The main ways to get cash from a credit card
You can get cash from a credit card in three ways: a cash advance through an ATM or bank, a balance transfer to your checking account, or a cash-like payment through a third-party service. Each one costs you differently and shows up differently on your bill.
A cash advance is the most direct method. You use your card at an ATM, bank teller, or money transfer service to withdraw cash. The money hits your account immediately, but you start paying interest right away — usually at a higher rate than your regular purchase APR. There is no grace period like there is with purchases.
A balance transfer moves money from your credit card to your bank account through your card issuer's app or website. This is slower than an ATM withdrawal but sometimes cheaper if your issuer offers a promotional rate. You still pay a fee upfront, usually 3% to 5% of the amount transferred.
A third-party cash service — like PayPal, Square Cash, or Venmo — lets you load your card and then withdraw or send the money. These services treat the transaction as a purchase rather than a cash advance, which can mean a lower interest rate. The tradeoff is an extra processing fee and an extra step.
Key Takeaways
- Cash advances charge interest immediately with no grace period, and the APR is usually 3% to 5% higher than your purchase rate.
- Balance transfers to your bank account are slower but may offer a lower rate if your issuer has a promotional offer running.
- Third-party payment services like PayPal or Venmo may code your transaction as a purchase instead of a cash advance, potentially saving you money on interest.
- Every method charges an upfront fee — typically 3% to 5% of the amount you withdraw — on top of interest charges.
- The interest you pay on cash advances and balance transfers counts toward your credit utilization, which can lower your credit score.
Cash advances at ATMs and banks
An ATM cash advance is the fastest way to get cash. You insert your card, enter your PIN, and withdraw money just like you would from a debit card. The transaction posts to your account within hours. Most credit card issuers set a daily limit on how much you can withdraw — often $500 to $1,000 — and a total limit on how much you can advance at all, usually 20% to 50% of your credit limit.
The cost is steep. You pay a fee upfront — typically $5 to $10 per transaction or 3% to 5% of the amount withdrawn, whichever is higher. Then interest accrues immediately at your cash advance APR, which is usually 5 to 10 percentage points higher than your purchase APR. If your purchase rate is 18%, your cash advance rate might be 25%. That interest compounds daily until you pay it off.
You can also get a cash advance at your bank's teller window if your card is issued by that bank or a partner institution. The fee and interest rate are the same as an ATM, but you can withdraw larger amounts in a single transaction. Call ahead to confirm your bank offers this service and to ask about your withdrawal limit.
Balance transfers through your card issuer's app or website
A balance transfer moves money from your credit card directly to your bank account. You log into your card issuer's app or website, find the balance transfer option, enter your bank account details, and request the amount. The money usually arrives in your checking account within 3 to 5 business days.
You pay an upfront fee — typically 3% to 5% of the amount transferred — which is added to your credit card balance. Then you pay interest on that balance at your card's standard APR, not a higher cash advance rate. Some issuers offer promotional balance transfer rates (sometimes 0% for a set period) if you request the transfer within a certain window, such as the first 60 days after opening the card. Check your card's terms or call the issuer to see if you are in a promotional window.
The main drawback is speed. Unlike an ATM withdrawal, you cannot access the money immediately. If you need cash today, this is not the right method. It also works only if your issuer offers balance transfers to bank accounts — not all do. Call your issuer or check your account online to see whether this option is available to you.
Using payment apps and third-party services
Services like PayPal, Square Cash, Venmo, and Google Pay let you load your credit card and then withdraw cash or send money to others. The advantage is that these services often code the transaction as a purchase rather than a cash advance, which means you pay your regular purchase APR instead of a higher cash advance rate. You also get a grace period — you do not pay interest if you pay off the balance before your statement closing date.
The process varies by service. With PayPal, you can link your credit card, transfer money to your PayPal balance, and then withdraw it to your bank account or use it to pay someone. With Venmo or Square Cash, you load your card and send money to another person, who can then send it back to you (though this is against most services' terms). With Google Pay, you can use your card to send money to contacts.
These services charge their own fees on top of your card's fees. PayPal charges 2.2% plus $0.30 per transaction for standard transfers. Venmo charges 1% for instant transfers to your bank account. Square Cash charges 1.5% for instant transfers. These fees are separate from any fee your credit card issuer charges. Read the service's fee schedule before you proceed.
One important note: using these services to get cash from someone else and then having them send it back is considered fraud by most payment platforms and can result in your account being frozen. Use these services only for their intended purpose — paying for goods or services, or sending money to people you actually owe.
Comparing the costs of each method
| Method | Upfront Fee | Interest Rate | Grace Period | Speed |
|---|---|---|---|---|
| ATM cash advance | $5–$10 or 3–5% | Cash advance APR (usually 5–10% higher than purchase APR) | None — interest starts immediately | Minutes |
| Bank teller cash advance | $5–$10 or 3–5% | Cash advance APR (usually 5–10% higher than purchase APR) | None — interest starts immediately | Same day |
| Balance transfer to bank account | 3–5% | Purchase APR or promotional rate (if available) | Yes, if you pay off before statement closing | 3–5 business days |
| Payment app (PayPal, Venmo, etc.) | 1–2.2% plus $0.30–$0.50 | Purchase APR | Yes, if you pay off before statement closing | 1–3 business days |
The cheapest option depends on how long you need to carry the balance. If you can pay it back within your grace period (usually 21 to 25 days), a balance transfer or payment app costs less than a cash advance because you avoid interest entirely. If you need to carry the balance longer, a balance transfer with a promotional 0% rate is cheapest, followed by a payment app at your regular purchase rate. A cash advance is the most expensive option because of the higher APR and immediate interest accrual.
Why your credit score may drop after getting cash from your card
Getting cash from your credit card can lower your credit score in two ways. First, the money you withdraw counts toward your credit utilization — the percentage of your available credit you are using. If you have a $5,000 limit and you withdraw $1,000 in cash, your utilization jumps to 20%. Credit scoring models penalize high utilization, so your score may drop by 10 to 50 points depending on how much you withdraw and how much credit you already have in use.
Second, the hard inquiry your issuer makes to approve the cash advance (if required) can lower your score by a few points. This effect is temporary and fades after a few months, but it is worth knowing about.
The good news is that paying off the cash advance quickly restores your score. Once your balance drops, your utilization falls and your score rebounds. This is one reason to avoid carrying a cash advance balance longer than necessary.
Frequently Asked Questions
Can I get a cash advance online without going to an ATM?
Yes. Balance transfers to your bank account and payment app transfers both happen online. You log into your card issuer's website or app, request the transfer, and the money arrives in your account within a few business days. ATM and bank teller cash advances require you to be in person, but the other two methods are fully online.
What is the difference between a cash advance and a balance transfer?
A cash advance is money you withdraw directly from your credit line, usually at an ATM or bank. A balance transfer moves money from your credit card to your bank account through your issuer. Cash advances charge a higher interest rate and have no grace period. Balance transfers charge a lower rate and may offer a promotional period with no interest.
Do I have to pay back a cash advance right away?
No, but you should. Interest accrues immediately on a cash advance, so every day you carry the balance costs you money. Unlike a purchase, there is no grace period. If you can pay it back within a few days, do so. If you need to carry it longer, a balance transfer or payment app is cheaper.
Will getting a cash advance hurt my credit score?
Yes, temporarily. Your utilization will increase, which can lower your score by 10 to 50 points. Your score will rebound once you pay off the balance and your utilization drops. A hard inquiry (if your issuer requires one) may also lower your score by a few points, but this effect fades after a few months.
What happens if I cannot pay back the cash advance?
The balance stays on your credit card and accrues interest at your cash advance APR. If you miss a payment, your issuer will report it to the credit bureaus, which will damage your credit score. You may also face late fees and a higher interest rate. If you are struggling to pay, contact your issuer to discuss a payment plan or hardship program.