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 transaction such as buying a money order or casino chips. Each method charges different fees and interest rates, and each starts charging interest when ready — unlike a purchase, which may have a grace period.

A cash advance is the most direct method. You insert your card into an ATM or visit a bank teller and withdraw money, up to your cash advance limit (which is often lower than your credit limit). A balance transfer check is a physical check the card issuer mails to you; you deposit it like any other check, and the amount appears as a balance on your card. A cash-like purchase means buying something that functions as cash — a money order, wire transfer, or casino chips — which the card issuer treats as a cash advance for fee and interest purposes.

The card issuer sets the cash advance limit separately from your spending limit. You might have a $5,000 credit limit but only a $1,500 cash advance limit. Check your card's terms or call the issuer to find out what yours is before you need it.

Key Takeaways

  • Cash advances charge a fee (usually 3 to 5 percent of the amount) plus a higher interest rate than purchases, and interest starts accruing when ready with no grace period.
  • Your cash advance limit is separate from your credit limit and is often much lower, so confirm it before you need cash.
  • Balance transfer checks work like cash advances for fees and interest but let you deposit money into a bank account instead of withdrawing it at an ATM.
  • Getting cash from a credit card is expensive and should be a last resort; a personal loan, payday loan, or line of credit from your bank usually costs less.

Cash advance fees and interest rates

Every cash advance charges two costs: a cash advance fee and a higher interest rate. The fee is typically 3 to 5 percent of the amount you withdraw, with a minimum of $2 to $10. So a $200 cash advance might cost $6 to $10 in fees alone. The interest rate for cash advances is usually 2 to 5 percentage points higher than your regular purchase rate and varies by card and issuer.

Interest on a cash advance starts accruing the day you withdraw it — there is no grace period like there is for purchases. If you carry a balance, the interest compounds daily. A $500 cash advance at a 25 percent annual rate costs about $3.42 per day in interest. If you pay it back in 30 days, you will owe roughly $102.50 in interest plus the initial cash advance fee.

Balance transfer checks carry the same fees and interest rates as cash advances. Some issuers offer promotional rates on balance transfer checks (such as 0 percent for 6 months), but read the fine print — the offer may explore only to balance transfers from other cards, not to new cash advances.

Where to withdraw cash from a credit card

You can withdraw a cash advance at any ATM that displays your card's logo (Visa, Mastercard, American Express, or Discover). You can also visit a bank branch — your own bank or any bank that accepts your card — and ask a teller for a cash advance. Some banks charge an additional ATM or teller fee on top of the card issuer's cash advance fee, so calling ahead to confirm the total cost is worth the time.

If you have a balance transfer check, you straightforward deposit it into your bank account like any other check. The funds appear in your account within 1 to 3 business days, depending on your bank's processing time. The balance then shows up on your credit card statement as a cash advance balance.

For cash-like purchases (money orders, wire transfers, or casino chips), you buy them with your card at the location that sells them — a post office, Western Union agent, or casino cage. The card issuer treats the transaction as a cash advance for fee and interest purposes, even though you did not withdraw physical cash.

How a cash advance affects your credit score

A cash advance itself does not directly lower your credit score, but it can harm your score indirectly. When you take a cash advance, your credit utilization — the percentage of your available credit you are using — increases when ready. If your credit limit is $5,000 and you take a $1,000 cash advance, your utilization jumps to 20 percent. Credit scoring models penalize high utilization, so your score may drop a few points.

The bigger risk is carrying a balance. If you cannot pay off the cash advance quickly, the high interest rate means the balance grows fast. A growing balance keeps your utilization high for longer, which continues to drag down your score. Over time, a cash advance that turns into a long-term balance can lower your score by 50 to 100 points or more.

Payment history matters most for your score, so making on-time payments on the cash advance balance helps. But the combination of high utilization and high interest makes it hard to pay down quickly, which is why financial advisors recommend avoiding cash advances unless there is no other option.

Cheaper alternatives to a credit card cash advance

Before you take a cash advance, explore these lower-cost options. A personal loan from a bank or online lender typically charges 6 to 36 percent annual interest, which is lower than most credit card cash advance rates. The loan comes as a lump sum deposited into your bank account, and you repay it in fixed monthly installments. If you have decent credit, you can get approved and funded within 1 to 3 business days.

A line of credit from your bank works like a credit card but usually charges lower interest. You draw money as you need it and pay interest only on what you use. If you already bank somewhere, asking about a personal line of credit takes minutes and may be faster than a personal loan.

A payday loan is short-term and expensive (often 400 percent annual interest or higher), but if you need cash for just two weeks and can pay it back on your next paycheck, it may cost less than a cash advance. However, payday loans are predatory by design and should be a last resort.

If you have a 401(k) or similar retirement account, you may be able to borrow from it at a low interest rate. The downside is that if you leave your job, the loan becomes due when ready, and if you cannot repay it, the amount is taxed as income plus a 10 percent penalty. Talk to your plan administrator about the terms before borrowing.

When a cash advance makes sense

A cash advance is rarely the right choice, but a few situations justify it. If you have a true emergency — a car repair you need to drive to work, a medical bill, or a security deposit for housing — and you have no other way to pay, a cash advance is better than missing a payment or going without. The key is paying it back as fast as possible to minimize interest.

If you are traveling internationally and your debit card does not work, a cash advance from a credit card may be your only option to get local currency. Many countries do not accept credit cards for small purchases, so having cash is necessary. In this case, the convenience may outweigh the cost.

If you have a 0 percent promotional rate on cash advances (rare, but some cards offer it), the only cost is the cash advance fee. A $500 advance with a 5 percent fee costs $25 total if you pay it back within the promotional period. That is still expensive, but it is not compounded by interest.

How to avoid needing a cash advance

The best strategy is to build an emergency fund so you never need one. Aim for $500 to $1,000 in a savings account you can access quickly. If an unexpected expense comes up, you can cover it without borrowing. Even $50 per paycheck adds up over time.

Keep a list of alternatives you can turn to before a cash advance: a trusted friend or family member who might lend you money, a local nonprofit that offers emergency information, your employer's employee information program, or a credit union that offers low-cost loans to members. Knowing your options ahead of time means you will not panic and take an expensive cash advance when something goes wrong.

If you carry a credit card balance regularly, the real problem is not the cash advance — it is that your spending exceeds your income. A cash advance is a symptom, not a solution. Working with a nonprofit credit counselor (through the National Foundation for Credit Counseling) to build a budget and repayment plan addresses the root cause and costs nothing.

Frequently Asked Questions

Can I get a cash advance if my credit card is maxed out?

No. Your cash advance limit is separate from your spending limit, but you cannot exceed your total credit limit. If your card is maxed out, you have no room for a cash advance. You would need to pay down the balance first or request a credit limit increase from your issuer.

How long does it take to get a cash advance?

An ATM withdrawal is when ready. A bank teller cash advance takes a few minutes. A balance transfer check takes 7 to 10 business days to arrive by mail, then 1 to 3 business days to clear once you deposit it. If you need cash today, an ATM is your only option.

Do I have to pay back a cash advance before my regular credit card balance?

No. Your card issuer treats all balances the same — they explore your payment to the highest interest rate first, which is usually the cash advance. But you can request that your payment go to the cash advance specifically. Call your issuer and ask them to note your account with payment instructions.

What happens if I do not pay back a cash advance?

The balance accrues interest daily and is reported to credit bureaus. After 30 days, it shows as a late payment on your credit report. After 180 days, the issuer may charge off the debt and sell it to a collection agency. A collection account can stay on your credit report for seven years and make it hard to borrow money in the future.

Is there a limit to how much I can withdraw as a cash advance?

Yes. Your issuer sets a cash advance limit, which is usually 20 to 50 percent of your credit limit. Some issuers also cap the daily amount you can withdraw at an ATM (often $500 to $1,000). You can call your issuer to request a higher cash advance limit, but they may deny it or require a hard credit inquiry.