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 mailed to you by your card issuer, or a cash-like purchase through services like PayPal or Square Cash that let you send money to yourself or others. Each method charges different fees and interest rates, and none of them is free.

A cash advance is the most direct route. You use your card at any ATM that accepts it, withdraw money, and the amount appears on your next bill as a cash advance — not a regular purchase. The catch is immediate: most cards charge a fee (usually 3 to 5 percent of the amount withdrawn) plus a higher interest rate than regular purchases, often 20 to 30 percent, and interest starts accruing the day you withdraw, with no grace period.

Balance transfer checks work differently. Your card issuer sends you a check you can deposit or cash. You write the amount you want, deposit it like any other check, and the amount becomes a balance transfer on your card. These also charge a fee (typically 3 to 5 percent) and a higher interest rate, though sometimes lower than a cash advance rate. The advantage is that you get the money in your bank account rather than as cash in hand.

Cash-like purchases let you use your card to fund a digital wallet or send money through an app. Technically you are making a purchase, not a cash advance, so the fee and interest may be lower — but check your card's terms, because some issuers now treat these as cash advances anyway.

Key Takeaways

  • Cash advances charge an upfront fee of 3 to 5 percent plus interest rates of 20 to 30 percent, with no grace period before interest starts.
  • Balance transfer checks charge a similar fee but may have a lower interest rate, and the money goes into your bank account instead of your wallet.
  • Interest on a cash advance or balance transfer begins immediately, unlike regular credit card purchases, which have a grace period.
  • Cash-like purchases through apps or digital wallets may be treated as cash advances by your card issuer, so read your card's terms before using them.
  • Getting cash from a credit card is expensive and should be a last resort when you have no other way to access funds.

How much the fees and interest will cost you

The total cost depends on three things: the amount you withdraw, the fee percentage your card charges, and how long you carry the balance. A $500 cash advance with a 4 percent fee costs $20 upfront. If you pay it back in one month at 25 percent annual interest, you pay roughly $10 more in interest, for a total of $30. If you carry it for six months, the interest alone is around $60.

Balance transfer checks often have a lower interest rate than cash advances — sometimes 0 percent for a promotional period of 6 to 12 months — but you still pay the upfront fee. If your card offers 0 percent for 12 months on balance transfers, a $500 transfer costs $20 in fees and nothing in interest if you pay it off within the year. After the promotional period ends, the rate jumps to the card's regular balance transfer rate, which is usually lower than the cash advance rate but still high.

Compare this to borrowing from a bank, credit union, or even a payday lender. A personal loan from a credit union might charge 9 to 12 percent interest with no upfront fee. A payday loan charges more in fees but typically for a shorter period. Both are usually cheaper than a credit card cash advance if you need money for more than a few weeks.

What happens to your credit score

A cash advance or balance transfer does not hurt your credit score in the moment of withdrawal. However, it increases your credit utilization — the percentage of your total credit limit you are using. If you have a $5,000 limit and withdraw $1,000 in cash, your utilization jumps to 20 percent. Credit scoring models penalize high utilization, so your score may drop by 10 to 50 points depending on how much you withdraw and what your utilization was before.

The bigger hit comes if you carry the balance and miss a payment. A late payment stays on your credit report for seven years and can drop your score by 100 points or more. If you are considering a cash advance because you are short on money, the risk of missing a payment is real, and the damage to your credit is long-lasting.

When a cash advance makes sense (and when it does not)

A cash advance is rarely the right choice, but there are narrow situations where it might be the least bad option. If you have a true emergency — a car repair you need to drive to work, a medical bill, a security deposit for housing — and you have no other source of funds, a cash advance for a small amount that you can pay back within a month might cost less than the alternative (like a late fee, overdraft, or eviction).

A cash advance does not make sense if you are using it to pay down other debt, cover regular expenses, or fund a purchase you could delay. If you are considering a cash advance to pay a credit card bill, payday loan, or other high-interest debt, you are borrowing at 25 percent to pay off debt at 20 percent — you are making the problem worse. If you need cash for groceries or rent and have no emergency fund, a cash advance is a sign that you need a longer-term solution, like a budget review, a second income source, or help from a local assistance program.

Alternatives to a cash advance

Before you withdraw cash from your credit card, explore these options. A personal loan from a bank or credit union usually charges 9 to 18 percent interest with no upfront fee, and you get the money in your bank account. A credit union cash loan is often faster and cheaper than a bank loan if you are a member. A payment plan with the person or business you owe money to — a utility company, hospital, or landlord — often costs nothing and buys you time to find the money.

If you need cash for an emergency, a personal line of credit from your bank works like a credit card but usually charges less interest. A 401(k) loan (if you have a retirement account) lets you borrow from yourself at a low rate, though you have to repay it or face taxes and penalties. A side gig — freelance work, gig economy jobs, selling items you own — takes time but costs nothing and builds a habit of earning extra money.

If you are in a crisis, contact your local 211 service (dial 211 or visit 211.org) to find emergency assistance programs, food banks, utility assistance, or rental help in your area. Many nonprofits and government programs offer grants or low-interest loans for emergencies, and they do not charge fees or damage your credit.

How to minimize damage if you do take a cash advance

If you have decided a cash advance is necessary, take these steps to keep the cost as low as possible. First, withdraw only what you need — every dollar you take costs you a fee and interest. Second, pay it back as fast as you can. A $500 advance paid back in one month costs roughly $30 in fees and interest; paid back in six months, it costs roughly $90. Third, do not take another cash advance while you are paying off the first one.

Check whether your card offers a lower-cost option. Some cards charge less for balance transfer checks than for ATM cash advances, or offer a promotional 0 percent rate on balance transfers. Call your card issuer and ask what your cash advance fee and interest rate are before you withdraw — rates vary by card and sometimes by cardholder.

After you have paid off the cash advance, work on building an emergency fund so you do not have to borrow at high rates again. Even $500 to $1,000 set aside in a savings account can prevent you from needing a cash advance for most common emergencies.

Frequently Asked Questions

Can I get a cash advance if my credit is bad?

Yes. A cash advance is available to anyone with an active credit card account, regardless of credit score. The card issuer has already decided to lend to you; a cash advance is just a different way of using that credit. However, bad credit usually means you have a higher interest rate on the card to begin with, so your cash advance rate will be higher than someone with good credit.

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

A cash advance gives you physical cash or money in your bank account immediately. A balance transfer moves debt from one card to another or sends you a check. Both charge fees and interest, but balance transfers sometimes offer a promotional 0 percent rate for 6 to 12 months, while cash advances never do. Use a cash advance if you need cash; use a balance transfer if you are moving existing debt.

Will a cash advance show up on my credit report?

The cash advance itself does not appear on your credit report, but the balance does. If you carry it and miss a payment, the late payment shows up and damages your score. If you pay it on time, only your credit utilization changes, which affects your score temporarily but does not create a permanent record.

Can I take a cash advance and then declare bankruptcy?

Bankruptcy courts look at cash advances taken shortly before filing, especially large ones. If you took a cash advance knowing you were going to file for bankruptcy, a court may decide the debt is not dischargeable, meaning you still have to pay it back. Consult a bankruptcy attorney before taking a cash advance if you are considering bankruptcy.

What if I cannot pay back the cash advance?

The balance stays on your card and accrues interest. If you miss payments, your card issuer will charge late fees, your interest rate may increase, and the debt will be reported to credit bureaus. Eventually, the card issuer may close your account or send the debt to a collection agency. Contact your card issuer as soon as you know you cannot pay; some offer hardship programs that lower your interest rate or pause payments temporarily.