The three ways to get cash from 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 to you by your card issuer, or a cash-like purchase through services like PayPal or Square Cash. Each one costs you money upfront and charges interest immediately — there is no grace period like there is for regular purchases. A cash advance at an ATM typically costs 3% to 5% of the amount you withdraw, plus a per-transaction fee of $2 to $10. A balance transfer check usually costs 3% to 5% as well. Cash-like purchases through payment apps often cost less in fees but may have lower withdrawal limits.

The reason all three cost so much is that credit card companies see cash as higher risk than a purchase. When you buy something, the merchant has a record and you have a product to dispute if something goes wrong. When you withdraw cash, it is gone — the card company has no way to recover it if you claim fraud. That risk premium is why cash always costs more than swiping your card at a store.

Key Takeaways

  • Cash advances charge an upfront fee of 3% to 5% plus a per-transaction fee, and interest starts accruing 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 useful only if you can plan ahead.
  • Payment app transfers (PayPal, Square Cash, Venmo) often charge lower fees than ATM withdrawals but may have daily or monthly limits.
  • The interest rate on cash advances is usually higher than your regular purchase APR, sometimes by 5 percentage points or more.
  • If you need cash regularly, a cash-back debit card or a personal loan will cost you far less than repeated credit card cash advances.

Cash advances at an ATM or bank branch

A cash advance is the most direct way to get money from your credit card. You go to an ATM that accepts your card, enter your PIN, and withdraw cash just as you would from a checking account. You can also walk into a bank branch and ask the teller for a cash advance. The ATM route is faster but the bank branch route sometimes has lower fees — it is worth calling ahead to ask.

The fee structure is immediate and steep. Most card issuers charge a cash advance fee of 3% to 5% of the amount you withdraw, with a minimum fee of $2 to $10. So if you withdraw $200, you might pay $6 to $10 just to get the cash. On top of that, interest starts accruing the same day — there is no 21-day grace period like there is for purchases. If your card's regular APR is 18%, your cash advance APR might be 23% or 25%. That interest compounds daily, so a $200 advance costs you roughly $1 per day in interest alone.

The PIN you use for a cash advance is the same PIN your card issuer gave you when you opened the account. If you never set one up, you will need to call the card issuer's customer service line and request one before you can use an ATM. This usually takes one business day.

Balance transfer checks from your card issuer

Many credit card companies mail you checks that draw directly from your credit line. These are called balance transfer checks or sometimes convenience checks. You write one to yourself or to a creditor, deposit it like a regular check, and the amount is charged to your credit card. The fee and interest rate are the same as a cash advance — typically 3% to 5% upfront, plus a higher APR than your regular purchase rate.

The main difference is timing. A check takes 3 to 7 business days to clear, so this method only works if you can plan ahead. It is useful if you need to pay a bill that does not accept credit cards — you write the check to that creditor and they deposit it. You cannot use a balance transfer check at an ATM, and you cannot use it to get cash in your hand the same day.

Balance transfer checks often come unsolicited in your credit card statement or mail. Do not assume they are free or have a lower rate just because the card issuer sent them. Read the terms carefully. Some issuers offer a promotional rate on balance transfer checks for a limited time (for example, 0% for 6 months), but this is rare and always comes with an upfront fee.

Payment app transfers and peer-to-peer services

Services like PayPal, Square Cash, Venmo, and Google Pay let you transfer money from your credit card to your bank account or to another person. The fees are usually lower than an ATM cash advance — often 1% to 3% — but the process is slower and the limits are tighter. PayPal, for example, charges 2% to transfer credit card funds to your bank account, with a minimum fee of $0.25. Venmo charges 1.75% plus $0.25 to transfer to your bank account.

The catch is that these services treat the transfer as a cash advance, not a purchase. That means the same high interest rate applies, and interest starts accruing immediately. You are paying a lower fee upfront but the same penalty rate on the balance. Additionally, most of these services have daily or monthly limits — you might only be able to transfer $500 per day or $2,000 per month, depending on your account history and the service.

These services are most useful if you need a small amount of cash and your card issuer's cash advance fee is particularly high. A $100 transfer at 1.75% costs $1.75 upfront, versus $3 to $5 at an ATM. But if you need $1,000 or more, the percentage fee adds up quickly, and you may hit the service's daily limit anyway.

How the interest and fees add up over time

A $500 cash advance looks cheap at first — a $15 to $25 fee seems manageable. But the interest compounds fast. If your cash advance APR is 24% and you pay only the minimum payment, that $500 advance will cost you roughly $150 in interest alone before you pay it off. If you pay $50 per month, it takes 12 months to clear and costs about $75 in interest. If you pay $100 per month, it takes 6 months and costs about $35 in interest.

The math is worse if you have other balances on the card. Credit card companies apply your payment to the lowest-interest balance first, which is usually your regular purchases. That means your cash advance sits at 24% APR while you chip away at your 18% purchase balance. You end up paying interest on the cash advance for longer than you expected.

This is why financial counselors recommend cash advances only as a true emergency — a car repair you cannot delay, a medical bill, something that would cost you more money if you do not pay it immediately. If you are using a cash advance to cover everyday expenses or to have spending money, that is a sign your budget needs attention, not that you need a credit card cash advance.

Cheaper alternatives to a credit card cash advance

If you need cash regularly, several options cost far less. A cash-back debit card lets you withdraw cash at checkout with no fee — you buy a $20 item and ask for $40 cash back, and the store gives it to you. A personal loan from a bank or credit union charges interest, but usually 8% to 15% rather than 24%, and you know the exact payoff date upfront. A credit union cash advance (if you are a member) often charges lower fees than a bank credit card.

If you are in a true emergency and have no other options, a cash advance is faster than a personal loan. But if you have a few days, a personal loan is almost always cheaper. A $500 personal loan at 12% APR costs roughly $30 in interest over 12 months. The same $500 cash advance at 24% APR costs roughly $75 in interest. Over time, that difference compounds.

If you find yourself taking cash advances regularly, that is a sign to talk to a credit counselor or financial advisor. They can help you build a budget that does not require emergency cash, or find a lower-cost borrowing option for the situations where you do need it.

What happens to your credit score when you take a cash advance

A cash advance does not hurt your credit score directly — it is not reported as a missed payment or a default. But it does increase your credit utilization ratio, which is the percentage of your available credit you are using. If you have a $5,000 credit limit and you take a $500 cash advance, your utilization jumps from 0% to 10%. Credit scoring models treat high utilization as a sign of financial stress, so your score may drop by 5 to 10 points.

The bigger damage comes if the cash advance pushes you toward missing a payment. If you cannot afford to pay back the advance quickly, the interest piles up and you may fall behind. A missed payment stays on your credit report for seven years and can drop your score by 100 points or more. That is the real risk — not the advance itself, but the debt spiral it can start.

Frequently Asked Questions

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

Technically yes, but it is a bad idea. You are borrowing at 24% APR to pay off a balance at 18% APR, and you are paying a 3% to 5% fee on top. You would be better off transferring the balance to a 0% APR card (if you may have access to) or calling the original card issuer to negotiate a lower rate.

Is there a limit to how much I can withdraw as a cash advance?

Yes. Most card issuers set a cash advance limit that is lower than your total credit limit — often 20% to 50% of your available credit. You can call your card issuer to ask what your cash advance limit is. Some cards have no cash advance limit, but those are rare.

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

No, but interest starts accruing immediately, so the longer you wait, the more you owe. Minimum payments apply to cash advances just like they do to regular purchases, but the minimum is usually calculated to keep you in debt for years. Paying as much as you can afford, as soon as you can, is the only way to minimize the interest cost.

What if I cannot afford to pay back the cash advance?

Contact your card issuer and explain your situation. Some issuers offer hardship programs that lower your interest rate or pause interest temporarily. You will not know what options exist unless you ask. Ignoring the debt will damage your credit and may result in collection calls or legal action.

Can I take a cash advance on a prepaid card or secured card?

Most prepaid cards do not allow cash advances at all — they are designed to hold only the money you load onto them. Secured credit cards (cards backed by a deposit) usually do allow cash advances, but the fees and interest rates are the same as a regular credit card, sometimes higher.