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 casino chips or lottery tickets. Each method costs you differently and starts charging interest immediately — unlike purchases, which often have a grace period.

A cash advance is the most direct route. You use your card at an ATM, bank teller, or money transfer service to withdraw cash up to your credit limit. The transaction posts instantly, and interest begins accruing the same day. Most cards charge a flat fee (often $5 to $10) plus a percentage of the amount (typically 3 to 5 percent), on top of a higher interest rate than regular purchases.

A balance transfer check is a physical check your card issuer sends you. You deposit or cash it like any other check, and the amount counts as a balance transfer rather than a purchase. These checks usually have lower fees than ATM cash advances but still charge interest from day one.

A cash-like transaction — buying gift cards, cryptocurrency, or gambling chips — technically counts as a purchase on your statement but often triggers cash advance fees and rates anyway. Your card issuer's terms determine whether they treat it as a cash advance or a purchase.

Key Takeaways

  • Cash advances charge interest from the moment you withdraw the money, with no grace period like regular purchases have.
  • You pay both a flat fee (typically $5 to $10) and a percentage fee (usually 3 to 5 percent) on top of a higher interest rate than your purchase APR.
  • Balance transfer checks cost less in fees than ATM cash advances but still charge interest immediately.
  • Your credit card agreement spells out which transactions count as cash advances and what the exact fees and rates are for your card.

How much a cash advance actually costs

The cost of a cash advance depends on three things: the flat fee, the percentage fee, and the interest rate. A $500 cash advance might cost you $25 in fees alone (a $10 flat fee plus 3 percent of $500), plus interest that accrues daily at a rate that is often 5 to 10 percentage points higher than your purchase APR.

If your purchase APR is 18 percent and your cash advance APR is 25 percent, you are paying roughly 0.07 percent per day on that $500. After one month, the interest alone is about $10. After three months, it is roughly $30. The longer you carry the balance, the more the higher rate compounds.

Your card issuer's disclosure document — the Schumer Box, named after the law requiring it — lists the cash advance APR, the flat fee, and the percentage fee. You can find this in your card agreement or on the issuer's website. Compare these numbers across cards before you decide to take a cash advance, because the difference between a 2 percent fee and a 5 percent fee on a large withdrawal is substantial.

Where and how to get a cash advance

The easiest method is an ATM. Insert your card, enter your PIN, select "cash advance" or "withdrawal," and choose the amount. The ATM dispenses cash and the transaction posts to your account within hours. Most ATMs charge an additional fee (often $2 to $3) on top of your card issuer's fee, so a $200 withdrawal might cost you $15 to $20 in fees before interest.

You can also visit your card issuer's bank branch and ask a teller for a cash advance. Bring your card and ID. The teller will process the transaction at the counter, and you walk out with cash. This method avoids the ATM operator fee but still charges your card issuer's cash advance fee and interest.

A third option is a money transfer service such as MoneyGram or Western Union. You provide your credit card, the service charges a fee (often higher than an ATM), and you receive cash. These services are useful if you need cash outside normal banking hours, but the fees are steep.

Balance transfer checks work differently. When your issuer sends them, you simply deposit or cash them at your bank. The amount is treated as a balance transfer on your credit card statement, not as a purchase. Fees are usually lower than cash advances (sometimes 1 to 3 percent), but interest still starts accruing immediately.

Why cash advances are expensive compared to regular purchases

A regular purchase on your credit card usually has a grace period — typically 21 to 25 days — during which no interest accrues if you pay the full balance by the due date. A cash advance has no grace period. Interest starts the day you withdraw the money, even if you pay it back a week later.

The interest rate itself is also higher. Most cards charge one APR for purchases and a separate, higher APR for cash advances. This difference can be 5 to 10 percentage points. If your purchase APR is 15 percent, your cash advance APR might be 22 percent. Over time, this gap costs you significantly more.

Additionally, cash advances do not benefit from rewards or cash back. If your card earns 2 percent cash back on all purchases, that reward does not apply to cash advances. You pay the fees and interest with no offsetting benefit.

Alternatives to a credit card cash advance

If you need cash urgently, a cash advance is rarely the cheapest option. A personal loan from a bank or credit union usually charges a lower interest rate and has a fixed repayment schedule, making the total cost predictable. If you have good credit, you might may have access to for a rate of 8 to 12 percent, compared to 20 to 30 percent for a cash advance.

A payday loan is faster but more expensive. You borrow against your next paycheck and repay within two weeks. The fees are high (often $15 to $20 per $100 borrowed), which translates to an APR of 400 percent or more. This is worse than a cash advance in almost every case, but it is available even with poor credit.

Borrowing from family or friends costs nothing if they agree to it, though it carries relationship risk. Asking your employer for an advance on your paycheck is another option if your workplace offers it. Some employers will advance a portion of your next paycheck with no fee.

If you have a 401(k) or similar retirement account, you may be able to borrow against it. The interest you pay goes back into your own account, and there is no credit check. However, if you leave your job, the loan becomes due immediately, and if you cannot repay it, the amount counts as a taxable withdrawal with penalties.

How a cash advance affects your credit score

A cash advance does not directly hurt your credit score the way a missed payment does. However, it increases your credit utilization — the percentage of your available credit you are using. If you have a $5,000 credit limit and you take a $1,000 cash advance, your utilization jumps to 20 percent. High utilization can lower your score by a few points.

The bigger risk is that a cash advance makes it harder to pay down your balance. Because interest accrues immediately and at a higher rate, the balance grows faster than it would with a regular purchase. If you cannot pay it off quickly, you end up carrying a larger balance for longer, which keeps your utilization high and your score lower.

Missing a payment on a cash advance has the same impact as missing any other credit card payment: it damages your score significantly and stays on your credit report for seven years. The cash advance itself is not the problem; the debt it creates is.

Reading your card's cash advance terms

Your credit card agreement contains a section on cash advances. It will list the cash advance APR, the flat fee per transaction, and the percentage fee. It will also state your cash advance limit, which may be lower than your overall credit limit. Some cards set a cash advance limit at 20 to 30 percent of your total limit.

The agreement also specifies which transactions count as cash advances. Withdrawals at ATMs and tellers are always cash advances. Purchases at casinos, cryptocurrency exchanges, and some gift card retailers may or may not be treated as cash advances depending on the merchant code and your issuer's policy. If you are unsure, call your card issuer before the transaction.

You can request a lower cash advance limit or ask your issuer to disable cash advances entirely. This prevents accidental or fraudulent cash advances on your account. Some people do this as a safeguard against identity theft.

Frequently Asked Questions

Can I use a credit card cash advance to pay another credit card?

Technically yes, but it is a bad idea. You pay cash advance fees and interest on the amount, then use that cash to pay another card's purchase balance. You end up paying two sets of interest and fees instead of one. A balance transfer (moving the balance directly from one card to another) is cheaper if both cards are from issuers that allow it.

What happens if I cannot pay back a cash advance?

The balance stays on your card and interest continues to accrue at the cash advance rate. If you miss the minimum payment, your issuer reports it to credit bureaus and your score drops. After 30 days, the late payment appears on your credit report. After 180 days, the issuer may charge off the debt and sell it to a collection agency.

Is there a grace period for cash advances?

No. Interest starts accruing the day you withdraw the cash, even if you pay it back within a few days. This is different from purchases, which usually have a 21 to 25 day grace period if you pay the full balance by the due date.

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

Yes. Your cash advance limit is based on your existing credit line, not a new credit check. As long as your card is open and active, you can take a cash advance up to your limit. However, the interest rate and fees apply regardless of your credit score.

Do cash advances show up differently on my credit report?

No. A cash advance balance appears on your credit report as part of your overall credit card balance. Credit bureaus do not distinguish between cash advance debt and purchase debt. However, your card issuer tracks them separately for billing purposes.