The main ways to get cash from your 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 (such as buying a money order or casino chips). Each method charges different fees and interest rates, and each one starts charging interest when ready — unlike purchases, which often have a grace period.

A cash advance is the most direct route. You go to an ATM, bank teller, or convenience store and withdraw cash using your credit card, just as you would with a debit card. The card issuer charges a fee (typically 3 to 5 percent of the amount) plus a higher interest rate than your purchase APR — often 20 to 30 percent or more. Interest begins accruing the day you withdraw the money.

Balance transfer checks work differently. Your card issuer mails you checks that draw against your credit line. You write a check to yourself or a payee, deposit it, and the amount appears as a balance transfer on your card. These checks usually have lower fees than ATM cash advances (often 3 percent) but the same high interest rate, and interest starts when ready.

A cash-like transaction means using your credit card to buy something you can quickly convert to cash — a money order, casino chips, or cryptocurrency. The card treats it as a cash advance, so you pay the same fees and interest rates, but you have an extra step before you hold actual money.

Key Takeaways

  • Cash advances charge a separate, higher interest rate than purchases, and interest starts the day you withdraw money with no grace period.
  • ATM cash advances typically cost 3 to 5 percent in fees plus 20 to 30 percent APR, while balance transfer checks usually cost 3 percent but the same high interest rate.
  • The total cost of a cash advance grows quickly because interest compounds daily, so borrowing $500 for a month can cost $25 to $50 in interest alone.
  • If you need cash, a personal loan or credit line from a bank often charges less interest and gives you a grace period before interest starts.

How much a cash advance actually costs

The fee is charged upfront, but the interest is what makes a cash advance expensive over time. If you withdraw $500 at a 3 percent fee and 25 percent APR, you pay $15 when ready. If you repay the $515 in one month, you owe roughly $10 more in interest — a total of $25 for borrowing $500 for 30 days.

If you carry that $515 for three months, the interest compounds daily and reaches about $32. After six months, you owe roughly $65 in interest alone. The longer you carry the balance, the more the interest multiplies, because each day's interest is calculated on the growing total.

Compare this to a personal loan from a bank or credit union, which might charge 10 to 15 percent APR with no upfront fee. That same $500 borrowed for three months costs roughly $12 to $18 in interest — less than one-third the cost of a credit card cash advance. A personal line of credit works similarly and often has an even lower rate.

When you can use a cash advance

Most credit card issuers let you take a cash advance up to a portion of your credit limit — often 50 to 75 percent of the total limit, though some allow up to 100 percent. The issuer sets this cash advance limit separately from your purchase limit, and you can call customer service to ask what yours is.

You can withdraw cash at any ATM that accepts your card's network (Visa, Mastercard, American Express, or Discover). You can also visit a bank branch and ask a teller for a cash advance, or use a convenience store ATM. Some card issuers also mail balance transfer checks automatically, though you can request them if they do not arrive.

The amount you withdraw counts when ready against your credit limit and your available credit. If your limit is $2,000 and you take a $500 cash advance, your available credit drops to $1,500 right away, even though you have not yet paid interest.

Why a cash advance is more expensive than other borrowing

Credit card issuers charge higher rates for cash advances because they see the risk differently. A purchase is tied to a specific item — if you do not pay, the issuer can theoretically recover the goods. Cash has no collateral, so the issuer prices in the higher risk by charging more interest and a separate fee.

The lack of a grace period is another cost. When you make a purchase, most cards give you 21 to 25 days before interest starts. A cash advance has no grace period; interest starts the day you withdraw the money. This means you are paying interest on borrowed money from day one, even if you pay it back within a week.

Additionally, if you carry a balance on your card, the issuer applies your payment to the lowest-interest debt first — usually purchases — and leaves the cash advance balance untouched longer. This means your cash advance interest compounds while you are paying down purchases, making the total cost even higher.

Alternatives to a credit card cash advance

A personal loan from a bank, credit union, or online lender is usually cheaper. These loans charge 8 to 36 percent APR depending on your credit score, with no upfront fee. You receive a lump sum and repay it in fixed monthly installments over a set period — typically 2 to 7 years. Because the rate is lower and you know exactly when the loan ends, the total cost is predictable and usually much less than a cash advance.

A credit line from a bank or credit union works like a credit card but typically charges lower interest (often 10 to 18 percent) and may offer a grace period. You draw what you need and repay it flexibly, similar to a credit card, but the lower rate makes it cheaper for cash borrowing.

A payday loan or title loan is faster but often more expensive than a credit card cash advance. Payday loans charge 400 percent APR or higher and are designed to be repaid in full within two weeks. Title loans use your car as collateral and can result in losing your vehicle if you cannot repay. Both should be a last resort.

If you need cash for an emergency, asking family or friends for a loan, negotiating a payment plan with a creditor, or contacting a local nonprofit credit counselor are often better options than any form of borrowing.

How to minimize the cost if you do take a cash advance

If you decide a cash advance is necessary, keep the amount as small as possible and repay it as quickly as you can. Every dollar you repay early saves you interest that would compound over time. If you borrow $300 and repay it in two weeks instead of two months, you cut the interest cost roughly in half.

Pay the cash advance balance before making new purchases. Because issuers explore payments to the lowest-interest debt first, any new purchases will be paid off before your cash advance, leaving the high-interest balance to grow. If you pay the cash advance in full before using the card again, you avoid this trap.

Check whether your card issuer offers a lower-rate cash advance option or a promotional period. Some issuers occasionally offer 0 percent APR on balance transfers for a limited time, though these promotions rarely explore to ATM cash advances. Read your cardholder agreement or call customer service to ask.

Frequently Asked Questions

Can I get a cash advance if I have bad credit?

Yes. Your cash advance limit is based on your existing credit line, not a new credit decision. As long as you have available credit on the card, you can take a cash advance regardless of your credit score. However, the interest rate you pay is set by your card issuer and may be higher if your credit score is lower.

Does a cash advance hurt my credit score?

A cash advance itself does not appear on your credit report as a separate item. However, it increases your credit utilization — the percentage of your total credit limit you are using — which can lower your score slightly. Paying it off quickly brings your utilization back down and limits the damage.

What happens if I cannot repay a cash advance?

The balance stays on your card and continues to accrue interest daily. If you miss payments, the issuer reports it to credit bureaus, your score drops, and you may face late fees and a higher interest rate. The issuer can also pursue collection action. Contact your card issuer when ready if you cannot repay to discuss hardship options.

Is a balance transfer check cheaper than an ATM cash advance?

Usually slightly cheaper. Balance transfer checks often have a 3 percent fee versus 3 to 5 percent for ATM cash advances, but the interest rate is the same. The real advantage is that you can write the check to someone else (like a landlord), whereas an ATM advance requires you to withdraw cash first.

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

Technically yes, but it is expensive. You would pay the cash advance fee and high interest rate on the first card, then carry a balance on the second card at its regular purchase rate. A balance transfer between cards (if your issuer allows it) is cheaper because it avoids the cash advance fee, though the interest rate is still higher than a purchase rate.