The main ways to get cash from a credit card

You can get cash from a credit card in three ways: a cash advance from 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 differently and affects your account in different ways.

A cash advance lets you withdraw money directly using your card at an ATM or by asking a bank teller. A balance transfer check is a check your card issuer sends you that you can deposit or cash. A cash-like purchase means buying something that functions as cash — like a money order, wire transfer, or sometimes a gift card — which some card issuers treat as a cash advance for fee purposes.

The reason these distinctions matter is that cash advances and cash-like purchases usually cost more than regular purchases. They often come with higher interest rates, upfront fees, and no grace period — meaning interest starts accruing immediately, not at the end of your billing cycle.

Key Takeaways

  • Cash advances charge an upfront fee (usually 3 to 5 percent of the amount) plus a higher interest rate than regular purchases, with interest starting immediately.
  • Balance transfer checks may have lower fees than ATM cash advances but still charge interest from day one, and some issuers limit how much you can transfer.
  • Money orders, wire transfers, and some gift card purchases count as cash advances for fee purposes, even though you are not withdrawing cash from an ATM.
  • Your credit card's cash advance limit is often lower than your overall credit limit, so you may not be able to withdraw as much as you think.
  • Interest on a cash advance accrues daily and is not waived during a promotional period, so the longer you carry the balance, the more you pay.

Cash advances at ATMs and banks

An ATM cash advance is the fastest way to get cash. You insert your card, enter your PIN, and withdraw money up to your card's cash advance limit. A bank teller can also process a cash advance if you bring your card and ID, and some banks allow larger amounts this way than ATMs do.

The cost is immediate. You pay a cash advance fee — typically 3 to 5 percent of the amount withdrawn, with a minimum fee of $2 to $10 — charged to your account right away. On top of that, the interest rate for cash advances is usually 2 to 3 percentage points higher than your regular purchase APR, and it starts accruing the same day you withdraw the money. There is no grace period.

Your cash advance limit is separate from your credit limit. If your card has a $5,000 credit limit, your cash advance limit might be $1,500 or $2,000. Check your card's terms or call your issuer to find out what yours is before you go to an ATM.

Balance transfer checks

Some card issuers send you checks that you can deposit into your bank account or cash at a check-cashing service. These are called balance transfer checks, and they work like a cash advance but may have a lower fee structure.

Balance transfer checks typically charge a fee of 3 to 5 percent, similar to ATM cash advances, but some issuers offer promotional rates — occasionally 0 percent interest for a set period, such as six months. Read the fine print carefully: the 0 percent rate usually applies only if you use the check within a certain window (often 14 to 21 days), and it may not cover the upfront fee.

Like ATM cash advances, these checks count against your cash advance limit, not your regular credit limit. If you receive checks in the mail but do not use them, they eventually expire — usually after 6 months to a year.

Purchases that count as cash advances

Your card issuer may treat certain purchases as cash advances, meaning they charge the cash advance fee and interest rate even though you are not withdrawing physical cash. Common examples include money orders, wire transfers, casino chips, lottery tickets, and sometimes gift cards or prepaid cards.

The rules vary by issuer. One card might treat a gift card purchase as a regular purchase with no fee, while another charges a 5 percent cash advance fee. Check your card's terms or call your issuer before you buy something you think might trigger a cash advance fee.

These purchases also count against your cash advance limit, so if you have already withdrawn $1,000 in cash and your limit is $1,500, you can only spend $500 on money orders or other cash-like items before hitting the limit.

How cash advance interest works

Interest on a cash advance accrues daily from the moment you withdraw the money. Unlike regular purchases, there is no grace period — you do not get 20 or 30 days before interest starts. If your cash advance APR is 24 percent and you withdraw $500, you owe roughly $3 in interest after the first month, whether or not you make a payment.

Payments toward a cash advance are applied differently than payments toward regular purchases. If you have both a $500 cash advance and a $500 purchase on your card, and you make a $500 payment, your issuer typically applies that payment to the purchase first (because it has a lower interest rate), leaving the cash advance balance untouched. This means the cash advance interest keeps accruing while you pay down the purchase.

To pay off a cash advance faster, you may need to make a separate payment specifically marked for the cash advance, or contact your issuer to ask how to direct payments. Some cards let you do this online; others require a phone call.

When a cash advance makes sense

A cash advance is expensive, so it makes sense only in specific situations. If you need cash for an emergency and have no other option — no savings, no access to a personal loan, no friends or family who can lend — a short-term cash advance may be cheaper than a payday loan or overdraft fee.

A balance transfer check with a 0 percent promotional rate can work if you need cash, can pay it back within the promotional period, and do not mind paying the upfront fee. For example, a 0 percent offer for six months on a $2,000 balance transfer check with a 3 percent fee costs you $60 upfront but saves you hundreds in interest if you pay it off before the rate jumps to 24 percent.

For everyday cash needs, it is almost always cheaper to use a debit card, withdraw from your own bank account, or use an ATM that does not charge a fee. A cash advance should be a last resort, not a regular way to get spending money.

Frequently Asked Questions

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

A cash advance gives you physical cash or a check you can cash immediately. A balance transfer moves debt from one card to another card, usually with a lower interest rate. Balance transfer checks are a hybrid — they look like a cash advance but are technically a balance transfer, and may have better terms.

Can I use a credit card to withdraw cash from my own bank account?

No. You can only withdraw cash using your credit card at an ATM or by asking a bank teller, and both count as cash advances. To access your own money, use your debit card or visit your bank in person.

Does a cash advance hurt my credit score?

A cash advance itself does not hurt your score, but carrying a high balance does. If you withdraw $2,000 and pay it back quickly, the impact is minimal. If you carry the balance for months, your credit utilization goes up and your score may drop.

What happens if I exceed my cash advance limit?

Your transaction will be declined at the ATM or the bank will refuse to process it. You cannot go over your cash advance limit, even if you have available credit on your card. Contact your issuer if you need a higher limit.

Can I get a cash advance on a secured credit card?

Yes, most secured cards allow cash advances, though the limit is often lower than on unsecured cards. The fees and interest rates are the same as any other card. Check your card's terms to confirm your cash advance limit and APR.