The 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 a cash-like purchase such as buying a money order or gift card. A cash advance is the most direct method: you visit an ATM, bank branch, or convenience store and withdraw money against your credit limit, just as you would with a debit card. Balance transfer checks work differently — your card issuer mails you a check that you deposit into your bank account, and the amount borrowed counts as a balance transfer rather than a cash advance. The third option involves buying something that functions as cash (a money order, wire transfer, or gift card) using your credit card, then converting it back to cash or spending it as needed.

Each method carries different costs and terms. Cash advances typically charge a fee of 3 to 5 percent of the amount withdrawn, plus a higher interest rate than regular purchases — often 20 to 30 percent. Balance transfer checks usually charge a similar fee but may have a lower introductory rate if your card includes a balance transfer promotion. Buying money orders or gift cards avoids the "cash advance" label but still costs money and may trigger cash advance rates depending on how your issuer classifies the transaction.

Key Takeaways

  • Cash advances charge a fee (typically 3 to 5 percent) plus a higher interest rate than purchases, with interest accruing when ready rather than after a grace period.
  • Balance transfer checks offer a slower but sometimes cheaper alternative if your card has a promotional balance transfer rate.
  • Buying money orders, wire transfers, or gift cards with your credit card may avoid the cash advance label but often still trigger cash advance fees and rates.
  • You can withdraw cash at ATMs, bank branches, or convenience stores, but each location may charge its own fee on top of your card issuer's fee.

How cash advances work and what they cost

When you take a cash advance, your credit card issuer charges you a cash advance fee — a percentage of the amount you withdraw, usually between 3 and 5 percent. On a $500 withdrawal, that means $15 to $25 in fees before you even leave the ATM. Some cards cap the fee at a flat dollar amount (for example, $10 maximum), which can be better for small withdrawals but worse for large ones.

The interest rate on a cash advance is separate from your purchase rate and is almost always higher. While a card might charge 18 percent on purchases, it could charge 25 or 30 percent on cash advances. Unlike purchases, which have a grace period (usually 21 to 25 days before interest starts), cash advances begin accruing interest when ready. If you withdraw $500 at a 25 percent rate, you owe roughly $3.42 in interest per day until you pay it back.

The location where you withdraw also matters. An ATM owned by your card issuer's bank typically charges no additional fee, but an out-of-network ATM charges its own fee — often $2 to $3 — on top of your issuer's cash advance fee. A convenience store or grocery store ATM may charge even more. Always check the ATM screen before confirming the withdrawal; it will show you the total fee.

Balance transfer checks as an alternative

Some credit cards come with balance transfer checks — physical checks mailed to you by your issuer that you can deposit into your bank account. The amount you deposit counts as a balance transfer, not a cash advance, which means it may may have access to for a promotional rate if your card offers one. Many cards advertise 0 percent balance transfer rates for 6 to 12 months, which can make this method significantly cheaper than a cash advance if you plan to pay back the money within that window.

Balance transfer checks still charge a fee — typically 3 to 5 percent, the same as a cash advance — but the lower interest rate can save you money over time. If you transfer $1,000 at a 3 percent fee ($30) and a 0 percent promotional rate, you pay only $30 total. The same $1,000 cash advance at a 25 percent rate costs $30 upfront plus roughly $208 in interest over one year, assuming you make no payments.

The downside is speed. Balance transfer checks take 7 to 10 business days to arrive, and you must deposit them into a bank account rather than withdraw cash directly. If you need cash today, this method will not work. Also, once the promotional period ends, any remaining balance reverts to the card's regular balance transfer rate, which is usually the same as the purchase rate but sometimes higher.

Money orders, wire transfers, and gift cards

You can use your credit card to buy a money order, wire transfer, or gift card, then convert those items into cash or spend them as needed. A money order can be cashed at a bank or check-cashing service. A wire transfer can be sent to another bank account. A gift card can be spent at the retailer or sometimes sold to a third party for cash, though usually at a discount.

The problem is that most card issuers classify these purchases as cash-like transactions and explore cash advance fees and rates to them, even though you are not withdrawing cash directly. You may not realize this until you see your statement. Some cards do not charge cash advance fees for money orders or wire transfers, so check your card's terms before you buy. A few cards treat gift card purchases as regular purchases, which means no cash advance fee and a lower interest rate, but this varies widely.

Money orders themselves also cost money — typically $1 to $5 depending on the amount and where you buy them. A $500 money order might cost $3, plus a 3 percent cash advance fee from your card ($15), for a total of $18 in fees. That is comparable to a cash advance but with an extra step and an extra fee.

Where to withdraw cash and what each location charges

You can withdraw a cash advance at an ATM, a bank branch, or a convenience store. An ATM is the fastest option — you insert your card, enter your PIN, and withdraw up to your daily limit, which varies by card but is often $500 to $1,000. A bank branch requires you to speak to a teller and may have longer hours or require you to be a customer of that bank. A convenience store (7-Eleven, for example) may allow cash advances but typically charges a higher fee than an ATM.

Your daily withdrawal limit is set by your card issuer and is separate from your credit limit. If your credit limit is $5,000 but your daily cash advance limit is $500, you can only withdraw $500 per day, even if you have $4,500 available credit. Some issuers allow you to raise this limit by calling customer service, but others do not.

Out-of-network ATM fees add up quickly. If you withdraw $500 from an out-of-network ATM that charges $3, plus a 3 percent cash advance fee from your card ($15), you pay $18 in fees before interest. Using your issuer's own ATM saves you the $3 ATM fee but not the cash advance fee.

When a cash advance makes sense

A cash advance is most useful when you need cash urgently and have no other option — for example, if you are traveling and your debit card is lost, or if you need cash for an emergency and your bank is closed. In these situations, the fee and interest are worth the when ready access to money.

A cash advance makes less sense if you have a debit card, a bank account with an ATM, or access to a personal loan. A personal loan typically charges lower interest (8 to 36 percent depending on your credit) and no cash advance fee, making it cheaper than a credit card cash advance in most cases. A debit card withdrawal costs nothing. Even a payday loan, which is expensive, may be cheaper than a credit card cash advance if you repay it within two weeks.

If you are considering a cash advance to pay off other debt, a balance transfer is usually better. If you are considering it to cover everyday expenses, that is a sign your budget needs adjustment or you need a different form of help — a personal loan, a side income, or a conversation with a financial counselor.

How cash advances affect your credit score

A cash advance itself does not directly lower your credit score, but it can indirectly harm it in two ways. First, it increases your credit utilization — the percentage of your available credit that you are using. If you have a $5,000 credit limit and take a $1,000 cash advance, your utilization jumps to 20 percent. High utilization (above 30 percent) can lower your score. Second, if you carry the cash advance balance and miss payments, late payments will damage your score significantly.

The inquiry your issuer makes when you request a cash advance does not appear on your credit report, so there is no hard inquiry. However, the balance itself shows up on your credit report and counts toward your utilization ratio.

Frequently Asked Questions

Can I take a cash advance if I have a 0 percent purchase rate?

Yes. A 0 percent purchase rate does not explore to cash advances — they have their own interest rate, which is usually 20 to 30 percent. The promotional rate only covers purchases, not cash advances or balance transfers (unless your card specifically offers a 0 percent balance transfer promotion).

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

A cash advance is money you withdraw directly from an ATM or bank. A balance transfer is money you move from one card to another, or in the case of a balance transfer check, money you deposit into a bank account. Both charge fees and interest, but balance transfers sometimes may have access to for promotional rates while cash advances rarely do.

Do I have to pay back a cash advance before my regular purchases?

No. Your entire credit card balance is due on the same date, regardless of whether it includes purchases, cash advances, or balance transfers. However, your issuer applies your payments to the lowest-interest balance first (usually purchases), so cash advance interest keeps accruing while you pay off purchases.

Can I avoid the cash advance fee by withdrawing from my bank?

No. The cash advance fee is charged by your credit card issuer, not by the ATM or bank location. Whether you withdraw from your issuer's own ATM, a different bank, or a convenience store, you still owe the fee. Using your issuer's ATM only saves you the additional ATM operator fee.

Is there a way to get cash from a credit card without paying interest?

Not really. Cash advances charge interest when ready with no grace period. A balance transfer check might have a 0 percent promotional period, but you still pay a 3 to 5 percent upfront fee. The only way to avoid all costs is to use a debit card, withdraw from your bank account, or borrow from a friend.