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 purchase such as buying a money order or casino chips. Each one costs differently and affects your balance in different ways.
A cash advance lets you withdraw money directly using your card at an ATM, bank teller, or convenience store. The money appears in your account within one to three business days. A balance transfer check is a physical check the card issuer mails to you; you deposit it like any other check. A cash-like purchase means buying something that functions as cash — money orders, wire transfers, or gambling chips — which the card treats as a purchase rather than a cash advance, though the cost can be similar or higher.
Key Takeaways
- Cash advances charge a fee (usually 3 to 5 percent of the amount) plus a higher interest rate than regular purchases, starting immediately with no grace period.
- Balance transfer checks may have lower fees than cash advances but still charge interest from day one and may have a cap on how much you can transfer.
- Cash-like purchases (money orders, wire transfers) are treated as purchases, so they may have a grace period, but the fees can be steep and the merchant may charge an additional fee.
- Interest on cash advances and balance transfers accrues daily, so the longer you carry the balance, the more you pay.
- Your credit card statement will show cash advances and balance transfers separately from regular purchases, making them easier to track but harder to pay off if you only make minimum payments.
Cash advances: how they work and what they cost
A cash advance is the most direct way to get money. You go to an ATM, bank branch, or convenience store, insert your card, enter your PIN, and withdraw cash. The issuer charges a cash advance fee — typically 3 to 5 percent of the amount withdrawn, with a minimum fee of $5 to $10. So if you withdraw $500, you might pay $15 to $25 just to get the cash.
The interest rate on a cash advance is usually higher than the rate on regular purchases. While a purchase might carry an APR of 18 percent, a cash advance might be 24 or 28 percent. Critically, interest starts accruing immediately — there is no grace period. If you withdraw $500 on the first of the month and pay it back on the last day of the month, you still owe interest for the full month.
Your credit card 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 $1,500 cash advance limit. Check your card agreement or call the issuer to find out your limit before you go to the ATM.
Balance transfer checks and their terms
Many card issuers mail balance transfer checks to cardholders. You write one to yourself or a payee, deposit it like a regular check, and the amount is charged to your credit card. The fee is often lower than a cash advance fee — sometimes 1 to 3 percent — but the interest rate is usually the same as a cash advance rate, and it starts immediately.
Balance transfer checks often come with a cap. Your issuer might allow you to transfer only $2,000 even if your credit limit is $10,000. The check itself may expire after 30 or 60 days, so you need to deposit it within that window or it becomes worthless.
One advantage: if you receive the check but do not use it, there is no fee and no interest. You only pay when you actually deposit it. This makes balance transfer checks useful if you want the option to get cash but are not sure you will need it.
Cash-like purchases: money orders, wire transfers, and alternatives
Buying a money order, wire transfer, or casino chips with your credit card is technically a purchase, not a cash advance. This matters because some cards offer a grace period on purchases — usually 21 days — before interest kicks in. However, the merchant (the money order seller, wire service, or casino) often charges a separate fee on top of the card fee.
A money order at a grocery store or post office might cost $1 to $3 per order, but the card issuer may still treat it as a cash advance and charge a fee plus interest. Wire transfer services charge 2 to 10 percent of the amount sent, depending on the service and destination. These fees add up quickly, especially for small amounts.
The main risk: if your card issuer classifies the purchase as a cash advance anyway, you lose the grace period and pay interest from day one. Before you buy a money order or wire transfer with your card, call the issuer and ask how they categorize that merchant. Some issuers are clear about it; others leave it ambiguous until the statement arrives.
How interest and fees stack up over time
The real cost of getting cash from a credit card is not just the upfront fee — it is the interest that accumulates while you carry the balance. Interest on cash advances compounds daily, so a $500 advance at 25 percent APR costs about $10.42 per month in interest alone, plus the initial $15 to $25 fee.
If you pay back the $500 in one month, your total cost is roughly $25 to $35. If you carry it for six months, you pay roughly $75 to $85 in interest plus the fee. If you make only minimum payments and carry it for a year, the interest alone can exceed the original fee.
This is why cash advances are expensive compared to regular credit card purchases. A $500 purchase at 18 percent APR costs about $7.50 per month in interest and has no upfront fee. The same $500 as a cash advance costs $15 to $25 upfront plus $10 to $12 per month in interest at a higher rate.
Alternatives to getting cash from your credit card
Before you use a cash advance, consider whether another option costs less. A personal loan from a bank or credit union often has a lower interest rate than a credit card cash advance, even if your credit is not perfect. A payday loan is faster but usually more expensive. A line of credit from your bank may have no fee and a lower rate.
If you need cash for an emergency, ask whether you can use a debit card, borrow from family, or delay the purchase. If you need cash regularly, opening a checking account with a debit card and ATM access is cheaper than repeated cash advances.
If you are considering a cash advance because you cannot pay a bill, contact the creditor first. Many utilities, medical providers, and landlords offer payment plans that cost nothing. A payment plan is almost always cheaper than a cash advance plus interest.
How cash advances affect your credit score
A cash advance does not directly hurt your credit score the way a missed payment does. However, it increases your credit utilization — the percentage of your available credit you are using. If you have a $5,000 limit and take a $1,000 cash advance, your utilization jumps to 20 percent. High utilization can lower your score by a few points.
The bigger risk is that a cash advance makes it harder to pay down your balance. Because interest accrues immediately and the rate is high, the balance grows faster than a regular purchase would. If you carry the cash advance for months, your utilization stays high and your score stays depressed.
If you miss a payment on a cash advance, the damage is the same as missing any credit card payment: your score drops significantly, and the issuer may raise your interest rate or close the account.
Frequently Asked Questions
Can I get a cash advance if my credit is bad?
Yes. Cash advances are available to anyone with an active credit card account, regardless of credit score. The card issuer has already decided to lend to you; a cash advance is just a different way of accessing that credit. However, your cash advance limit may be lower than your overall limit, and the interest rate applies to everyone on that card.
What is the difference between a cash advance and a balance transfer?
A cash advance gives you physical cash. A balance transfer moves money from one card to another card or account. Balance transfers are usually used to move debt from a high-interest card to a low-interest card, not to get cash. If you want cash, a cash advance or balance transfer check is what you need.
How long does it take to get cash from a credit card?
An ATM cash advance is instant — you get the money immediately. A bank teller cash advance takes a few minutes. A balance transfer check takes one to two weeks to arrive in the mail, then one to three business days to clear after you deposit it. Money orders and wire transfers depend on the merchant and service, but usually take one to five business days.
Can I pay back a cash advance early without a penalty?
Yes. There is no penalty for paying back a cash advance early. In fact, paying it back as soon as possible saves you money on interest. The sooner you pay it off, the less interest accrues. Some issuers allow you to make payments online, by phone, or at a branch.
What happens if I cannot pay back the cash advance?
If you miss a payment, the issuer reports it to the credit bureaus and your score drops. The interest rate may increase, and the issuer may charge a late fee. If you continue to miss payments, the issuer may close your account and send the debt to a collection agency. Contact your issuer immediately if you think you will miss a payment — many offer hardship programs or payment plans.