra checks). You write a check to yourself or to someone else, deposit it in your bank account, and the credit card company treats it as a cash advance.

These checks carry the same fees and interest rates as ATM cash advances — typically 3 to 5 percent upfront, plus a higher APR with no grace period. The advantage is that you do not need an ATM or a PIN. The disadvantage is that you have to wait for the check to clear, and you are paying the same price as a cash advance anyway.

If you receive these checks in the mail and do not plan to use them, you can throw them away or shred them. Do not feel obligated to use them just because the card issuer sent them.

Why cash advances cost so much more than purchases

Credit card issuers charge more for cash advances because they see them as riskier than regular purchases. When you buy something with a credit card, the merchant guarantees the transaction — if something goes wrong, the card issuer can dispute it. When you withdraw cash, there is no merchant and no protection. The issuer is lending you money with nothing to show for it except your promise to pay it back.

The higher interest rate also reflects the fact that cash advances are usually a sign of financial stress. People who need cash advances tend to carry balances longer and default more often than people who just use their cards for purchases. The card issuer prices that risk into the fee and the rate.

Cash back rewards are not the same as cash advances

Cash back rewards are money the card issuer gives you for spending. If your card offers 1 percent cash back and you spend $1,000, you earn $10 in rewards. That $10 is free — it costs you nothing, and you do not pay interest on it. You can usually redeem it as a statement credit, a check, or a deposit to your bank account.

A cash advance is the opposite. You are borrowing money from the card issuer, and you pay them for the privilege. The two are straightforward to confuse because both involve the word "cash," but one is a reward and one is a loan.

Cheaper ways to get cash when you need it

If you need cash and you have a credit card, you almost always have a cheaper option. If you have a debit card linked to a checking or savings account, use that at any ATM — most banks do not charge a fee if you use your own bank's ATM, and out-of-network fees are usually $2 to $3, far less than a credit card cash advance.

If you do not have a debit card, visit your bank in person and withdraw cash from a teller. If you do not have a bank account, ask a friend or family member to lend you the money. If none of those options work and you genuinely need a short-term loan, a personal loan from a bank or credit union will charge you less interest than a credit card cash advance, even though it takes longer to get.

A credit card cash advance should be your last resort, not your first choice. The fees and interest rates are designed to discourage you from using them, and for good reason — they are expensive.

What happens to a cash advance on your credit report

A cash advance appears on your credit card statement like any other transaction, and it counts toward your credit utilization — the percentage of your available credit that you are using. If you have a $5,000 credit limit and you take a $1,000 cash advance, your utilization jumps to 20 percent, which can lower your credit score slightly.

The cash advance itself does not show up separately on your credit report. Your credit report shows your payment history and your balances, not the type of transaction. However, if you carry the cash advance balance and miss a payment, that missed payment will show up on your report and hurt your score.

Frequently Asked Questions

Can I get cash back at a store checkout with a credit card?

No. Most stores will not give you cash back when you pay with a credit card. You can only get cash by using an ATM, writing a convenience check, or asking your bank for a withdrawal. If a store does offer it, it is rare and usually only for small amounts.

What is the difference between a cash advance and a balance transfer?

A balance transfer moves debt from one card to another and usually has a lower interest rate for a set period. A cash advance is a loan against your credit line that you withdraw as cash. Both charge fees, but balance transfers are meant for paying off other cards, while cash advances are meant for getting cash.

Will a cash advance hurt my credit score?

A cash advance can lower your score slightly because it increases your credit utilization. If you carry the balance and pay interest, it will not hurt you further unless you miss a payment. The bigger damage comes from the fees and interest you pay, not from the score impact.

Can I use a credit card cash advance to pay another credit card bill?

Technically yes, but it is a bad idea. You are paying a 3 to 5 percent fee plus a high interest rate just to move money from one card to another. If you are trying to pay down debt, look for a balance transfer card with a 0 percent introductory rate instead.

Do all credit cards let you take cash advances?

Most credit cards do, but not all. Secured cards and some student cards may not offer cash advances, or they may limit the amount you can withdraw. Check your card's terms or call the issuer to find out whether cash advances are available on your card.