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 transaction such as buying a money order or casino chips. Each method charges different fees and interest rates, and each starts charging interest immediately — unlike purchases, which often have a grace period.
The most common method is the ATM cash advance. You insert your card, enter your PIN, and withdraw cash up to your card's cash advance limit, which is usually lower than your credit limit. The issuer charges a fee (typically 3% to 5% of the amount withdrawn, with a minimum of $2 to $10) plus a higher interest rate than your purchase APR — often 20% to 30% depending on your card and creditworthiness.
Balance transfer checks work differently. Your card issuer mails you a check that you can deposit into your bank account or cash at a bank. The fee is similar to a cash advance (3% to 5%), but the interest rate may be lower if your card offers a promotional balance transfer rate. However, that promotional rate usually applies only if you transfer a balance from another card, not if you use the check as a cash advance.
Key Takeaways
- Cash advances charge a fee (3% to 5% of the amount) plus a higher interest rate than purchases, and interest starts accruing immediately with no grace period.
- Your cash advance limit is separate from and usually lower than your credit limit, so you may not be able to withdraw as much as you can charge.
- Balance transfer checks may offer a lower promotional rate than ATM cash advances, but only if your card's terms specifically cover cash-like transactions.
- Alternatives such as asking for a personal loan, using a peer-to-peer lending service, or borrowing from a 401(k) often cost less than a credit card cash advance.
Understanding cash advance fees and interest
The fee for a cash advance is a percentage of the amount you withdraw, charged immediately. A $500 cash advance at 4% costs $20 upfront. This fee appears on your statement as a separate line item and is added to your balance.
Interest on a cash advance begins accruing the day you withdraw it — there is no grace period. If your card's cash advance APR is 25% and you withdraw $500, you owe roughly $10.42 in interest after one month if you make no payment. The interest compounds daily, so the longer you carry the balance, the more you pay.
Your card's purchase APR and cash advance APR are usually different. A card might charge 18% APR on purchases but 28% APR on cash advances. Check your card's terms or call the issuer to find out both rates before you withdraw.
What your cash advance limit means
Most credit cards set a cash advance limit that is separate from your overall credit limit. If your credit limit is $5,000 and your cash advance limit is $1,500, you can charge $5,000 in purchases but withdraw only $1,500 in cash. The cash advance limit is often 20% to 50% of your credit limit, though it varies by card and issuer.
You can request a higher cash advance limit by calling your card issuer, but they may deny the request or offer only a modest increase. Some issuers will not raise the limit at all. There is no penalty for asking, but the request may trigger a hard inquiry on your credit report.
How to get a cash advance at an ATM
To withdraw cash at an ATM, you need your credit card and your PIN. If you do not have a PIN, call your card issuer to set one up — this usually takes one business day. Some issuers let you set a PIN online through your account portal.
Insert your card into an ATM that accepts credit cards (most do, but some accept only debit cards). Select "cash advance" or "credit" rather than "debit." Enter your PIN and the amount you want to withdraw. The ATM will dispense cash and print a receipt showing the amount, the fee, and your new balance.
Be aware that the ATM operator may also charge a fee in addition to your card issuer's fee. An ATM at a bank other than your own, or at a casino or convenience store, may charge $2 to $5 extra. Your receipt will show both fees.
Using balance transfer checks
If your card issuer sends you balance transfer checks, you can use them to get cash. Deposit the check into your bank account or cash it at a bank. The issuer charges a fee (usually 3% to 5%) and interest at the rate specified in your card's terms.
Read the fine print on the checks or in your card's terms document before you use one. Some cards offer a promotional balance transfer rate (for example, 0% APR for 12 months) that applies to checks, while others do not. If your card does not explicitly say the promotional rate covers balance transfer checks, assume it does not — the check will be treated as a cash advance at the higher APR.
Balance transfer checks are useful if your card offers a low promotional rate and you need cash for a planned expense you can pay off within the promotional period. Otherwise, the fee and interest make them expensive.
Cheaper alternatives to credit card cash advances
A personal loan from a bank or credit union usually costs less than a credit card cash advance. If you have decent credit, you may may have access to for a personal loan at 8% to 15% APR with no upfront fee. Even at the higher end, that is cheaper than a 25% to 30% cash advance APR plus a 4% fee.
Peer-to-peer lending platforms such as LendingClub or Prosper offer personal loans in the same range, though approval takes a few days rather than minutes. A 401(k) loan (if your plan allows it) charges no fee and no interest — you repay yourself — but you must repay it within five years or face taxes and penalties on the unpaid balance.
If you need cash for an emergency and have no other options, a cash advance is faster than a personal loan. But if you have time to plan, a personal loan or a 401(k) loan will cost significantly less.
When a cash advance makes sense
A cash advance makes sense only in specific situations: you need cash urgently, you have no other source of funds, and you can pay back the balance quickly (within a month or two). If you need $300 for a car repair and can pay it back in full next month, the $12 to $15 fee and one month of interest might be acceptable.
A cash advance does not make sense if you are carrying a balance on your card already. The interest on a cash advance is higher than on purchases, so adding a cash advance to an existing balance makes your debt more expensive. It also does not make sense if you need the money for more than a few months — the interest will compound and become very costly.
If you are considering a cash advance because you cannot afford your regular expenses, that is a sign to look for other help: a personal loan, a payment plan with a creditor, or a non-profit credit counselor who can help you budget. A cash advance will make the problem worse, not better.
Frequently Asked Questions
Can I use my credit card to withdraw cash at a bank teller instead of an ATM?
Yes. Walk into any bank branch, hand the teller your credit card, and ask for a cash advance. The teller will process it the same way an ATM does — you will pay the same fee and interest. Some banks charge an extra fee for teller-processed cash advances, so ask before you proceed.
Does a cash advance hurt my credit score?
A cash advance itself does not hurt your score, but it increases your credit utilization (the percentage of your available credit you are using), which can lower your score slightly. If you pay off the balance quickly, the impact is temporary. If you carry the balance, the high interest rate makes it harder to pay down, and your score stays lower longer.
What happens if I withdraw more than my cash advance limit?
The ATM or teller will decline the transaction if you try to withdraw more than your limit. You cannot exceed it. If you need more cash, you would have to make a separate withdrawal after paying down your balance, or request a higher cash advance limit from your issuer.
Can I use a credit card cash advance to pay another credit card bill?
Technically yes, but it is a bad idea. You are paying a cash advance fee and interest to move money from one card to another, which costs you money with no benefit. If you are trying to pay down a high-interest card, a personal loan or a balance transfer to a card with a promotional rate is much cheaper.
Is there a way to avoid the cash advance fee?
No. Every credit card charges a fee for cash advances — it is built into the card's terms. You cannot negotiate it away or find a workaround. The only way to avoid the fee is to not take a cash advance and instead use a personal loan, a 401(k) loan, or another source of funds.