The three ways to pull cash from a credit card

You can get cash from a credit card through a cash advance, a balance transfer check, or a convenience check. Each method charges different fees and interest rates, and each one costs more than a regular purchase. A cash advance is the most common route — you withdraw money at an ATM or bank teller using your card's PIN. Balance transfer checks and convenience checks are mailed to you by your card issuer and work like regular checks, but they're treated as cash advances for fee and interest purposes.

The core difference between these methods and a regular purchase is that cash advances start accruing interest when ready, with no grace period. A typical purchase might have 21 to 25 days before interest kicks in. A cash advance begins charging interest the day you withdraw it. This is why cash advances are expensive even before you factor in the upfront fee.

Key Takeaways

  • Cash advances charge an upfront fee (typically 3 to 5 percent of the amount withdrawn) plus a higher interest rate than regular purchases, starting when ready with no grace period.
  • You can withdraw cash at an ATM using your card's PIN, at a bank teller, or through balance transfer checks and convenience checks mailed by your issuer.
  • The interest rate on a cash advance is usually 2 to 5 percentage points higher than your regular purchase APR and varies by card and issuer.
  • If you need cash, a personal loan or a 0% balance transfer to another card may cost less than a cash advance, depending on your credit and the amount you need.

Cash advance fees and interest rates

Every cash advance comes with an upfront fee charged at the time you withdraw the money. This fee is usually 3 to 5 percent of the amount you take out, with a minimum of $5 to $10. If you withdraw $500, expect to pay $15 to $25 just to get the cash. That fee is added to your credit card balance when ready.

The interest rate on a cash advance is separate from your regular purchase APR. Most issuers charge 2 to 5 percentage points higher on cash advances than on purchases. If your purchase rate is 18 percent, your cash advance rate might be 23 or 24 percent. This rate applies from day one — there is no grace period. Interest accrues daily on the full amount you withdrew.

Some cards offer a promotional 0% APR on purchases but charge the standard cash advance rate when ready. Others charge the same rate on both. Check your card's terms or call the issuer to find out your specific cash advance APR before you withdraw.

How to get a cash advance at an ATM or bank

To withdraw cash at an ATM, you need your credit card and your PIN (personal identification number). If you don't have a PIN set up, contact your card issuer to request one — this usually takes a few business days. Once you have it, insert your card into any ATM that accepts your card network (Visa, Mastercard, American Express, or Discover), enter your PIN, and select "cash advance" or "withdraw cash." The ATM will ask how much you want to take out.

There's a limit to how much you can withdraw. Your issuer sets a cash advance limit, which is often lower than your overall credit limit. You might have a $5,000 credit limit but only a $1,000 cash advance limit. Check your card's terms or log into your online account to see your limit before you go to the ATM.

You can also get a cash advance at a bank teller. Bring your credit card and ID, tell the teller you want a cash advance, and they'll process it the same way an ATM would. Some banks charge an additional fee for this service on top of your card issuer's fee — ask before you proceed.

Balance transfer checks and convenience checks

Balance transfer checks and convenience checks are mailed to you by your card issuer. They look like regular checks and work like regular checks, but they're treated as cash advances for fee and interest purposes. You write the check to yourself or to a payee, deposit it in your bank account, and the amount is charged to your credit card.

The difference between the two is mainly in how the issuer markets them. A balance transfer check is typically offered as a way to move debt from another card to your current card at a promotional rate. A convenience check is a general-purpose check that functions as a cash advance. Both charge the same upfront fee and interest rate as an ATM cash advance.

These checks are useful if you need a large amount of cash and want to avoid multiple ATM trips or ATM withdrawal limits. They're also useful if you prefer not to use an ATM. The downside is that they take time to arrive in the mail, so they're not an option if you need cash today.

Comparing cash advances to other ways to get money

A personal loan from a bank, credit union, or online lender is often cheaper than a cash advance. Personal loans typically charge 6 to 36 percent APR depending on your credit score, with no upfront fee or a much smaller one. If you have decent credit, a personal loan at 12 percent costs far less than a cash advance at 24 percent plus a 5 percent upfront fee. The tradeoff is that a personal loan takes a few days to fund, whereas a cash advance is when ready.

A 0% balance transfer card is another option if you need time to pay back the cash. You transfer your current credit card balance to a new card with a 0% introductory APR (usually 6 to 21 months), which gives you a period with no interest. You'll pay a balance transfer fee of 3 to 5 percent, but after that, no interest accrues during the promotional period. This works only if you can pay off the balance before the 0% period ends.

A credit line increase on your current card doesn't give you cash, but it does give you more purchasing power. If you can wait to spend the money on a purchase rather than withdraw it as cash, you avoid the cash advance fee and interest rate entirely. Some issuers offer temporary credit line increases that you can request online.

What happens to your credit score

A cash advance affects your credit score in two ways. First, the withdrawal itself is reported to the credit bureaus as a new account inquiry and a hard pull on your credit, which can lower your score by a few points temporarily. Second, the cash advance increases your credit utilization ratio — the amount of available credit you're using. If you have a $5,000 limit and withdraw $2,000, your utilization jumps to 40 percent. High utilization can lower your score.

The impact is usually small and temporary if you pay off the cash advance quickly. If you carry the balance for months, the interest charges and ongoing high utilization will hurt your score more significantly. Paying the cash advance off within a billing cycle or two minimizes the damage.

Avoiding cash advance traps

The biggest trap is treating a cash advance like information programs. It's not. Every dollar you withdraw costs you an upfront fee plus daily interest. If you withdraw $1,000 at a 5 percent fee and 24 percent APR, you owe $1,050 when ready, plus $20 in interest after the first month if you don't pay it back. After three months, you owe roughly $1,200.

Another trap is using a cash advance to pay off other debts. This just moves the debt to a higher-interest card and adds a fee on top. If you're using a cash advance to pay a bill or loan, stop and explore a personal loan or payment plan with the creditor instead.

A third trap is not knowing your cash advance limit. You might go to an ATM expecting to withdraw $500 and find out your limit is $200. Check your limit before you go, or you'll waste time and potentially trigger a declined transaction that could affect your account.

Frequently Asked Questions

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

Technically yes, but it's almost always a bad idea. You'll pay a 3 to 5 percent fee on top of a higher interest rate, so you're paying more to move debt around. A balance transfer to a 0% card or a personal loan costs less. If you're trying to consolidate debt, explore those options first.

What's 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. A cash advance charges interest from day one. A purchase has your regular APR; a cash advance has a higher APR. A purchase has no upfront fee; a cash advance charges 3 to 5 percent upfront. The cash advance is always more expensive.

Do I need a PIN to get a cash advance?

You need a PIN for an ATM cash advance. You don't need one for a balance transfer check or convenience check — those work like regular checks. If you don't have a PIN, call your issuer to set one up, which usually takes a few business days.

How long does a cash advance stay on my credit report?

The cash advance itself doesn't stay on your report. What stays is the balance you owe and how long you carry it. If you pay it off within a month, it's treated like any other purchase. If you carry it for months, the ongoing balance and interest charges are reported as part of your credit utilization and payment history.

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

Yes. Your cash advance limit is set by your issuer and is usually available to anyone with an active account, regardless of credit score. The limit might be low, but you can still withdraw up to it. The downside is that the higher interest rate hits harder if you carry the balance, so focus on paying it back quickly.