The main ways to get cash from a credit card

You can pull cash from a credit card in three ways: a cash advance at an ATM or bank, a balance transfer check mailed to you by your card issuer, or a cash-like purchase through services like PayPal or Square Cash. Each one costs you differently and starts charging interest immediately — unlike regular purchases, which often have a grace period before interest kicks in.

The catch is that all three are expensive. You will pay a fee upfront (usually 3 to 5 percent of the amount), plus a higher interest rate than you pay on regular purchases. That interest starts accruing the day you take the cash, with no grace period. For most people, borrowing from a friend, using a personal loan, or putting the expense on a regular debit card is cheaper than any of these options.

But if you need cash now and have no other choice, here is what each method actually costs and how it works.

Key Takeaways

  • Cash advances at ATMs and banks charge an upfront fee (usually 3 to 5 percent) plus a higher interest rate that starts immediately, with no grace period.
  • Balance transfer checks work the same way as cash advances but arrive by mail, so they take several days and are only useful if you can wait.
  • Cash-like purchases through PayPal or Square Cash may have lower fees than traditional cash advances, but you should confirm the exact cost with your card issuer first.
  • Interest on cash from a credit card is not the same as interest on purchases — it is higher and starts right away, even if you normally get a grace period.
  • Before taking a cash advance, check your card's terms for the exact fee percentage and interest rate, because both vary widely by issuer and card type.

Cash advances at ATMs and banks

A cash advance is the most direct way to get money. You go to an ATM that displays your card's logo (Visa, Mastercard, American Express, Discover), insert your card, enter your PIN, and withdraw cash up to your daily limit. You can also walk into a bank branch and ask the teller for a cash advance, though this is less common now.

The fee hits you immediately. Most card issuers charge between 3 and 5 percent of the amount you withdraw — so a $500 cash advance might cost you $15 to $25 just to take it out. Some cards charge a flat fee instead (like $10 per advance), which is better if you are withdrawing a large amount but worse if you are withdrawing a small one. Check your card's terms document or call the number on the back of your card to find out which applies to you.

The interest rate is the second cost. Cash advance rates are almost always higher than your regular purchase rate — sometimes 5 to 10 percentage points higher. If your purchase rate is 18 percent, your cash advance rate might be 28 percent. That interest starts accruing the day you take the cash, with no grace period. If you take out $500 and pay it back in 30 days, you will owe roughly $12 in interest alone, on top of the upfront fee.

Your daily ATM withdrawal limit may also block you. Most cards cap cash advances at $500 to $1,000 per day, even if your credit limit is much higher. If you need more than that, you will have to make multiple withdrawals over several days.

Balance transfer checks

Balance transfer checks are physical checks mailed to you by your card issuer that you can deposit into your bank account or cash at a bank. They work like a cash advance — same fees, same interest rate — but they arrive by mail instead of coming out of an ATM.

The advantage is that you can deposit them into a checking account, which some people find easier than going to an ATM. The disadvantage is that they take 5 to 10 business days to arrive, so this method only works if you can wait. You also have to write the check and deposit it, which adds steps.

The fees and interest are identical to a cash advance: an upfront fee of 3 to 5 percent, plus a higher interest rate that starts immediately. Some card issuers offer promotional rates on balance transfer checks (like 0 percent for six months), but read the fine print — the promotional rate usually applies only if you transfer a balance from another card, not if you use the check to get cash.

Cash-like purchases through payment apps

Some people use their credit card to load money into PayPal, Square Cash, Venmo, or similar services, then withdraw that money to their bank account. This is technically a purchase, not a cash advance, so it avoids the cash advance fee and interest rate — at least in theory.

In practice, many card issuers now treat these transactions as cash advances anyway, which means you will pay the same fee and interest rate. Others treat them as regular purchases, which means you avoid the cash advance fee but still pay the higher interest rate. A few issuers block them entirely.

Before you try this, call your card issuer and ask whether they classify PayPal, Square Cash, or Venmo transfers as cash advances or purchases. If they are treated as purchases, you will save the upfront fee — but you will still pay interest from day one, with no grace period, so this is only slightly cheaper than a traditional cash advance.

How much a cash advance actually costs

Here is a concrete example. Say you take out a $500 cash advance with a 4 percent fee and a 25 percent interest rate. You pay back the full $500 after 30 days.

Your costs are: $20 upfront fee (4 percent of $500) plus roughly $10 in interest (25 percent annual rate ÷ 12 months ÷ 30 days × $500). Total: $30 for borrowing $500 for one month. That is 6 percent of the amount you borrowed, just for 30 days.

If you carry the balance longer, the interest compounds. After 90 days, you would owe roughly $30 in interest alone, plus the $20 fee. After six months, interest alone would be around $60. This is why credit card cash advances are one of the most expensive ways to borrow money.

Cheaper alternatives to consider first

Before you take a cash advance, consider whether any of these options are available to you: borrowing from a friend or family member (free), using a personal loan from a bank or credit union (usually 8 to 18 percent interest, with a grace period), asking your employer for an advance on your paycheck, or putting the expense on a debit card if you have one with available funds.

If you have a 0 percent introductory rate on your credit card for purchases, you could also make the purchase on the card instead of taking cash, then pay it back during the promotional period. This avoids the cash advance fee and the higher interest rate — though you will still owe interest if you do not pay off the full balance before the promotional period ends.

A personal loan from a credit union or online lender is often cheaper than a cash advance, even if your credit is not perfect. The interest rate is lower, you get a grace period, and the fees are usually smaller. If you have time to wait for approval (usually a few days to a week), this is worth exploring.

What happens to your credit score

A cash advance does not directly hurt your credit score the way a missed payment does. However, it does increase your credit utilization — 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. High utilization can lower your score by a few points, though the effect is temporary and goes away once you pay the balance down.

The bigger risk is that a cash advance can push you toward missing a payment. Because the interest rate is so high and starts immediately, the balance grows quickly. If you cannot pay it back fast, you end up carrying a large balance at 25 to 30 percent interest, which makes it harder to pay down and easier to fall behind.

Frequently Asked Questions

Can I take a cash advance if I have not used my credit card yet?

Yes. A cash advance counts as a transaction, so you can take one as soon as your card arrives and is activated. However, you will still pay the full fee and interest rate. There is no benefit to taking a cash advance early — the costs are the same whether you have used the card before or not.

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

A balance transfer moves debt from one card to another (usually with a lower promotional rate). A cash advance gives you actual cash. They have different purposes: use a balance transfer to move existing debt, and a cash advance when you need cash in hand. The fees are similar, but balance transfers sometimes have promotional rates that cash advances do not.

Will my card issuer let me take a cash advance if I am close to my credit limit?

It depends on your card's terms. Some issuers count the cash advance against your credit limit, so if you have $500 available and take a $500 advance, you will have $0 left to spend. Others treat cash advances separately. Call your issuer to ask how they handle this before you try to take an advance.

Can I avoid the cash advance fee by taking multiple small withdrawals?

No. Each withdrawal is a separate transaction, and each one incurs its own fee. Taking five $100 withdrawals instead of one $500 withdrawal will cost you five fees instead of one. You will pay more, not less.

What if I cannot pay back a cash advance right away?

The interest will keep accruing at your cash advance rate (usually 25 to 30 percent) until you pay it off. The longer you carry the balance, the more you owe. If you think you will not be able to pay it back quickly, do not take the advance — the cost will grow faster than you expect.