The main ways to take money out of 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 to a checking account, or a convenience check. Each one costs you differently and affects your credit card balance in different ways.
A cash advance lets you withdraw money at an ATM using your credit card PIN. A balance transfer moves money from your credit card to a bank account you control. A convenience check is a check your card issuer sends you that you can deposit or cash. All three put you into debt on your credit card when ready — you are borrowing money, not accessing your own funds.
The catch: cash advances and convenience checks charge fees (usually 3 to 5 percent of the amount) and start accruing interest right away, with no grace period. Balance transfers to your own bank account may also charge a fee. None of these are free ways to get cash.
Key Takeaways
- Cash advances charge an upfront fee of 3 to 5 percent and begin accruing interest when ready, with no grace period like you get on purchases.
- Balance transfers to your bank account also charge a fee and start accruing interest right away, though the interest rate may differ from your purchase rate.
- Convenience checks work like regular checks but are treated as cash advances on your credit card statement, with the same fees and interest rules.
- All three methods add to your credit card debt and can lower your credit score if they push your credit utilization above 30 percent.
Cash advances: getting money from an ATM or bank
A cash advance is the most direct way to pull money from your credit card. You go to an ATM that accepts your card, enter your PIN, and withdraw cash up to your cash advance limit — which is usually lower than your overall credit limit.
The costs hit when ready. You pay a cash advance fee at the time of withdrawal, typically 3 to 5 percent of the amount you take out. If you withdraw $500, you might pay $15 to $25 in fees. You also start paying interest the same day, with no grace period. Most cards charge a higher interest rate on cash advances than on regular purchases — sometimes 2 to 3 percentage points higher. That interest compounds daily until you pay the balance off.
You can also get a cash advance at a bank branch by asking a teller to process one on your credit card. The fee and interest rules are the same, but you may be able to withdraw larger amounts in person than an ATM allows.
Balance transfers to your bank account
Some credit card issuers let you transfer money from your credit card directly to a checking or savings account you own. This is different from a balance transfer between credit cards — you are moving money into your own bank account, not paying off another card.
The process varies by issuer. You may be able to request a transfer through your online account, by phone, or through your card's mobile app. The issuer deposits the money into the bank account you specify, usually within one to three business days.
Like cash advances, balance transfers to your bank account charge a fee (typically 3 to 5 percent) and begin accruing interest when ready. The interest rate may be the same as your cash advance rate or your purchase rate — check your card's terms. You owe this money on your credit card statement, just like any other balance.
Convenience checks and how they work
Your credit card issuer may send you convenience checks in the mail. These look like regular checks, but when you deposit or cash them, the amount is added to your credit card balance as a cash advance.
Convenience checks are useful if you need to pay a bill by check or send money to someone who does not accept credit cards. You write the check, they cash it, and the money comes out of your credit card. You do not have to go to an ATM or a bank branch.
The downside is the same as a cash advance: you pay a fee (usually 3 to 5 percent) and interest starts accruing when ready. Some issuers charge a slightly lower fee for convenience checks than for ATM cash advances, but not always — read the terms on the checks themselves or call your issuer to confirm.
How these withdrawals affect your credit score
Taking money off your credit card raises your credit utilization — the percentage of your available credit you are using. If you have a $5,000 limit and you take a $1,500 cash advance, your utilization jumps to 30 percent. Credit scoring models penalize high utilization, so this can lower your score.
The effect is temporary if you pay the balance off quickly. But if you carry the balance, the ongoing interest charges make it harder to pay down, and your utilization stays high. Over time, this can damage your credit score more than a single large purchase would.
Cash advances and convenience checks also appear separately on your credit report in some cases, which may signal to lenders that you are short on cash. This is less of a factor than utilization, but it is worth knowing.
Comparing the costs: which method is cheapest
All three methods cost roughly the same upfront — a 3 to 5 percent fee — but the total cost depends on how long you carry the balance.
| Method | Upfront Fee | Interest Rate | Grace Period |
|---|---|---|---|
| Cash advance (ATM) | 3–5% | Usually 2–3% higher than purchases | None |
| Balance transfer to bank account | 3–5% | Varies by issuer | None |
| Convenience check | 3–5% | Usually same as cash advance | None |
| Regular purchase | None | Your standard APR | Usually 21–25 days |
If you pay off the balance within a month, the fee is your main cost. If you carry it longer, the interest rate matters more. Because cash advances and convenience checks charge higher interest and have no grace period, they are the most expensive way to borrow from your credit card. A regular purchase, even at your standard interest rate, is cheaper if you carry a balance.
The cheapest option is not to use any of them — if you need cash, a personal loan or a line of credit from your bank usually charges less interest and no upfront fee.
Alternatives to getting money off your credit card
Before you take a cash advance, consider whether another option costs less or puts you in a better position.
A personal loan from a bank or credit union typically charges 6 to 36 percent interest with no upfront fee, depending on your credit score. For larger amounts or longer repayment periods, this is often cheaper than a cash advance.
A line of credit from your bank works like a credit card but usually charges lower interest. You draw money as you need it and pay interest only on what you use.
A payday loan is fast but expensive — interest rates can exceed 400 percent annually. Avoid these unless you have no other option and can pay it back in full within two weeks.
If you need money for a specific purchase, ask whether the seller offers a payment plan. Many retailers and service providers let you pay over time with no interest if you pay within a set window.
Frequently Asked Questions
What is the difference between a cash advance and a balance transfer?
A cash advance gives you physical cash at an ATM or bank. A balance transfer to your bank account moves money into your checking or savings account electronically. Both charge fees and interest, but a balance transfer may be faster and does not require you to visit an ATM.
Can I use a convenience check to pay off another credit card?
Yes. You can write a convenience check to pay another credit card balance. The amount will be treated as a cash advance on your original card, so you will pay the cash advance fee and interest rate, not the balance transfer rate. This is usually more expensive than a direct balance transfer between cards.
Do I have to pay back a cash advance right away?
No, but interest starts accruing when ready. You can carry the balance like any other credit card debt, but the higher interest rate means it costs more the longer you hold it. Most people should pay it back as quickly as possible.
Will a cash advance hurt my credit score?
It can, because it raises your credit utilization. If the advance pushes your total balance above 30 percent of your limit, your score may drop. The effect is usually temporary if you pay it off quickly, but it can be significant if you carry the balance long-term.
What if my credit card does not have a cash advance limit?
Your issuer sets a separate cash advance limit, which is often lower than your overall credit limit. If you do not have one, call your card issuer and ask whether they can set one for you. Some issuers do not offer cash advances at all, particularly on secured cards or student cards.