Three ways to get cash from a credit card, and what each one costs

You can get cash from a credit card through a cash advance at an ATM or bank, a balance transfer to move debt to another card, or a convenience check that comes with your account. Each method charges different fees and interest rates, and each one starts charging interest immediately — unlike purchases, which often have a grace period.

A cash advance is the most direct route: you use your card at an ATM or teller window and walk away with cash. But it typically costs 3% to 5% of the amount you withdraw, plus a per-transaction fee of $2 to $10. The interest rate on cash advances is usually higher than your purchase rate and starts accruing the day you withdraw, with no grace period.

A balance transfer moves credit card debt from one card to another, usually at a lower rate for a set period (often 6 to 21 months). This is useful if you already owe money on another card and want to pause interest, but it does not put cash in your hand — it moves existing debt. Balance transfer fees run 3% to 5% of the amount transferred.

A convenience check is a physical check your card issuer sends you, which you can cash or deposit like any other check. It works like a cash advance in terms of fees and interest, but gives you a few extra days before the transaction posts to your account.

Key Takeaways

  • Cash advances charge 3% to 5% in fees plus a per-transaction fee, with interest starting immediately at a rate higher than your purchase rate.
  • Balance transfers move existing debt to another card at a lower rate for a promotional period, but do not give you cash.
  • Convenience checks work like cash advances and carry the same fees and interest rates, but may give you a few extra days before interest starts.
  • All three methods cost significantly more than a regular purchase or a personal loan, so compare your other options before using any of them.

How cash advances work and what they actually cost

When you withdraw cash using your credit card at an ATM or bank teller, the issuer charges a cash advance fee upfront. This fee is a percentage of the amount withdrawn — typically 3% to 5% — plus a flat per-transaction fee of $2 to $10. On a $500 withdrawal at 4% plus $5, you pay $25 in fees before you even leave the ATM.

Interest on the cash advance starts accruing immediately. Your card's cash advance rate is usually 2% to 5% higher than your purchase rate, and there is no grace period. If your purchase rate is 18% and your cash advance rate is 23%, you start paying 23% interest on day one. After 30 days on a $500 advance, you owe roughly $30 in interest alone, on top of the $25 fee you already paid.

The total cost depends on how long you carry the balance. A $500 cash advance at 4% fee plus 23% annual interest costs you $45 in the first month if you pay nothing. If you pay $100 per month, it takes five months to pay off and costs roughly $85 total. A personal loan at 12% for the same amount would cost roughly $30 in interest over five months.

Balance transfers: moving debt, not getting cash

A balance transfer moves money you already owe on one credit card to another card, usually one with a lower interest rate for a promotional period. This does not put cash in your pocket — it moves existing debt. But if you are already carrying a balance on another card, a balance transfer can save you money on interest.

Balance transfer fees are 3% to 5% of the amount transferred, charged upfront. If you transfer $2,000 at 3%, you pay $60 in fees. The promotional rate (often 0%) lasts for a set period — typically 6 to 21 months depending on the card — after which the regular rate kicks in. If you do not pay off the balance before the promotional period ends, you will owe interest at the card's standard rate.

Balance transfers make sense only if you already owe money elsewhere and can pay it off before the promotional rate expires. If you need cash, not debt moved around, a balance transfer does not help you.

Convenience checks and how they compare to ATM cash advances

A convenience check is a physical check your card issuer mails to you, which you can cash at a bank or deposit into another account. You write the check like any other check, but the issuer treats it as a cash advance — same fees, same interest rate, same lack of grace period.

The advantage is timing: a check takes a few days to clear, so interest may not start accruing until the check clears or the issuer processes it. This gives you a short window to deposit the money and move it elsewhere before interest kicks in. The disadvantage is that you have to wait for the check to arrive in the mail, and the issuer controls when the transaction posts to your account.

Convenience checks are useful if you need cash but want a few extra days before interest starts, or if you do not have access to an ATM. Otherwise, they cost the same as an ATM cash advance and take longer to complete.

When a cash advance makes sense (and when it does not)

A cash advance is expensive, so it makes sense only in specific situations. If you need cash for an emergency and have no other way to get it — no savings, no access to a personal loan, no friends or family to borrow from — a cash advance is faster than a loan application. But you should plan to pay it back as quickly as possible, ideally within a month.

A cash advance does not make sense if you have other options. A personal loan from a bank or credit union usually costs 8% to 15% in interest, which is less than a credit card cash advance rate. A payday loan costs more upfront but is faster. A payment plan with the person or business you owe money to may cost nothing. Even a high-interest personal loan is usually cheaper than a cash advance once you factor in fees and interest rates.

If you are considering a cash advance to pay another debt, stop and compare the math first. A $500 cash advance at 4% fee plus 23% interest costs roughly $85 over five months. A $500 personal loan at 12% costs roughly $30 in interest. The personal loan saves you $55, and you avoid the upfront fee.

How to minimize the cost if you do take a cash advance

If you decide a cash advance is your best option, take steps to minimize what you pay. First, withdraw only what you need. Every dollar you withdraw costs you 3% to 5% in fees plus interest, so a $200 withdrawal costs less than a $500 one.

Second, pay it back as fast as you can. Interest accrues daily, so every day you carry the balance costs you money. If you can pay it back within a week or two, the total interest is manageable. If you carry it for months, the interest compounds and the total cost balloons.

Third, check whether your card offers a lower cash advance rate for certain transactions or if you have a promotional period coming up. Some cards lower the cash advance rate temporarily or waive the fee for new cardholders. Call your issuer and ask — they may offer you a better rate if you ask.

Fourth, do not use a cash advance to pay another credit card or to fund spending you cannot otherwise afford. This creates a cycle where you borrow to pay debt, and the total amount you owe grows instead of shrinking.

Alternatives to a credit card cash advance

Before you take a cash advance, explore these options. A personal loan from a bank, credit union, or online lender usually costs 8% to 15% in interest and has a fixed repayment schedule. You know exactly what you owe and when. A credit union loan often costs less than a bank loan and may offer a grace period or flexible terms if you are a member.

A payment plan with the person or business you owe money to may cost nothing or less than a loan. If you owe a medical bill, utility bill, or rent, call and ask about a payment plan. Many will work with you to avoid sending your debt to a collection agency.

A line of credit from a bank or credit union is a revolving account like a credit card, but usually at a lower interest rate. If you have good credit, you may may have access to for a line of credit at 8% to 12%, which is less than a cash advance rate.

A side income or selling items you no longer need can raise cash without borrowing. This takes time, but it costs nothing and does not add to your debt.

Frequently Asked Questions

Does a cash advance hurt my credit score?

A cash advance itself does not hurt your score, but carrying a high balance does. If your cash advance pushes your credit utilization above 30% of your total available credit, your score may drop. Paying it off quickly minimizes this effect.

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

Technically yes, but it is usually a bad idea. You are paying 3% to 5% in fees plus 20%+ in interest to move debt from one card to another. A balance transfer or personal loan costs less. If you must move debt between cards, a balance transfer is cheaper than a cash advance.

What is the difference between a cash advance and a payday loan?

A payday loan charges a flat fee (usually $15 to $30 per $100 borrowed) and is due in full in two weeks. A cash advance charges a percentage fee plus interest and you can pay it back over time. Payday loans are faster but more expensive upfront. Cash advances cost more over time if you carry the balance.

Will my issuer let me take a cash advance if I am maxed out?

No. A cash advance counts against your credit limit, so if you are at your limit, you cannot take one. You would need to pay down your balance first or request a credit limit increase.

Can I take a cash advance on a debit card?

No. Debit cards draw from money you already have in your account. A cash advance is a credit product, available only on credit cards. You can withdraw cash from a debit card at an ATM, but that is not a cash advance — it is just accessing your own money.