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 check, or a cash-like payment to someone else's account. Each one charges you differently and starts charging interest when ready — unlike a purchase, which usually has a grace period. Cash advances are the most common route, but they are also the most expensive.

Before you use any of these methods, understand that you will pay more than if you had used the card to buy something. A cash advance from your card issuer typically costs a fee of 3% to 5% of the amount you withdraw, plus a higher interest rate than your purchase rate. That fee hits your account right away, and interest starts accruing the same day — there is no grace period like there is for purchases.

Key Takeaways

  • Cash advances charge a fee (usually 3% to 5%) plus a higher interest rate than purchases, with interest starting when ready and no grace period.
  • Balance transfer checks work like a cash advance but may have a lower fee if your card offers them; check your card's terms to see if this option exists.
  • ATM withdrawals and bank teller withdrawals both count as cash advances and carry the same fees and interest rates.
  • The interest rate on a cash advance is separate from your purchase rate and is often 5% to 10% higher, so the total cost adds up quickly.

Cash advances at an ATM or bank teller

A cash advance at an ATM is the fastest way to get cash from your credit card. You insert your card, enter your PIN (which you may need to set up first if you have never used it), and withdraw money up to your daily limit. Your card issuer sets this limit, which is often lower than your credit limit — commonly $500 to $1,000 per day, though it varies by card and issuer.

You can also walk into a bank branch and ask a teller for a cash advance. The process is the same: you show your card and ID, and they give you cash. Some banks charge an additional fee for this service on top of the cash advance fee your card issuer charges, so calling ahead to ask is worth your time.

The fee structure is where the cost becomes real. Your card issuer charges a cash advance fee — typically 3% to 5% of the amount you withdraw — charged to your account when ready. On top of that, the interest rate on the cash advance is higher than your purchase rate. If your purchase APR is 18%, your cash advance APR might be 23% or 25%. Interest starts accruing the day you withdraw the cash, with no grace period.

Balance transfer checks

Some credit cards come with balance transfer checks in the mail. These checks let you write a check against your credit card account and deposit it into your bank account. From your bank's perspective, it is a regular check deposit. From your credit card's perspective, it is a cash advance.

Balance transfer checks sometimes have a lower fee than an ATM cash advance — you might see 1% to 3% instead of 3% to 5% — but not always. Check your card's terms or call your issuer to find out what fee applies to these checks. Interest still starts when ready, and the rate is usually the same as your cash advance APR, not your purchase APR.

The advantage is convenience: you can deposit the check into your bank account and use the money however you want, without visiting an ATM or bank branch. The disadvantage is that you have to wait for the check to clear, which usually takes 1 to 3 business days. If you need cash today, this method will not work.

What the total cost looks like in real numbers

Here is an example of how quickly the cost adds up. Suppose you withdraw $500 from your credit card at an ATM. Your card charges a 4% cash advance fee, which is $20. Your cash advance APR is 24%. After one month, you owe $10 in interest on the $500 (plus the $20 fee is still there). After three months without paying it back, you owe roughly $30 in interest. If you only make minimum payments, the cash advance can take years to pay off, and you will pay far more in interest than the original $500.

Compare that to a purchase: if you bought something for $500 on the same card, you would pay no fee and no interest for the first 21 to 25 days (depending on your card's grace period). Even after the grace period ends, you would pay the lower purchase APR, not the higher cash advance rate.

Alternatives to consider before using a cash advance

A cash advance should be a last resort because the cost is high and the interest starts when ready. Before you use one, consider whether you can use your card to make a purchase instead. If you need cash to pay someone, ask whether they accept a credit card payment or a transfer through a payment app like Venmo or PayPal. Many do, and you will avoid the cash advance fees and higher interest rate.

If you genuinely need cash and have other options — a personal loan from a bank, a loan from a credit union, or a short-term loan from a friend or family member — those are usually cheaper than a cash advance. A personal loan from a bank or credit union typically charges a lower interest rate and does not charge an upfront fee like a cash advance does.

If you find yourself needing cash advances regularly, that is a sign that your budget has a gap. Consider talking to a credit counselor (many nonprofits offer this for free) about how to close that gap so you do not have to rely on expensive borrowing.

How a cash advance affects your credit score

A cash advance does not hurt your credit score in the moment you take it out. However, it does increase your credit utilization — the percentage of your available credit that you are using. If you have a $5,000 credit limit and you take out a $500 cash advance, your utilization jumps to 10%. Credit scoring models treat cash advances the same as purchases when calculating utilization, so a large cash advance can lower your score by a few points.

The bigger risk is if you carry the cash advance balance for months. The longer you carry it, the more interest you pay, and the higher your utilization stays. If your utilization stays high, your score will stay lower. Paying off the cash advance quickly — ideally within a month or two — keeps this damage minimal.

Frequently Asked Questions

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

Technically yes, but it is almost always a bad idea. You would be paying a cash advance fee (3% to 5%) plus a higher interest rate to move money from one card to another. A balance transfer — moving a purchase balance from one card to another — is much cheaper and is designed for this purpose. If you are trying to consolidate debt, a balance transfer or a personal loan is a better choice.

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

A balance transfer moves an existing balance from one credit card to another, usually with a lower fee (often 0% to 3%) and sometimes a lower interest rate for a set period. A cash advance gives you cash in hand, charges a higher fee (3% to 5%), and charges a higher interest rate from day one. Balance transfers are for moving debt; cash advances are for getting cash.

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

No, but you should. Like any credit card balance, a cash advance has a minimum payment, usually 1% to 3% of the balance. You can pay just the minimum, but interest will keep accruing at your cash advance APR. The longer you carry it, the more you pay in total interest. Paying it off within a month or two keeps the total cost much lower.

Will my credit card issuer let me take out a cash advance if I am close to my credit limit?

Your cash advance limit is separate from your credit limit, so you might be able to take out a cash advance even if you are near your credit limit. However, the cash advance will count toward your credit limit, so it will increase your utilization. Call your issuer to find out your cash advance limit before you try to withdraw money.

Can I get a cash advance with a debit card?

No. Debit cards draw money directly from your bank account, so there is nothing to advance. If you need cash and have a debit card, you can withdraw money from an ATM using your debit card for free (at ATMs in your bank's network) or for a small fee (at out-of-network ATMs). This is much cheaper than a credit card cash advance.