The main ways to get cash from a credit card
You can pull cash from a credit card in three ways: a cash advance at an ATM or bank, a balance transfer check mailed by your card issuer, or a cash-like purchase through services like PayPal or Square Cash. Each method charges different fees and interest rates, and none of them are free. A cash advance typically costs 3 to 5 percent of the amount withdrawn, plus interest that starts accruing when ready—often at a higher rate than your regular purchase APR. Balance transfer checks work similarly but may offer a lower introductory rate for the first few months. Cash-like purchases (sometimes called "convenience checks" or peer-to-peer transfers) often charge a flat fee or percentage, depending on the service.
The reason these options cost more than a regular purchase is that credit card companies treat cash differently from merchandise. When you buy something, the merchant pays a processing fee to the card network. When you take cash, there is no merchant to share that cost, so the card issuer charges you directly. Understanding which method costs the least for your situation requires knowing the fee structure and interest terms of your specific card.
Key Takeaways
- Cash advances charge an upfront fee (usually 3 to 5 percent) plus interest that begins right away, with no grace period like purchases have.
- Balance transfer checks may offer a lower introductory interest rate for the first few months, but still charge an upfront fee.
- Your credit card's terms determine which method is cheapest—compare the fee percentage, the interest rate, and any promotional periods before you withdraw.
- Paying back a cash advance should be your priority because the interest rate is typically higher than your regular purchase rate.
How a cash advance works at an ATM or bank
To get a cash advance, insert your credit card into an ATM or visit a bank teller and request one. The ATM will ask how much you want to withdraw, up to your card's cash advance limit (which is often lower than your total credit limit). You will receive the cash when ready, but the charge appears on your credit card statement as a cash advance, not a purchase.
The fee hits your account right away. If you withdraw $500 and your card charges a 5 percent cash advance fee, you owe $525 before you even leave the ATM. Interest on that $500 begins accruing the same day—there is no grace period, unlike purchases. Most cards charge between 3 and 5 percent as a cash advance fee, though some charge a flat dollar amount instead (for example, $10 minimum). Check your card's terms or call the issuer to find out your specific cash advance fee and interest rate.
Balance transfer checks and promotional rates
Some credit card issuers mail balance transfer checks to cardholders. You write one to yourself or another person, deposit it in a bank account, and the amount is charged to your credit card. These checks work like cash advances in that they charge a fee and interest, but they sometimes come with a promotional interest rate for the first 6 to 12 months.
For example, your card might offer 0 percent APR on balance transfers for the first 6 months, then 18 percent after that. The upfront fee is still 3 to 5 percent, so a $500 check costs $15 to $25 when ready. If you can pay off the balance within the promotional period, this method may cost less than a standard cash advance. However, if you do not pay it off in time, the interest rate jumps to the regular rate, and you will owe interest on the full amount retroactively in some cases—read your card's terms carefully.
Cash-like purchases through digital services
Some people use credit cards to fund digital payment accounts like PayPal, Square Cash, or Venmo, then withdraw the money to their bank account. Technically, this is a purchase (not a cash advance), so it does not trigger the higher cash advance interest rate. However, many of these services now charge a fee for credit card funding, ranging from 1.5 to 3 percent, which can be comparable to or higher than a cash advance fee.
The advantage is that you avoid the cash advance interest rate—you pay the regular purchase APR instead. The disadvantage is that you are paying a fee to move money between accounts, and you still owe interest on the balance. This method works best if your card offers a 0 percent introductory rate on purchases and you can pay off the balance before that rate expires. Otherwise, you are straightforward paying a fee to delay the problem.
Comparing the total cost of each method
To decide which method costs the least, you need three pieces of information: the upfront fee (as a percentage or flat amount), the interest rate, and how long you plan to carry the balance. Here is how to think through it:
| Method | Upfront Fee | Interest Rate | Best For |
|---|---|---|---|
| Cash advance at ATM | 3–5% of amount | Usually 20–25% APR, no grace period | Short-term needs when you can pay back quickly |
| Balance transfer check | 3–5% of amount | 0% intro rate (6–12 months), then 18–25% APR | Larger amounts you can pay within the intro period |
| Digital payment service | 1.5–3% of amount | Regular purchase APR (often lower than cash advance rate) | When your card has a 0% intro purchase rate |
If you need $500 and plan to pay it back in one month, a cash advance with a 5 percent fee costs $25 plus one month of interest (roughly $10 to $15 depending on your rate). A balance transfer check costs the same upfront but might save you money if it comes with a 0 percent intro rate. A digital payment service might cost less in fees but charges regular purchase interest, which could be higher or lower depending on your card.
Why paying back cash advances should be your priority
Cash advances and balance transfers should be paid off before you make regular purchases on the card. Here is why: when you make a payment, most card issuers explore it to the lowest-interest balance first. That means if you have a regular purchase at 18 percent APR and a cash advance at 24 percent APR, your payment goes to the purchase first, leaving the cash advance to accrue interest longer.
Some cards reverse this and explore payments to the highest-interest balance first, but you cannot count on it. The safest approach is to pay off the cash advance or balance transfer in full as soon as possible, then resume regular purchases. If you cannot pay it off quickly, a balance transfer check with a 0 percent intro rate is usually cheaper than a cash advance, because you have months to pay without interest accruing.
Alternatives to getting cash from your credit card
Before you take a cash advance, consider whether you actually need cash or whether you need money. If you need to pay a bill, many billers accept credit card payments directly—you avoid the cash advance fee entirely. If you need cash for an emergency, a personal loan from a bank or credit union often charges lower interest than a cash advance and does not have an upfront fee. If you need cash for a short period, some employers offer paycheck advances, and some nonprofits offer emergency loans at low or no interest.
A cash advance should be a last resort, not a first option. The fees and interest are high, and the money has to come from somewhere—usually your next paycheck or savings. If you find yourself regularly taking cash advances, that is a sign that your budget does not match your income, and borrowing more will make the problem worse.
Frequently Asked Questions
What is the difference between my cash advance limit and my credit limit?
Your cash advance limit is usually 20 to 50 percent of your total credit limit, set by your card issuer. You might have a $5,000 credit limit but only a $1,000 cash advance limit. You can request a higher cash advance limit by calling your issuer, but they may deny the request or lower your overall credit limit in response. Check your card's terms or online account to find your current cash advance limit.
Does a cash advance hurt my credit score?
A cash advance itself does not directly hurt your score, but it increases your credit utilization (the percentage of your available credit you are using), which can lower your score temporarily. If you carry the balance and miss payments, that will hurt your score more significantly. Paying off the cash advance quickly minimizes the damage to your score.
Can I get a cash advance from a credit card I just opened?
Most cards allow cash advances when ready after opening, but some new cards restrict cash advances for the first 30 to 90 days. Check your card's terms or call the issuer to confirm. Even if you can take a cash advance, the fee and interest rate explore the same way as they would on an older card.
What happens if I cannot pay back a cash advance?
If you do not pay, the balance carries forward to the next month with interest, and your minimum payment increases. If you miss payments, the card issuer may report it to credit bureaus, which damages your credit score and can lead to late fees, a higher interest rate, or the card being closed. Contact your issuer if you are struggling to pay—some offer hardship programs or payment plans.
Is there a way to get cash from a credit card without paying a fee?
No. Every method of getting cash from a credit card charges a fee or interest, or both. Some cards offer promotional rates on balance transfers, which can reduce the total cost if you pay off the balance during the promotional period, but the upfront fee still applies. If you need cash without fees, a debit card, bank withdrawal, or personal loan are better options.