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 to a bank account, or a cash-like purchase using a convenience check or money order. Each costs differently and counts against your credit limit in different ways.

A cash advance is the most direct method. You go to an ATM, insert your card, and withdraw cash up to your daily limit — usually $500 to $1,000, though your card issuer sets the actual amount. A balance transfer moves money from your credit card to a bank account, typically through your card issuer's app or website. Convenience checks work like regular checks but draw from your credit line instead of a bank account.

All three methods charge fees and interest immediately. Unlike a purchase, which may have a grace period before interest kicks in, cash obtained from a credit card starts accruing interest the day you take it. This is the core reason to avoid it unless you have no other option.

Key Takeaways

  • Cash advances charge a fee (usually 3 to 5 percent of the amount) plus a higher interest rate than purchases, with interest starting immediately.
  • Your daily ATM withdrawal limit is separate from your credit limit, so you may not be able to withdraw as much cash as your available credit allows.
  • Balance transfers to a bank account work faster than ATM withdrawals but carry the same fees and interest rates as cash advances.
  • Convenience checks count as cash advances, not purchases, so they trigger the same fees and immediate interest charges.
  • If you need cash, a personal loan or a withdrawal from savings will cost you far less than a credit card cash advance.

Cash advance fees and interest rates

A cash advance fee is a percentage of the amount you withdraw, typically 3 to 5 percent. If you withdraw $500, expect to pay $15 to $25 just to get the cash. Some cards cap the fee at a flat amount — for example, $10 minimum or $100 maximum — so the percentage matters less on very large or very small withdrawals.

The interest rate on a cash advance is separate from your purchase rate and is almost always higher. While a card might charge 18 percent APR on purchases, the cash advance rate could be 25 percent or more. This rate applies from the moment you withdraw the cash, with no grace period. If you withdraw $500 at 25 percent APR and pay it back in 30 days, you will owe roughly $10 in interest alone, on top of the initial fee.

Check your card's terms document or call the issuer to find your specific cash advance fee and rate. These numbers vary by card and by issuer, and they are not always listed on the main rewards page.

Daily limits and how they work

Your credit card issuer sets a daily cash advance limit separate from your overall credit limit. You might have $5,000 in available credit but only be able to withdraw $500 per day in cash. Some cards allow $1,000 or more per day; others cap it at $300. This limit resets each day, so if you hit the limit on Monday, you can withdraw again on Tuesday.

The limit exists to reduce fraud risk and to discourage people from treating credit cards as ATMs. If you need more than your daily limit, you will have to make multiple withdrawals across multiple days. There is no way to override this limit — you cannot call the issuer and ask them to let you withdraw $2,000 in one transaction.

Find your daily limit in your card agreement or by logging into your online account. Some issuers display it when you attempt a withdrawal at an ATM.

Where to withdraw cash and what it costs

You can withdraw a cash advance at any ATM that displays your card's logo — Visa, Mastercard, American Express, or Discover. ATMs in your card issuer's network (for example, Chase ATMs if you have a Chase card) usually charge no fee. ATMs outside the network typically charge a foreign ATM fee of $2 to $5, which the ATM operator charges you at the time of withdrawal.

You can also visit a bank branch and ask the teller for a cash advance. This method avoids ATM fees but requires you to go in person during business hours. The card issuer's fee and interest still apply.

Some cards offer balance transfers to bank accounts through the issuer's app or website. You enter your bank account details, and the issuer deposits the cash directly. This avoids ATM fees and daily limits but takes 1 to 3 business days to complete. The card issuer's cash advance fee and interest rate still apply.

Comparing cash advances to other ways to get money

A personal loan from a bank or credit union is almost always cheaper than a credit card cash advance. Personal loans typically charge 6 to 36 percent APR depending on your credit score, with no additional fees beyond interest. If you borrow $500 at 15 percent APR for 30 days, you pay roughly $6 in interest — far less than the $15 to $25 cash advance fee plus $10 in interest from the credit card.

A payday loan is faster but more expensive than a personal loan. Payday lenders charge fees of $15 to $20 per $100 borrowed, which works out to 400 percent APR or higher. A credit card cash advance is cheaper than a payday loan in most cases.

If you have savings, withdrawing from savings costs nothing and avoids debt entirely. If you have a 401(k), some plans allow loans against your balance at low interest rates, though you must repay them on a set schedule or face taxes and penalties.

How a cash advance affects your credit score

A cash advance does not directly hurt your credit score the way a missed payment does. However, it increases your credit utilization ratio — the percentage of your available credit you are using. If you have a $5,000 credit limit and withdraw $500 in cash, your utilization jumps to 10 percent. Credit scoring models treat high utilization as a sign of financial stress, which can lower your score by a few points.

The effect is temporary. Once you pay off the cash advance, your utilization drops and your score recovers. The bigger risk is that a cash advance can become a debt spiral: you withdraw cash, pay interest and fees, and struggle to pay it back, which keeps your utilization high and your score low.

Paying back a cash advance quickly

A cash advance accrues interest every single day until you pay it off. The longer you carry the balance, the more interest you owe. If you must take a cash advance, pay it back as fast as possible.

When you make a payment to your credit card, the issuer applies it first to your lowest-interest balance (usually purchases) and last to your highest-interest balance (usually cash advances). This means if you have both a purchase balance and a cash advance balance, your payment goes toward the purchase first, and the cash advance keeps accruing interest. To pay off a cash advance faster, contact your issuer and ask them to apply your payment directly to the cash advance, or pay more than the minimum so that money reaches the cash advance after the purchase is covered.

Some issuers allow you to specify where a payment goes through their app or website. Check your account settings to see if this option is available.

Frequently Asked Questions

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

Technically yes, but it is a costly way to move debt. You pay the cash advance fee and interest rate on the withdrawn cash, then use that cash to pay the other card. You are paying fees to shuffle money between cards. A balance transfer (moving the balance directly from one card to another) is cheaper if both cards offer it.

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

A balance transfer moves an existing balance from one card to another card or to a bank account. A cash advance is new borrowing — you are withdrawing cash you did not previously owe. Both charge fees and interest, but balance transfers sometimes offer a 0 percent introductory rate for a set period, while cash advances never do.

Will my bank account be affected if I take a cash advance?

No. A cash advance is a credit card transaction, not a bank account transaction. The cash goes into your wallet or pocket, and the debt appears on your credit card bill. Your bank account is not involved unless you use a balance transfer to a bank account, in which case the issuer deposits the money directly.

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

No. A cash advance counts against your credit limit, so you must have available credit to withdraw. If your limit is $5,000 and you have already charged $5,000, you cannot take a cash advance until you pay down the balance.

Is there a way to avoid the cash advance fee?

No. The fee is built into the card's terms and applies to every cash advance. Some cards offer cash back at the register when you make a purchase, which is free and does not trigger the cash advance fee — if you need cash, buying something and getting cash back is cheaper than a cash advance.