The main ways to get cash from a credit card
You can get money off a credit card in three ways: a cash advance at an ATM or bank, a balance transfer to your checking account, or a convenience check. Each one costs you differently and affects your balance in different ways.
A cash advance lets you withdraw cash using your card PIN at any ATM or bank teller window. The money appears in your account immediately, but the card issuer charges a fee (usually 3 to 5 percent of the amount withdrawn) and starts charging interest right away — there is no grace period like there is for purchases. A $500 cash advance might cost you $15 to $25 in fees alone, plus interest that begins accruing the same day.
A balance transfer moves money from your credit card to a bank account you control. You request this through your card issuer's app or website, and the funds land in your checking account within a few business days. Balance transfers also charge a fee (typically 3 to 5 percent) and may carry a higher interest rate than your regular purchases, though some cards offer a promotional period with no interest.
A convenience check is a physical check issued by your card company that you can deposit or cash. It works like a balance transfer but requires you to mail or deposit the check yourself. Fees and interest rates are the same as a balance transfer.
Key Takeaways
- Cash advances charge a fee of 3 to 5 percent and begin accruing interest immediately, with no grace period.
- Balance transfers and convenience checks also charge 3 to 5 percent fees and may carry a higher interest rate than purchases, though promotional periods with no interest are sometimes available.
- Interest on cash advances, balance transfers, and convenience checks accrues daily and is calculated separately from your purchase balance.
- Paying off the cash advance or balance transfer first will save you money because these balances carry higher interest rates than regular purchases.
How cash advances work and what they cost
When you take a cash advance, your card issuer charges a cash advance fee upfront. This fee is a percentage of the amount you withdraw — most cards charge between 3 and 5 percent, though some charge a flat dollar amount instead (like $10 minimum). A $300 cash advance at 4 percent costs $12 in fees before you pay a cent in interest.
Interest on a cash advance starts accruing the day you withdraw the money. Unlike purchases, which have a grace period (usually 21 to 25 days before interest kicks in), cash advances begin charging interest immediately. The interest rate for cash advances is often higher than your purchase rate — sometimes 2 to 5 percentage points higher. If your purchase APR is 18 percent, your cash advance APR might be 23 percent.
The interest is calculated daily on the outstanding balance. If you withdraw $500 at a 23 percent APR, you owe roughly $3.15 in interest the first day, $6.30 by day two, and so on. Paying back the cash advance quickly is the only way to control this cost.
Balance transfers and convenience checks
A balance transfer moves credit card money into a bank account you own. You initiate it through your card issuer's website or app, provide your bank account details, and the funds arrive within 2 to 5 business days. The card issuer charges a balance transfer fee (3 to 5 percent of the amount transferred) and applies an interest rate that may be higher than your purchase rate.
Some card issuers offer a promotional period on balance transfers — often 0 percent APR for 6 to 12 months. During this period, you pay no interest, only the upfront fee. After the promotional period ends, the regular balance transfer APR applies to any remaining balance. Read your card agreement or call the issuer to confirm whether a promotional rate is available and when it expires.
A convenience check works the same way as a balance transfer but requires a physical step: you receive a check in the mail, deposit it into your bank account, and the funds clear like any other check deposit. The fee, interest rate, and promotional terms are identical to a balance transfer. The advantage is that you control the timing — you deposit the check when you need the money. The disadvantage is the delay: checks take 3 to 7 days to clear, depending on your bank.
How interest accrues on money you withdraw
Interest on cash advances, balance transfers, and convenience checks is calculated separately from your purchase balance. Your card issuer maintains three separate balances: purchases, cash advances, and balance transfers. Each has its own interest rate and accrual timeline.
Interest accrues daily using the average daily balance method. The issuer calculates the average balance each day of the billing cycle, multiplies it by the daily interest rate (your APR divided by 365), and adds that to your balance. This happens every single day until the balance is paid off.
Your monthly statement shows the interest charged during that billing cycle for each balance type separately. If you made a $500 cash advance at 23 percent APR and paid nothing toward it for 30 days, you would owe roughly $95 in interest alone — on top of the original 4 percent fee you paid upfront.
Paying off cash advances and balance transfers
When you make a payment to your credit card, the issuer applies it to your balances in a specific order set by federal law: first to the balance with the highest interest rate, then to the next highest, and so on. This means if you have both a purchase balance and a cash advance balance, your payment goes to the cash advance first — which is good, because that balance costs you more.
However, this only applies if you are making the minimum payment or more. If you pay less than the minimum, the issuer may apply the payment differently. Always pay at least the minimum to ensure your payment goes to the highest-rate balance.
To minimize interest, pay off the cash advance or balance transfer as quickly as possible. Even small extra payments make a difference. A $500 cash advance at 23 percent APR costs you $95 in interest over 30 days, but only $48 over 15 days. Cutting the payoff time in half cuts the interest cost in half.
Comparing cash advances, balance transfers, and convenience checks
| Method | Fee | Interest Rate | Grace Period | Time to Access |
|---|---|---|---|---|
| Cash Advance (ATM) | 3–5% of amount | Usually 2–5% higher than purchases | None — interest starts immediately | Instant |
| Balance Transfer | 3–5% of amount | Usually 2–5% higher than purchases; may have 0% promotional period | None — interest starts immediately (unless promotional period applies) | 2–5 business days |
| Convenience Check | 3–5% of amount | Usually 2–5% higher than purchases; may have 0% promotional period | None — interest starts immediately (unless promotional period applies) | 3–7 days (check clearing time) |
When getting money off your card makes sense
A cash advance or balance transfer should be a last resort, not a routine way to access money. The fees and interest rates are high enough that you will lose money compared to using a debit card, a bank loan, or a line of credit from your bank.
A cash advance makes sense only if you need cash immediately and have no other option — for example, if an ATM is broken and you need cash for an emergency. Even then, pay it back within days to minimize interest.
A balance transfer with a 0 percent promotional period can make sense if you need to move money between accounts and can pay it back before the promotional period ends. For example, if your card offers 0 percent for 12 months and you can pay back the transfer in 6 months, the only cost is the upfront fee — which is still expensive, but at least you avoid interest.
If you are considering a cash advance or balance transfer to cover an expense you cannot afford, that is a sign to pause and reconsider. The interest and fees will make the debt harder to repay, not easier.
Frequently Asked Questions
Does taking a cash advance hurt my credit score?
Taking a cash advance itself does not directly hurt your score, but it increases your credit utilization — the percentage of your available credit you are using. If your utilization jumps from 30 percent to 60 percent, your score may drop slightly. The bigger risk is missing payments on the cash advance, which damages your score significantly.
Can I take a cash advance on a rewards card?
Yes, but you will not earn rewards on the cash advance. Cash advances are treated separately from purchases and do not may have access to for cash back, points, or miles. You pay the fee and interest with no reward benefit.
What happens if I cannot pay back a cash advance?
The balance stays on your card and continues accruing interest at the cash advance rate. If you miss payments, late fees are added and your credit score drops. The issuer may eventually charge off the account or send it to a collection agency. Contact your issuer immediately if you cannot pay — some offer hardship programs that lower interest rates or pause payments temporarily.
Is a balance transfer better than a cash advance?
A balance transfer is usually better because the money goes directly to your bank account (no ATM fees) and you have a few days to decide how to use it. Both charge similar fees and interest rates, but a balance transfer with a 0 percent promotional period can save you money if you pay it back before the promotion ends.
Can I take a cash advance to pay off another credit card?
Technically yes, but it is expensive. You would pay a cash advance fee on the money you withdraw, then pay interest on it at the cash advance rate — usually higher than your regular purchase rate. A balance transfer is a better option if you want to move money between cards, because it is designed for that purpose and sometimes includes a promotional 0 percent period.