Three ways to get cash from your credit card

You can get cash from a credit card in three ways: using an ATM with your card's PIN, visiting a bank branch and asking for a cash advance, or using a balance transfer check if your card issuer sends them. Each method charges a fee and starts charging interest when ready — there is no grace period like there is for purchases. The cash advance fee is usually 3% to 5% of the amount you withdraw, and interest rates on cash advances run 2% to 5% higher than your regular purchase rate.

Before you withdraw, check your card's terms to find the cash advance limit, which is often lower than your credit limit. You can call the number on the back of your card or log into your online account to see this number. Some cards do not allow cash advances at all, particularly secured cards and some student cards.

If you need cash and want to avoid these fees, a personal loan or a 0% balance transfer card (if you have time to wait for approval) will cost you less. But if you need the money now and have no other option, here is how each method works.

Key Takeaways

  • Cash advances charge a fee of 3% to 5% upfront and interest rates 2% to 5% higher than purchases, with no grace period.
  • Your cash advance limit is separate from your credit limit and is often much lower — check your card's terms before you try to withdraw.
  • ATM withdrawals are the fastest method but may have additional ATM operator fees on top of your card issuer's fee.
  • Interest on a cash advance starts accruing the day you withdraw, so paying it back quickly saves you the most money.

Using an ATM to withdraw cash

Find an ATM that accepts your card's network (Visa, Mastercard, American Express, or Discover) and insert your card. Enter your PIN — this is the same PIN you use for a debit card, but you may need to set one up if you have never used your credit card at an ATM before. Call the number on the back of your card to set a PIN if you do not have one.

Select "cash advance" or "withdrawal" from the menu, then enter the amount you want. The ATM will show you the fee before you confirm. Your card issuer charges one fee, and the ATM operator may charge a second fee — you will see both before the transaction completes. Once you confirm, the cash comes out and the amount is added to your credit card balance when ready.

ATM withdrawals are the fastest way to get cash, but they often cost the most because of the operator fee. Using an ATM owned by your card issuer's bank (if it has one) usually avoids the operator fee. Check your card's website or app to find in-network ATMs near you.

Requesting a cash advance at a bank branch

Walk into any bank branch that accepts your card's network and ask the teller for a cash advance. Bring your card and a photo ID. The teller will process the advance at the counter, and you will walk out with cash in hand. This method takes 10 to 15 minutes and charges only your card issuer's fee — no operator fee.

Not all branches accept all card networks, so call ahead if you are unsure. Some banks will only process cash advances for their own customers, though most major banks accept Visa and Mastercard from outside customers. Ask whether the branch has a limit on how much cash they keep on hand, since very large withdrawals may require advance notice.

This method is slower than an ATM but cheaper because you avoid the operator fee. It is also useful if you need more cash than an ATM will dispense in a single transaction.

Using a balance transfer check

Some card issuers mail checks to cardholders that work like a cash advance — you write the check to yourself or to someone else, deposit or cash it, and the amount is added to your credit card balance. These checks usually come in the mail unsolicited, but you can call your card issuer and ask if they offer them.

Balance transfer checks charge the same cash advance fee as an ATM withdrawal and the same high interest rate. The advantage is that you can write a check for any amount up to your cash advance limit, without visiting an ATM or bank. The disadvantage is that you have to wait for the check to arrive and then for it to clear, which takes several days.

If you have time to wait and want to avoid leaving your house, this is an option. But for most people, an ATM or bank branch is faster and just as cheap.

Understanding cash advance fees and interest

A cash advance fee is a one-time charge of 3% to 5% of the amount you withdraw, charged by your card issuer. If you withdraw $500, you pay $15 to $25 in fees. Some cards charge a flat fee instead (like $10 per advance), which is better if you are withdrawing a small amount but worse if you are withdrawing a large amount. Check your card's terms to see which applies to you.

Interest on a cash advance starts the day you withdraw the money — there is no grace period. If your card charges 25% APR on cash advances, that is 25% per year, or about 0.07% per day. On a $500 advance, that is about 35 cents per day in interest. If you pay it back in 30 days, you pay about $10 in interest plus the $15 to $25 fee, for a total cost of $25 to $35.

Your card issuer applies your monthly payment to the lowest-interest balance first, so if you have both purchases and cash advances, your payment goes toward purchases before it goes toward the cash advance. This means the cash advance stays on your balance longer and costs you more in interest. Pay the cash advance off separately if you can, or pay more than the minimum to bring down the balance faster.

When a cash advance makes sense

A cash advance is expensive and should be a last resort. But there are situations where it is the right choice. If you have an emergency and need cash today, and you have no other way to get it, a cash advance is faster than a personal loan or a credit line. If you have a low cash advance limit and a high credit limit, you might use a cash advance for a small emergency and pay it back in a week or two, keeping the total cost low.

If you are considering a cash advance for everyday spending or to cover a shortfall in your budget, stop and look for another option first. A personal loan from a bank or credit union, a 0% balance transfer card (if you have time to wait), or a payment plan with the person or business you owe money to will all cost you less. A cash advance should be for a true emergency when you have no other choice.

How to pay back a cash advance quickly

The faster you pay back a cash advance, the less interest you pay. Make a plan to pay it off within 30 days if you can. If you withdrew $500 at a 25% APR, paying it back in 30 days costs about $35 total. Paying it back in 90 days costs about $100 total. The difference is significant.

Set up a payment to your card as soon as you know you can cover it. Do not wait for a bill to arrive. Pay online or by phone using the number on the back of your card. If you can pay the full amount, do that. If you can only pay part of it, pay as much as you can — every dollar you pay reduces the interest you owe on the remaining balance.

If you cannot pay back the cash advance within a month or two, reconsider whether you should have taken it out. A cash advance that sits on your balance for months or years becomes very expensive and can damage your credit score if it pushes your overall credit utilization above 30%.

Frequently Asked Questions

Can I get a cash advance if my credit score is low?

Yes. A cash advance is a withdrawal from your existing credit limit, not a new line of credit, so your credit score does not determine whether you can get one. If you have a credit card with a cash advance limit, you can use it regardless of your score. However, if you are trying to get a new card specifically for a cash advance, a low score may make approval harder.

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

A cash advance gives you money in hand. A balance transfer moves debt from one card to another. Both charge fees and interest, but a balance transfer sometimes offers a 0% introductory period on the transferred balance, while a cash advance never does. Use a cash advance if you need cash. Use a balance transfer if you are moving existing debt to a lower-rate card.

Will a cash advance hurt my credit score?

A cash advance itself does not hurt your score, but it increases your credit utilization (the amount of your total credit limit you are using), which can lower your score slightly. If the cash advance pushes your utilization above 30%, the impact is more noticeable. Paying it back quickly brings your utilization back down and your score recovers.

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

Technically yes, but it is a bad idea. You pay a cash advance fee on the money you withdraw, then you pay interest on that money while it sits on the second card. You end up paying fees and interest on both cards for the same debt. A balance transfer (moving the balance directly from one card to another) is much cheaper if you need to move debt between cards.

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

The balance stays on your card and interest keeps accruing. After 30 days of missed payments, the late payment appears on your credit report and your score drops. After 60 days, your interest rate may increase. After 180 days, the card issuer may charge off the debt and send it to a collection agency. At that point, the debt can stay on your credit report for seven years.