The three ways to get cash from a credit card

You can pull cash from a credit card through a cash advance, a balance transfer check, or a cash-like purchase. A cash advance is the most direct: you visit an ATM or bank teller with your card and withdraw money, paying a fee and interest immediately. Balance transfer checks work differently — your card issuer mails you a check that you deposit into your bank account, and you pay interest on that amount. A cash-like purchase means buying something that converts to cash, like a money order or gift card you resell, though this route carries its own hidden costs.

The method you choose matters because the fees and interest rates differ sharply. A cash advance at an ATM might cost 3% to 5% of the amount you withdraw, plus a per-transaction fee of $2 to $10. Balance transfer checks often have a similar percentage fee but no per-transaction charge. Cash-like purchases avoid the "cash advance" label but may trigger higher merchant fees or resale losses.

Key Takeaways

  • Cash advances charge a percentage fee (typically 3% to 5%) plus a flat fee per transaction, and interest starts accruing immediately with no grace period.
  • Balance transfer checks have a percentage fee but no per-transaction charge, and you control when the money enters your account.
  • Interest rates on cash advances are almost always higher than your card's regular purchase APR, often 5% to 10% above it.
  • Your available credit for a cash advance may be lower than your total credit limit, and some cards restrict cash advances to a percentage of your limit.

Cash advance fees and interest rates

When you take a cash advance, you pay two separate charges: an upfront fee and ongoing interest. The upfront fee is usually 3% to 5% of the amount withdrawn, with a minimum of $2 to $10 per transaction. So a $500 cash advance might cost $15 to $25 in fees alone, depending on your card and your bank.

Interest on a cash advance begins accruing the moment you withdraw the money — there is no grace period like there is for purchases. Your card's cash advance APR is almost always higher than your purchase APR. If your purchase rate is 18%, your cash advance rate might be 23% or 25%. This difference means that even a short-term cash advance becomes expensive quickly. A $500 advance at 25% APR costs roughly $10 in interest per month if you carry it unpaid.

Check your card's terms document or call the issuer to find your specific cash advance APR and fee structure. These details vary by card and sometimes by your creditworthiness at the time you opened the account.

Balance transfer checks: how they work and when to use them

Balance transfer checks are mailed to you by your card issuer and function like regular checks — you write one to yourself or a payee, deposit it, and the amount appears in your bank account. The fee is typically 3% to 5% of the check amount, charged to your card. Interest begins accruing on the balance, but you have a few days for the check to clear, giving you slightly more control over timing than an ATM withdrawal.

Some cards offer a promotional period on balance transfer checks — for example, 0% APR for 6 months. If your card has this offer, a balance transfer check can be cheaper than a cash advance, since you avoid interest during the promotional window. However, read the fine print: some cards exclude balance transfer checks from the 0% offer, or charge a higher fee for checks than for other balance transfers.

Balance transfer checks are useful if you need a larger amount and want to avoid the per-transaction fee structure of ATM withdrawals. They are less useful if your card does not offer a promotional rate, because the interest cost will match or exceed a cash advance.

Where to get a cash advance

You can withdraw a cash advance at any ATM that displays your card's logo — Visa, Mastercard, American Express, or Discover. You can also visit a bank branch and ask a teller for a cash advance, though this is less common now. Some credit unions and smaller banks may charge additional fees for cash advances from cards issued by other institutions.

ATMs are the fastest option: insert your card, enter your PIN, select "cash advance" or "credit" (depending on the ATM), and withdraw up to your available cash advance limit. The fee appears on your statement within one to three business days. Bank tellers can process larger amounts and may waive the ATM operator fee, though your card issuer's fee still applies.

Your cash advance limit is set by your card issuer and may be lower than your total credit limit. Some cards allow cash advances up to 50% of your credit limit; others cap it at a flat dollar amount like $500 or $1,000. Check your card's online account or call the issuer to learn your specific limit before you visit an ATM.

Why cash advances are expensive compared to other borrowing

A cash advance is one of the most expensive ways to borrow money on a credit card. The combination of an upfront fee, a higher APR, and no grace period means the cost compounds quickly. Compare a $500 cash advance to a $500 purchase on the same card: the purchase might cost you nothing if you pay it off within the grace period, but the cash advance costs you $15 to $25 in fees plus interest from day one.

If you need cash, a personal loan from a bank or credit union is almost always cheaper. A personal loan typically charges 6% to 36% APR depending on your credit, with no upfront fee. Even at the high end, a personal loan is cheaper than a cash advance's fee plus interest. A payday loan is more expensive than a cash advance and should be avoided. A balance transfer to a 0% card (if you have access to one) is cheaper if you can pay off the balance during the promotional period.

How cash advances affect your credit score

A cash advance itself does not directly hurt your credit score — it is a transaction, not a hard inquiry or a missed payment. However, it does increase your credit utilization ratio, which is the percentage of your available credit you are using. If you have a $5,000 credit limit and take a $1,000 cash advance, your utilization jumps to 20%. High utilization can lower your score by 10 to 50 points, depending on your overall credit profile.

The bigger risk is that a cash advance can trap you in a debt cycle. Because interest accrues immediately and the APR is high, the balance grows faster than a purchase balance would. If you cannot pay it off quickly, you may end up carrying the balance for months, paying hundreds in interest and pushing your utilization even higher.

Alternatives to cash advances

Before taking a cash advance, consider whether you actually need physical cash or just access to money. If you need to pay a bill, transfer money, or make a purchase, you may not need cash at all — a debit card, bank transfer, or credit card purchase would be cheaper.

If you do need cash, a personal loan from a bank, credit union, or online lender is usually cheaper. A credit union loan to members often charges 6% to 18% APR with no upfront fee. An online personal loan may charge 6% to 36% APR but processes in one to three business days. Both are cheaper than a cash advance's fee plus interest.

If you are in a true emergency and have no other option, a cash advance is better than a payday loan or a loan from a predatory lender. But the goal should be to pay it off as quickly as possible — within one or two months, not longer. Every month you carry the balance, the interest cost grows.

Frequently Asked Questions

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

Technically yes, but it is a bad idea. You would pay a cash advance fee and interest on the first card, then pay the second card with that cash. You end up paying two interest rates and a fee to move money between cards. If you are trying to pay down debt, a balance transfer to a 0% card is cheaper.

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

The balance carries over to the next month and accrues interest at your cash advance APR. If you miss a payment, you may face a late fee and a hit to your credit score. If the balance goes unpaid for 180 days, the card issuer may charge it off and sell the debt to a collection agency.

Is there a limit to how much I can withdraw as a cash advance?

Yes. Your card issuer sets a cash advance limit, which may be lower than your total credit limit. Some cards allow up to 50% of your credit limit; others cap it at a fixed amount. You can find your limit in your account online or by calling the issuer.

Do all credit cards offer cash advances?

Most credit cards do, but some do not. Secured cards and certain student cards may restrict or prohibit cash advances. Check your card's terms document or call the issuer to confirm whether cash advances are available on your card.

Can I get a cash advance with a debit card?

No. Debit cards withdraw money directly from your bank account and do not carry a credit line. If you need cash, use an ATM with your debit card or visit your bank for a withdrawal — both are free.