The three ways to pull cash from a credit card

You can get cash from a credit card in three ways: a cash advance at an ATM using your PIN, a balance transfer to your bank account, or a cash-like payment at a bank teller. Each one costs you differently and hits your account in different ways, so the cheapest option depends on what you need and which card you hold.

A cash advance is the most common method. You go to any ATM that accepts your card, enter your PIN, and withdraw money just like you would from a debit card. The money lands in your hand when ready. A balance transfer moves money from your credit card to a bank account you own — usually your checking account — and takes one to three business days. A bank teller cash-out is less common but available at some banks: you walk in with your credit card and ask the teller to give you cash against your credit limit, and they hand it over on the spot.

The catch is that all three methods charge you fees and interest that regular purchases do not. Cash advances typically cost 3 to 5 percent of the amount you withdraw, plus a flat fee of $2 to $10. Interest starts accruing when ready — there is no grace period like there is for regular purchases — and the rate is often 2 to 3 percentage points higher than your regular APR. Balance transfers and teller cash-outs follow similar fee structures, though some cards offer promotional rates on balance transfers if you move the money within a certain window.

Key Takeaways

  • Cash advances charge you a fee (usually 3 to 5 percent) plus a higher interest rate than regular purchases, with interest starting when ready.
  • ATM cash advances are the fastest method and work at any ATM that accepts your card, but they are also the most expensive option for most people.
  • Balance transfers to your bank account take a few business days but may offer a lower fee if your card has a promotional offer.
  • Interest on any cash withdrawal starts the day you take it, so the longer you carry the balance, the more you pay.
  • Paying back a cash advance does not reduce your credit card balance as quickly as a regular payment would, because the payment goes to the highest-interest debt first.

How to do a cash advance at an ATM

Find an ATM that displays your card's logo — Visa, Mastercard, American Express, or Discover — and insert your card. Select "Withdrawal" or "Cash Advance" from the menu. The ATM will ask how much you want to withdraw. Enter the amount and your PIN. The machine will tell you the fee upfront before you confirm. Once you confirm, the cash comes out and the transaction is complete.

Your credit card issuer sets a cash advance limit, which is usually lower than your overall credit limit. For example, you might have a $5,000 credit limit but only a $1,500 cash advance limit. Check your card's terms or call the number on the back to find out your limit before you go to the ATM. If you try to withdraw more than your limit, the ATM will decline the transaction.

The fee appears on your next statement as a separate line item. If you withdraw $200 and the fee is 4 percent plus $3, you will see a $11 charge added to your balance. That $211 total now accrues interest at your cash advance rate until you pay it off.

How to transfer cash to your bank account

Log into your credit card's online portal or mobile app and look for "Balance Transfer" or "Transfer to Bank Account." Enter your bank account number and routing number — the same information you would use to set up a direct deposit. Enter the amount you want to transfer. The card issuer will show you the fee and the interest rate before you confirm.

The money typically lands in your bank account within one to three business days. Some card issuers process transfers the same day if you request before a certain time (often 2 p.m. Eastern). Once the money is in your bank account, it is yours to use however you want — the credit card company has no control over it after that point.

Balance transfers often have a promotional period on some cards, meaning the first 6 to 12 months carry a lower fee or even no fee at all. Check your card's current offers before you transfer, because the fee can be waived if you move the money during the promotional window. After the promotional period ends, any remaining balance reverts to your regular cash advance rate and fees.

Getting cash from a bank teller

Walk into a bank branch that issued your credit card or a bank that is part of your card's network. Tell the teller you want to withdraw cash against your credit card. Hand over your card and a form of ID. The teller will confirm your cash advance limit and the fee, then hand you the cash.

This method works the same way as an ATM withdrawal in terms of fees and interest, but it is useful if you need a large amount and want to avoid ATM withdrawal limits. Some ATMs cap withdrawals at $500 or $1,000 per transaction, but a bank teller can often process a larger amount in a single transaction. The fee structure is identical — you still pay the percentage-based fee plus interest starting when ready.

Not all banks offer this service, and some only offer it for customers who hold an account with them. Call ahead to confirm the branch can process a credit card cash withdrawal before you go in.

Understanding the costs and how they add up

A cash advance costs you money in two ways: an upfront fee and ongoing interest. The upfront fee is usually 3 to 5 percent of the amount you withdraw, with a minimum of $2 to $10. So a $500 withdrawal might cost you $15 to $25 in fees alone, depending on your card.

The interest rate on a cash advance is separate from your regular purchase APR. If your card charges 18 percent APR on purchases, your cash advance rate might be 21 or 22 percent. That interest starts accruing the day you withdraw the money — there is no grace period. If you withdraw $500 and do not pay it back for a month, you will owe roughly $9 in interest on top of the original $500 and the upfront fee.

The real cost shows up when you make a payment. Credit card issuers explore your payment to the highest-interest debt first. If you have a $500 cash advance at 22 percent and a $1,000 purchase balance at 18 percent, a $200 payment goes entirely to the cash advance. This means your purchase balance sits untouched and continues accruing interest at 18 percent. You end up paying more total interest because the cash advance is not being paid down as fast as you might expect.

When a cash advance makes sense and when it does not

A cash advance is useful when you need cash urgently and have no other option — an ATM is broken, you are traveling and cannot access your bank account, or you need money for an emergency. The speed and availability make it valuable in a pinch, even though it costs more than a regular purchase.

A cash advance does not make sense if you are using it to pay off other debt or to fund regular expenses. The fees and interest are too high. If you need cash for a bill, it is cheaper to use a debit card, ask for a paycheck advance from your employer, or borrow from a friend. If you are considering a cash advance to pay off a loan or credit card, look into a balance transfer to a card with a 0 percent promotional rate instead — the fee is the same, but you get a period with no interest.

Avoid using a cash advance to fund gambling, stock trading, or other speculative activities. Your card issuer may flag the transaction and freeze your account, and the fees make it an expensive way to fund something risky.

How a cash advance affects your credit score

A cash advance itself does not hurt your credit score directly. The withdrawal does not show up on your credit report as a separate item. However, it does increase your credit utilization — the percentage of your available credit you are using. If you have a $5,000 credit limit and you withdraw $1,500 in cash, your utilization jumps to 30 percent. High utilization can lower your score by a few points.

The bigger hit comes if you do not pay back the cash advance quickly. If the balance sits on your card for months, your utilization stays high and your score stays depressed. If you miss a payment on the cash advance, that missed payment shows up on your credit report and damages your score significantly.

To minimize the impact, pay back a cash advance as soon as you can. Even a partial payment helps, because it lowers your utilization and shows the credit bureaus that you are managing the debt.

Frequently Asked Questions

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

Yes, you can use the cash to pay another card, but it is expensive. You pay the cash advance fee and interest rate on the money you withdraw, then you pay the interest rate on the card you are paying off. A balance transfer is cheaper because it moves the balance directly without the cash advance fee.

What is the difference between my cash advance limit and my credit limit?

Your credit limit is the total amount you can charge or borrow on the card. Your cash advance limit is a subset of that — usually 20 to 50 percent of your credit limit. If your credit limit is $5,000, your cash advance limit might be $1,500. You can only withdraw up to the cash advance limit, even if you have unused credit available.

Do I have to pay interest on a cash advance if I pay it back right away?

No, but you still pay the upfront fee. If you withdraw $500 and pay it back the next day, you owe the $500 plus the 3 to 5 percent fee (roughly $15 to $25). Interest accrues daily, so paying it back quickly keeps the interest charge small, but the fee is unavoidable.

Can I get a cash advance if my credit card is maxed out?

No. Your cash advance limit is part of your overall credit limit. If you have used your entire credit limit, you cannot withdraw any cash. You would need to pay down your balance first or request a credit limit increase from your card issuer.

What happens if I do not pay back a cash advance?

The balance stays on your card and accrues interest at your cash advance rate. If you miss payments, the issuer reports it to the credit bureaus and your score drops. After 30 days of missed payments, the card issuer may freeze your account or send the debt to a collection agency.