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 payment (such as buying a money order or gift card). Each method costs you differently and affects your balance in different ways.
A cash advance lets you withdraw money directly from your credit line at an ATM, bank teller, or through a cash advance app. You pay a fee upfront — usually 3% to 5% of the amount withdrawn — plus interest that starts accruing immediately, often at a higher rate than your regular purchase APR. There is usually a daily limit on how much you can withdraw, set by your card issuer.
A balance transfer check is a physical check your card issuer mails to you, drawn against your credit line. You deposit it like a regular check. Balance transfer checks typically charge a fee (3% to 5%) and carry interest, though sometimes issuers offer a promotional period with no interest if you transfer within a set timeframe.
Buying cash-like items — money orders, gift cards, or prepaid cards — with your credit card is technically a purchase, not a cash advance, so it avoids the cash advance fee. However, you are spending money you do not have in hand, and the merchant may charge a fee for the transaction.
Key Takeaways
- Cash advances charge an upfront fee of 3% to 5% plus interest that begins immediately, usually at a higher rate than purchases.
- Interest on cash advances does not have a grace period — you pay interest from the day you withdraw the money.
- Most credit cards set a daily ATM withdrawal limit, often $500 or less, which may be lower than your total credit limit.
- Balance transfer checks and cash-like purchases (money orders, gift cards) may avoid the cash advance fee but still cost money and tie up your credit line.
- Cash advances and balance transfers report to credit bureaus as debt and can lower your credit score if they push your credit utilization above 30%.
How cash advances work step by step
To get a cash advance at an ATM, insert your credit card, enter your PIN (which you may need to set up with your issuer first), and select the cash advance option. The ATM will show you the fee and the interest rate before you confirm. The money appears in your account immediately, but the fee and interest charges post to your credit card balance within one to three business days.
At a bank branch, you can also request a cash advance from a teller. Bring your credit card and a photo ID. The teller will process the transaction the same way an ATM does — you pay the fee upfront and interest begins accruing that day.
Your credit card issuer sets a daily cash advance limit separate from your overall credit limit. This limit is often $500, but it varies by card and by your creditworthiness. You can call your card issuer to ask what your limit is, or check your online account or statement.
Fees and interest you will pay
A cash advance fee is charged as a percentage of the amount withdrawn, typically 3% to 5%. On a $500 withdrawal, that is $15 to $25 paid immediately. Some cards cap the fee at a flat dollar amount (for example, $10 minimum, $100 maximum), so a very small withdrawal might cost a flat fee instead.
Interest on a cash advance usually runs 2% to 5% higher than the APR on regular purchases. If your purchase APR is 18%, your cash advance APR might be 23%. Unlike purchases, there is no grace period — interest starts the day you withdraw the money, not at the end of your billing cycle. This means even if you pay back the cash advance within days, you will owe interest for those days.
Balance transfer checks charge a similar upfront fee (3% to 5%) but sometimes come with a promotional 0% APR period lasting 6 to 21 months. Read the fine print: the promotional rate applies only if you complete the transfer within the stated window, and it may not cover the upfront fee.
How a cash advance affects your credit score
A cash advance shows up on your credit report as debt, just like a purchase does. If you withdraw $500 on a card with a $2,000 limit, your credit utilization jumps to 25%, which can lower your score slightly. If you already carry a balance and the cash advance pushes you above 30% utilization, the impact is larger.
The score damage is usually temporary — it recovers as you pay down the balance. However, if you carry the cash advance balance for months, the ongoing high utilization and the interest charges will keep your score suppressed.
A cash advance does not create a separate account or a new hard inquiry, so it does not damage your score the way a new credit card application does. The damage comes only from the utilization and the payment history that follows.
When a cash advance makes sense
A cash advance is most useful when you need cash urgently and have no other option, and when you can pay it back within a few days. The fee and interest are steep enough that borrowing $500 for a week can cost $20 to $30, which is expensive compared to a payday loan or a personal loan from a bank.
A cash advance is less useful if you need the money for more than a week or two, or if you already carry a balance on the card. In those cases, the interest compounds quickly and the total cost becomes substantial.
If you are considering a cash advance because you cannot pay a bill or meet an expense, look first at whether the creditor or service provider offers a payment plan. Many utilities, medical providers, and merchants will let you spread payments over time without charging interest, which is cheaper than a cash advance.
Alternatives to a cash advance
A personal loan from a bank or credit union usually charges less interest than a cash advance and gives you a fixed repayment schedule. Interest rates range from 6% to 36% depending on your credit score and the lender, which is often lower than a credit card cash advance APR.
A payday loan is a short-term loan meant to be repaid on your next paycheck. The fees are high — typically $15 to $20 per $100 borrowed — but if you repay within two weeks, the total cost may be less than a cash advance on a high-interest card. However, payday loans can trap you in a cycle of rolling debt if you cannot repay on time.
A line of credit from your bank or credit union, if you have one, usually charges less interest than a cash advance and lets you draw money as you need it.
Asking family or friends for a short-term loan costs nothing if they agree, though it can strain relationships if repayment is unclear.
Frequently Asked Questions
Do I need a PIN to get a cash advance?
Yes, most ATMs require a PIN. If you have never used your credit card at an ATM before, you will need to set up a PIN with your card issuer first — usually through their website or by calling the number on the back of your card. At a bank branch, you can request a cash advance with just your card and ID, without a PIN.
Can I get a cash advance if I have a 0% APR promotional offer?
No. The 0% promotional rate applies only to purchases or balance transfers, not to cash advances. A cash advance is charged at the cash advance APR from day one, regardless of any promotional offer on your account.
What happens if I cannot pay back a cash advance?
The cash advance balance stays on your credit card and accrues interest each month. If you miss payments, your card issuer may report the late payment to credit bureaus, which damages your credit score. They may also close your account or raise your interest rate.
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 — commonly $500 to $1,000, but it varies. You can call your issuer to find out your specific limit, or check your account online.
Can I use a credit card cash advance to pay another credit card bill?
Technically yes, but it is expensive. You pay the cash advance fee and interest on the withdrawn money, then you pay interest on the other card as well. This stacks costs and is rarely worth doing unless you are trying to avoid a late payment that would damage your credit score more severely.