The main ways to get cash using 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 transaction such as buying money orders or casino chips. Each method charges different fees and interest rates, and each one costs more than a regular purchase. A cash advance typically charges a fee of 3 to 5 percent of the amount withdrawn, plus a higher interest rate than your standard purchase rate — often 20 to 30 percent — and interest starts accruing immediately with no grace period.

The cost difference matters. If you need $500 and use a cash advance, you might pay $15 to $25 in fees alone, then owe interest from day one. A regular purchase on the same card would charge no upfront fee and would give you a grace period (usually 21 to 25 days) before interest kicks in. This is why cash advances are a last resort, not a routine way to access money.

Key Takeaways

  • Cash advances charge an upfront fee of 3 to 5 percent plus a higher interest rate than purchases, with interest starting immediately.
  • You can withdraw cash at an ATM using your credit card PIN, or visit a bank teller and request a cash advance over the counter.
  • Balance transfer checks work like regular checks but draw from your credit card's available credit, and they carry the same fees and rates as ATM cash advances.
  • Money orders, wire transfers, and casino chips bought with a credit card are treated as cash advances by most card issuers, even though they are not literal cash.
  • If you need cash regularly, a debit card or personal loan will cost you far less than repeated credit card cash advances.

Getting cash at an ATM with your credit card

To withdraw cash at an ATM, insert your credit card and enter your PIN. The ATM will show your available credit limit (not your bank account balance) and let you choose how much to withdraw, up to a daily limit set by your card issuer. Daily limits typically range from $200 to $500, though some cards allow higher amounts. The cash comes out of your credit card's available credit, not from a bank account.

You will see the fee charged immediately on the receipt — usually $3 to $5 per transaction at your card issuer's ATM, and $4 to $8 at an out-of-network ATM. Some card issuers charge a percentage fee instead (3 to 5 percent of the amount withdrawn). The interest rate on the withdrawn amount begins accruing the same day, even if you pay your bill in full the next week. This is different from a purchase, where you get a grace period.

Getting cash over the counter at a bank

You can also walk into a bank branch — your own bank or any bank — and ask a teller for a cash advance. Bring your credit card and a photo ID. The teller will process the transaction and hand you cash. This method avoids ATM fees but still charges the cash advance fee (usually 3 to 5 percent) and the higher interest rate.

Some banks charge an additional fee for over-the-counter cash advances, while others do not. Call your card issuer before you go to the bank to confirm the fee structure. Over-the-counter advances are useful if you need more cash than the ATM daily limit allows, or if you prefer not to use an ATM.

Balance transfer checks and how they work

Many credit card issuers send you checks in the mail that draw directly from your credit card's available credit. These are called balance transfer checks. You write one like a regular check, and the amount is charged to your credit card as a cash advance. The fee and interest rate are the same as an ATM withdrawal — typically 3 to 5 percent upfront, plus the cash advance interest rate starting immediately.

Balance transfer checks are useful if you need to pay a bill or person who does not take credit cards, or if you need more than your daily ATM limit. However, they carry all the same costs as an ATM cash advance. Do not confuse them with balance transfer offers that move debt from one card to another at a lower rate — those are different products with different terms.

Transactions that count as cash advances even though they are not cash

Your card issuer treats certain purchases as cash advances for fee and interest purposes, even though you do not receive literal cash. These include money orders, wire transfers, casino chips, lottery tickets, and cryptocurrency purchases. Each of these charges the 3 to 5 percent cash advance fee and the higher interest rate, with interest starting immediately.

This matters because you might not realize you are taking a cash advance. If you buy a money order to pay rent, or send a wire transfer to family, you are paying cash advance rates and fees. Check your card's terms or call the issuer if you are unsure whether a specific transaction will be treated as a cash advance.

Why cash advances are expensive compared to other options

A cash advance costs more than a regular purchase in three ways: the upfront fee, the higher interest rate, and the lack of a grace period. On a $500 cash advance at 5 percent fee plus 25 percent interest, you owe $25 immediately, then $10.42 per month in interest if you do not pay it off. Over six months, the total cost is roughly $50 to $60. A $500 purchase on the same card, paid off in six months, costs only the interest — no upfront fee.

If you need cash regularly, a debit card linked to a checking account costs nothing and charges no interest. A personal loan from a bank or credit union typically charges 6 to 36 percent interest depending on your credit, which is still lower than a credit card cash advance rate. A short-term loan or line of credit from your bank is almost always cheaper than a cash advance.

What happens if you cannot pay back a cash advance

If you do not pay back the cash advance, the balance stays on your credit card and continues to accrue interest at the cash advance rate. This interest is charged separately from purchase interest, so if you have both purchases and cash advances on your card, the card issuer applies your payment to the purchase first (by law), and the cash advance keeps accruing interest at the higher rate.

The unpaid balance will be reported to the credit bureaus and will lower your credit score. If the balance goes unpaid for 180 days (six months), the card issuer will charge it off and may sell the debt to a collection agency. At that point, you may face calls from collectors and a potential lawsuit. Paying back a cash advance as quickly as possible is important to avoid these consequences.

Frequently Asked Questions

Can I get a cash advance if my credit card is maxed out?

No. A cash advance draws from your available credit, not from a separate pool of money. If your credit limit is $1,000 and you have already charged $1,000, you cannot take a cash advance. You would need to pay down the balance first or request a credit limit increase from your card issuer.

Does a cash advance show up differently on my credit report?

A cash advance appears on your credit card statement and is reported to the credit bureaus as part of your credit card balance, but it is not flagged separately on your credit report. However, the higher interest rate and fees mean it costs more to carry than a regular purchase, so it affects your finances even if it does not appear differently on your report.

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

A cash advance gives you literal cash (or a cash-like product) and charges a 3 to 5 percent fee plus a high interest rate immediately. A balance transfer moves debt from one credit card to another and often includes a promotional period with 0 percent interest for 6 to 21 months, though it also charges an upfront fee of 3 to 5 percent. Balance transfers are for moving existing debt; cash advances are for getting cash.

Will taking a cash advance hurt my credit score?

Taking a cash advance itself does not hurt your credit score, but it does increase your credit utilization ratio (the amount of your credit limit you are using). If you use 30 percent of your limit before the cash advance and then take a $500 advance on a $1,000 limit, you are now at 80 percent utilization, which can lower your score. Paying it back quickly will bring your utilization back down.

Can I take a cash advance from a credit card I just opened?

Yes, most card issuers allow cash advances immediately after you open an account, though some may have a waiting period of a few days. Check your card's terms or call the issuer to confirm. The fee and interest rate are the same regardless of how new the account is.