Three ways to pull cash from a credit card
You can get cash from a credit card through a cash advance, a balance transfer check, or by using a peer-to-peer payment app that lets you move money to your bank account. Each method charges different fees and interest rates, and each one starts accruing interest immediately — unlike a purchase, which may have a grace period.
A cash advance is the most direct route: you go to an ATM or bank teller, use your credit card, and withdraw cash. Balance transfer checks work like regular checks but draw from your credit line instead of a bank account. Payment apps like Venmo or PayPal let you send money to yourself or receive it from someone else, then withdraw to your bank account, though this is slower and may trigger cash advance fees depending on your card's terms.
The catch is cost. Cash advances typically charge a fee of 3% to 5% of the amount withdrawn, plus a higher interest rate than purchases — often 20% to 25% annually. That interest starts accruing the day you withdraw, with no grace period. If you need cash, a personal loan or a line of credit from your bank will almost always be cheaper.
Key Takeaways
- Cash advances charge an upfront fee (usually 3% to 5%) plus a higher interest rate than purchases, with interest accruing immediately.
- Balance transfer checks work like regular checks but draw from your credit card and carry the same fees and rates as cash advances.
- Interest on a cash advance starts the day you withdraw, not after a grace period, so the cost grows quickly even if you pay back fast.
- Your credit card's terms determine whether payment apps count as cash advances or regular purchases, so check your cardholder agreement before using one.
Cash advances at ATMs and bank tellers
To withdraw cash at an ATM, insert your credit card and enter your PIN. The ATM will show your available credit limit and let you choose an amount. The transaction posts to your account as a cash advance, not a purchase. Most cards allow you to withdraw up to 20% to 30% of your credit limit, though some allow less.
At a bank teller, you can also request a cash advance by showing your credit card and ID. The teller will process it the same way an ATM does. Some banks charge an additional teller fee on top of the cash advance fee your card issuer charges, so ask before you proceed.
The fee hits your account immediately. If you withdraw $500 with a 4% fee, you owe $20 right away, plus interest on the full $520 from that day forward. If you pay back the $500 in 30 days, you will still owe interest for those 30 days at the higher cash advance rate — typically 22% to 25% annually. On $500, that is roughly $27 to $31 in interest alone, plus the $20 fee.
Balance transfer checks and how they work
Your credit card issuer may mail you checks that draw directly from your credit line. These are called balance transfer checks or convenience checks. You write one like a regular check, deposit it in your bank account, and the amount is charged to your credit card as a cash advance.
Balance transfer checks carry the same fees and interest rates as ATM cash advances — typically 3% to 5% upfront, plus 20% to 25% annual interest with no grace period. Some cards offer a lower promotional rate on balance transfers for a set period (often 6 to 12 months), but that rate applies only to actual balance transfers between cards, not to checks.
The advantage is convenience: you can deposit the check into your bank account without visiting an ATM or bank branch. The disadvantage is that you may not receive the checks until weeks after your card is opened, and some issuers stop sending them if you do not use them. If you receive them, read the terms printed on the check itself — they may differ slightly from your card's standard cash advance terms.
Using payment apps to move money
Apps like Venmo, PayPal, Square Cash, and others let you send money to another person or to yourself. If you send money to a friend and they send it back, or if you transfer it to your own bank account, you may be able to convert credit card balance into cash. However, most payment apps now flag these transfers as cash advances and charge the same fees and rates as an ATM withdrawal.
Before you use a payment app, check your credit card's terms to see whether it treats the app as a cash advance or a regular purchase. Some cards still classify app transfers as purchases with a grace period and lower interest rate, but this is becoming rare. Call your card issuer or log into your online account to confirm.
Even if the app does not charge a fee, your credit card issuer will. And the transfer takes 1 to 3 business days to reach your bank account, so this is not a fast way to get cash. If you need money today, an ATM is faster.
How interest and fees add up over time
A $1,000 cash advance with a 4% fee costs $40 upfront. If your cash advance rate is 24% annually and you pay back $200 per month, here is what you owe:
| Month | Balance at start | Interest charged | Payment | Balance at end |
|---|---|---|---|---|
| 1 | $1,040 | $20.80 | $200 | $860.80 |
| 2 | $860.80 | $17.22 | $200 | $678.02 |
| 3 | $678.02 | $13.56 | $200 | $491.58 |
| 4 | $491.58 | $9.83 | $200 | $301.41 |
| 5 | $301.41 | $6.03 | $200 | $107.44 |
| 6 | $107.44 | $2.15 | $109.59 | $0 |
Total paid: $1,109.59. Total cost: $109.59 (the $40 fee plus $69.59 in interest). If you only pay the minimum (usually 1% to 3% of the balance), the cash advance will take years to pay off and cost far more.
Alternatives to cash advances
A personal loan from a bank or credit union typically charges 6% to 36% annual interest, depending on your credit score. Even at the high end, this is cheaper than a cash advance. You borrow a fixed amount, make fixed monthly payments, and know exactly when you will be done. Most personal loans fund within 1 to 3 business days.
A line of credit from your bank works like a credit card but usually charges lower interest rates and no cash advance fees. You draw what you need and pay interest only on what you use. Some banks offer these to customers with good standing and will approve you in a day or two.
A payday loan is faster (often same-day) but far more expensive — typically 400% annual interest or higher. Use this only if you need cash for a true emergency and can pay it back within two weeks.
If you have a 401(k) or similar retirement account, you may be able to borrow against it at a low interest rate, though this has tax consequences if you do not repay on time. Ask your plan administrator about the terms.
How cash advances affect your credit score
A cash advance does not hurt your credit score directly, but it does increase your credit utilization — the percentage of your available credit you are using. If you have a $5,000 limit and withdraw $1,000, your utilization jumps to 20%. High utilization (above 30%) can lower your score by 10 to 50 points, depending on your current score and credit history.
The damage is temporary. Once you pay back the cash advance, your utilization drops and your score recovers. But while the balance is outstanding, your score will be lower, which can affect your ability to get approved for new credit or get better interest rates.
A cash advance also appears on your credit report as a separate transaction type, which some lenders view as riskier than a regular purchase. This does not directly lower your score, but it may make lenders less willing to approve you for a mortgage, auto loan, or other large credit product.
Frequently Asked Questions
Can I get a cash advance if my credit card is maxed out?
No. A cash advance draws from your available credit, not your total limit. If you have used your entire limit, you cannot withdraw cash until you pay down the balance. Some cards let you request a credit limit increase, which would give you more available credit to borrow against.
What is the difference between a cash advance and a balance transfer?
A cash advance gives you cash in hand. A balance transfer moves debt from one card to another. Both charge fees and interest, but a balance transfer sometimes offers a lower promotional rate for a set period. A cash advance never has a promotional rate — the interest starts at the full rate immediately.
Do I have to pay back a cash advance before my regular purchases?
No. Your card issuer applies your payment to whichever balance has the highest interest rate first (usually the cash advance), but you owe the full amount on both. If you only pay the minimum, the cash advance will take longer to clear because interest keeps accruing.
Can I avoid the cash advance fee by using a payment app?
Most payment apps now treat transfers as cash advances, so you will pay the fee regardless. Some older cards still classify app transfers as purchases, but this is rare. Check your cardholder agreement or call your issuer to confirm before you transfer money.
How long does a cash advance take to show up in my bank account?
An ATM withdrawal is instant. A check deposit takes 1 to 3 business days. A payment app transfer takes 1 to 3 business days. If you need cash today, use an ATM. If you can wait a few days, a personal loan or line of credit is usually cheaper.