You can withdraw cash from a credit card through what’s called a cash advance, either at an ATM, at a bank teller window, or by using convenience checks mailed by your card issuer. It works, but it’s one of the most expensive ways to borrow money. Before you do it, you should understand exactly how each method works and what it will cost you.
Three Ways to Get Cash From a Credit Card
At an ATM
This is the most common method. You insert your credit card at an ATM the same way you would a debit card, select “cash advance” or “credit,” and withdraw the amount you need. The key requirement: you need a PIN. If you haven’t set one up, call the number on the back of your card or log into your issuer’s app to request one before you go. Your withdrawal will be limited by two caps: your card’s cash advance limit and the ATM’s own daily withdrawal limit, whichever is lower.
At a Bank Teller
You can walk into a bank that accepts your card’s network (Visa, Mastercard, etc.) and request a cash advance in person. Bring your credit card and a photo ID. This method can be useful if you need more cash than an ATM’s daily limit allows, since the teller isn’t bound by the same machine-level cap. You’re still limited by your card’s cash advance limit, though.
Using Convenience Checks
Some credit card companies mail blank checks, sometimes called convenience checks, that you can write against your credit line. You can make a check out to yourself, deposit it into your bank account, and withdraw the cash. The charge shows up on your credit card statement just like any other cash advance. If you receive these checks and don’t plan to use them, shred them immediately, since anyone who gets their hands on one could write a charge against your account. You can also call your issuer and ask them to stop sending the checks altogether.
What a Cash Advance Costs
Cash advances are expensive in two distinct ways: upfront fees and ongoing interest. Understanding both is important because together they make this form of borrowing significantly pricier than a normal credit card purchase.
The upfront fee is typically around 5% of the amount you withdraw. So if you take out $500, expect to pay roughly $25 in fees on top of whatever you borrowed. If you use an ATM, the machine operator may charge its own fee as well, adding another few dollars.
The interest rate on cash advances is almost always higher than the rate on regular purchases. But the bigger hit is the timing. With normal credit card purchases, you get a grace period: as long as you pay your full statement balance by the due date, you’re not charged any interest. Cash advances don’t get a grace period. Interest starts accruing the moment the transaction posts to your account. That means even if you pay it off quickly, you’ll owe some interest. The same rule applies to convenience checks.
To put this in real numbers: a $1,000 cash advance with a 5% fee costs you $50 on day one. If your cash advance APR is, say, 29.99%, you’re also paying roughly $0.82 per day in interest until the balance is paid off. Carry that for a month and you’ve paid close to $75 in total costs on a $1,000 loan.
Your Cash Advance Limit Is Lower Than Your Credit Limit
Your card’s cash advance limit is a separate, smaller number than your total credit limit. If your credit limit is $10,000, your cash advance limit might be $2,000 or $3,000. You can find the exact number on your monthly statement, in your online account, or by calling your issuer. Any cash advance you take also reduces your available credit for regular purchases, since both draw from the same overall credit line.
How Repayment Works
Cash advance balances appear on your regular credit card statement, and you make payments the same way you normally would. However, most issuers apply your minimum payment to the lowest-interest balance first. That means if you also carry a balance from regular purchases, your payments may go toward those charges before touching the higher-interest cash advance. To minimize interest costs, pay more than the minimum and, ideally, pay off the cash advance balance as fast as possible.
Cheaper Alternatives Worth Considering
Because the costs add up quickly, a cash advance should generally be a last resort. A few options that are almost always cheaper:
- Personal loan: Even borrowers with average credit can often qualify for a personal loan at a lower interest rate than a cash advance APR, and you’ll have a fixed repayment schedule.
- Paycheck advance apps: Several apps let you access a portion of your next paycheck early, often for a small fee or no fee at all.
- Bank overdraft line of credit: If your checking account offers an overdraft credit line, the interest rate is typically lower than a cash advance.
- Borrowing from family or friends: Not always comfortable, but the cost is usually zero.
If none of those options are available and you genuinely need cash quickly, a credit card cash advance will get money in your hands within minutes. Just go in knowing the fees and interest start immediately, and plan to pay it back as soon as you can.