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 to someone else's account. Each method charges different fees and interest rates, and each one starts charging interest when ready — unlike a purchase, which may have a grace period.

A cash advance is the most direct route. You go to an ATM, bank branch, or convenience store, insert your card, and withdraw cash up to your card's cash advance limit (usually lower than your credit limit). The transaction posts within one business day.

A balance transfer check is a physical check your card issuer mails to you. You deposit it like any other check, and the amount becomes a balance on your card at the balance transfer rate. This takes several business days to arrive and clear.

A convenience check or cash-like transfer lets you write a check or send money directly to someone else's account, and the amount is treated as a cash advance on your card. This is useful if you need to pay a person or business but don't have cash on hand.

Key Takeaways

  • Cash advances charge a fee (usually 3 to 5 percent of the amount) and a higher interest rate than purchases, with interest starting when ready.
  • Balance transfer checks may have a lower rate than cash advances but still charge a fee and start accruing interest right away.
  • Your cash advance limit is often much lower than your credit limit, so you may not be able to withdraw as much as you think.
  • ATMs, bank branches, and convenience stores all offer cash advances, but fees vary by location and card issuer.

Cash advances at ATMs and bank branches

An ATM cash advance is the fastest method. Insert your credit card into any ATM that displays your card's logo, enter your PIN, select "cash advance" or "withdraw cash," and choose your amount. The ATM will show you the fee before you confirm. Most ATMs charge between $2 and $5 per transaction, plus your card issuer's own fee (typically 3 to 5 percent of the amount withdrawn).

A bank branch cash advance works the same way but may have a lower fee. Go to any branch of your card issuer or a bank that honors your card, bring your card and ID, and ask the teller for a cash advance. The teller will process it on the spot. Some banks waive the ATM fee if you use their own branch.

Your card issuer sets a cash advance limit separate from your credit limit. This limit is often 20 to 30 percent of your credit limit, so if your credit limit is $5,000, your cash advance limit might be $1,000. Check your card's terms or call the issuer to find out your limit before you go to the ATM.

Balance transfer checks and convenience checks

If your card issuer has mailed you balance transfer checks, you can deposit one into your bank account and the amount becomes a balance on your credit card. These checks usually arrive with a promotional rate — sometimes 0 percent for a set period, sometimes a fixed rate lower than your cash advance rate. However, they still charge an upfront fee, usually 3 to 5 percent of the check amount.

Convenience checks work the same way but are sent to you as a benefit of your account. You can write them to yourself (to deposit in your bank account) or to someone else (to pay a bill or person). The issuer treats the amount as a cash advance, so it carries the cash advance rate and fee unless the check is specifically labeled as a balance transfer check.

Both types of checks take 5 to 10 business days to arrive by mail and another 1 to 3 business days to clear once you deposit them. If you need cash today, this method will not work.

Fees and interest rates you will pay

A cash advance fee is charged upfront and is usually 3 to 5 percent of the amount you withdraw. On a $500 cash advance, that is $15 to $25 added to your balance when ready. Some cards offer a flat fee (like $10) instead, which is better for small amounts but worse for large ones.

The interest rate on a cash advance is higher than the rate on purchases. While a purchase rate might be 18 percent, a cash advance rate might be 24 or 28 percent. This rate applies from the day you withdraw the cash — there is no grace period. If you withdraw $500 and pay it back in 30 days, you will owe roughly $35 in interest alone, plus the upfront fee.

Balance transfer checks may have a lower rate if they come with a promotional offer, but read the fine print. A 0 percent offer might last only 6 months, then jump to 24 percent. The fee still applies upfront, and interest starts accruing on any balance remaining after the promotional period ends.

How to minimize the cost

Pay back the cash advance as fast as you can. Because interest starts when ready and the rate is high, every day you carry the balance costs you money. If you can pay it back within a week, the interest will be minimal. If you carry it for months, the interest will exceed the upfront fee.

Use a cash advance only if you have no other option. A personal loan from a bank or credit union often has a lower rate and longer repayment period. A payday loan has a higher rate but may be faster. A balance transfer to a 0 percent card (if you have time to wait for the check to arrive) may be cheaper than a cash advance.

Check whether your card issuer offers a lower cash advance rate for certain ATMs or banks. Some issuers waive the fee if you use their own ATM or branch. A few cards offer a promotional cash advance rate for the first 30 or 60 days. These are rare, but it is worth asking your issuer whether you may have access to.

Alternatives to a credit card cash advance

A personal loan from a bank, credit union, or online lender usually has a lower interest rate (8 to 20 percent depending on your credit) and a fixed repayment schedule. The downside is that approval takes 1 to 3 business days, and you may need to provide income verification.

A payday loan is faster — you can get cash the same day — but the cost is much higher. A typical payday loan charges $15 to $20 per $100 borrowed, which works out to an annual rate of 400 percent or more. Use this only if you need cash for a true emergency and can pay it back within two weeks.

A balance transfer to a 0 percent card works if you have time to wait. If another card issuer offers you a 0 percent balance transfer rate for 12 months, you can transfer a balance from your current card and pay no interest during that period. The catch is that the transfer takes 5 to 10 business days and charges a 3 to 5 percent fee upfront.

Asking a friend or family member for a loan is free and has no interest, but it carries social risk. A line of credit from your bank (if you have an existing relationship) may be faster and cheaper than a cash advance and does not require a full loan process.

What happens if you cannot pay back the cash advance

If you carry a cash advance balance and make only the minimum payment, the balance will grow because of interest. Your card issuer applies your payment to the lowest-rate balance first (usually purchases), so the cash advance interest keeps compounding. A $500 cash advance at 28 percent interest, with only minimum payments, can take years to pay off and cost you hundreds in interest.

If you miss a payment, your interest rate may jump to a penalty rate (often 29.99 percent), and you will owe a late fee. Your credit score will drop, making it harder to borrow money in the future. If the balance goes unpaid for 180 days, the card issuer will charge it off and may send it to a debt collector.

If you are struggling to pay back a cash advance, contact your card issuer and ask about a hardship program. Some issuers will lower your interest rate or set up a payment plan if you explain your situation. This is better than ignoring the debt.

Frequently Asked Questions

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

Yes, but it is expensive. You will pay the cash advance fee and interest rate on the amount you withdraw, then use that cash to pay the other card. It is almost always cheaper to transfer the balance directly using a balance transfer check or a balance transfer offer from another card.

What is the difference between my credit limit and my cash advance limit?

Your credit limit is the total amount you can borrow on the card for any purpose. Your cash advance limit is the maximum amount you can withdraw as cash, and it is usually 20 to 30 percent of your credit limit. If your credit limit is $10,000, your cash advance limit might be $2,000. You can use the rest of your credit limit for purchases.

Do I need a PIN to get a cash advance?

Yes, for ATM withdrawals. You will need to set up a PIN with your card issuer before you can use an ATM. If you have not set one up, call your issuer or log into your online account to create one. At a bank branch, you may be able to use your ID instead of a PIN.

How long does a cash advance take to show up on my statement?

An ATM cash advance posts within one business day. A balance transfer check takes 5 to 10 days to arrive by mail and another 1 to 3 days to clear. A convenience check works the same way. Check your online account or call your issuer if you are unsure whether a transaction has posted.

Can I get a cash advance if I am near my credit limit?

Only if you have room within your cash advance limit. If your cash advance limit is $2,000 and you have already withdrawn $1,800, you can only withdraw $200 more. Your overall credit limit does not matter for cash advances — only your cash advance limit does.