The main ways to get cash from a credit card

You can get cash from a credit card through three methods: a cash advance at an ATM or bank, a balance transfer check mailed by your card issuer, or a cash-like purchase through services like PayPal or Square Cash. Each costs differently and works on different timelines.

A cash advance is the most direct route. You insert your card into an ATM, enter your PIN, and withdraw money just as you would from a debit card. The issuer charges a fee (typically 3 to 5 percent of the amount) and begins charging interest when ready — usually at a higher rate than your regular purchase APR. There is no grace period.

Balance transfer checks work differently. Your card issuer mails you a check that draws against your credit line. You deposit or cash it like any other check. This also carries a fee (usually 3 to 5 percent) and interest, though the interest rate is sometimes lower than a cash advance rate if you have a promotional offer.

Cash-like purchases let you buy something that converts to cash — a money order, a gift card you resell, or a payment to yourself through a payment app. These avoid the "cash advance" label and its fees, but they carry their own costs and risks, and some card issuers now block them.

Key Takeaways

  • Cash advances charge a fee of 3 to 5 percent upfront and begin accruing interest when ready with no grace period, making them expensive for short-term cash needs.
  • Balance transfer checks carry similar fees but may offer a lower interest rate if your card has a promotional offer, and they take several business days to arrive.
  • Your credit card's cash advance limit is often lower than your credit limit, so you may not be able to withdraw as much as you can spend.
  • Interest on cash advances and balance transfers accrues daily and is calculated separately from your regular purchases, so paying it off quickly matters more than with regular charges.

Cash advances at ATMs and banks

To take a cash advance at an ATM, insert your credit card, select "cash advance" or "withdraw cash," enter your PIN, and choose your amount. The ATM will show you the fee before you confirm. The money appears in your account when ready, but the fee and interest start accruing right away.

At a bank branch, you can also ask a teller for a cash advance. This works the same way — you hand over your card, provide your PIN, and receive cash. Some banks charge an additional fee for teller-assisted advances, so ask before you proceed. The teller will give you a receipt showing the amount, the fee, and the interest rate that will explore.

Your card issuer sets a cash advance limit that is separate from your credit limit. You might have a $5,000 credit limit but only a $1,000 cash advance limit. Check your card's terms or call the issuer to learn your limit before you go to the ATM — you cannot exceed it, and attempting to do so will be declined.

The fee structure varies by card. Most cards charge a flat percentage (3 to 5 percent) of the amount you withdraw, with a minimum fee of $2 to $10. Some cards charge a flat dollar amount instead. The interest rate on cash advances is typically 2 to 5 percentage points higher than your regular purchase APR and begins accruing the day you withdraw the money.

Balance transfer checks and how they differ

Balance transfer checks are physical checks your card issuer mails to you. You can deposit them into your bank account or cash them at a bank or check-cashing service. The amount you write the check for is charged to your credit card as a balance transfer, not a purchase.

The main advantage is timing and rate. A balance transfer check may carry a lower interest rate than a cash advance — sometimes as low as 0 percent for a promotional period (typically 6 to 12 months). However, you still pay an upfront fee of 3 to 5 percent, and the promotional rate applies only if you meet the issuer's terms, which usually means no other charges or late payments during the offer period.

The drawback is speed. Checks take 5 to 10 business days to arrive by mail. If you need cash today, a balance transfer check will not help. Also, if you lose the check or it is stolen, you have to contact your issuer to stop payment and request a replacement, which adds another delay.

Some issuers no longer mail balance transfer checks, so check your card's terms or contact the issuer to see if this option is available to you. If it is, the checks usually arrive with a letter explaining the fee, the interest rate, and any promotional terms.

Why cash advances are expensive compared to regular purchases

A cash advance costs more than a regular purchase for three reasons: the upfront fee, the higher interest rate, and the lack of a grace period.

When you make a regular purchase, you have a grace period — usually 21 to 25 days — before interest starts accruing. If you pay the full balance by the due date, you pay no interest at all. A cash advance has no grace period. Interest begins accruing the moment you withdraw the money, even if you pay it back the next day.

The interest rate on a cash advance is also higher. If your regular purchase APR is 18 percent, your cash advance APR might be 23 or 25 percent. This higher rate applies only to the cash advance balance, not to your regular purchases, but it compounds daily. A $500 cash advance at 25 percent APR costs about $3.42 per day in interest alone.

The upfront fee is the third cost. A 4 percent fee on a $500 advance is $20 out of pocket before you even use the money. Combined with the daily interest, a cash advance is one of the most expensive ways to borrow money on a credit card.

Cash-like purchases and their hidden costs

Some people try to avoid the "cash advance" label by buying something that can be converted to cash — a money order, a gift card, or a transfer through PayPal or Square Cash. The idea is that these are purchases, not cash advances, so they might avoid the higher fee and interest rate.

In practice, this rarely works. Most card issuers now classify these transactions as cash advances anyway, even if you label them as purchases. Your card may decline the transaction, or the issuer may charge you the cash advance fee and rate retroactively. PayPal and Square Cash, in particular, have tightened their rules and often block credit card funding or charge a percentage fee that makes the transaction expensive.

If you do manage to complete a cash-like purchase, you still face costs. A money order typically costs $1 to $5. A gift card resale site takes a cut, usually 5 to 15 percent. A payment app fee can be 2 to 3 percent. These costs add up quickly and often exceed what you would pay for a straightforward cash advance.

The safest approach is to treat any transaction that results in cash in your hand as a cash advance and expect to pay the fee and interest rate that applies to cash advances on your card.

How to minimize the cost if you need cash from your card

If you must take a cash advance, take the smallest amount you need and pay it back as fast as possible. Every day the balance sits on your card, interest accrues at the higher cash advance rate. A $200 advance paid back in one week costs far less than a $500 advance paid back in a month.

Before you take the advance, check whether your card offers a promotional rate on balance transfers. If you have a 0 percent balance transfer offer, a balance transfer check might be cheaper than a cash advance, even with the upfront fee. The math depends on how long you need to carry the balance and what your regular cash advance rate is.

Consider whether you have other options. A personal loan from a bank or credit union, a payday loan (despite its high rates), or a short-term loan from a friend or family member might be cheaper than a cash advance. A personal loan typically charges 6 to 36 percent APR depending on your credit, which is often lower than a credit card cash advance rate.

If you find yourself regularly needing cash advances, that is a sign your budget needs attention. Cash advances are a symptom of spending more than you have, and the fees and interest make the problem worse. A financial counselor or budget app can help you understand where the money is going and build a plan to stop relying on credit card cash.

What happens to your credit score when you take a cash advance

A cash advance does not directly hurt your credit score, but it can indirectly. The cash advance itself is not reported separately to the credit bureaus — it shows up as part of your credit card balance.

What matters is your credit utilization ratio: the amount of credit you are using divided by your total available credit. If you have a $5,000 credit limit and take a $1,000 cash advance, your utilization jumps to 20 percent. If you also have other balances, your utilization might climb to 50 percent or higher. High utilization (above 30 percent) can lower your credit score by 10 to 50 points.

The damage is temporary. Once you pay off the cash advance, your utilization drops and your score recovers. But while the balance is sitting on your card, it is working against you.

A late payment on a cash advance is reported to the credit bureaus and will hurt your score much more than the utilization itself. If you take a cash advance, make sure you can pay it back on time. Missing a payment can lower your score by 100 points or more and stay on your credit report for seven years.

Frequently Asked Questions

Can I take a cash advance on a credit card with no credit history?

Most card issuers set a cash advance limit even for new cardholders, though it is often lower than the credit limit. A new card might have a $500 credit limit but only a $100 cash advance limit. Call your issuer to find out your limit. If you have no credit history, you may not be able to get a credit card at all, so a cash advance would not be an option.

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

A cash advance is money you withdraw from your credit line and receive as cash. A balance transfer is when you move a balance from one card to another (or from another source) to a new card, usually to take advantage of a lower interest rate. A balance transfer check is a hybrid — it is a check drawn against your credit line that you can cash or deposit.

Will my bank charge me a fee if I take a cash advance at their ATM?

Your bank may charge an ATM fee on top of the cash advance fee from your card issuer. If you use an out-of-network ATM, you might pay $2 to $5 to your bank plus 3 to 5 percent to your card issuer. Use an ATM owned by your card issuer's bank or network to avoid the extra fee.

How long does it take to pay off a cash advance?

That depends on how much you owe and how much you pay each month. If you owe $500 at 25 percent APR and pay $100 per month, it will take about six months to pay off, and you will pay roughly $80 in interest. If you pay $200 per month, it takes about three months and costs roughly $35 in interest. The faster you pay, the less interest you owe.

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

Technically yes, but it is a bad idea. You would be taking a high-fee, high-interest cash advance to pay off another card. Unless the other card has a much higher interest rate and you have a promotional offer on the cash advance, you are just moving the debt around and paying more in fees. A balance transfer to a card with a 0 percent offer is a better strategy if you need to move a balance.