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, or a cash-like payment (such as buying a money order or gift card). Each method charges different fees and interest rates, and each one starts charging interest immediately — unlike a purchase, which may have a grace period.
A cash advance is the most direct method. You go to an ATM, bank, or convenience store that displays your card's logo, insert your card, and withdraw cash up to your credit limit. The amount you can withdraw is often lower than your total credit limit; many card issuers set a separate cash advance limit, typically 20 to 50 percent of your credit line.
A balance transfer check is a physical check your card issuer mails to you. You deposit it into your bank account or cash it like any other check. This method is less common now, but some issuers still offer it.
A cash-like transaction means buying something that functions as cash — a money order, wire transfer, or gift card — using your credit card. This is technically a purchase, not a cash advance, so the fees and interest rules may differ slightly.
Key Takeaways
- Cash advances charge interest from the moment you withdraw the money, with no grace period, and the interest rate is usually higher than your purchase rate.
- Most card issuers charge a cash advance fee of 3 to 5 percent of the amount withdrawn, in addition to interest.
- Your cash advance limit is often much lower than your total credit limit and is set separately by your card issuer.
- Balance transfer checks and cash-like transactions (money orders, wire transfers) may have lower fees than ATM cash advances but still charge interest from day one.
Cash advance fees and interest rates
When you take a cash advance, your card issuer charges two costs: a fee and interest. The cash advance fee is a one-time charge, usually 3 to 5 percent of the amount you withdraw. On a $500 advance, that is $15 to $25 before interest even begins.
The cash advance interest rate is separate from your purchase rate and is almost always higher. If your purchase APR is 18 percent, your cash advance APR might be 24 or 28 percent. Interest accrues daily from the moment you withdraw the cash, with no grace period. A purchase made on your card may not charge interest if you pay the full balance by the due date; a cash advance does not get this courtesy.
Balance transfer checks usually charge a fee of 3 to 5 percent as well, but the interest rate may be lower than a cash advance rate — sometimes matching your purchase rate. Money orders and wire transfers bought with a credit card are treated as purchases, so they do not carry the cash advance fee, but you pay the money order or wire fee itself (typically $1 to $10) plus purchase interest.
How much you can withdraw
Your card issuer sets a cash advance limit that is separate from your credit limit. You might have a $5,000 credit limit but only a $1,000 cash advance limit. This limit is determined by the issuer based on your credit history, income, and account status, and you cannot change it yourself.
To find your cash advance limit, log into your online account, call the customer service number on the back of your card, or check your most recent statement. Some issuers display it in your account dashboard; others require you to ask.
If you need more cash than your limit allows, you have no way to increase it on the spot. You can contact your issuer and request a higher limit, but approval is not may provide and may take days or weeks.
Where to get a cash advance
You can withdraw a cash advance at any ATM that displays your card's logo — Visa, Mastercard, American Express, or Discover. Most banks and credit unions also allow cash advances at their teller windows, even if you do not have an account with them, though some charge an additional fee for non-customers.
Convenience stores, grocery stores, and other retailers with ATMs can process cash advances, but not all of them do. Check the ATM screen before you insert your card; it will tell you whether cash advances are available.
International ATMs charge cash advances too, but they often add a foreign transaction fee (1 to 3 percent) on top of the cash advance fee and interest. If you are traveling, this can become expensive quickly.
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 way to get it — no savings, no access to a personal loan, no friends or family who can lend — a cash advance is faster than waiting for a loan decision.
If you know you can repay the cash advance within a few days, the total cost may be lower than other options. A $500 advance with a 4 percent fee ($20) and 28 percent APR costs about $0.38 per day in interest. If you repay it in three days, your total cost is roughly $21. If you carry it for a month, the cost climbs to roughly $32.
A cash advance also makes sense if you are comparing it to a late fee or overdraft fee. If you are $200 short and your bank charges $35 for an overdraft, a cash advance with a $8 fee and a few days of interest may be cheaper.
Alternatives to a cash advance
Before you take a cash advance, consider other options. A personal loan from a bank or credit union usually charges lower interest than a cash advance and does not charge an upfront fee. The tradeoff is that approval takes a few days.
A payday loan is faster — often same-day — but charges much higher fees and interest rates than a credit card cash advance. A typical payday loan costs 400 percent APR or more.
A line of credit from your bank, if you have one, usually charges less interest than a cash advance and may have no upfront fee. Borrowing from friends or family costs nothing but can strain relationships if repayment is unclear.
If you need cash regularly, a debit card linked to a checking account lets you withdraw cash for free at your bank's ATMs and often at other banks' ATMs too. This is not an option if you do not have a bank account, but it is worth opening one if you do.
How to minimize the cost
If you do take a cash advance, repay it as fast as you can. Every day you carry the balance, interest accrues. Set a specific repayment date before you withdraw the cash, and treat it like a bill you cannot miss.
Pay more than the minimum payment. Your card issuer applies payments to your lowest-interest debt first, so if you have both purchases and a cash advance on the same card, your payment goes toward the purchase. Make a separate, larger payment specifically toward the cash advance to reduce the interest you pay.
Avoid taking multiple cash advances. Each one charges a fee, and the interest compounds. If you find yourself taking cash advances regularly, that is a sign you need a different financial strategy — such as a budget, an emergency fund, or a lower-interest loan.
Frequently Asked Questions
Does a cash advance hurt my credit score?
A cash advance itself does not directly hurt your score, but it increases your credit utilization — the percentage of your available credit you are using. High utilization can lower your score temporarily. If you pay off the advance quickly, the impact is usually small and temporary.
Can I take a cash advance if my card is maxed out?
No. Your cash advance limit is part of your total credit limit. If you have used your entire limit, you cannot take a cash advance until you pay down the balance.
What happens if I cannot repay the cash advance?
The balance stays on your card and interest continues to accrue. If you miss payments, your card issuer may report it to credit bureaus, which damages your credit score. They may also close your account or take legal action to collect the debt.
Is a balance transfer check cheaper than an ATM cash advance?
It depends on your card's terms. Balance transfer checks often charge the same 3 to 5 percent fee as a cash advance but may have a lower interest rate. Check your card's terms or call your issuer to compare before you decide.
Can I use a credit card cash advance to pay another credit card bill?
Technically yes, but it is almost never a good idea. You are paying a cash advance fee and high interest to move debt from one card to another. A balance transfer (moving the balance directly between cards) is cheaper if your issuer offers it.