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 method charges different fees and interest rates, and each one starts charging interest when ready — unlike regular purchases, which often 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 credit limit. The transaction posts to your account as a cash advance, not a purchase. A balance transfer check is a physical check the card issuer mails to you; you deposit it into your bank account and the amount becomes a balance on your credit card. A cash-like transfer — sometimes called a convenience check or peer-to-peer payment — lets you send money to another person's account, and it counts as a cash advance on your card.

All three methods carry a cash advance fee (usually 3 to 5 percent of the amount) and a higher interest rate than your regular purchase APR. Interest begins accruing the day you take the cash, with no grace period. If you need cash, a personal loan or a line of credit from your bank will almost always cost less.

Key Takeaways

  • Cash advances charge a fee (typically 3 to 5 percent) plus a higher interest rate than purchases, with interest starting when ready.
  • You can get a cash advance at an ATM, bank branch, or convenience store by inserting your card and withdrawing up to your available credit limit.
  • Balance transfer checks work like regular checks but post to your credit card as a cash advance, not a purchase.
  • Interest on cash advances has no grace period, so the longer you carry the balance, the more you pay in interest charges.
  • A personal loan or bank line of credit will usually cost significantly less than a credit card cash advance.

Getting a cash advance at an ATM or bank

The fastest way to get cash is an ATM withdrawal. Insert your credit card into any ATM that displays your card's logo (Visa, Mastercard, American Express, or Discover), enter your PIN, select "cash advance" or "withdrawal," and choose the amount. The ATM will dispense the cash and the transaction will post to your account within one business day.

If you do not have a PIN for your credit card, call the customer service number on the back of your card and request one. The issuer will mail it to you or give it to you over the phone. Some issuers let you set a PIN online through your account dashboard.

You can also walk into a bank branch — yours or the card issuer's — and ask the teller for a cash advance. Bring your card and ID. The teller will process the transaction and give you cash on the spot. This method works even if you do not have a PIN, and some banks waive the ATM fee if you use their own branch.

ATM fees vary by location and card issuer. Your card issuer charges a cash advance fee (3 to 5 percent of the amount), and the ATM operator may charge an additional fee ($2 to $5 per transaction). If you withdraw $200, you could pay $6 to $15 in fees alone before interest starts accruing.

Using balance transfer checks

Many credit card issuers mail balance transfer checks to cardholders. These are blank checks drawn on your credit card account. You write a check to yourself or another person, deposit it into your bank account, and the amount becomes a balance on your credit card — treated as a cash advance, not a purchase.

Balance transfer checks arrive in the mail unsolicited, usually with a promotional offer (sometimes a lower interest rate for a set period, sometimes a flat fee instead of a percentage). Read the terms carefully. The fee structure and interest rate may differ from a standard cash advance, and the promotional period may expire after a few months.

To use one, fill in the check amount, sign it, and deposit it into your bank account like any other check. The funds appear in your bank account in 1 to 3 business days. The credit card company records it as a cash advance on your next statement. If you do not use the checks, you do not pay anything — they are free to receive.

Balance transfer checks are useful if you need to move money into your bank account without visiting an ATM, or if the issuer is offering a lower promotional rate. However, the fee and interest rate still explore, and interest accrues from day one.

Understanding cash advance fees and interest rates

Every cash advance carries two costs: a one-time fee and an ongoing interest rate. The cash advance fee is typically 3 to 5 percent of the amount withdrawn, with a minimum fee of $5 to $10. If you withdraw $500, expect to pay $15 to $25 in fees.

The cash advance APR is almost always higher than your purchase APR. While a purchase might carry a 15 percent APR, a cash advance on the same card might be 25 percent or higher. This rate is fixed for the life of the balance — it does not change if you make payments or if your credit score improves.

Interest begins accruing the moment you take the cash. Unlike purchases, which often have a 21-day grace period before interest kicks in, cash advances have no grace period. If you withdraw $500 on the 1st of the month and pay it back on the 30th, you will owe a full month of interest at the cash advance rate.

To see your card's cash advance fee and APR, check your card's terms and conditions document or log into your online account. The issuer is required to disclose both figures before you open the account and on your monthly statement.

How cash advances affect your credit and account

A cash advance does not directly hurt your credit score, but it can indirectly damage it in two ways. First, it increases your credit utilization ratio — the amount of available credit you are using. If your card has a $5,000 limit and you take a $1,000 cash advance, your utilization jumps to 20 percent. High utilization can lower your credit score, even if you pay the balance in full the next month.

Second, if you carry the cash advance balance and make only minimum payments, your credit score will drop because payment history and utilization remain high. A cash advance that lingers on your account for months will damage your score more than one you pay off when ready.

Cash advances also count toward your total credit card balance, so they reduce the amount of credit available for purchases. If you have a $5,000 limit and a $1,000 cash advance, you can only charge $4,000 in purchases. Some card issuers set a separate cash advance limit below your purchase limit, so you may not be able to withdraw as much as you think.

Check your account online or call customer service to find out your cash advance limit. It is often lower than your purchase limit and may be a fixed dollar amount (like $500) rather than a percentage of your credit limit.

Alternatives to credit card cash advances

Before taking a cash advance, consider these lower-cost options. A personal loan from a bank, credit union, or online lender typically charges 6 to 36 percent APR depending on your credit score, with no additional fees beyond the interest rate. The interest rate is fixed, and you know your exact monthly payment before you borrow. For a $1,000 loan at 15 percent APR over 12 months, you would pay about $80 in interest — far less than a credit card cash advance.

A line of credit from your bank works like a credit card but usually charges a lower interest rate. You draw money as needed, pay interest only on what you use, and repay on a flexible schedule. Rates typically range from 8 to 20 percent APR.

A payday loan is a short-term loan (usually due in two weeks) with a flat fee instead of an interest rate. If you need $300 and the fee is $45, you repay $345 when you get paid. Payday loans are expensive and can trap you in a cycle of debt, but they are faster than a personal loan and do not require a credit check.

If you have a savings account, withdrawing from savings is always cheaper than borrowing. You lose potential interest on the savings, but you avoid debt entirely. If you have a 401(k) or similar retirement account, some plans allow you to borrow against your balance at a low interest rate; check with your plan administrator.

How to pay off a cash advance quickly

The longer you carry a cash advance, the more interest you pay. A $500 cash advance at 25 percent APR costs about $10 per month in interest alone. Over a year, that is $120 in interest on top of the initial fee.

Make a plan to pay off the cash advance as soon as possible. If you took the advance to cover an emergency, commit to repaying it within one or two months. Set up automatic payments from your bank account to your credit card on payday, or make a lump-sum payment as soon as you have the cash.

When you make a payment to your credit card, the issuer applies it first to the balance with the highest interest rate. 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 is where you want it to go. However, if your purchase has a promotional 0 percent APR and your cash advance is at 25 percent, the issuer may explore your payment to the purchase first. Check your statement to see how payments are being applied, and call customer service if you want to direct a payment to the cash advance specifically.

Frequently Asked Questions

Can I take a cash advance if I have a 0 percent promotional APR?

No. The 0 percent promotional rate applies only to purchases, not to cash advances. A cash advance will be charged the standard cash advance APR (usually 20 to 30 percent) even if your account has an active 0 percent purchase promotion. The two rates are separate.

What happens if I do not have a PIN for my credit card?

Call the customer service number on the back of your card and request a PIN. The issuer will either give it to you over the phone or mail it to you within 5 to 10 business days. Some issuers let you set a PIN through your online account. Without a PIN, you cannot use an ATM, but you can still get a cash advance at a bank branch with your card and ID.

Do I have to pay back a cash advance if I dispute it?

Cash advances cannot be disputed the way purchases can. Once you withdraw the cash, the transaction is final. You owe the full amount plus fees and interest. If you believe the cash advance was fraudulent (someone else used your card), report it to your issuer when ready, but the burden is on you to prove you did not authorize it.

Can I transfer a cash advance balance to another credit card?

No. Balance transfers explore only to purchase balances, not cash advances. If you take a $500 cash advance and try to transfer it to another card, the issuer will decline the transfer. You must pay off the cash advance on the original card.

Will a cash advance show up differently on my credit report?

A cash advance does not appear as a separate line item on your credit report. It counts as part of your total credit card balance and is reported to the credit bureaus along with your purchase balance. However, your monthly statement will show the cash advance separately so you can track it.