Key takeaways
- Taking out cash with your credit card might be good in a pinch, but it can be costly.
- Cash advances typically have fees and a higher APR than other types of credit card transactions.
- You can get cash with your credit card from an ATM, at a bank, or using a cash advance check.
- Consider safer, less costly alternatives to cash advances if you need a quick infusion of money.
Credit cards can be a convenient tool for making purchases, but what if you really need cash? Credit card cash advances let you borrow from your available credit. The easiest way to use your credit card to get cash is by making a withdrawal at an ATM.
While it sounds convenient if you’re in a pinch, cash advances come with hefty fees and higher interest rates that kick in as soon as you take the money. Before you decide to get cash from your credit card, be aware of the downsides and alternatives.
How to get a cash advance from a credit card
A cash advance refers to using your credit card to borrow cash instead of charging a purchase. Cash advances borrow against your credit card’s credit limit and must be repaid like any purchase. You can receive a cash advance through various methods, including an ATM withdrawal, a bank teller and a cash advance check.
Cash advances have many drawbacks
There are many cons to cash advances to keep in mind when deciding if you should get one, including:
- The card issuer typically charges a one-time fee plus a higher rate of interest on cash advances.
- Unlike normal credit card purchases, there is no grace period before interest starts to accrue.
We also walk through these drawbacks and more later in this article.
How to get cash from a credit card
There are multiple ways to get cash from a credit card. Below we detail how to withdraw cash from:
- ATM cash advance
- Cash advance check
- In-branch cash advance
How to get a cash advance at an ATM
Getting cash from an ATM using a credit card is similar to using your debit card to make a cash withdrawal. You’ll need to get a PIN, and then you can proceed as usual.
- Contact your bank to establish a PIN (if you don’t already have one).
- Find a participating ATM that has your credit card’s logo.
- Insert your credit card and enter your PIN code.
- Choose “cash withdrawal” or “cash advance.”
- Enter the amount of cash you’d like to receive.
- Be sure to stay below your cash advance and credit limits.
- Review and acknowledge fees that may be charged.
- Approve the transaction.
- Receive your cash.
- Collect your credit card from the ATM.
Still looking for a credit card? See our picks for the best credit cards for cash advance.
How to get a cash advance check
Card issuers send cash advance checks to customers on a regular basis. You can use these checks like a traditional bank check to pay yourself or anyone else.
- If you don’t already have a cash advance check, contact your issuer to request one.
- Fill out the check with your name, date, and amount of the cash advance.
- Be sure to stay below cash advance and credit limits.
- Sign the check on the front.
- Write “for deposit only” and sign the back of the check.
- Deposit cash advance check into your bank account.
How to get a cash advance in a branch
You may also be able to walk into a bank branch or contact your bank’s customer service center to get a cash advance. The in-person branch does not have to be the same bank that issues your credit card. You don’t even need to be a customer of the bank you’re withdrawing cash from. It just needs to be in the same network as your credit card (Visa or Mastercard).
Keep in mind, however, that the secondary bank may also charge you fees for the cash advance, which will be in addition to the fees and interest charged by your credit card issuer.
- Locate a bank that displays the logo on your credit card (Visa or Mastercard).
- Request a cash advance on your credit card from the bank teller.
- Let them know how much cash you’d like to draw from your card.
- Provide your photo identification and credit card for verification.
- Enter your PIN code (contact your card’s issuer first, if you don’t already have one).
- Receive your cash.
Does a cash advance not sound right for you? Consider a personal loan instead – where you could get a loan the same day and pay it back in small monthly payments.
Reasons not to withdraw cash from a credit card
While taking an advance from your credit line might seem like a convenient way to get through a cash shortfall, there are some risks and downsides to doing so. You should look at your card issuer’s website to see what the cash advance APR and cash advance fee will be to see if the extra costs and interest is worth it.
You’ll pay a cash advance fee
Every time you get cash from a credit card, the card issuer will charge a fee. This fee is typically a percentage of the cash advance amount and there’s a minimum fee for each transaction. Typical cash advance fees range from 3% to 5%, or a minimum of $5 to $10, whichever is more.
For example, if you take a $500 cash advance with a 5% fee, you’ll immediately incur a charge of $25.
Cash advances come with higher interest rates
Not only do card issuers charge a fee on cash advances, but they also tend to charge higher interest rates on those balances. Those extra interest charges can make it harder for you to pay off your balance.
A typical cash advance APR is around 29.99%. The longer it takes you to pay back what you owe, the more you will pay in interest charges based on that higher APR. If you take $500 and pay back $50 per month, it would take you a year and cost you an additional $68 in interest as you pay it off.
No grace period on cash advances
Unlike normal credit card purchases, when you request cash from a credit card, there is no grace period. This means that you’ll start accruing interest on the cash advance amount immediately. By the time you receive your credit card statement, you’ll already owe more than the amount you borrowed.
Your credit score may take a hit
Credit card cash advances can affect your credit in multiple ways, including your credit utilization and payment history.
One of the main factors of your credit score is the utilization ratio. The more that you use your credit limit, the lower your score could go. Depending on the size of your cash advance, you could use up so much of your credit limit that it harms your credit score.
For people having financial difficulties, a large credit card payment could make the situation worse. If you don’t make the minimum monthly payment, the bank could put negative marks on your credit report. Since payment history makes up 35% of your credit score, late payments could dramatically lower your score.
Learn more about ways to improve your credit score.
Limit how much cash you can withdraw
Most credit cards place a maximum on the size of cash advances. These limits are based on your credit limit and your available credit. Some card issuers also have a maximum dollar amount allowed.
Typically, you can access a specific percentage of your credit card’s limit with a cash advance, but that percentage may vary by issuer. For example, if you had a $15,000 credit limit, you might be able to withdraw up to 30%, or $5,000. Note that the cash advance fee will come out of your withdrawal amount, so you’ll actually end up with less cash. On $5,000, a 5% fee would reduce your cash amount to $4,750.
You may also need to have enough available credit in order for your cash advance to be approved. So using the example above, if you have a $12,000 balance on your card from purchases, that leaves you with just $3,000 in available credit.
Alternatives to a cash advance
Because cash advances are costly and put your credit at risk, you should explore other options. While every fast cash opportunity has its pros and cons, some may be less costly or damaging than a cash advance.
Payment apps like Venmo, PayPal or Cash App
Credit cards can be added as payment sources for fintech apps like Venmo, PayPal or Cash App. This enables you to send money to friends and authorized merchants using the app. Just be aware that some credit issuers might still consider this a form of cash advance and apply the cash advance fee and APR. You may want to contact your card issuer to ask if that’s the case.
Also, when using a credit card to send money, the payment app may charge you or the recipient a fee for the transaction.
Debit card
A debit card is an ATM card that enables customers to make purchases like a credit card as well as withdraw money from a bank account. An easy way to tell if you have a debit card is to look for a Visa, Mastercard or American Express logo on the card. If you have money in your bank account, you can withdraw cash with your debit card at any ATM.
Borrow from friends or family
Friends and family are often there for you in an emergency, including when you need money in a hurry. However, borrowing from them can complicate relationships, especially if you have trouble repaying the loan.
The best approach is to create formal loan documents detailing the interest rate, repayment term and monthly payments. Ensure that the loan includes a reasonable interest rate. Otherwise, the IRS could assign an “imputed interest” amount and tax the lender for it, even if they didn’t actually earn any interest.
Credit card promotional checks
Some credit card issuers send out checks to their customers with exclusive offers. These promotional checks can be used to consolidate debt, pay for car repairs, improve your home or pay individuals.
In some cases, promotional checks offer a 0% or lower interest rate for one year or longer. These checks may offer better terms than a standard cash advance transaction, but be sure you know the interest rate that applies if you still owe a balance when the promotional period is over.
Looking for a 0% interest rate for a period of time? View our list of the best and longest 0% APR introductory period credit cards.
Credit card charge
In some cases, you may be able to talk a merchant into letting you use a credit card instead of cash. While not everyone accepts credit cards, a merchant may be willing to if you agree to cover the processing fees.
Another option is to use a service like Plastiq, which will send an electronic payment or paper check to eligible vendors for a small fee.
Get a paycheck advance
Traditional payday lenders can charge excessive fees and interest rates that trap borrowers into a devastating cycle. Paycheck advance apps reduce or eliminate many of those traditional fees to make the process more reasonable for borrowers. Many provide short-term loans without charging interest or requiring a credit check. This option may be good for people with lower credit scores who don’t want it to take another hit.
Margin loan from your brokerage account
Investors can borrow against the value of their investments without having to sell them. This allows your money to remain invested and doesn’t trigger a tax bill. Plus, the interest rates on margin loans can be much lower than a cash advance. However, keep in mind that the lender may sell your investments to cover the loan if they lose too much value.
Personal loan
A personal loan provides a lump sum of cash to meet your financial needs. These loans typically offer a fixed interest rate and a defined repayment period. You’ll make equal monthly payments until the loan is fully repaid. Depending on the lender, you could receive funds from a personal loan the same day.
Get Custom Personal Loan Offers Today
Home equity loan
With home values rising, you may have equity in your home that you can access. Home equity loans typically have lower interest rates because these loans are secured by your home. The loan qualification process can take several weeks to complete. And the lender may require a home appraisal, tax returns and recent paycheck stubs before approving your loan request.
In some cases, the bank charges fees for the loan and requires borrowers to pay for the home appraisal. Because of the time and fees involved, you should consider a home equity loan only if you need a larger sum of money.
Get Custom Home Equity Offers Today
Want to access home equity through a line of credit similar to a credit card? Consider a home equity line of credit (HELOC) loan, where you can access money you need any time up to your credit limit. Learn more about HELOC loans and how to get them today.
401(k) loan
Company retirement accounts can provide much-needed cash in an emergency. Most employers that offer 401(k) accounts allow employees to borrow against their balance. However, the IRS limits loan amounts to a maximum of 50% of your balance or $50,000, whichever is less.
These loans are good for people with bad credit because there are no credit qualifications to get approved. But they should only be used as a last resort since you are borrowing from your future with this loan.
Not only is there an opportunity cost from losing investment gains, but if you leave your job before the loan is repaid, any outstanding balance could be considered a withdrawal. That could result in a large tax bill and early withdrawal penalties.
Learn more about how 401(k) loans work.
The information related to the PenFed Platinum Rewards VISA Signature® Card has been independently collected by LendingTree and has not been reviewed or provided by the issuer of this card prior to publication.
