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, a balance transfer check, or a cash-like purchase at certain retailers. Each one costs you differently and works on a different timeline. A cash advance is the fastest but most expensive — you pay a fee (usually 3 to 5 percent of the amount) plus a higher interest rate than regular purchases, and interest starts accruing immediately with no grace period. A balance transfer check works like a regular check but draws from your credit line instead of a bank account, and carries similar fees and rates. A cash-like purchase — buying a money order or gift card at a store — avoids the cash advance fee but still costs you the purchase price.

The card issuer sets your cash advance limit separately from your credit limit, and it is often lower. You will need your PIN to withdraw at an ATM, or you can visit a bank branch that issues your card and ask for a cash advance over the counter. Balance transfer checks come in the mail or you can request them from your card issuer. None of these methods are free, and all of them charge interest faster than a regular purchase would.

Key Takeaways

  • A cash advance at an ATM charges a fee of 3 to 5 percent plus a higher interest rate that starts immediately, making it the most expensive way to get cash from a credit card.
  • Your cash advance limit is set by your card issuer and is often much lower than your total credit limit.
  • Balance transfer checks work like regular checks but draw from your credit line and carry the same fees and interest rates as ATM cash advances.
  • Interest on cash advances and balance transfers begins right away with no grace period, unlike regular purchases which often have 21 to 25 days before interest starts.
  • Buying a money order or gift card at a store avoids the cash advance fee but still costs you the purchase price and counts as a regular purchase on your card.

Cash advances at an ATM or bank branch

To withdraw cash at an ATM, insert your credit card and enter your PIN. If you do not have a PIN, contact your card issuer to set one up — you cannot withdraw cash without it. The ATM will show you the fee before you confirm the transaction, usually listed as a flat dollar amount or a percentage of the withdrawal. After you complete the withdrawal, the cash is yours to use immediately, but the interest clock starts that same day.

If you prefer not to use an ATM, you can visit a bank branch that issues your card — for example, a Chase branch if you have a Chase card — and ask a teller for a cash advance. You will need your card and ID. The teller can tell you your available cash advance limit on the spot. This method works the same way as an ATM: you pay the fee, interest starts immediately, and the cash is yours to take.

The fee for a cash advance is typically 3 to 5 percent of the amount you withdraw, with a minimum fee of $2 to $10. So a $200 cash advance might cost you $6 to $10 in fees alone. On top of that, the interest rate for cash advances is usually 2 to 3 percentage points higher than the rate for regular purchases on the same card. If your purchase APR is 18 percent, your cash advance APR might be 21 percent. That higher rate applies from day one — there is no grace period like there is for regular purchases.

Balance transfer checks

A balance transfer check is a check issued by your credit card company that draws money from your credit line instead of a bank account. You can use it to pay bills, buy things in person, or deposit it into your bank account to withdraw as cash. The check arrives in the mail, or you can request one from your card issuer by phone or online.

The fee for a balance transfer check is the same as for a cash advance — usually 3 to 5 percent of the check amount — and the interest rate is the same too. Interest starts accruing immediately with no grace period. The main difference is that you do not need a PIN, and you can write the check to anyone or deposit it anywhere a regular check is accepted. If you deposit it into your bank account, you can then withdraw the cash from your bank's ATM without paying an additional fee.

Some card issuers offer promotional rates on balance transfer checks for a limited time — for example, 0 percent APR for the first six months. Read the offer carefully: the promotional rate applies only to the balance transfer check itself, not to other purchases or cash advances on the card. After the promotional period ends, the regular cash advance rate takes over.

Money orders and gift cards as cash alternatives

You can buy a money order or gift card at a store using your credit card, and then use the money order or gift card as a way to move money around or pay bills. This method avoids the cash advance fee, but it still costs you money: money orders typically cost $0.50 to $3 each, and you are paying the full purchase price of any gift card you buy.

A money order purchased with a credit card counts as a regular purchase on your card, not a cash advance, so it has a grace period and a lower interest rate. However, you are still paying out of pocket for the money order itself, and if you do not pay off the credit card balance in full by the due date, you will pay interest on the purchase price plus the money order fee. This method makes sense only if you need to pay someone who will not accept a credit card and you plan to pay off the card balance quickly.

Gift cards work the same way: you pay the purchase price with your credit card, and the purchase counts as a regular transaction. If you buy a $100 gift card and do not pay off the card balance, you will pay interest on that $100. This is not a way to get cash — it is a way to move money from your credit card to a retailer's system — but it does avoid the cash advance fee.

Why cash advances are expensive compared to regular purchases

A regular credit card purchase gives you a grace period, usually 21 to 25 days, before interest starts accruing. If you pay the full balance by the due date, you pay no interest at all. A cash advance has no grace period: interest starts the day you withdraw the money. On top of that, the interest rate is higher. If you borrow $500 as a cash advance at 21 percent APR and pay it back after one month, you will owe roughly $8.75 in interest alone, plus the 3 to 5 percent fee you paid upfront ($15 to $25). A $500 regular purchase at 18 percent APR, paid back after one month, would cost you roughly $7.50 in interest and no upfront fee.

The combination of an upfront fee, a higher interest rate, and no grace period makes cash advances one of the most expensive ways to borrow money. If you need cash, it is usually cheaper to use a personal loan, a line of credit from your bank, or a payday loan — though payday loans are also expensive and come with their own risks. A cash advance should be a last resort when you have no other option.

How cash advance limits work

Your card issuer sets a separate cash advance limit for your account, and it is often much lower than your total credit limit. You might have a $5,000 credit limit but only a $1,000 cash advance limit. The card issuer decides this limit based on your credit history, income, and account history with them. You can request a higher cash advance limit by calling the customer service number on the back of your card, but the issuer is not required to grant it.

Your cash advance limit is part of your overall credit limit, not in addition to it. If you have a $5,000 credit limit and a $1,000 cash advance limit, and you withdraw $500 as a cash advance, you have $4,500 left to spend on regular purchases ($5,000 minus the $500 cash advance). The cash advance counts against your total available credit.

Some card issuers let you check your cash advance limit online or by calling customer service. Others do not display it until you try to withdraw cash. If you need to know your limit before you go to an ATM, call the number on the back of your card and ask.

Frequently Asked Questions

Can I get a cash advance if I have a 0 percent APR promotional offer?

No. The 0 percent promotional rate applies only to regular purchases or balance transfers, depending on the offer. Cash advances are charged the regular cash advance APR from day one, even if you have an active 0 percent promotional period on your account. Check your card agreement or call customer service to confirm your cash advance rate.

What happens if I do not have a PIN for my credit card?

You cannot withdraw cash at an ATM without a PIN. Contact your card issuer by phone or through their website to set up a PIN. Once you have one, you can use it at any ATM that accepts your card brand. If you do not want to set up a PIN, you can still get a cash advance at a bank branch by showing your card and ID to a teller.

Is there a daily limit on how much cash I can withdraw?

Yes. Most card issuers set a daily cash advance limit, often $500 to $1,000 per day, separate from your overall cash advance limit. This limit is set by your issuer and you cannot change it yourself. If you need to withdraw more than the daily limit, you can make multiple withdrawals on different days, or visit a bank branch and ask a teller to process a larger advance.

Do I have to pay back a cash advance right away?

No, but interest starts accruing immediately. You can carry the balance like any other credit card debt, but you will pay interest every month until it is paid off. The interest rate is higher than for regular purchases, so the longer you carry the balance, the more you pay. If you can pay it back within a few days, the total cost is lower than if you carry it for months.

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

Technically yes, but it is not a good idea. You would be paying a cash advance fee and interest rate to borrow money to pay off another card, which costs you more than just paying the other card directly. If you are struggling to pay multiple cards, contact a nonprofit credit counselor instead — they can help you work out a payment plan without taking on more debt.