Three ways to access cash using your 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 by your card issuer, or a cash-like purchase through money transfer services like MoneyGram or Western Union. Each method charges different fees and interest rates, and none of them is free. A cash advance typically costs 3 to 5 percent of the amount withdrawn, plus interest that starts accruing immediately — often at a higher rate than your purchase APR. Balance transfer checks may have lower upfront fees but work the same way. Money transfer services charge a flat fee but treat the transaction as a purchase, not a cash advance, so interest accrues at your standard purchase rate.

The key difference between these methods is how quickly interest starts and what you pay to get the money out. With a cash advance, interest begins the day you withdraw it — there is no grace period. With a balance transfer check or money transfer, you may have a grace period on the purchase portion, though this varies by card. Before you use any method, check your card's terms for the exact fee percentage, the interest rate that applies, and whether a grace period exists.

Key Takeaways

  • Cash advances charge a fee (usually 3 to 5 percent) plus interest that starts immediately, with no grace period.
  • Balance transfer checks have lower fees than cash advances but work similarly — interest accrues from the day you deposit them.
  • Money transfer services like MoneyGram charge a flat fee and treat the transaction as a purchase, so a grace period may apply if your card offers one.
  • All three methods report to your credit bureaus as debt and affect your credit utilization ratio, which can lower your credit score.
  • Your card issuer sets the cash advance limit separately from your credit limit, and you may not be able to withdraw your full credit limit as cash.

Cash advances at ATMs and bank branches

A cash advance is the most direct way to withdraw money. You use your credit card at an ATM or walk into a bank branch and request cash. The ATM will ask you to enter your PIN (which you may need to set up first if you have not used cash advances before). The bank or ATM operator charges a fee — typically $3 to $5 per transaction, or a percentage of the amount (usually 3 to 5 percent), whichever is higher. Your card issuer may also charge a separate fee on top of that.

Interest on a cash advance begins accruing the moment you withdraw it. Unlike a purchase, there is no grace period — you do not get 21 or 25 days interest-free. The interest rate is usually higher than your purchase APR; many cards charge 25 to 30 percent or more. If you withdraw $500 at a 3 percent fee plus 28 percent APR, you pay $15 upfront and then roughly $11.67 in interest for the first month if you do not pay it back.

Your card issuer sets a separate cash advance limit, which may be much lower than your total credit limit. You might have a $5,000 credit limit but only a $1,000 cash advance limit. Check your card agreement or call your issuer to find out what your cash advance limit is before you go to an ATM.

Balance transfer checks from your card issuer

Many card issuers mail balance transfer checks to cardholders. These checks look like regular checks but draw from your credit card account. You can deposit them into your bank account or give them to someone else to cash. The issuer charges a fee — often 3 to 5 percent of the check amount, though some promotional offers charge 0 percent for a limited time (usually 6 to 12 months). After the promotional period ends, interest accrues at your standard purchase APR or a higher rate, depending on your card.

The advantage of a balance transfer check is that it may come with a lower fee or a 0 percent introductory period. The disadvantage is that you have no control over when the checks arrive or what amount they are for — the issuer decides. If you receive checks but do not want to use them, do not deposit them; they will not affect your account unless you cash them.

Interest on a balance transfer check typically starts accruing after the promotional period ends, not immediately. However, read your card's terms carefully — some issuers charge interest from day one, while others offer a true grace period. The check amount counts toward your credit limit and your credit utilization ratio, so depositing a large check can lower your credit score temporarily.

Money transfer services as a cash alternative

You can use your credit card to send money through services like MoneyGram, Western Union, or similar providers. These services charge a flat fee (typically $5 to $20 depending on the amount) and treat the transaction as a purchase, not a cash advance. This means interest may not accrue immediately if your card offers a grace period on purchases. However, the fee is still a cost, and interest will eventually accrue if you do not pay the balance in full.

The person receiving the money can pick it up at a MoneyGram or Western Union location, or it can be deposited into their bank account. This method is useful if you need to send money to someone else rather than withdraw it for yourself. It is also useful if your card has a low cash advance limit but a higher purchase limit, since money transfers are treated as purchases.

The downside is that money transfer fees add up quickly for large amounts. A $500 transfer might cost $15 to $20 in fees alone, plus whatever interest accrues. Compare this to a cash advance fee before you choose this route.

How cash advances affect your credit score

Taking a cash advance increases your credit utilization ratio — the percentage of your available credit that you are using. If you have a $5,000 credit limit and take a $1,000 cash advance, your utilization jumps to 20 percent. Credit scoring models weight utilization heavily, so a large cash advance can lower your score by 10 to 50 points or more, depending on your current utilization and the scoring model used.

The impact is temporary if you pay the cash advance back quickly. Once you pay it off, your utilization drops and your score recovers. However, if you carry the balance, the damage persists as long as the debt remains on your account. Additionally, cash advances are reported to credit bureaus as a separate type of debt, which some lenders view as riskier than regular purchases.

The interest you pay on a cash advance does not directly hurt your score, but missed payments or high balances do. If you cannot pay back a cash advance within a month or two, the interest will compound quickly, making it harder to pay off.

Comparing fees and interest rates across methods

The total cost of getting cash depends on the method you choose, the amount you need, and how long you carry the balance. A cash advance of $500 at a 3 percent fee plus 28 percent APR costs $15 upfront and roughly $11.67 in interest for the first month. A balance transfer check with a 0 percent promotional period for 12 months costs 3 to 5 percent upfront ($15 to $25) but no interest for a year. A money transfer service costs a flat $10 to $20 but may have a grace period if your card offers one on purchases.

If you need the cash for only a few weeks, a cash advance is often the cheapest option because you pay interest for a short time. If you need it for several months, a balance transfer check with a 0 percent promotional period is usually cheaper. If you need to send money to someone else, a money transfer service may be your only option.

Always calculate the total cost before you choose a method. A $1,000 cash advance at 3 percent plus 28 percent APR costs $30 upfront and $23.33 in interest for the first month — $53.33 total. The same amount via a balance transfer check at 3 percent with 0 percent for 12 months costs $30 upfront and nothing in interest for a year. The difference is significant if you cannot pay it back immediately.

Alternatives to cash advances

Before you take a cash advance, consider whether you actually need cash or whether you can solve the problem another way. If you need to pay a bill, many billers accept credit card payments directly — you do not need to withdraw cash first. If you need emergency money, a personal loan from a bank or credit union usually has a lower interest rate than a cash advance. If you need to send money to someone, a bank transfer or peer-to-peer payment app like Venmo or PayPal may be free or cheaper than a money transfer service.

If you do need cash, ask yourself whether you can borrow from a friend or family member, take out a small personal loan, or use a line of credit from your bank. These options almost always cost less than a credit card cash advance. A personal loan at 15 percent APR is cheaper than a cash advance at 28 percent, even if the personal loan has a small origination fee.

If you are considering a cash advance because you are short on money, that is a sign to look at your budget and spending. Taking a cash advance adds debt and interest charges, which makes the problem worse. A financial counselor or nonprofit credit counseling service can help you work through a budget without charging you.

Frequently Asked Questions

Does a cash advance show up on my credit report?

Yes. A cash advance is reported to credit bureaus as a separate account or transaction type. It increases your credit utilization and may lower your score. The cash advance balance stays on your credit report until you pay it off, just like any other credit card balance.

Can I get a cash advance if my card is maxed out?

Not with your regular credit limit. However, your cash advance limit is separate from your credit limit. You might have a $5,000 credit limit and a $1,000 cash advance limit. If you have used $4,500 of your credit limit, you may still be able to take a $1,000 cash advance. Call your issuer to confirm your cash advance limit.

What if I do not have a PIN for my credit card?

You will need to set one up before you can withdraw cash at an ATM. Call your card issuer or log into your online account to request a PIN. Some issuers send it by mail; others let you set it immediately over the phone. This usually takes a few days to a week.

Can I pay off a cash advance before interest accrues?

No. Interest on a cash advance starts accruing immediately — there is no grace period. If you withdraw $500 on Monday, interest begins accruing that day. You can pay it back on Tuesday and still owe interest for those two days. The only way to avoid interest is to not take the cash advance in the first place.

Is a cash advance the same as a balance transfer?

No. A cash advance is money you withdraw; a balance transfer is debt you move from one card to another. A balance transfer check is a hybrid — it looks like a transfer but works like a cash advance. Cash advances charge higher fees and interest rates than balance transfers, and interest accrues immediately instead of after a promotional period.