The three ways to get cash from a credit card

You can get cash from your credit card through 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 method charges different fees and interest rates, and none of them are free. A cash advance typically costs 3% to 5% upfront plus a higher interest rate than regular purchases — often 20% or more. Balance transfer checks work the same way but arrive by mail, which takes time. Cash-like purchases (sometimes called "money transfers") charge a flat fee or percentage and treat the money as a cash advance, not a purchase.

The most important thing to understand: getting cash from your credit card is expensive and should only happen when you have no other option. Unlike a debit card withdrawal, which simply moves your own money, a credit card cash advance is a loan. You start paying interest immediately — there is no grace period like you get with regular purchases — and the interest compounds daily until you pay it back.

Key Takeaways

  • Cash advances charge an upfront fee (usually 3% to 5% of the amount) plus a higher interest rate than purchases, with interest starting immediately.
  • Balance transfer checks offer the same terms as cash advances but arrive by mail, so they take several days to reach you.
  • Money transfer services like PayPal or Square Cash charge a flat fee or percentage and are treated as cash advances by your card issuer.
  • If you need cash, a personal loan, credit union loan, or borrowing from family costs less than a credit card cash advance in almost every scenario.
  • Your credit card statement and online account show your cash advance limit, which may be lower than your overall credit limit.

How to take a cash advance at an ATM or bank

To withdraw cash at an ATM, insert your credit card and enter your PIN. If you do not have a PIN, call the number on the back of your card and request one — it usually arrives by mail within 5 to 10 business days. You can also visit a branch of your card issuer's bank and ask a teller for a cash advance; they will verify your identity and process it on the spot.

The amount you can withdraw is limited by your cash advance limit, which your card issuer sets separately from your overall credit limit. This limit is often 20% to 50% of your total credit limit, but it varies by card and issuer. You can find your cash advance limit in your online account or by calling the customer service number on your card. ATMs may also impose their own daily withdrawal limits, which can be lower than your card's limit.

The fee appears on your next statement as a separate line item labeled "cash advance fee" or "ATM fee." Interest begins accruing the same day you withdraw the money. If your card charges 3% cash advance fee on a $500 withdrawal, you owe $15 immediately plus daily interest on the full $515.

Balance transfer checks and how they work

Some card issuers mail balance transfer checks to cardholders. These checks are drawn on your credit card account, not a bank account. You deposit or cash the check like any other check, and the amount is added to your credit card balance as a cash advance. The fee and interest rate are identical to an ATM cash advance.

Balance transfer checks take 5 to 10 business days to arrive after you request them, and another 1 to 3 business days to clear once you deposit them. If you need cash today, this method will not work. You can request checks by logging into your online account, calling customer service, or waiting for them to arrive unsolicited in the mail — many issuers send them automatically to existing cardholders. The advantage of a balance transfer check is that you can write it to a third party (like a landlord or contractor), whereas an ATM withdrawal is cash only. The disadvantage is the delay and the fact that you cannot control when the issuer sends them to you.

Money transfer services and their fees

Services like PayPal, Square Cash, Venmo, and Google Pay allow you to add a credit card as a payment method and transfer money to your bank account or to another person. When you use a credit card (rather than a debit card or bank account), these services treat the transaction as a cash advance and charge a fee. PayPal charges 2% to transfer money to your bank account using a credit card. Square Cash charges 2% for credit card transfers. Venmo charges 1.5% for credit card transfers. Google Pay does not charge a fee for transfers to your bank account, but your card issuer may still treat it as a cash advance and charge their own fee.

The money usually reaches your bank account within 1 to 3 business days. Interest on the cash advance begins accruing immediately, even though you have not received the money yet. This method is faster than balance transfer checks but slower than an ATM withdrawal, and it costs more than an ATM advance in most cases. Check your card's terms to see whether the issuer charges a cash advance fee for money transfers, since some treat these transactions differently than traditional ATM withdrawals.

Comparing the total cost of a cash advance

The real cost of a cash advance includes both the upfront fee and the interest you pay while the balance sits on your card. Here is a concrete example: You need $500 in cash. Your credit card charges a 4% cash advance fee and 22% annual interest. You plan to pay it back in three months.

  • Upfront fee: $500 × 0.04 = $20
  • Interest for three months: ($500 + $20) × 0.22 ÷ 4 = $28.60
  • Total cost: $48.60

A personal loan from a credit union or online lender might charge 12% annual interest with no upfront fee. The same $500 for three months would cost about $15 in interest — less than one-third of the credit card cost. Even a payday loan, which is expensive, often costs less than a credit card cash advance if you repay it quickly. This comparison shows why exploring other borrowing options before taking a cash advance can save you significant money.

Alternatives that cost less than a cash advance

Before you take a cash advance, explore these options:

  • Personal loan from a credit union or bank: If you have a checking account or membership, you can often borrow at 10% to 18% interest with no upfront fee. The money reaches your account in 1 to 3 business days.
  • Online personal loan: Lenders like LendingClub, Upstart, and SoFi offer loans of $1,000 to $40,000 at rates between 6% and 36%, depending on your credit. Funding takes 1 to 5 business days.
  • Borrow from family or friends: No fee, no interest, and no credit check — but only if you can repay on a clear timeline and put the agreement in writing.
  • Employer advance: Some employers offer paycheck advances or emergency loans to employees. Ask your HR or payroll department.
  • Negotiate with the creditor: If you owe a bill and cannot pay, call the creditor and ask about a payment plan. Many will work with you rather than send your account to collections.

Each of these routes typically costs less than a cash advance and does not carry the same immediate interest accrual. A personal loan from a credit union, in particular, is often the fastest and cheapest option if you have an existing relationship with the institution.

How a cash advance affects your credit score

A cash advance does not directly hurt your credit score, but it increases your credit utilization ratio — the percentage of your available credit you are using. If your credit limit is $5,000 and you take a $500 cash advance, your utilization jumps from 0% to 10%. Credit scoring models treat cash advances the same as regular purchases when calculating utilization.

High utilization (above 30%) can lower your score by 10 to 50 points, depending on the model. The impact is temporary: once you pay off the cash advance, your utilization drops and your score recovers. Missing a payment on a cash advance, however, will damage your score for years. The longer you carry the balance, the more your score suffers, so paying it back quickly is important both for your finances and your credit history.

Frequently Asked Questions

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

No, you need a PIN to use an ATM. Call the number on the back of your card and request one. It arrives by mail in 5 to 10 business days. In the meantime, you can visit a bank branch in person and ask a teller for a cash advance without a PIN.

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

A balance transfer moves debt from one card to another (or from another creditor to your card). A cash advance converts your credit limit into actual cash. Balance transfers sometimes offer a 0% introductory rate; cash advances never do. Both charge fees and interest, but the terms are different.

Do I have to pay back a cash advance right away?

No, but interest starts accruing immediately and compounds daily. The longer you carry the balance, the more you pay. If you can pay it back within a few days, the total interest will be small. If you carry it for months, the interest can exceed the upfront fee.

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

Technically yes, but it is almost always a bad idea. You are taking out a high-interest loan to pay another high-interest loan. The cash advance fee plus interest will cost you more than paying the other card directly. If you cannot afford to pay a credit card bill, contact the issuer and ask about a hardship program or payment plan instead.

What happens if I cannot pay back a cash advance?

The balance stays on your card and interest continues to accrue. If you miss a payment, the issuer reports it to the credit bureaus and your credit score drops. After 30 days, you may face a late fee. After 180 days, the account may be closed and sent to collections. Contact your card issuer immediately if you cannot pay — many offer hardship programs that lower your interest rate or pause payments temporarily.