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 (sometimes called a "convenience check"). Each one charges you differently and starts charging interest immediately — unlike regular purchases, which often have an interest-free period.

A cash advance is the most common method. You use your credit card at an ATM, bank teller, or some convenience stores to withdraw cash up to your available credit limit. The bank or ATM operator charges a fee (usually 3 to 5 percent of the amount withdrawn), and your credit card company charges its own fee on top of that. Interest starts accruing the same day, with no grace period.

A balance transfer check is a physical check your credit card company mails to you. You deposit it like any other check, and the amount is treated as a cash advance on your card. It carries the same fees and interest as an ATM withdrawal.

Convenience checks work the same way as balance transfer checks — they are checks issued by your credit card company that you can write to yourself or deposit. Some credit card companies no longer offer these, so check your account or call to see if yours does.

Key Takeaways

  • Cash advances charge fees (typically 3 to 5 percent) plus interest that starts immediately, with no grace period like regular purchases have.
  • You can withdraw cash at ATMs, bank tellers, or some convenience stores using your credit card PIN.
  • Balance transfer checks and convenience checks work like cash advances — they are not cheaper, just a different way to access the same cash.
  • Your credit card company sets a separate cash advance limit, which may be lower than your overall credit limit.
  • Cash advances show up on your credit report and count toward your credit utilization, which can lower your credit score.

Fees and interest you will pay

Every cash advance comes with at least two costs. The first is a cash advance fee, charged by your credit card company. This is usually a flat dollar amount (like $5 or $10) or a percentage of the amount withdrawn (typically 3 to 5 percent), whichever is higher. Some cards charge 5 percent with a $10 minimum, meaning a $100 withdrawal costs at least $10.

The second cost is the ATM operator fee, charged by the bank or ATM network if you withdraw from an ATM that is not owned by your card issuer. This can range from $2 to $5 per transaction. If you use your card issuer's own ATM, you usually avoid this fee.

Interest starts accruing on the day you withdraw the cash — there is no interest-free period like you might have on regular purchases. The interest rate for cash advances is often higher than the rate for regular purchases on the same card. For example, your card might charge 18 percent APR on purchases but 25 percent APR on cash advances. Check your card's terms to see the specific rates.

If you withdraw $200 at an ATM with a 4 percent cash advance fee and a $3 ATM fee, you pay $11 upfront. If you carry that $200 balance for one month at 25 percent APR, you owe about $4.17 in interest. Over a year, the interest alone would exceed $50.

Your cash advance limit versus your credit limit

Your credit card company sets a separate cash advance limit, which is often lower than your overall credit limit. If your card has a $5,000 credit limit, your cash advance limit might be only $1,000 or $1,500. This limit is set by the card issuer and is not something you can change on your own.

You can contact your card issuer to ask if they will increase your cash advance limit, but there is no may provide they will. Some issuers will not raise it; others may do so if you have a good payment history. The request may trigger a hard inquiry on your credit report, which can lower your score slightly.

If you try to withdraw more than your cash advance limit, the ATM or teller will decline the transaction. The amount you withdraw counts against both your cash advance limit and your overall credit limit, so a $500 cash advance reduces both limits by $500.

How cash advances affect your credit score

A cash advance shows up on your credit report as a balance on your credit card account. This affects your credit utilization ratio — the percentage of your available credit that you are using. If you have a $5,000 limit and a $500 cash advance, your utilization jumps to 10 percent. Credit scoring models treat high utilization as a sign of financial stress, which can lower your score.

The impact is usually temporary. Once you pay off the cash advance, your utilization drops and your score recovers. However, if you carry the balance for months, the damage to your score can be significant and long-lasting.

A cash advance itself does not trigger a hard inquiry or a new account, so it does not hurt your score in those ways. The damage comes only from the utilization and the payment history — if you miss a payment on the cash advance, that shows up on your credit report and damages your score for years.

Alternatives to cash advances

Before you take a cash advance, consider whether you actually need cash or just need to pay for something. If you need to pay a bill or make a purchase, using your credit card directly (without withdrawing cash) avoids the cash advance fees and often gives you an interest-free period.

If you need cash for an emergency, a personal loan from a bank or credit union often has a lower interest rate than a credit card cash advance. Personal loans also have a fixed repayment schedule, which makes budgeting easier. The downside is that a personal loan application takes a few days, whereas a cash advance is instant.

A payday loan is faster than a personal loan but usually much more expensive than a credit card cash advance. Payday loans often charge 400 percent APR or higher, so they should be a last resort.

If you have a line of credit through your bank (separate from your credit card), that often has a lower interest rate than a cash advance and may have no upfront fee. Check whether your bank offers this option before you use your credit card.

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

If you have decided a cash advance is necessary, you can reduce the damage by following a few steps. First, withdraw only what you need. Every dollar you withdraw costs you a fee and interest, so taking out more than necessary is wasteful.

Second, use an ATM owned by your card issuer to avoid the operator fee. Most card issuers have a network of ATMs you can use for free. Your card statement or the issuer's website will tell you where these are located.

Third, pay off the cash advance as fast as you can. Because interest starts immediately and accrues daily, every day you carry the balance costs you money. If you can pay it back within a week or two, the total interest will be small. If you carry it for months, the interest will dwarf the original fee.

Fourth, do not take another cash advance until you have paid off the first one. Each new advance resets the interest clock and adds another fee. If you are taking multiple cash advances, you are likely in a cycle of debt that will be hard to escape.

Frequently Asked Questions

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

Technically yes, but it is almost never a good idea. You pay a cash advance fee and interest on the money you withdraw, then you pay interest on the new card's balance. You end up paying interest twice on the same money. It is better to transfer the balance directly using a balance transfer offer, which may have a lower fee and a temporary 0 percent interest rate.

What is the difference between a cash advance and a balance transfer?

A cash advance gives you physical cash and charges you a fee plus interest starting immediately. A balance transfer moves debt from one card to another and may offer a 0 percent interest period (usually 6 to 21 months) before interest kicks in. Balance transfers are cheaper if you are moving existing debt, but they do not give you cash.

Will a cash advance hurt my credit score?

Yes, temporarily. It raises your credit utilization, which can lower your score by 10 to 50 points depending on how much you withdraw. Once you pay it off, your score recovers. However, if you miss a payment on the cash advance, the damage is permanent and lasts for seven years.

Can I get a cash advance without a PIN?

At an ATM, you need a PIN. At a bank teller, you can usually withdraw cash by showing your card and a photo ID, even without a PIN. Some banks will not do this, so call ahead. Convenience checks and balance transfer checks do not require a PIN — you just deposit them like regular checks.

Is there a limit to how much I can withdraw?

Yes. Your card issuer sets a cash advance limit, which is often lower than your overall credit limit. You also cannot withdraw more than your available credit. Some ATMs have daily withdrawal limits as well, so you may not be able to get all the cash you need in one day.