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 issuer, or a cash-like purchase through a third party like PayPal or Square Cash. Each costs differently and hits your account in different ways.

A cash advance is the most direct method. You insert your card at an ATM, enter your PIN, and withdraw money just as you would from a debit card. The issuer charges you a fee — typically 3% to 5% of the amount withdrawn, with a minimum of $5 to $10 — and interest starts accruing when ready at a rate that is usually higher than your purchase APR. There is no grace period.

Balance transfer checks work differently. Your card issuer mails you a check that draws against your credit line. You deposit or cash the check, and the amount appears as a balance on your card. These checks usually carry a fee of 3% to 5% as well, and interest accrues from day one. The advantage is that you do not need a PIN or a nearby ATM.

Cash-like purchases let you convert your credit limit into usable funds through a payment app or money transfer service. You load money onto the app using your credit card, then withdraw it or send it to your bank account. These services treat the transaction as a purchase rather than a cash advance, so you may avoid the higher cash advance APR — but the app itself may charge its own fee, and some issuers now code these transactions as cash advances anyway.

Key Takeaways

  • Cash advances charge a fee of 3% to 5% upfront and a higher interest rate than purchases, with no grace period, making them expensive for anything but short-term needs.
  • Balance transfer checks offer the same fees and rates as cash advances but do not require a PIN or ATM visit.
  • Cash-like purchases through payment apps may avoid the cash advance fee and rate if the issuer codes them as purchases, but this varies by card and app.
  • The total cost of getting $500 in cash can range from $15 to $25 in fees alone, plus interest that compounds daily.
  • If you need cash regularly, a debit card or a personal loan will cost far less than repeated credit card cash withdrawals.

How cash advance fees and interest work

When you take a cash advance, you pay two separate charges: the upfront fee and the daily interest. The fee is calculated as a percentage of the amount withdrawn and is added to your balance when ready. A $500 cash advance at 4% costs $20 in fees before you have even left the ATM.

Interest on a cash advance begins accruing the same day you withdraw the money. Unlike purchases, which typically have a 21- to 25-day grace period before interest kicks in, cash advances have no grace period. The interest rate is also higher — often 2% to 5% above your purchase APR. If your card charges 18% APR on purchases, the cash advance rate might be 23% or higher.

The math compounds quickly. A $500 cash advance at 23% APR costs roughly $9.58 in interest per month if you carry the full balance. Over a year, that $500 costs you $115 in interest alone, plus the original $20 fee. Paying it back within a week or two is the only way to keep the cost reasonable.

Cash advances versus balance transfer checks

Both cash advances and balance transfer checks carry the same fees and interest rates, so the choice comes down to convenience and what you have access to. A cash advance requires a PIN and an ATM, which you may not have if you are traveling or do not use ATMs regularly. Balance transfer checks arrive by mail, so you need to wait a few days and have a way to deposit them.

Balance transfer checks also let you write a check to a third party — a landlord, a contractor, or a utility company — without withdrawing cash first. This can be useful if you need to pay someone who does not take credit cards. A cash advance, by contrast, gives you physical cash that you then have to move or spend.

Some issuers limit how many balance transfer checks they will send or how often you can request them. Check your card's terms or call the issuer to confirm whether checks are available and what the limits are.

Using payment apps to avoid cash advance rates

Payment apps like PayPal, Venmo, Square Cash, and others let you load money onto the app using your credit card, then withdraw it to your bank account or spend it directly. The appeal is that these transactions may be coded as purchases rather than cash advances, which means you avoid the higher cash advance APR and might avoid the cash advance fee entirely.

However, this loophole is closing. Many issuers now recognize these transactions and code them as cash advances anyway, charging you the same fee and rate you would pay at an ATM. Even when they do not, the payment app itself may charge a fee — often 1.5% to 3% — to process the transaction. You need to check both your card's terms and the app's fee schedule before you proceed.

If the app does not charge a fee and your issuer codes the transaction as a purchase, you get the benefit of the grace period and the lower purchase APR. In that case, you are essentially getting an interest-free loan for 21 to 25 days. But this is not may provide, and it varies by card and app combination.

When a cash advance makes sense

A cash advance is worth considering only in specific situations where the cost is outweighed by the benefit. If you have an emergency that requires cash — a car repair that a mechanic will not put on a card, a medical expense, or a security deposit — and you can pay it back within a week, the fee and interest may be acceptable.

A $500 cash advance that you repay in five days costs roughly $20 in fees and $2 in interest, for a total of $22. If that cash solves a problem that would otherwise cost you more — a missed work shift, a late fee, or a bounced check — it may be worth it. But if you are using a cash advance to cover everyday expenses or to fund a purchase you cannot otherwise afford, you are paying a premium for money you already have access to through other means.

If you find yourself taking cash advances regularly, that is a sign that your income does not cover your expenses, and a cash advance is masking the problem rather than solving it. In that case, a personal loan, a side income source, or a budget adjustment will serve you better in the long run.

Alternatives to credit card cash advances

Before you take a cash advance, consider whether one of these options would cost less or serve your situation better. A personal loan from a bank or credit union typically charges 6% to 36% APR depending on your credit, which is often lower than a credit card cash advance rate. The fee is usually built into the rate rather than charged upfront, and you have a fixed repayment schedule.

A debit card withdrawal from your own bank account costs nothing and is the fastest way to get cash if you have the money available. A payday loan is expensive — often 400% APR or higher — and should be a last resort, but it is sometimes cheaper than a cash advance if you repay it within a few days.

A line of credit from your bank, if you have one, may offer a lower rate than a cash advance and more flexibility than a personal loan. A credit union loan is often cheaper than a bank loan and faster to process. If you have friends or family who can lend you money interest-free, that is always the cheapest option.

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

If you decide a cash advance is your best option, these steps will keep the cost as low as possible. First, withdraw only the amount you need. Every dollar you withdraw costs you the fee percentage, so a $200 advance costs less than a $500 advance even if the percentage is the same.

Second, repay it as fast as you can. Interest compounds daily, so every day you carry the balance costs you money. If you can repay the advance within a week, do it. If it will take you a month, a personal loan or payment plan will almost certainly be cheaper.

Third, check whether your issuer offers a lower cash advance rate for certain ATMs or banks. Some cards waive the fee if you use an ATM owned by the issuer's bank. Calling the issuer's customer service line before you withdraw can tell you whether this applies to your card.

Fourth, do not take a cash advance to pay off another debt unless the new debt has a significantly lower interest rate. Moving a balance from one card to another using a cash advance usually costs more than a balance transfer, because the cash advance rate is higher and the fee is the same.

Frequently Asked Questions

Can I take a cash advance if my credit card is maxed out?

No. A cash advance draws from your available credit, just like a purchase does. If your card is maxed out, you have no available credit left, and the ATM will decline the transaction. You would need to pay down your balance first.

Does a cash advance hurt my credit score?

A cash advance itself does not hurt your score, but it does increase your credit utilization — the percentage of your available credit you are using. High utilization can lower your score temporarily. Paying the advance back quickly will bring your utilization back down and recover the score impact.

What happens if I cannot repay a cash advance?

The balance stays on your card and accrues interest at the cash advance rate until you pay it off. If you miss a payment, the issuer may charge a late fee and report the missed payment to the credit bureaus, which will damage your credit score. Contact your issuer to discuss a payment plan if you are struggling.

Is there a limit to how much I can withdraw as a cash advance?

Yes. Most issuers set a cash advance limit that is lower than your total credit limit — often 20% to 50% of your available credit. You can call the issuer to find out what your cash advance limit is, and some cards let you check it online.

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

Technically yes, but it is almost always a bad idea. You are paying a cash advance fee and rate to move money from one card to another, which costs more than a balance transfer. If you need to move a balance, use a balance transfer offer instead.