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 transaction such as buying a money order or casino chips. Each one costs you differently and affects your card balance in different ways.
A cash advance is the most direct method. You go to an ATM, bank, or sometimes a convenience store, insert your credit card, and withdraw cash up to your card's cash advance limit — which is usually lower than your overall credit limit. The money hits your account immediately, but the card issuer charges a fee (typically 3 to 5 percent of the amount) and starts charging interest right away, with no grace period like you get on purchases.
A balance transfer check works if your card issuer sends you checks tied to your credit line. You write a check to yourself or a payee, deposit it, and the amount becomes a balance on your card. These checks often come with a lower fee than cash advances but still charge interest from day one.
Cash-like transactions — buying money orders, wire transfers, or gambling chips — are treated as cash advances by most card issuers, so they carry the same fees and interest rates even though you are not physically withdrawing cash.
Key Takeaways
- Cash advances charge a fee of 3 to 5 percent upfront and interest starting immediately, with no grace period.
- Your cash advance limit is separate from your credit limit and is usually much lower.
- Balance transfer checks may have a lower fee but still charge interest from the day you use them.
- Paying off a cash advance takes longer because interest accrues faster than on regular purchases.
Cash advance fees and interest rates
The cost of a cash advance has two parts: an upfront fee and ongoing interest. The upfront fee is charged once, when you take the advance. Most card issuers charge between 3 and 5 percent of the amount withdrawn, though some charge a flat fee (like $5 or $10) if that is higher. A $300 cash advance at 4 percent costs $12 in fees alone.
Interest starts accruing the moment you withdraw the cash. Unlike a purchase, which may have a grace period of 20 to 25 days before interest kicks in, a cash advance has no grace period. The interest rate for cash advances is also usually higher than the rate for purchases on the same card — often 2 to 5 percentage points higher. If your purchase APR is 18 percent, your cash advance APR might be 23 percent.
Because interest compounds daily, the longer you carry a cash advance balance, the more you pay. A $500 cash advance at 23 percent APR costs about $9.58 per month in interest alone if you make no payments. After six months of no payments, you owe roughly $57 in interest on top of the original $500.
Your cash advance limit versus your credit limit
Your card issuer sets a separate cash advance limit that is usually much lower than your overall credit limit. If your credit limit is $5,000, your cash advance limit might be $1,000 or $1,500. This limit is set by the card issuer based on your credit history and account activity, and you cannot change it yourself.
You can call your card issuer to ask what your cash advance limit is. Some card issuers show this information in your online account or on your statement. If you try to withdraw more than your limit, the ATM or teller will decline the transaction.
A cash advance counts against your overall credit limit as well. If you take a $500 cash advance on a $5,000 credit limit, you now have $4,500 available for purchases and other transactions.
Where to get a cash advance
You can get a cash advance at any ATM that displays your card's logo — Visa, Mastercard, American Express, or Discover. Most ATMs charge an additional fee of $2 to $5 for using an out-of-network machine, on top of the card issuer's cash advance fee. Using an ATM at your card issuer's own bank or a partner bank usually avoids this extra charge.
You can also visit a bank branch in person and ask a teller for a cash advance. Bring your card and a photo ID. Bank tellers can process larger amounts than some ATMs allow and do not charge an ATM operator fee, though your card issuer's cash advance fee still applies.
Some convenience stores, grocery stores, and check-cashing services also offer cash advances, though not all do. Call ahead or ask at the counter. These locations may charge their own fee on top of your card issuer's fee.
How a cash advance affects your credit score
Taking a cash advance does not directly lower your credit score, but it can indirectly affect it in two ways. First, a cash advance increases your credit utilization ratio — the amount of available credit you are using. If you have a $5,000 limit and take a $1,000 cash advance, your utilization jumps to 20 percent. Credit scoring models treat high utilization as a sign of financial stress, and scores can drop by a few points.
Second, if you carry the cash advance balance and make only minimum payments, your utilization stays high for months. The longer it stays high, the longer your score stays depressed. Paying off the balance quickly brings your utilization back down and allows your score to recover.
A cash advance does not appear as a separate item on your credit report — it shows as a balance on your credit card account, just like a purchase would. The credit bureaus do not distinguish between money you borrowed for a purchase and money you withdrew as cash.
Alternatives to cash advances
If you need cash but want to avoid the high fees and interest of a cash advance, consider these options first.
Personal loans from a bank or credit union usually charge lower interest rates than cash advances. If you have a relationship with a bank or credit union, ask about a personal loan. The interest rate depends on your credit score and income, but rates are often 6 to 12 percent — significantly lower than a 23 percent cash advance APR. The loan is disbursed as a lump sum, and you repay it in fixed monthly installments, which makes budgeting easier.
Borrowing from friends or family costs nothing if no interest is charged, though it can strain relationships if repayment is unclear. If you do borrow, put the terms in writing — the amount, when it is due, and whether interest applies — to avoid misunderstandings later.
Asking your employer for an advance on your paycheck is free if your employer offers it. Some employers allow employees to draw part of their next paycheck early, with no fee. Ask your HR or payroll department whether this is an option.
Selling items you no longer need — through online marketplaces, consignment shops, or a garage sale — takes time but generates cash without debt or interest.
Paying off a cash advance quickly
Because cash advances charge interest from day one with no grace period, the interest compounds faster than on purchases. To minimize what you pay, prioritize paying off the cash advance balance as soon as you can.
When you make a payment to your credit card, the card issuer applies it first to the balance with the highest interest rate. Since your cash advance APR is higher than your purchase APR, payments go toward the cash advance first — which is what you want. However, if you have both a purchase balance and a cash advance balance, and you make a payment, the issuer may apply it to the purchase first (rules vary by issuer and state). Call your card issuer and ask how payments are applied, or request in writing that payments go to the cash advance.
The fastest way to pay off a cash advance is to stop using the card for new purchases while you pay down the advance. Every dollar you spend on a new purchase is a dollar that does not go toward the cash advance balance, and the advance keeps accruing interest.
Frequently Asked Questions
Can I take a cash advance if I have a zero balance?
Yes. A cash advance is a separate transaction from your purchase balance. Even if you owe nothing on purchases, you can still take a cash advance up to your cash advance limit. The advance will create a new balance on your card that starts accruing interest immediately.
What happens if I cannot pay back a cash advance?
If you do not pay, the balance stays on your card and interest keeps accruing. After 30 days of non-payment, the late payment appears on your credit report and your credit score drops. After 60 or 90 days, the card issuer may close your account or send the debt to a collection agency. You remain legally responsible for the debt.
Is a cash advance the same as a balance transfer?
No. A balance transfer moves debt from one card to another (usually to take advantage of a lower interest rate). A cash advance withdraws cash from your credit line. They are separate features with different fees and interest rates.
Can I use a credit card cash advance to pay another credit card bill?
Technically yes, but it is a bad idea. You would be paying a high-interest cash advance fee and interest rate to pay off another card, which costs more than paying the other card directly. Most financial advisors recommend against this unless you have no other option.
Do all credit cards offer cash advances?
Most credit cards do, but not all. Secured credit cards and some store cards may not. Check your card's terms or call your issuer to confirm whether cash advances are available on your account.