The main 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 or bank, a balance transfer check mailed to you by your card issuer, or a cash-like purchase through services like PayPal or Square Cash that let you send money to yourself or others. Each method charges different fees and interest rates, and none of them are free.

A cash advance is the most direct route. You insert your card into an ATM, enter your PIN, and withdraw cash up to your card's cash advance limit — which is usually lower than your overall credit limit. The bank or ATM operator charges a fee (typically 3 to 5 percent of the amount withdrawn), and your card issuer charges its own fee (often another 3 to 5 percent). Interest starts accruing when ready, with no grace period like you get on regular purchases.

Balance transfer checks work differently. Your card issuer mails you a check that you can deposit into your bank account or cash at a check-cashing service. The check draws against your credit card balance, so you are borrowing against your card limit. These checks usually carry a fee of 3 to 5 percent and the same when ready interest as a cash advance.

Key Takeaways

  • Cash advances charge fees of 3 to 5 percent from both the ATM operator and your card issuer, plus interest that starts when ready with no grace period.
  • Balance transfer checks let you get cash by mail but cost the same in fees and interest as an ATM cash advance.
  • Services like PayPal or Square Cash can move money between accounts at lower cost than a cash advance, though they are not designed as cash withdrawal tools.
  • Your cash advance limit is separate from and usually lower than your overall credit limit, so you may not be able to withdraw as much as you can spend.
  • Interest on cash advances compounds daily and is not waived during any promotional period, even if your card offers 0 percent on purchases.

Why cash advances cost more than regular purchases

When you buy something with a credit card, you get a grace period — usually 21 to 25 days — before interest starts. Cash advances skip that grace period entirely. Interest begins the day you withdraw the money, and it compounds daily. If you carry a balance, the interest rate on cash advances is often higher than the rate on purchases, sometimes by 5 percentage points or more.

The fees stack on top of the interest. A $500 cash advance with a 4 percent fee costs $20 right away. If your card charges 25 percent annual interest on cash advances, you owe another $3.13 in interest after one month. Over six months, the interest alone reaches $40 or more. By contrast, a $500 purchase with a 25-day grace period costs nothing in interest if you pay it off before the grace period ends.

Card issuers structure cash advances this way because they are riskier than purchases. A purchase is tied to a merchant and a transaction record. A cash advance is just money in your hand, with no merchant to dispute the charge or chargeback protection to fall back on. The higher fees and when ready interest reflect that risk.

Cash advance limits and how they work

Your cash advance limit is set separately from your overall credit limit. If your card has a $5,000 limit, your cash advance limit might be $1,500 or $2,000. The issuer decides this limit based on your credit history and account activity, and you usually cannot change it without calling customer service.

The cash advance limit is a hard ceiling. You cannot withdraw more than that amount, even if you have unused credit on the rest of your card. If you have a $2,000 cash advance limit and a $5,000 overall limit, you can spend $5,000 on purchases but withdraw only $2,000 in cash. Once you withdraw cash, that amount counts against both your cash advance limit and your overall credit limit.

Some card issuers let you request a higher cash advance limit, but this is not common and usually requires a phone call to customer service. Even if you get an increase, the issuer may refuse or offer only a small bump. Many issuers prefer to keep cash advance limits low to reduce their exposure to fraud and default.

Alternatives that cost less than a cash advance

If you need cash but want to avoid the fees and interest of a cash advance, a few options are cheaper. A personal loan from a bank or credit union usually charges lower interest than a cash advance and lets you borrow a larger amount. The downside is that approval takes a few days, so this does not work if you need cash today.

Peer-to-peer payment apps like Venmo, PayPal, or Square Cash let you transfer money between accounts for free or a small fee (usually 1 to 3 percent if you use a credit card as the source). You can send money to a friend or family member and have them send it back, or send it to yourself if the app supports transfers to your bank account. This is not a designed use case for these apps, but it is cheaper than a cash advance if you have someone to work with.

A credit card balance transfer to another card with a 0 percent introductory rate can also be cheaper if you need the cash to pay off a debt. You transfer a balance from one card to another, then withdraw the cash from the new card. The balance transfer fee (usually 3 to 5 percent) is the same as a cash advance fee, but if the new card offers 0 percent for 12 months, you avoid interest during that period. This only works if you have a second card and may have access to for the 0 percent offer.

How to find your cash advance limit and fees

Your card's cash advance limit and fees are listed in your card agreement, which you can find online in your card issuer's website or app. Log in, look for "Account Details" or "Card Terms," and search for "cash advance." The document will show your current limit, the fee percentage, and the interest rate.

If you cannot find it online, call the customer service number on the back of your card. Tell them you want to know your cash advance limit, the fee for a cash advance, and the interest rate. They will give you the numbers in less than a minute. Some issuers also let you check this information through their mobile app under "Card Details" or "Limits."

Before you withdraw cash, calculate the total cost. A $300 cash advance with a 5 percent fee ($15) and 25 percent annual interest ($6.25 per month) costs $21.25 in the first month alone. If you can borrow the money another way — even a credit card purchase with a grace period — that is usually cheaper.

What happens if you cannot pay back a cash advance

If you carry a cash advance balance, it accrues interest at your card's cash advance rate until you pay it off. Unlike a purchase, there is no grace period and no way to avoid interest by paying in full by the due date. The interest compounds daily, so the longer you carry the balance, the more you owe.

If you make only minimum payments, most of that payment goes to interest, not the principal. On a $500 cash advance at 25 percent interest, a minimum payment of $25 covers about $10 in interest and only $15 in principal. At that rate, it takes years to pay off the balance. If you miss a payment, your card issuer may charge a late fee (usually $25 to $40) and raise your interest rate to the penalty rate, which can be 29 percent or higher.

A cash advance also counts against your credit utilization ratio, which affects your credit score. If you have a $5,000 limit and a $500 cash advance balance, you are using 10 percent of your available credit. 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 much you owe across all your cards.

Frequently Asked Questions

Can I use a credit card to withdraw cash at any ATM?

You can use your card at most ATMs, but not all. ATMs owned by your card issuer's bank usually charge no fee beyond your card's cash advance fee. ATMs owned by other banks or independent operators charge a surcharge (usually $2 to $3) on top of your card issuer's fee. Some cards offer reimbursement for out-of-network ATM fees, but this is rare and usually limited to premium cards.

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

A cash advance gives you cash from an ATM or bank. A balance transfer moves debt from one card to another. Both charge fees and interest, but a balance transfer fee is usually a one-time cost, while a cash advance fee applies every time you withdraw. Balance transfers are meant for moving existing debt; cash advances are for getting cash.

Will a cash advance hurt my credit score?

A cash advance itself does not hurt your score, but carrying a balance does. The cash advance counts toward your credit utilization, so a large withdrawal can raise your utilization ratio and lower your score. If you pay off the cash advance in full within a month or two, the impact is usually small.

Can I get a cash advance with a debit card?

No. Debit cards withdraw money directly from your bank account, so there is no advance or borrowing involved. You can withdraw cash from an ATM using a debit card, but you are not borrowing — you are accessing your own money. Some banks charge a fee for out-of-network ATM withdrawals, but there is no interest or cash advance fee.