The main ways to get cash from 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 check, or a cash-like payment (such as buying a money order or gift card). Each one costs you differently and affects your credit differently, so the method you choose matters more than you might think.

A cash advance lets you withdraw money directly using your card at an ATM, bank teller, or convenience store. A balance transfer check is a physical check the card issuer mails to you that you can deposit or cash. A cash-like purchase means buying something that functions as cash — like a money order, wire transfer, or gift card — which some people use when they need funds but want to avoid the fees of a true cash advance.

The catch: all three methods charge you fees and interest that start when ready. There is no grace period like there is for regular purchases. Understanding which method costs the least for your situation, and what happens to your credit score, helps you make the choice that hurts your wallet the least.

Key Takeaways

  • Cash advances charge an upfront fee (usually 3 to 5 percent of the amount) plus a higher interest rate than regular purchases, with interest starting the day you withdraw.
  • Balance transfer checks work the same way as cash advances but arrive by mail, so they take several days and are useful only if you can plan ahead.
  • Cash-like purchases (money orders, wire transfers, gift cards) may have lower fees than cash advances but still charge interest when ready and count as a cash advance on your credit report.
  • All three methods reduce your available credit and can lower your credit score because they increase your credit utilization ratio.
  • If you need cash urgently, a personal loan or asking family for a short-term loan usually costs less than any credit card cash method.

Cash advances: how the fees and interest work

When you withdraw cash at an ATM or bank using your credit card, the card issuer charges you a cash advance fee right away. This fee is usually between 3 and 5 percent of the amount you withdraw, though some cards charge a flat fee (like $10) if that is higher. So if you withdraw $500, you might pay $15 to $25 just to get the cash.

On top of that fee, interest starts accruing the same day you withdraw. Unlike a regular purchase, which has a grace period (usually 21 to 25 days before interest kicks in), a cash advance charges interest from day one. The interest rate on cash advances is also higher than the rate on purchases — often 2 to 5 percentage points higher. If your purchase APR is 18 percent, your cash advance APR might be 23 percent.

This means a $500 cash advance at 23 percent APR costs you about $9.58 in interest for the first month alone, on top of the $15 to $25 fee you already paid. If you carry the balance for three months, you are paying roughly $30 in interest plus the original fee.

Balance transfer checks and their hidden costs

A balance transfer check is a physical check your card issuer sends you. You can deposit it into your bank account or cash it. The issuer treats it exactly like a cash advance — same fees, same interest rate, same day-one interest clock — but it takes 5 to 10 business days to arrive and another 1 to 3 days to clear once you deposit it.

Balance transfer checks make sense only if you know you need cash but can wait a week or two. They do not save you money compared to an ATM cash advance; they just delay when you get the cash. The advantage is that some people find it easier to manage a check than to visit an ATM, or they want to move the money into a separate account before spending it.

Check the terms on your card's website or call the issuer to see if balance transfer checks are available to you. Not all cards offer them, and some issuers limit how many you can request or how much you can withdraw.

Cash-like purchases and whether they save you money

Some people buy money orders, wire transfers, or gift cards with a credit card to avoid the word "cash advance" — but the card issuer still treats it as one. You pay the same fee and interest rate, and it counts the same way on your credit report. The only difference is the merchant fee you might pay on top.

A money order, for example, costs 50 cents to $5 depending on where you buy it. A wire transfer through your bank might cost $15 to $30. A gift card purchase at a store might have no extra fee, but the store may decline credit cards for gift card purchases, or the card issuer may flag it as a cash advance anyway.

The real advantage of a cash-like purchase is psychological: if you need to move money between accounts or send it to someone, buying a money order or gift card feels less like borrowing than a cash advance does. But financially, you are paying the same price.

How cash advances affect your credit score

A cash advance lowers your credit score in two ways. First, it increases your credit utilization ratio — the percentage of your available credit you are using. If you have a $5,000 limit and you withdraw $500 in cash, your utilization jumps from 0 percent to 10 percent. Credit scoring models treat high utilization as a sign of financial stress, so your score drops.

Second, the cash advance itself appears on your credit report as a separate transaction type. Some scoring models weight cash advances more heavily than regular purchases, treating them as riskier behavior. This can lower your score by 10 to 50 points depending on your current score and how much you withdraw.

The good news: the damage is temporary. Once you pay off the cash advance, your utilization drops and the impact fades. But while you are carrying the balance, your score stays lower.

When a personal loan costs less than a cash advance

If you need cash and you have decent credit, a personal loan from a bank, credit union, or online lender usually costs less than a credit card cash advance. A personal loan has an upfront origination fee (typically 1 to 6 percent) and a fixed interest rate, but the rate is often lower than a cash advance rate, and there is no daily interest clock starting when ready.

For example, a $500 personal loan at 12 percent APR with a 3 percent origination fee costs you $15 upfront plus roughly $5 in interest for the first month — $20 total. The same $500 cash advance at 23 percent APR with a 5 percent fee costs you $25 upfront plus $9.58 in interest for the first month — $34.58 total. Over six months, the personal loan saves you roughly $40.

Personal loans also do not affect your credit utilization the same way a cash advance does, because they are installment debt, not revolving credit. Your credit score may dip slightly when you first explore (because of the hard inquiry), but it recovers faster than it would from a cash advance.

Alternatives to getting cash from your credit card

Before you use a cash advance, consider whether you actually need cash or whether you need to pay for something. If you need to pay a bill, many billers accept credit card payments directly — no cash needed. If you need to send money to someone, apps like Venmo, PayPal, or your bank's transfer service are free or cheap and do not trigger a cash advance.

If you genuinely need physical cash and you do not have a debit card, ask a friend or family member for a short-term loan. Borrowing $200 from a friend and paying them back in two weeks costs you nothing and does not affect your credit. If that is not an option, a personal loan from a bank or credit union is your next best choice.

If you are in a financial emergency and need cash urgently, look into whether your employer offers paycheck advances or whether a local nonprofit offers emergency information. These routes are often faster and cheaper than a credit card cash advance.

Frequently Asked Questions

Can I use a credit card to withdraw cash at any ATM?

Most ATMs accept credit cards, but not all. Bank ATMs and ATMs in convenience stores usually work. However, some ATMs charge an additional fee (called a surcharge) on top of your card issuer's cash advance fee — sometimes $2 to $5 per withdrawal. Using your card issuer's own ATM network (if they have one) usually avoids this extra charge.

What is the difference between a cash advance and a regular purchase?

A regular purchase has a grace period (usually 21 to 25 days) before interest starts, while a cash advance charges interest from day one. A cash advance also charges an upfront fee and a higher interest rate. Regular purchases are always cheaper unless you pay off a cash advance within a few days.

Does a cash advance show up on my credit report?

Yes. A cash advance appears as a separate transaction type on your credit report and may be weighted differently by credit scoring models. It also increases your credit utilization ratio, which can lower your score. The impact fades once you pay it off, but it is visible to lenders while you are carrying the balance.

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

If you have a credit card, you can usually get a cash advance regardless of your credit score — the card issuer has already decided to lend to you. However, your cash advance limit may be lower than your purchase limit, and the interest rate will be based on your card's terms, not your credit score. A personal loan may be harder to get with bad credit, but some online lenders specialize in this market.

How long does it take to pay off a cash advance?

That depends on your payment plan. If you pay the minimum, a $500 cash advance at 23 percent APR takes roughly 24 months to pay off and costs you about $280 in interest. If you pay $50 per month, it takes 11 months and costs about $100 in interest. The faster you pay, the less interest you owe.