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 transaction such as buying money orders or casino chips. Each method costs you differently and affects your balance in different ways.

A cash advance is the most direct route. You go to an ATM, bank branch, or convenience store that offers cash advances, insert your card, and withdraw money just as you would from a debit card. The money appears in your account immediately, but the card issuer charges you a fee (usually 3 to 5 percent of the amount) and starts charging interest right away — there is no grace period like there is for regular purchases.

A balance transfer check is a physical check your card issuer mails to you. You deposit it into your bank account or cash it. The fee and interest rate are typically the same as a cash advance, though some issuers offer promotional rates on balance transfers for a limited time.

A cash-like transaction — buying money orders, wire transfers, or gambling chips — is treated as a cash advance by most card issuers, even though you are not technically withdrawing cash. The same fees and interest rates apply.

Key Takeaways

  • Cash advances charge a fee of 3 to 5 percent upfront and begin accruing interest immediately, with no grace period.
  • Interest rates on cash advances are usually higher than the rate on regular purchases, often 5 to 10 percentage points above your standard APR.
  • You can get a cash advance at an ATM, bank branch, or through a balance transfer check mailed by your issuer.
  • Money orders, wire transfers, and other cash-like transactions are treated as cash advances and carry the same fees and interest.

How cash advance fees and interest work

When you take a cash advance, two costs hit you immediately. The first is the cash advance fee, which your card issuer charges upfront. This fee is usually a flat dollar amount (such as $5 or $10) or a percentage of the amount withdrawn (typically 3 to 5 percent), whichever is higher. A $300 cash advance with a 5 percent fee costs you $15 right away.

The second cost is interest, which starts accruing the day you withdraw the money. Unlike regular credit card purchases, which have a grace period (usually 21 to 25 days before interest kicks in), cash advances begin charging interest immediately. The interest rate on a cash advance is almost always higher than your standard purchase APR — often 5 to 10 percentage points higher. If your regular APR is 18 percent, your cash advance APR might be 28 percent.

These costs compound quickly. A $500 cash advance with a 5 percent fee ($25) and a 25 percent APR costs you $25 upfront, then roughly $10 in interest per month if you carry the balance. The longer you hold the cash, the more expensive it becomes.

Where you can get a cash advance

An ATM is the fastest option. Most ATMs accept credit cards and will dispense cash, though you may be limited by a daily withdrawal cap set by your card issuer (often $500 to $1,000). You will also pay an ATM operator fee on top of the cash advance fee — usually $2 to $3 — if the ATM is not owned by your card issuer's bank.

Your bank or credit union branch can also provide a cash advance. Walk in with your card, tell the teller you want a cash advance, and they will process it. There is no ATM fee this way, but you are limited to branch hours.

A convenience store or grocery store may offer cash advances if they have a partnership with your card issuer. Ask at the customer service desk. These locations charge their own fees on top of your card issuer's fee.

Balance transfer checks arrive by mail from your card issuer. You can deposit them into your bank account or cash them at a bank or check-cashing service. This method is slower — it takes several days for the check to arrive and clear — but it avoids ATM fees.

How a cash advance affects your credit

Taking a cash advance does not directly damage your credit score, but it can harm it indirectly. A cash advance increases your credit utilization ratio — the percentage of your available credit you are using. If you have a $5,000 credit limit and take a $1,000 cash advance, your utilization jumps to 20 percent. High utilization (above 30 percent) signals risk to credit scoring models and can lower your score.

The bigger risk is that the high interest rate makes it easy to fall behind on payments. If you miss a payment or pay late, that negative mark stays on your credit report for seven years and damages your score far more than the cash advance itself.

Cash advances also do not build credit the way regular purchases do. They are treated as borrowed money, not as a demonstration that you can manage credit responsibly.

Alternatives to cash advances

Before taking a cash advance, consider whether another option costs less or works better for your situation.

A personal loan from a bank or credit union usually has a lower interest rate than a cash advance, especially if you have decent credit. You borrow a fixed amount, make fixed monthly payments, and know exactly what you will pay. The downside is that approval takes a few days, so this does not work if you need cash today.

A payday loan gets you cash immediately, but the fees are often steeper than a cash advance — sometimes 15 to 20 percent for a two-week loan. Use this only if you are certain you can repay it on your next payday.

Asking family or friends for a short-term loan costs nothing and avoids interest entirely, though it carries its own risks to relationships.

If you are facing a genuine emergency and have no other options, a cash advance is faster than a personal loan. But if you have a few days, a personal loan or payday loan often costs less in the long run.

What happens if you cannot pay back a cash advance

If you carry a cash advance balance and cannot pay it off, the interest and fees keep growing. Your card issuer will report the unpaid balance to credit bureaus, and your credit score will drop. If you miss payments, the issuer may freeze your card, raise your interest rate, or send your account to a collection agency.

You have options if you are struggling. Contact your card issuer and ask about a hardship program — many offer reduced interest rates or payment plans for customers in financial difficulty. Some nonprofits offer credit counseling at no cost; the National Foundation for Credit Counseling (NFCC) can connect you with a counselor in your area.

Do not ignore the debt. The longer you wait, the more interest accrues and the harder it becomes to recover.

Frequently Asked Questions

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

Technically yes, but it is almost always a bad idea. You are borrowing at a high interest rate (the cash advance rate) to pay off debt at a potentially lower rate (your regular purchase APR). You also pay the cash advance fee on top of the interest. If you are trying to manage multiple cards, a balance transfer or personal loan is usually cheaper.

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

Yes. Your card issuer sets a cash advance limit, which is often lower than your overall credit limit — sometimes 20 to 50 percent of it. You can call your issuer to ask what your limit is, or check your online account. Some issuers also set daily withdrawal caps, typically $500 to $1,000 per day.

Do I have to pay back a cash advance before regular purchases?

No. Your payment goes toward your entire balance, but the cash advance portion accrues interest faster because there is no grace period. If you want to pay off the cash advance first, you can request that your payment be applied to it specifically, though not all issuers allow this.

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

A balance transfer moves debt from one card to another (or from another creditor to a card). A cash advance gives you actual cash. Balance transfers sometimes come with promotional rates; cash advances do not. Both charge fees and interest, but the terms differ by issuer and offer.

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

If you already have a credit card, you can get a cash advance regardless of your credit score — your issuer has already decided to lend to you. The limit may be low, but the option is there. If you do not have a card, building credit first is usually necessary before a card issuer will approve you.