The three 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, or a cash-like purchase through a money transfer service. Each one costs you differently and affects your credit differently, so the cheapest option depends on what you need and how fast you need it.

The most common route is a cash advance. You use your credit card at an ATM the same way you would a debit card, and the money appears in your bank account within minutes. But cash advances charge you a fee (usually 3 to 5 percent of the amount) plus a higher interest rate than regular purchases — often 25 to 30 percent — and interest starts accruing immediately, with no grace period.

Balance transfer checks work differently. Your card issuer mails you a check that draws against your credit line. You deposit it like any other check. These also charge a fee and a higher interest rate, but the fee is sometimes lower than a cash advance fee, and you get a few weeks before interest starts. The catch is the wait — checks take several business days to arrive.

Money transfer services like PayPal, Square Cash, or Wise let you load money onto an account using your credit card, then withdraw it or send it to your bank. These are technically purchases, not cash advances, so they avoid the cash advance fee and interest rate — but they may charge their own transfer fee, and some card issuers treat them as cash advances anyway.

Key Takeaways

  • Cash advances charge a fee (3 to 5 percent) plus a higher interest rate than purchases, with interest starting immediately.
  • Balance transfer checks have a similar fee but a lower interest rate and a grace period, though they take several days to arrive.
  • Money transfer services avoid the cash advance fee if your card treats them as purchases, but some issuers classify them as cash advances anyway.
  • All three options are expensive ways to borrow; using a personal loan, line of credit, or borrowing from family is cheaper if you have the time to pursue it.
  • Cash advances and balance transfers count against your credit limit and can hurt your credit score by raising your credit utilization ratio.

Why cash advances cost so much more than regular purchases

A credit card company treats a cash advance as a riskier transaction than a purchase. When you buy something, the merchant guarantees the transaction and the card issuer knows what you bought. When you withdraw cash, the card issuer has no way to track how you spend it, so they charge more to cover that risk.

The fee is the first cost. Most card issuers charge between 3 and 5 percent of the amount you withdraw — so a $500 cash advance costs $15 to $25 just to get the money. Some cards charge a flat fee instead (like $5 or $10), which is cheaper for large withdrawals but more expensive for small ones.

The interest rate is the second cost. Your regular purchase APR might be 18 percent, but your cash advance APR is often 25 to 30 percent. That higher rate applies only to the cash advance balance, not your whole card, but it makes the debt grow fast. And unlike purchases, which have a grace period (usually 21 to 25 days before interest starts), cash advance interest starts accruing the day you withdraw the money.

This means a $500 cash advance at 28 percent APR costs you roughly $11.67 in interest after one month, on top of the $15 to $25 fee. If you carry the balance for six months, you pay about $70 in interest alone.

How to take a cash advance at an ATM

A cash advance at an ATM is the fastest way to get cash. You insert your credit card into any ATM that displays your card network's logo (Visa, Mastercard, American Express, or Discover), enter your PIN, select "cash advance" or "cash withdrawal," and choose the amount. The money is usually available in your bank account within minutes, though some ATMs dispense cash immediately.

Before you do this, check your card's cash advance limit. This is separate from your credit limit — your issuer may let you charge $5,000 in purchases but only withdraw $500 in cash. You can find this limit in your online account or by calling the number on the back of your card. ATMs will reject the transaction if you try to exceed it.

Also check the ATM's fee. Most ATMs charge a fee to non-customers (usually $2 to $5), on top of the cash advance fee your card issuer charges. Using an ATM owned by your own bank avoids the ATM fee, but you still pay your card issuer's fee.

Some card issuers let you set a daily cash advance limit lower than your total limit, which can help you avoid overspending. You can usually change this limit online or by calling customer service.

Balance transfer checks and how they differ from cash advances

A balance transfer check is a physical check your card issuer mails to you. You write it like a regular check, deposit it into your bank account, and the money is yours. The card issuer treats it as a balance transfer — a transfer of debt from one card to another — rather than a cash advance, which sometimes means a lower fee and interest rate.

The fee for a balance transfer check is typically 3 to 5 percent, the same as a cash advance, but some issuers offer promotional rates (like 1 percent) for a limited time. The interest rate is also usually lower than a cash advance rate, sometimes matching your regular purchase APR or falling between that and your cash advance APR.

The major advantage is the grace period. Most balance transfer checks come with a 0 percent introductory APR for 6 to 12 months, meaning you pay no interest during that window if you pay down the balance. Cash advances have no grace period, so interest starts immediately.

The major disadvantage is speed. Your issuer has to mail the check to you, which takes 5 to 10 business days. If you need cash today, a balance transfer check will not help. You also have to deposit it yourself, which adds another day or two before the money clears in your bank account.

Money transfer services as an alternative to cash advances

Services like PayPal, Square Cash, Wise, and Google Pay let you load money onto an account using your credit card, then withdraw it to your bank account or send it to someone else. These are technically purchases, not cash advances, so they avoid the cash advance fee and the higher cash advance interest rate.

However, your card issuer may still classify them as cash advances. Some issuers have updated their systems to recognize these services and treat them as regular purchases. Others still flag them as cash advances and charge you the cash advance fee and rate. The only way to know is to check your card's terms or call customer service and ask whether a specific service counts as a purchase or a cash advance.

Even if your card treats the transfer as a purchase, the service itself may charge a fee. PayPal charges 2.2 percent plus $0.30 for transfers to your bank account. Wise charges a percentage based on the amount and currency. Square Cash charges no fee for transfers to your own bank account but charges a percentage for transfers to other people. Read the service's fee schedule before you transfer.

The speed is similar to a cash advance — money usually reaches your bank account within 1 to 3 business days — but some services offer instant transfers for an additional fee.

How a cash advance affects your credit score

A cash advance does not directly hurt your credit score the way a missed payment does, but it can hurt your score indirectly by raising your credit utilization ratio. This ratio is the percentage of your available credit that you are currently using. If your credit limit is $5,000 and you carry a $1,500 balance, your utilization is 30 percent.

A cash advance counts toward this ratio. If you have a $5,000 limit and you take a $500 cash advance, your utilization jumps from 0 to 10 percent (or from 30 to 40 percent if you already had a balance). Credit scoring models treat high utilization as a sign of financial stress, so your score may drop by a few points.

The impact is temporary. Once you pay off the cash advance, your utilization drops and your score recovers. But if you carry the balance for months, the damage persists. Keeping your utilization below 30 percent is a common guideline for maintaining a healthy score.

A cash advance also does not build credit the way a regular purchase does. Purchases show that you can borrow and repay responsibly. A cash advance just shows that you withdrew cash — it does not demonstrate creditworthiness in the same way.

Cheaper alternatives to getting cash from a credit card

Before you take a cash advance, consider whether you have a cheaper option. A personal loan from a bank or credit union usually charges 6 to 36 percent APR, depending on your credit score, which is lower than a credit card cash advance rate. The loan also has no fee (or a small origination fee), and you get a fixed repayment schedule so you know exactly when the debt will be gone.

A line of credit from your bank works similarly — you borrow what you need and pay interest only on what you use. These are often cheaper than cash advances and faster than applying for a personal loan.

If you have a 401(k) or similar retirement account, you may be able to borrow against it. The interest rate is usually lower than a credit card, and you pay the interest back into your own account rather than to a lender. However, if you leave your job before you repay the loan, you may have to repay it immediately or face taxes and penalties.

Borrowing from family or friends is free if they agree, but it can damage relationships if repayment becomes difficult. If you do borrow from someone, put the terms in writing so there is no misunderstanding later.

Frequently Asked Questions

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

A cash advance is money you withdraw from an ATM or bank using your credit card. A balance transfer is debt you move from one card to another, often using a check or online transfer. Balance transfers usually have lower fees and interest rates, plus a grace period, but take longer to process. Cash advances are faster but more expensive.

Can I use my credit card at any ATM to get a cash advance?

You can use any ATM that displays your card network's logo (Visa, Mastercard, American Express, or Discover). However, ATMs owned by banks other than yours charge a fee, usually $2 to $5. Your own bank's ATMs typically do not charge an ATM fee, though your card issuer still charges a cash advance fee.

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

No, but interest starts accruing immediately, so the longer you carry the balance, the more you pay. Most card issuers require a minimum payment each month (usually 1 to 3 percent of the balance), but paying only the minimum means the debt grows. Paying it off as fast as you can saves you money on interest.

Will taking a cash advance hurt my credit score?

A cash advance itself does not hurt your score, but it raises your credit utilization ratio, which can lower your score by a few points. The impact is temporary and goes away once you pay off the balance. Missed payments on the cash advance will hurt your score much more.

Is there a way to get cash from my credit card without paying a fee?

Not through a traditional cash advance or balance transfer check — both charge fees. Some money transfer services charge no fee if your card issuer treats the transfer as a purchase rather than a cash advance, but you have to check with your issuer first. Otherwise, a personal loan or line of credit from a bank is usually cheaper than any credit card option.