Three ways to turn your credit card into cash
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 payment through services like PayPal or Square Cash that let you send money to yourself or others and then withdraw it. Each one costs you money and charges interest differently, so the choice depends on how much you need, how fast, and what fees you can afford.
The most direct method is a cash advance. You use your card's PIN at any ATM displaying your card network's logo (Visa, Mastercard, American Express, Discover), withdraw cash on the spot, and the amount shows up on your next bill. The catch: cash advances charge a fee (usually 3 to 5 percent of the amount withdrawn) and start charging interest immediately — there is no grace period like there is for regular purchases. Interest rates on cash advances are also often higher than your regular purchase rate.
Balance transfer checks work if your card issuer sends them to you. You write a check to yourself or someone else, deposit it like any other check, and the amount is treated as a cash advance on your card. Same fees and interest rules apply. Not all cards offer these checks, and they are slower than an ATM withdrawal.
Key Takeaways
- Cash advances charge an upfront fee (typically 3 to 5 percent) plus interest that starts accruing immediately, with no grace period.
- The interest rate on cash advances is usually higher than your regular purchase rate, sometimes by 5 percentage points or more.
- ATM withdrawals are the fastest method but also the most expensive; balance transfer checks take days but work the same way.
- Using payment apps to move money to yourself is slower and may not save you money compared to a direct cash advance.
- If you need cash, a personal loan or credit line from a bank or credit union is almost always cheaper than a credit card cash advance.
Why cash advances cost more than regular purchases
A regular credit card purchase gives you a grace period — usually 21 to 25 days — before interest starts. A cash advance skips that grace period entirely. Interest begins the day you withdraw the money, even if you pay it back immediately.
The interest rate itself is also higher. If your card charges 18 percent APR on purchases, the cash advance rate might be 23 or 24 percent. Card issuers treat cash advances as riskier because you have the cash in hand and could spend it on anything, so they charge more to offset that risk.
On top of the interest, you pay an upfront fee. A $300 cash advance with a 4 percent fee costs you $12 right away, before you even pay interest. If you carry that $300 for a month at 24 percent APR, you owe another $6 in interest. That $300 has now cost you $18 just to access it.
How to get a cash advance at an ATM
Find an ATM that displays your card's network logo. Insert your card, enter your PIN (the same one you use for debit), select "Withdrawal" or "Cash Advance," and choose your amount. The ATM will show you the fee before you confirm. The cash comes out, and the transaction posts to your credit card account within one to three business days.
If you do not have a PIN set up, call the customer service number on the back of your card and request one. You will need it before you can use an ATM. Some cards let you set a PIN online through their app or website.
Your card's daily withdrawal limit may be lower than your credit limit. A card with a $5,000 limit might only let you withdraw $500 per day in cash. Check your card's terms or call customer service to find out your specific limit.
Balance transfer checks and other slower methods
If your card issuer sends you balance transfer checks, you can write one to yourself, deposit it at your bank, and the funds appear in your checking account in two to five business days. The check amount is treated as a cash advance on your credit card — same fees, same interest rate, same lack of grace period.
Some people use payment apps like PayPal, Venmo, or Square Cash to move money around and then withdraw it to a bank account. This is slower and may cost more. PayPal charges a fee to transfer money to your bank account, and if you are using a credit card to fund the PayPal account, you are paying a cash advance fee on top of PayPal's fee. You end up paying twice.
The only advantage to these slower methods is if you need more cash than your daily ATM limit allows. If your limit is $500 per day but you need $1,500, a balance transfer check lets you get it all at once — though you still pay the same fees and interest.
Comparing the cost of a cash advance to other borrowing options
A cash advance should be a last resort. Here is how it stacks up against other ways to borrow money:
| Borrowing Method | Upfront Fee | Interest Rate (Typical) | Grace Period |
|---|---|---|---|
| Credit card cash advance | 3–5% | 20–25% APR | None |
| Personal loan from bank | 0–5% | 6–36% APR | N/A (fixed payments) |
| Credit union loan | 0–3% | 6–18% APR | N/A (fixed payments) |
| Payday loan | 10–15% of amount | 400%+ APR | None |
| Regular credit card purchase | None | 15–25% APR | 21–25 days |
A personal loan from a bank or credit union is almost always cheaper. You pay a one-time fee and a fixed interest rate, and you know exactly what you owe and when. The interest rate is lower because the lender has collateral or a fixed repayment schedule. If you have a bank account or credit union membership, ask about a personal loan before you use a cash advance.
If you have no other option and need cash urgently, a cash advance is faster than a personal loan application. But if you have even a few days, a personal loan will save you money.
What happens if you cannot pay back a cash advance
If you carry a cash advance balance month to month, interest compounds and your debt grows. Unlike a purchase, there is no grace period to give you time to pay without interest. Every day the balance sits unpaid, you owe more.
If you have both a purchase balance and a cash advance balance on the same card, your payments go toward the purchase first (by law), and the cash advance keeps accruing interest. This means you can pay your bill on time and still watch your cash advance debt grow.
If you miss a payment entirely, the late fee applies, your interest rate may increase, and the missed payment reports to the credit bureaus. This damages your credit score and makes future borrowing more expensive.
Frequently Asked Questions
Can I use a credit card cash advance to pay another credit card bill?
Technically yes, but it is expensive. You pay the cash advance fee and interest on the money you withdraw, then use it to pay another card. You are paying to borrow money to pay debt, which costs more than just paying the debt directly. If you are juggling multiple cards, a balance transfer (moving debt from one card to another at a lower rate) is cheaper than a cash advance.
What is the difference between a cash advance and a balance transfer?
A cash advance gives you physical cash. A balance transfer moves debt from one card to another. Cash advances charge higher interest and no grace period. Balance transfers sometimes offer a 0 percent introductory rate for 6 to 21 months, making them cheaper if you are moving existing debt. Use a cash advance only if you need actual cash in hand.
Do I have to use my PIN to get a cash advance?
At an ATM, yes. At a bank branch, sometimes no — you can show your ID and ask the teller to process a cash advance without a PIN. The fee and interest are the same either way. Call your card issuer or visit a branch to ask what they accept.
Will a cash advance hurt my credit score?
Not immediately. The withdrawal itself does not report to credit bureaus. But if you carry the balance and it increases your credit utilization (the amount of available credit you are using), your score may drop slightly. If you miss a payment, the damage is significant and lasts for years.
Can I get a cash advance if my card is maxed out?
No. Your cash advance limit is part of your overall credit limit. If you have used your full limit, you cannot withdraw cash. You would need to pay down the balance first or request a credit limit increase from your card issuer.