The main ways to take money out of 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 to a bank account, or a cash-like transaction such as buying a money order or casino chips. Each method charges different fees and interest rates, and each one costs more than a regular purchase.

Cash advances are the most common route. You go to an ATM, insert your card, enter your PIN, and withdraw cash up to your daily limit—usually $500 to $1,000, though your card issuer sets the actual amount. A bank teller can also process a cash advance if you prefer not to use an ATM. Interest starts accruing when ready, with no grace period like you get on purchases.

Balance transfers move money from your credit card to a bank account. You contact your card issuer, provide your bank details, and request the transfer. The money lands in your account within one to three business days. This method typically has lower fees than an ATM cash advance, but interest rates are usually the same.

Key Takeaways

  • Cash advances from ATMs charge an upfront fee (usually 3 to 5 percent of the amount withdrawn) plus a higher interest rate than regular purchases, with interest starting when ready.
  • Balance transfers to your bank account often have lower fees than cash advances but the same high interest rates, and the money takes one to three business days to arrive.
  • Your credit card issuer sets a daily cash advance limit separate from your regular spending limit, which may be as low as $500.
  • Interest on cash advances and balance transfers accrues from day one with no grace period, so the longer you carry the balance, the more you pay.

Cash advances at ATMs and banks

A cash advance at an ATM is the fastest way to get money from your credit card. Find an ATM that accepts your card's network (Visa, Mastercard, American Express, or Discover), insert the card, enter your PIN, select "cash advance" or "withdrawal," and choose your amount. The ATM will dispense cash and charge a fee when ready.

The fee is typically 3 to 5 percent of the amount you withdraw, with a minimum of $2 to $10. If you withdraw $500, expect to pay $15 to $25 just for the transaction. This fee appears on your next statement as a separate charge.

You can also walk into a bank branch and ask a teller for a cash advance. Bring your credit card and a photo ID. The teller processes it the same way an ATM does, and the fee structure is identical. Some banks charge slightly less for teller-assisted advances, but most charge the same rate.

Your daily cash advance limit is separate from your regular credit limit. If your card has a $5,000 limit, your cash advance limit might be only $500 per day. Check your card's terms or call the issuer to find out your specific limit before you go to the ATM.

Balance transfers to a bank account

A balance transfer moves money from your credit card directly to your checking or savings account. Call your card issuer's customer service number on the back of your card and request a balance transfer. Have your bank account number and routing number ready.

The issuer will ask how much you want to transfer and confirm your bank details. The money typically arrives within one to three business days. Some issuers offer this service through their mobile app or website, so check there first before calling.

Balance transfer fees are usually lower than cash advance fees—often 1 to 3 percent instead of 3 to 5 percent. On a $500 transfer, you might pay $5 to $15 instead of $15 to $25. However, the interest rate is typically the same as a cash advance rate, which is much higher than your regular purchase rate.

Not all cards offer balance transfers to bank accounts. Some issuers restrict this feature to cardholders with good payment history or accounts in good standing. Call ahead to confirm your card supports it before you count on it.

Cash-like transactions and their costs

Certain purchases count as cash advances even though you are not withdrawing physical cash. These include money orders, wire transfers, casino chips, lottery tickets, and gambling transactions. Your card issuer treats these the same way as an ATM withdrawal: you pay an upfront fee and interest accrues when ready.

The fee structure is identical to a cash advance. You pay 3 to 5 percent of the transaction amount plus the higher interest rate. If you buy a $200 money order with your credit card, you pay $6 to $10 in fees plus interest from day one.

Some merchants code these transactions differently, so you may not realize you are paying cash advance fees until the statement arrives. If you need to send money, a bank wire or ACH transfer from your checking account is cheaper than using your credit card.

Interest rates and how they work

Cash advance interest rates are higher than purchase rates on the same card. If your card charges 18 percent APR on purchases, the cash advance rate might be 25 to 30 percent APR. This rate varies by card issuer and your creditworthiness.

The critical difference is the grace period. When you make a regular purchase, you have 21 to 25 days before interest starts accruing. With a cash advance, interest starts accruing the day you withdraw the money. There is no grace period.

Interest is calculated daily based on your outstanding balance. If you withdraw $500 at 28 percent APR, you owe about $3.82 in interest after one week, $7.67 after two weeks, and $15.33 after a month. The longer you carry the balance, the more you pay.

Payments toward your cash advance go toward the highest-interest debt first, which is usually the cash advance itself. If you have both a purchase balance and a cash advance balance, your payment covers the cash advance before reducing the purchase balance.

Limits and restrictions on cash advances

Your card issuer sets a daily cash advance limit, which is often much lower than your total credit limit. This limit protects the issuer from fraud and limits your exposure to high-interest debt. Common daily limits range from $500 to $1,000, but some cards allow up to $2,500 or more.

You also have a total cash advance limit per billing cycle, which is usually 50 percent of your credit limit. If your card limit is $5,000, your total cash advance limit might be $2,500 per month. Once you hit that limit, you cannot take another cash advance until the next billing cycle.

Some card issuers restrict cash advances based on your account status. If you have missed payments, your issuer may lower or freeze your cash advance limit. If you have not used your card in a long time, the issuer may also restrict cash advances until you use the card for regular purchases.

Secured credit cards and prepaid cards often have lower cash advance limits or do not allow cash advances at all. Check your card's terms or contact the issuer to confirm what limits explore to your account.

Alternatives to credit card cash advances

Before you take a cash advance, consider whether another option costs less. A personal loan from a bank or credit union typically charges 6 to 36 percent APR with no upfront fee, which is often cheaper than a credit card cash advance when you factor in both the fee and the interest rate.

A payday loan or short-term loan charges high interest but no upfront fee, making it competitive with a cash advance if you plan to repay within two weeks. However, payday loans can trap you in a cycle of debt if you cannot repay on time.

If you need cash for an emergency, ask family or friends for a loan first. If that is not possible, a personal loan from a bank or credit union is usually cheaper than a cash advance. Some employers offer paycheck advances or emergency loans to employees at no cost.

If you are carrying a high-interest credit card balance, a balance transfer card with a 0 percent introductory rate may help you pay down debt without additional interest. However, this only works for regular purchases, not for cash advances—cash advances on a balance transfer card still charge the full cash advance rate.

Frequently Asked Questions

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

No. Credit card issuers block cash advances from being used to pay other credit cards. If you try to transfer money from one card to another, the transaction will be declined. You can only use a cash advance to withdraw cash or make cash-like purchases.

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

A cash advance gives you physical cash or cash-like value (money order, wire transfer). A balance transfer moves money from your credit card to your bank account. Balance transfers usually have lower fees but take longer. Both charge high interest rates with no grace period.

Do cash advances show up on my credit report?

Cash advances do not appear separately on your credit report. They are part of your overall credit card balance and credit utilization. However, taking a large cash advance increases your utilization ratio, which can lower your credit score temporarily.

Can I get a cash advance with a debit card?

No. Debit cards do not offer cash advances. You can withdraw money from your checking account at an ATM for free using your debit card. If you need cash beyond your account balance, you would need to use a credit card or take out a loan.

What happens if I cannot repay a cash advance?

The balance stays on your credit card and continues to accrue interest at the high cash advance rate. If you miss payments, your credit score drops and the issuer may increase your interest rate further. After 180 days of missed payments, the issuer may charge off the debt and report it to a collection agency.