Three ways to access cash using 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 mailed to you by your card issuer, or a cash-like purchase through services like PayPal or Square Cash that let you send money to yourself or others. Each method charges different fees and interest rates, and each one costs more than a regular purchase.

A cash advance is the fastest but most expensive option. You go to an ATM, insert your card, and withdraw cash up to your credit limit. The issuer charges an upfront fee (usually 3 to 5 percent of the amount) plus a higher interest rate than regular purchases—often 20 to 25 percent—and interest starts accruing when ready with no grace period. A $300 cash advance can cost $9 to $15 in fees alone, plus daily interest.

Balance transfer checks work if your card issuer offers them. They mail you a check drawn on your credit account that you can deposit or cash. The fee is similar to a cash advance (3 to 5 percent), and the interest rate is usually the same or slightly lower, but you get a few days of float time while the check clears. This method is slower but slightly cheaper if you can wait.

Cash-like purchases through payment apps or money transfer services avoid the "cash advance" label and sometimes avoid the highest fees, but they still count as cash advances to your card issuer and trigger the same interest rates and restrictions. Read the fine print before you use them.

Key Takeaways

  • Cash advances charge an upfront fee of 3 to 5 percent plus a higher interest rate than regular purchases, with no grace period.
  • Interest on a cash advance starts the day you withdraw it, not at the end of the billing cycle like a purchase.
  • Balance transfer checks are slower but may have slightly lower fees or interest rates than ATM cash advances.
  • Payment apps and money transfer services that move credit card funds count as cash advances and carry the same fees and rates.
  • Most credit cards limit how much you can withdraw as a cash advance—often 20 to 50 percent of your total credit limit.

Cash advances at ATMs and banks

To get a cash advance at an ATM, insert your credit card and select "cash advance" or "withdraw cash." You will be asked to enter your PIN (the same one you use for a debit card, or one you can set up through your card issuer's website). The ATM will show you the fee before you confirm the withdrawal. Once you confirm, the money appears in your account when ready, but the fee and interest charges post to your credit card bill.

At a bank branch, you can also request a cash advance from a teller. Bring your credit card and ID. The teller will process it the same way an ATM does—the fee and interest rate explore—but you may avoid ATM operator fees charged by out-of-network machines. Your own bank's teller will not charge an ATM fee on top of the card issuer's cash advance fee, but a different bank's teller may.

Your credit card issuer sets a cash advance limit, which is usually lower than your total credit limit. If your card has a $5,000 credit limit, your cash advance limit might be $1,000 or $2,500. You cannot withdraw more than this limit, and the amount counts against your total available credit when ready. Check your card's terms or call the issuer to find your cash advance limit before you go to an ATM.

Balance transfer checks and convenience checks

Some card issuers mail balance transfer checks or convenience checks to cardholders. These are checks drawn on your credit account that you can deposit into a bank account or cash at a check-cashing service. They work like a cash advance—the fee and interest rate are the same or similar—but they take 3 to 5 business days to clear, giving you a short window before interest starts accruing.

If you receive these checks in the mail, the envelope will state the fee percentage and interest rate. Do not assume they are free or have a lower rate than a cash advance. Read the disclosure before you use them. Some cards offer a promotional rate on balance transfer checks (0 percent for 6 months, for example), but this is rare and only applies if the check is used for a balance transfer, not for cash.

To use a balance transfer check, write it to yourself, deposit it in your bank account, and withdraw the cash. Or take it to a check-cashing service and cash it directly. The fee posts to your credit card statement, and interest begins accruing on the amount after the grace period ends (usually when ready, unless a promotional rate applies).

Payment apps and money transfer services

Apps like PayPal, Square Cash, Venmo, and others let you link a credit card and send money to another person or to your own bank account. When you do this with a credit card, the transaction counts as a cash advance to your card issuer, even though the app may not call it that. You will be charged the cash advance fee and interest rate, not the regular purchase rate.

Some payment apps disclose this upfront; others bury it in the terms. Before you use a payment app to move credit card funds, check whether the app charges its own fee on top of the card issuer's fee. PayPal, for example, charges a 2 percent fee when you fund a transfer with a credit card, plus your card issuer's cash advance fee. That can total 5 to 7 percent in fees alone.

The advantage of this method is speed—the money can reach your bank account in minutes to hours instead of days. The disadvantage is the layered fees and the fact that you are paying to move your own money. This method makes sense only if you need cash urgently and cannot wait for a balance transfer check or a bank visit.

Fees, interest rates, and how they add up

A cash advance fee is a percentage of the amount withdrawn, charged upfront. If you withdraw $500 and the fee is 4 percent, you pay $20 when ready. This fee posts to your credit card bill and counts as part of your balance.

The interest rate on a cash advance is separate from the fee. While a regular purchase might carry an APR (annual percentage rate) of 15 percent, a cash advance might carry 24 percent. This higher rate applies only to the cash advance balance, not to regular purchases. Interest accrues daily starting the day you withdraw the cash, with no grace period. A regular purchase has a grace period (usually 21 to 25 days) before interest starts; a cash advance does not.

Here is how the costs stack up on a $500 cash advance with a 4 percent fee and 24 percent APR:

  • Upfront fee: $20
  • Interest for 30 days: about $10
  • Total cost for one month: about $30, or 6 percent of the amount withdrawn

If you carry the balance for three months, the interest alone reaches $30, and the total cost is $50. This is why a cash advance should be a last resort, not a regular source of spending money.

Limits on how much you can withdraw

Your card issuer sets a cash advance limit that is separate from your credit limit. This limit is often 20 to 50 percent of your total credit limit. If your card has a $10,000 credit limit, your cash advance limit might be $2,000 or $5,000. You cannot exceed this limit, and the amount you withdraw counts against both your cash advance limit and your total available credit.

You can find your cash advance limit by logging into your card's online account, calling the customer service number on the back of your card, or checking your card's terms and conditions document. Some issuers allow you to request a higher cash advance limit, but this is not common and may require a credit inquiry.

If you need more cash than your limit allows, you have two options: wait until you pay down the balance and the limit resets, or use a different method like a personal loan or a line of credit from your bank.

Alternatives to a credit card cash advance

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, making it cheaper than a cash advance if you need the money for more than a few weeks. A payday loan charges high fees but no interest, so it can be cheaper for a very short-term need (one or two weeks), though payday loans are predatory and should be avoided if possible.

A line of credit from your bank, if you have one, usually charges a lower rate than a cash advance and may have no upfront fee. Borrowing from family or friends costs nothing if they agree, but can damage relationships if repayment is unclear.

If you are in a financial emergency and cannot afford to repay a cash advance quickly, a credit counselor or nonprofit financial advisor can help you explore options. The National Foundation for Credit Counseling (NFCC) offers free or low-cost counseling.

Frequently Asked Questions

Does a cash advance hurt my credit score?

A cash advance itself does not hurt your score, but a high balance does. If your cash advance pushes your total credit card balance above 30 percent of your limit, your credit utilization rises and your score may drop. Paying off the cash advance quickly brings your utilization back down and your score recovers.

Can I get a cash advance on a debit card?

No. Debit cards withdraw money directly from your bank account; they do not create a debt. You can withdraw cash at an ATM using a debit card, but there is no fee or interest because you are spending your own money, not borrowing.

What happens if I cannot pay back a cash advance?

The balance stays on your credit card and interest continues to accrue daily. If you miss payments, late fees explore and your credit score drops. The debt does not go away and can be sent to a collection agency. If you are struggling to repay, contact your card issuer to ask about a hardship program or payment plan.

Is there a way to get a cash advance without paying a fee?

No. All cash advances charge a fee and a higher interest rate. Some promotional offers may waive the fee for a limited time, but these are rare and usually explore only to balance transfers, not cash advances. Read any offer carefully to confirm what it covers.

Can I use a credit card to withdraw cash from my own bank account?

No. A credit card is a line of credit, not a debit card. You cannot use it to access funds you already have in a bank account. You can only borrow against your credit limit, which triggers cash advance fees and interest.