Three ways to turn your credit card into cash
You can get cash from a credit card through a cash advance, a balance transfer check, or a peer-to-peer payment app. Each method costs differently and affects your credit differently. A cash advance pulls money directly from your card's cash limit at an ATM or bank counter. A balance transfer check lets you write a check against available credit. A payment app like PayPal or Venmo lets you move money to your bank account, though this counts as a cash advance on most cards.
The catch: cash advances are expensive. You pay an upfront fee (usually 3 to 5 percent of the amount), a higher interest rate than regular purchases (often 20 to 30 percent), and interest starts accruing when ready — there is no grace period like there is for purchases. Balance transfer checks work the same way. Payment apps may be cheaper if your card treats them as purchases rather than advances, but most major issuers now classify them as advances.
Key Takeaways
- Cash advances charge an upfront fee of 3 to 5 percent plus a higher interest rate than purchases, with no grace period.
- You can get a cash advance at an ATM using your PIN, at a bank teller, or through a balance transfer check.
- Payment apps like Venmo and PayPal usually count as cash advances on credit cards, so they carry the same fees and rates.
- The interest on a cash advance starts the day you withdraw it, so the longer you carry the balance, the more you pay.
- If you need cash, a personal loan or credit union loan is almost always cheaper than a credit card cash advance.
Getting a cash advance at an ATM or bank
To withdraw cash at an ATM, you need your credit card and your PIN. If you do not have a PIN, call your card issuer to set one up — it usually takes a few minutes. Walk to any ATM that accepts your card's network (Visa, Mastercard, American Express, or Discover), insert your card, enter your PIN, select "cash advance" or "withdraw cash", and choose your amount. The ATM will show you the fee before you confirm.
At a bank teller, bring your credit card and a photo ID. Tell the teller you want a cash advance. They will process it the same way an ATM does, but you can ask questions about the fee and your available cash limit. Some banks charge an additional fee on top of your card issuer's fee, so ask before you proceed.
Your available cash limit is usually lower than your credit limit. If your credit limit is $5,000, your cash advance limit might be $1,500. You can call your issuer to ask what yours is before you go to the ATM.
Balance transfer checks and how they work
Some card issuers send you checks that draw against your credit line. You write the check to yourself or a payee, deposit it in your bank account, and the amount shows up as a balance on your credit card. The fee and interest rate are the same as a cash advance — usually 3 to 5 percent upfront plus a higher interest rate with no grace period.
Balance transfer checks arrive in the mail periodically, or you can call your issuer to request them. They are useful if you prefer not to use an ATM, but they are not faster or cheaper than a direct cash advance. The main advantage is that you can write a check to a third party (like a landlord or contractor) instead of withdrawing cash yourself.
Why payment apps count as cash advances
When you link a credit card to Venmo, PayPal, Square Cash, or similar apps and transfer money to your bank account, most card issuers classify this as a cash advance. That means you pay the cash advance fee and interest rate, not the purchase rate. The transaction shows up on your statement as a cash advance, not a purchase.
Some cards treat transfers to your own bank account as purchases instead, which would be cheaper. Call your issuer before you try this method to confirm how they classify it. Even if they treat it as a purchase, the app itself may charge its own fee for when ready transfers.
Comparing the cost of a cash advance
Assume you need $500 in cash. Here is what it costs on a typical card:
| Method | Upfront Fee | Interest Rate | Cost After 1 Month |
|---|---|---|---|
| Cash advance at ATM | $15 (3%) | 25% APR | $25.42 |
| Balance transfer check | $15 (3%) | 25% APR | $25.42 |
| Payment app (classified as advance) | $15 (3%) | 25% APR | $25.42 |
| Personal loan (typical) | $0 | 10% APR | $4.17 |
The fee hits when ready. Interest accrues daily starting the day you withdraw the cash. If you carry the $500 balance for six months, the interest alone could exceed $60 — more than the original fee.
Cheaper alternatives to a cash advance
A personal loan from a bank, credit union, or online lender is almost always cheaper. Rates range from 6 to 36 percent depending on your credit score, but even at the high end, a personal loan costs less than a credit card cash advance. You get the money in your bank account in one to three business days, and you pay it back in fixed monthly installments.
A credit union loan is often the cheapest option if you are a member. Credit unions typically offer rates between 6 and 18 percent and may approve you faster than a bank. If you are not a member, you can often join for a small fee and explore for a loan the same day.
A payday loan is faster but more expensive than a personal loan — fees can reach 400 percent APR. Use this only if you need the money within hours and have no other option.
If you have a friend or family member who can lend you the money, that is free. If you borrow, put the terms in writing so there is no confusion later.
How a cash advance affects your credit score
A cash advance does not hurt your credit score directly, but it can hurt it indirectly. When you take a cash advance, your credit utilization — the percentage of your available credit you are using — goes up. If your credit limit is $5,000 and you take a $500 cash advance, your utilization jumps to 10 percent. High utilization can lower your score by a few points.
The bigger risk is that you carry the balance and miss a payment. A late payment stays on your credit report for seven years and can drop your score by 100 points or more. If you take a cash advance, plan to pay it back quickly so you do not fall behind.
Frequently Asked Questions
Can I get a cash advance with a debit card?
No. Debit cards draw directly from your bank account, so there is nothing to advance. You can withdraw cash at an ATM for free (or a small ATM fee), but that is not a cash advance — it is just accessing your own money.
What happens if I do not pay back a cash advance?
The balance stays on your card and interest keeps accruing. If you miss a payment, your issuer may charge a late fee and report the missed payment to credit bureaus, which damages your credit score. After 180 days of non-payment, the issuer may close your account and send the debt to a collection agency.
Can I use a cash advance to pay off another credit card?
Technically yes, but it is not a good idea. You would pay a cash advance fee on top of the balance you are moving, so you end up owing more than you started with. A balance transfer card (which moves debt at a lower rate) or a personal loan is cheaper.
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 lower than your credit limit. Call your card issuer to find out what yours is before you go to the ATM.
Do I have to pay interest on a cash advance right away?
Yes. Unlike purchases, which have a grace period (usually 21 days), interest on a cash advance starts accruing the day you withdraw it. There is no grace period, so the longer you carry the balance, the more interest you pay.