The main ways to get cash from your 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 (such as buying a money order or gift card). Each one costs you differently and affects your balance in different ways.

A cash advance is the most direct method. You go to an ATM, bank, or sometimes a convenience store, insert your card, and withdraw cash up to your limit. The money hits your account immediately. A balance transfer check is a check the card issuer mails to you that you can deposit or cash; you write it like a regular check, but it counts as a cash advance on your credit card. A cash-like purchase means buying something that functions as cash — a money order, wire transfer fee, or gift card — which also triggers cash advance fees and rates.

The catch: all three methods charge you fees and interest rates that are usually much higher than your regular purchase rate. Most cards charge a cash advance fee (often 3 to 5 percent of the amount, with a minimum of $5 to $10), and the interest rate on cash advances is typically 2 to 3 percentage points higher than your purchase APR. Interest starts accruing immediately — there is no grace period like there is for purchases.

Key Takeaways

  • Cash advances charge a separate fee (usually 3 to 5 percent) plus a higher interest rate than regular purchases, with no grace period.
  • You can withdraw cash at an ATM, get a balance transfer check from your issuer, or make a cash-like purchase such as a money order.
  • Your credit card company sets a cash advance limit that may be lower than your total credit limit.
  • The interest and fees start immediately, so a cash advance is expensive for anything but a short-term need.

Cash advances at ATMs and banks

To get a cash advance at an ATM, insert your credit card and enter your PIN. If you do not have a PIN, call your card issuer to set one up — most cards require this before you can use an ATM. The ATM will show your available cash advance limit, which is often lower than your total credit limit. You can withdraw up to that amount.

At a bank branch, you can also ask the teller for a cash advance. Bring your card and ID. The process is the same: the teller withdraws the amount from your credit line and hands you cash. Some banks charge an additional fee for this service on top of your card issuer's fee.

The fee structure varies by card. Most issuers charge a flat fee (such as $5 or $10) or a percentage of the amount (such as 3 percent), whichever is higher. So a $100 advance might cost $5, but a $500 advance might cost $15 (3 percent). Check your card's terms or call the issuer to confirm the exact fee before you withdraw.

Balance transfer checks

Some credit card issuers mail balance transfer checks to cardholders. These checks are drawn on your credit card account, not your bank account. You can deposit them into your bank or cash them at a check-cashing service. The amount appears as a cash advance on your credit card statement.

Balance transfer checks often come with a promotional rate — sometimes 0 percent APR for a set period (such as 6 or 12 months) — but they still charge a cash advance fee upfront. That fee is typically 3 to 5 percent and is added to your balance immediately. If you receive checks in the mail, read the terms carefully: the promotional rate applies only if you use the check within a certain window, usually 30 to 60 days.

If you do not receive checks and want to use this method, contact your issuer and ask whether they offer balance transfer checks. Not all cards do. If they do, request them and wait for them to arrive by mail — this can take one to two weeks.

Cash-like purchases and their costs

Buying a money order, wire transfer, or gift card with your credit card counts as a cash advance on most cards. The issuer treats these as cash-equivalent transactions because they can be converted to cash or used like cash. You will pay the cash advance fee and the higher interest rate, even though you are not physically withdrawing bills from an ATM.

This matters because it is easy to miss. You might think buying a gift card is just a regular purchase, but your card issuer will code it as a cash advance. The fee and interest rate apply immediately. If you need cash, a direct ATM withdrawal is usually clearer about what you are paying for.

How cash advances affect your credit and balance

A cash advance increases your credit utilization — the percentage of your total credit limit 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 credit score, even if you pay the balance on time. The effect is temporary and reverses once you pay down the advance, but it happens immediately.

The cash advance also appears as a separate line item on your statement, with its own balance, fee, and interest rate. If you make a payment to your card, the issuer typically applies it to your lowest-interest balance first (usually regular purchases), leaving the cash advance balance to accrue interest at the higher rate. This means paying off a cash advance takes longer than you might expect if you also carry a purchase balance.

When a cash advance makes sense

A cash advance is expensive, so it makes sense only in specific situations. If you need cash for a genuine emergency and have no other option — no savings, no personal loan, no family help — a short-term cash advance may be worth the cost. The key is to pay it back as quickly as possible, ideally within one or two billing cycles, to minimize interest charges.

It does not make sense to use a cash advance for everyday spending, to cover a budget shortfall, or to fund a purchase you could make with the card itself. In those cases, the fee and interest rate make the cash advance more expensive than the original cost of what you need. If you are considering a cash advance regularly, that is a sign your income and expenses are out of balance, and you may want to talk to a financial counselor about budgeting or debt management.

Alternatives to cash advances

Before you take a cash advance, consider other options. A personal loan from a bank or credit union usually has a lower interest rate and no upfront fee. A payday loan is faster but often more expensive than a cash advance, so compare the total cost. Asking family or friends for a short-term loan costs nothing if they agree. Selling something you own, picking up extra work, or delaying the purchase until you have saved the cash are all cheaper than borrowing.

If you need cash because you are short on rent or utilities, look into emergency assistance programs in your area. Many nonprofits and local governments offer grants or low-interest loans for housing, food, and utilities. These are usually free or very cheap compared to a cash advance.

Frequently Asked Questions

What is the difference between a cash advance and a regular purchase?

A regular purchase uses your credit line but does not charge a cash advance fee, and the interest rate is lower. A cash advance charges a separate fee upfront and a higher interest rate, with no grace period. Interest on a cash advance starts accruing the day you withdraw it, while interest on a purchase does not start until after your grace period ends (usually 21 days).

Can I use my credit card to withdraw cash at any ATM?

Most ATMs accept credit cards for cash advances, but some do not. ATMs owned by your card issuer's bank are most likely to work. Out-of-network ATMs may charge an additional fee on top of your card issuer's fee. Always check the ATM screen for the total fee before you confirm the withdrawal.

What happens if I do not pay back a cash advance?

The balance stays on your card and accrues interest at the higher cash advance rate. If you do not pay at least the minimum payment, your account goes into default, your credit score drops, and the issuer may close your account or pursue collection. The debt can follow you for years.

Is there a limit to how much cash I can advance?

Yes. Your card issuer sets a cash advance limit, which is often lower than your total credit limit. You can find this limit in your card agreement, online account, or by calling the issuer. Some cards allow you to advance up to 50 percent of your total limit; others allow less.

Do balance transfer checks have a better rate than ATM cash advances?

Sometimes. Balance transfer checks often come with a promotional 0 percent APR for a limited time, while ATM cash advances charge interest immediately at the higher rate. However, both charge an upfront fee. If you can pay back the balance within the promotional period, a balance transfer check may cost less overall.