The three 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, a balance transfer check, or a cash-like payment to yourself through a peer-to-peer app. Each one costs you differently and works on a different timeline. A cash advance is the fastest but the most expensive. A balance transfer check takes a few days to arrive but may have a lower fee. A peer transfer is cheapest if your card offers it, but not all do.

The key thing to know upfront: getting cash from a credit card is not the same as using a debit card. Your credit card company treats it as a loan, not a withdrawal from your own money. You will pay interest on that cash when ready — usually at a higher rate than you pay on purchases — and you may also pay an upfront fee.

Key Takeaways

  • Cash advances charge interest from day one with no grace period, unlike purchases, and the interest rate is typically 3 to 5 percentage points higher than your purchase rate.
  • A cash advance fee is usually 3 to 5 percent of the amount you withdraw, charged upfront at the ATM or when you request the cash.
  • Balance transfer checks work like regular checks but draw from your credit line, and they may offer a lower fee or promotional rate if you transfer within a certain window.
  • Peer-to-peer transfers through apps like PayPal or Square Cash may have no fee at all if your card is linked, but not every card issuer supports this method.
  • The total cost of getting cash from a credit card is almost always higher than using a debit card or bank account, so use it only when you have no other option.

Cash advances at an ATM or bank branch

A cash advance is the most straightforward way to get cash. You go to an ATM or walk into a bank branch, insert your credit card, enter your PIN, and withdraw money just as you would from a checking account. The money appears in your account within minutes. Your credit card company then treats that withdrawal as a loan you owe them.

The cost is when ready and steep. You pay a cash advance fee right at the ATM — typically 3 to 5 percent of the amount you withdraw, though some cards charge a flat fee instead (often $5 to $10). On top of that, interest starts accruing the same day. There is no grace period like there is for purchases. If you withdraw $500 at a 3 percent fee, you pay $15 when ready, and then interest begins building on the full $515.

The interest rate on cash advances is also higher than your purchase rate. Where your regular purchases might carry an 18 percent annual rate, cash advances often run 21 to 25 percent or higher. This rate is set by your card issuer and appears in your card's terms. Check your card's disclosure document or call the number on the back to find out what your cash advance rate is before you withdraw.

Balance transfer checks

Some credit card companies send you checks that draw directly from your credit line. These are called balance transfer checks. You write one like a regular check, and the amount is charged to your credit card as a cash advance. They typically arrive in the mail within a week of your account opening or when the card issuer sends them to you.

Balance transfer checks often come with a lower fee than ATM cash advances — sometimes 1 to 3 percent instead of 3 to 5 percent. Some card issuers also offer a promotional period where the interest rate is lower than the standard cash advance rate, or even 0 percent for a set number of months. Read the offer that came with your checks carefully. The promotional rate applies only if you use the checks within a certain window, often 60 days from when they were mailed.

The downside is the delay. You have to wait for the checks to arrive, write one out, and deposit or cash it. If you need money today, this method will not work. Also, once you deposit the check, the interest clock starts ticking just as it does with an ATM withdrawal. The lower fee and possible promotional rate make this worth considering if you have a few days to wait and you know you will carry a balance for a while.

Peer-to-peer transfers and payment apps

Some credit cards can be linked to peer-to-peer payment apps like PayPal, Square Cash, or Venmo. You can send money to yourself or a trusted contact, and the app treats it as a cash advance on your credit card. The money lands in your bank account or the app's wallet within hours or a day.

The advantage is cost: many of these transfers have no fee at all, or a fee much lower than an ATM advance. However, interest still starts accruing when ready at your card's cash advance rate. Also, not every card issuer allows this. Some treat peer transfers as regular purchases (which would have a grace period and lower rate), while others block them entirely. Before you try this method, contact your card issuer or check your online account to see whether peer transfers are treated as cash advances or purchases.

How much you can withdraw

Your credit card company sets a cash advance limit that is separate from your overall credit limit. You might have a $5,000 credit limit but only a $1,000 cash advance limit. This limit varies by card and by your creditworthiness. Some cards set it at 20 to 30 percent of your credit limit; others set it lower.

You can find your cash advance limit in your online account, on your statement, or by calling the number on the back of your card. If you need to withdraw more than your limit allows, you can request an increase, though the card issuer is not required to grant it. Keep in mind that using your cash advance limit counts against your overall available credit, so withdrawing $1,000 in cash reduces your purchasing power by $1,000.

The real cost of a credit card cash advance

To see why cash advances are expensive, work through an example. You withdraw $500 at a 4 percent fee and a 22 percent annual interest rate. You pay $20 upfront. If you pay back the $520 over three months, you will pay roughly $28 in interest on top of the fee. Your total cost is $48, or about 9.6 percent of the amount you borrowed. That is far higher than a personal loan, a payday loan from a credit union, or even a high-interest savings account withdrawal.

The longer you carry the balance, the worse it gets. If you take six months to pay back that same $500, the interest alone climbs to around $57, plus the original $20 fee. Now you have paid $77 to borrow $500 — a 15.4 percent cost. This is why financial advisors recommend using a credit card cash advance only as a last resort, when you have exhausted other options like borrowing from family, using a personal loan, or asking your employer for an advance.

Alternatives to a credit card cash advance

Before you withdraw cash from your credit card, consider these lower-cost options. A personal loan from a bank or credit union typically carries a lower interest rate and has a fixed repayment schedule, so you know exactly what you will pay. A payday loan from a credit union (not a payday lender) is short-term and expensive, but often cheaper than a credit card cash advance if you repay it within two weeks. Borrowing from family or friends costs nothing if they agree to it, though it can complicate relationships.

If you need cash for an emergency, some employers offer paycheck advances or loans through their employee information program. Some nonprofits and community organizations also offer emergency cash information or interest-free loans. Before you use your credit card, make a few calls to see what is available in your area.

Frequently Asked Questions

Does a cash advance hurt my credit score?

A cash advance itself does not hurt your score, 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 $500 in cash, your utilization jumps from 0 to 10 percent. High utilization can lower your score slightly. The bigger risk is missing a payment on the cash advance balance, which will damage your score significantly.

Can I get a cash advance from a credit card I just opened?

Most card issuers allow cash advances when ready after you open an account, but some wait 30 days. Check your card's terms or call the issuer to confirm. Even if you can withdraw cash right away, you should wait until you understand the full cost before you do.

What if I can't pay back the cash advance?

If you cannot pay back a cash advance, the balance will accrue interest and may be reported to credit bureaus if you miss payments. Contact your card issuer as soon as you know you will be late. Some issuers offer hardship programs that lower your interest rate or pause payments temporarily, though these programs vary widely.

Is there a grace period for cash advances like there is for purchases?

No. Interest on a cash advance starts accruing the day you withdraw it. There is no grace period, even if you pay your full statement balance by the due date. This is one of the biggest differences between a cash advance and a regular purchase.

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

Some balance transfer offers cover cash advances, but most do not. A balance transfer typically applies only to existing credit card balances, not to cash advances. Read the terms of any balance transfer offer carefully before you assume it will cover a cash advance you took out.