The main 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 transaction such as buying a money order or casino chips. Each method charges different fees and interest rates, and each one starts costing you money immediately — unlike a purchase, which may have a grace period.

A cash advance is the most direct route. You go to an ATM, bank, or convenience store, insert your card, and withdraw cash up to your card's cash advance limit (which is usually lower than your credit limit). The transaction posts to your account within one business 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 arrive in 3 to 5 business days. A cash-like purchase — such as buying a money order, wire transfer, or casino chips — counts as a cash advance for fee and interest purposes, even though you are technically buying something.

Key Takeaways

  • Cash advances charge an upfront fee (typically 3 to 5 percent of the amount) plus a higher interest rate than purchases, with interest starting immediately and no grace period.
  • Balance transfers to a bank account work the same way as cash advances for fees and interest, but take 3 to 5 business days instead of being instant.
  • Transactions that look like purchases but function as cash — money orders, wire transfers, casino chips, cryptocurrency buys — are treated as cash advances by your card issuer.
  • Some cards offer a 0 percent introductory rate on balance transfers, but this does not cover cash advances or cash-like transactions.
  • The cheapest way to get cash is usually a personal loan, a line of credit, or borrowing from a friend, because credit card cash access is designed to be expensive.

Cash advance fees and interest rates

Every cash advance charges two costs: an upfront fee and a higher interest rate. The upfront fee is typically 3 to 5 percent of the amount you withdraw, with a minimum of $2 to $10 per transaction. So a $500 cash advance costs $15 to $25 just to take it out. This fee appears on your statement as a separate line item.

The interest rate on a cash advance is higher than the rate on purchases — often 2 to 5 percentage points higher. If your purchase APR is 18 percent, your cash advance APR might be 23 percent. Interest starts accruing the day you withdraw the cash; there is no grace period. This means a $500 cash advance at 23 percent APR costs you roughly $9.58 per month in interest alone, on top of the upfront fee.

Your card issuer applies your monthly payment to balances in a specific order, usually purchases first, then balance transfers, then cash advances last. This means if you carry a purchase balance and a cash advance balance, your payment goes toward the purchase first, and the cash advance keeps accruing interest at the higher rate for longer.

Balance transfers to a bank account

A balance transfer moves money from your credit card directly into a checking or savings account. You request it through your card issuer's website or app, provide your bank account details, and the funds arrive in 3 to 5 business days. The fee and interest rate are identical to a cash advance — typically 3 to 5 percent upfront plus a higher APR with no grace period.

The main advantage of a balance transfer over an ATM cash advance is that you avoid the ATM fee (which your bank may also charge on top of the card issuer's fee). The main disadvantage is the wait: if you need cash today, a balance transfer does not help. Some card issuers limit how much you can transfer per transaction or per month, so check your account before you plan to move a large amount.

Do not confuse a balance transfer to a bank account with a balance transfer between credit cards. A balance transfer between cards (moving a purchase balance from one card to another) sometimes comes with a 0 percent introductory rate. A balance transfer to a bank account does not — it is treated as a cash advance and charges the cash advance fee and rate from day one.

Cash-like transactions that count as cash advances

Your card issuer treats certain purchases as cash advances for fee and interest purposes, even though you are buying something tangible. These include money orders, wire transfers, casino chips or gambling transactions, cryptocurrency purchases, and lottery tickets. The transaction posts as a purchase, but the fee and interest rate applied are the cash advance fee and rate.

This matters because you might not realize you are paying cash advance rates. If you buy a $200 money order to pay a bill, you are charged a 3 to 5 percent fee ($6 to $10) plus the higher cash advance APR, not the purchase APR. The same applies to sending money through a wire transfer service or buying Bitcoin with your card.

Your card's terms document lists which transactions count as cash advances. If you are unsure whether something will be treated as a cash advance, call your card issuer before you make the transaction — the fee difference can be substantial on larger amounts.

How to minimize the cost of getting cash

If you need cash and have a credit card, the lowest-cost option is usually not to use the card at all. A personal loan from a bank or credit union typically charges 6 to 36 percent APR with no upfront fee, which is cheaper than a credit card cash advance. A line of credit works similarly. If you have a friend or family member who can lend you money interest-free, that is always the cheapest option.

If you must use your credit card, a balance transfer to a bank account is slightly cheaper than an ATM cash advance because you avoid the ATM operator fee (usually $2 to $3). Both charge the card issuer's cash advance fee and rate, but the balance transfer saves the ATM fee. Request the transfer through your card's app or website rather than calling, which is usually faster.

If you carry a purchase balance on the same card, pay down the purchase balance first before taking a cash advance. Because payments are applied to purchases before cash advances, a cash advance will sit at the higher rate longer if you have other balances on the card. Alternatively, use a different card for the cash advance if you have one with a lower cash advance APR.

Cash advance limits and how they work

Your card issuer sets a cash advance limit separate from your credit limit. This limit is typically 20 to 50 percent of your credit limit, though it varies by card and issuer. So if your credit limit is $5,000, your cash advance limit might be $1,000 to $2,500. You cannot withdraw more than this limit in a single transaction or rolling period.

The cash advance limit is not a spending limit — it is a borrowing limit specific to cash. You can spend your full credit limit on purchases, but you can only withdraw up to your cash advance limit as cash. Your card issuer sets this limit lower because cash advances are riskier for them (they cannot repossess cash the way they can dispute a purchase).

You can request a higher cash advance limit by calling your card issuer, but they may decline if your account is new or if your credit score has dropped. Some card issuers allow you to set your own cash advance limit lower than the default, which is useful if you want to prevent accidental cash advances.

Frequently Asked Questions

Does a cash advance hurt my credit score?

A cash advance itself does not hurt your score, but carrying a high balance does. If you take a $500 cash advance and pay it back in full the next month, your score is not affected. If you carry the balance and let it accrue interest, the higher utilization ratio (the amount you owe divided by your credit limit) will lower your score slightly. The effect is temporary and reverses once you pay the balance down.

Can I use a credit card to withdraw cash at any ATM?

Most ATMs accept credit cards, but not all. Bank ATMs and ATMs in convenience stores usually accept Visa and Mastercard. Some ATMs in other countries or specialized locations may not. Your card issuer's app usually shows ATM locations that accept your card. Using an out-of-network ATM charges both your card issuer's cash advance fee and the ATM operator's fee, which can be $2 to $5 extra.

What happens if I take a cash advance and then lose my job?

You are still responsible for paying back the cash advance plus interest and fees. If you cannot pay, the balance will accrue interest and may be reported to credit bureaus, damaging your credit score. If you are facing hardship, contact your card issuer to discuss a hardship program or payment plan — many issuers offer temporary interest rate reductions or payment deferrals for customers in financial difficulty.

Is a cash advance the same as a payday loan?

No. A payday loan is a short-term loan from a lender (not your credit card company) that you repay in full on your next payday, usually within two weeks. Payday loans charge much higher fees and interest rates than credit card cash advances, often 400 percent APR or higher. A credit card cash advance is cheaper and more flexible — you can repay it over time rather than in one lump sum.

Can I transfer a cash advance balance to a different card?

Yes, but it will be treated as a balance transfer to a new card, which charges a balance transfer fee (typically 3 to 5 percent). So you would pay the original cash advance fee plus a new balance transfer fee, making it more expensive than just paying off the original cash advance. This strategy only makes sense if the new card offers a 0 percent balance transfer rate and the savings from that rate outweigh the transfer fee.