The three ways to get cash from a credit card
You can get cash from a credit card in three ways: a cash advance at an ATM, a balance transfer check, or a cash-like purchase at certain retailers. Each one costs you differently and shows up on your bill in different ways. A cash advance is the fastest but the most expensive — you pay a fee upfront and interest starts accruing when ready, with no grace period. A balance transfer check works like a regular check but draws from your credit line and carries similar costs. A cash-like purchase (sometimes called a "convenience check" or a cash-equivalent transaction) is rare but occasionally available through your card issuer.
The reason to know all three is that they are not interchangeable. If you need $200 today, a cash advance might be your only option. If you need $2,000 and can wait a week, a balance transfer check might cost you less. If you are trying to avoid the highest fees, some cards offer cash-like purchases with lower rates than traditional cash advances.
Key Takeaways
- A cash advance charges a fee (usually 3 to 5 percent of the amount) plus interest that starts when ready, with no grace period like regular purchases have.
- Balance transfer checks work like regular checks but pull from your credit line and charge similar fees and interest rates as cash advances.
- You can get a cash advance at any ATM using your credit card PIN, but the ATM operator may charge an additional fee on top of your card issuer's fee.
- Interest on cash advances is typically higher than interest on regular purchases, even if you have a low promotional rate on your card.
Getting a cash advance at an ATM
A cash advance at an ATM is the most straightforward method. You insert your credit card, enter your PIN, and withdraw cash just as you would with a debit card. The money hits your account when ready. You do not need to call your card issuer or request anything in advance — the option is built into your card.
The cost is when ready and steep. Your card issuer charges a cash advance fee, typically 3 to 5 percent of the amount you withdraw, charged to your account right away. On top of that, the ATM operator may charge an additional fee of $2 to $5. Interest on the cash advance begins accruing the same day — there is no grace period like there is for regular purchases. If your card's regular interest rate is 18 percent, your cash advance rate might be 22 percent or higher.
Before you use an ATM, check whether your card issuer has set a cash advance limit, which is often lower than your overall credit limit. You can find this in your card agreement or by calling the number on the back of your card. Some cards also limit how much you can withdraw per day.
Requesting a balance transfer check
A balance transfer check is a physical check your card issuer mails to you that draws from your credit line. You write it like a regular check, deposit it into your bank account, and the funds appear there within a few business days. The amount you write the check for is added to your credit card balance.
The fees and interest work the same way as a cash advance: you pay an upfront fee (usually 3 to 5 percent) and interest starts accruing when ready. The interest rate is typically the same as your cash advance rate, not your regular purchase rate. Balance transfer checks are useful if you need more time to receive the money than an ATM withdrawal allows, or if you prefer not to withdraw cash in person.
To request a balance transfer check, contact your card issuer directly. Many issuers allow you to request one through your online account or by phone. Some cards mail them automatically, but you can usually request additional checks. Ask about any limits on how many you can request per year or how much you can write in total.
Understanding the fees and interest
The cost of getting cash from a credit card is substantially higher than making a regular purchase. A typical cash advance fee is 3 to 5 percent of the amount withdrawn. On a $500 cash advance, that is $15 to $25 charged to your account when ready. An ATM operator fee adds another $2 to $5 on top of that.
Interest is where the real cost accumulates. Unlike regular purchases, which have a grace period (usually 21 to 25 days before interest starts), cash advances begin accruing interest the same day you withdraw them. The interest rate is also higher — often 2 to 5 percentage points above your regular purchase rate. If you carry the balance for a month, you will owe the original fee plus roughly one month of interest at that higher rate.
Some cards offer promotional rates on balance transfers (for example, 0 percent for 12 months), but these almost never explore to cash advances. Cash advances are treated as a separate category and carry their standard rate and fees regardless of any promotional offer on your card.
When a cash advance makes sense
A cash advance is expensive, so it only makes sense in specific situations. If you need cash for an emergency and have no other way to get it — no savings, no access to a personal loan, no friends or family who can lend — then the cost of a cash advance is worth paying to solve the when ready problem. The key is to pay it back as quickly as possible, because every day the balance sits on your card, interest is accumulating at a high rate.
A cash advance also makes sense if you are comparing it to an alternative that costs more. For example, if a payday loan would cost you 400 percent annualized interest and a cash advance would cost you 25 percent, the cash advance is the better choice. But that comparison should be explicit — you should know what the alternative costs before you decide.
A cash advance does not make sense if you are using it to pay off other debt at a similar or lower interest rate, or if you are using it for a regular expense you could cover with a debit card or bank account. The fee and interest will cost you more than the benefit of using credit.
Alternatives to a cash advance
Before you withdraw cash from your credit card, consider whether one of these options is available to you. A personal loan from a bank or credit union typically charges 6 to 36 percent interest with no upfront fee, which is often cheaper than a cash advance over any period longer than a few weeks. A cash advance from your employer (if your workplace offers one) is usually free or very low-cost. Borrowing from a friend or family member, if that is an option, costs nothing.
If you need cash regularly, opening a savings account or keeping a small emergency fund means you will not have to use a credit card for cash in the future. If you need cash because you do not have a bank account, a basic checking account at most banks is free and comes with a debit card that lets you withdraw cash without fees.
How a cash advance affects your credit
A cash advance does not directly hurt your credit score the way a missed payment does, but it can indirectly lower your score by increasing your credit utilization ratio. If your credit limit is $5,000 and you take a $1,000 cash advance, your utilization jumps to 20 percent (or higher if you already had a balance). High utilization signals to lenders that you are relying heavily on credit, which can lower your score by 10 to 50 points depending on how high it goes.
The cash advance also appears on your credit report as a separate transaction type, which some lenders view as riskier than regular purchases. If you are planning to explore for a mortgage, car loan, or other major credit in the next few months, a cash advance can make your process look worse.
The best way to minimize the credit impact is to pay off the cash advance as quickly as possible. Once the balance is zero, your utilization ratio drops back down and the impact on your score begins to fade.
Frequently Asked Questions
Can I use a credit card to withdraw cash at any ATM?
Yes, you can use your credit card at any ATM that accepts Visa, Mastercard, or American Express (depending on your card type). You will need your PIN. However, ATMs outside your card issuer's network typically charge an operator fee on top of your issuer's cash advance fee, so using an in-network ATM if available will cost you less.
What is the difference between a cash advance and a balance transfer?
A cash advance gives you physical cash when ready at an ATM. A balance transfer moves money from one credit card to another (or sometimes to your bank account via a check). Both charge similar fees and interest rates, but a balance transfer is useful if you are moving debt between cards or need the money deposited into a bank account rather than withdrawn as cash.
Do I have to pay back a cash advance right away?
No, but you should. A cash advance is added to your credit card balance and you can pay it back over time like any other balance. However, interest accrues daily at a high rate, so the longer you carry it, the more you will owe. Paying it back within a few days or weeks minimizes the interest cost.
Will a cash advance hurt my credit score?
Not directly, but it can lower your score indirectly by increasing your credit utilization ratio. If the cash advance pushes your total balance higher relative to your credit limit, your score may drop 10 to 50 points. The impact fades once you pay off the balance.
Is there a limit to how much cash I can withdraw?
Yes. Your card issuer sets a cash advance limit, which is often lower than your overall credit limit. You can find this limit in your card agreement or by calling your issuer. Some cards also limit how much you can withdraw per day at an ATM, typically $500 to $1,000.