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How to Get Cash From a Credit Card: 3 Ways Explained

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While typically used for purchases, credit cards also offer a way to access cash when needed. Whether it’s for an emergency, to cover bills, or simply because you prefer having money in hand, knowing how to get cash from a credit card can be incredibly helpful.

In this article, we’ll explain six practical ways to get cash from a credit card. We’ll also explore common questions like, “How to get cash advance from credit card?” and “Can you get cash back from a credit card?”

Plus, we'll cover how to withdraw cash from a credit card without fees, so you can make the most of your options without overspending.

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What is a cash advance from a credit card?

One of the ways to get cash from a credit card is by taking what's known as a cash advance. A cash advance offers access to quick cash by borrowing against your credit limit. Essentially, it allows you to withdraw money either from an ATM or in person at a bank, using your credit card.

But a cash advance is different from a regular purchase made with a credit card? “One common misconception is that cash advances are just like regular credit card purchases,” says Steven Kibbel, a financial planner, entrepreneur, and financial advisor at Prop Firm App. “In reality, they often come with higher interest rates, additional fees, and no grace period.” This means interest starts accumulating right away.

Pros and cons of cash advances

Like any financial tool, cash advance transactions have their advantages and drawbacks. Let’s break them down.

Pros:

  • Immediate access to cash: A cash advance provides instant liquidity when you need it most, especially in emergencies.
  • Flexibility: You can withdraw funds at ATMs or request cash directly through your bank, making it easy to access money quickly.

Cons:

  • High fees: Cash advances typically come with additional costs like ATM fees and cash advance fees charged by your credit card issuer. These fees can add up quickly, making this option more expensive than it appears.
  • High-interest rates: Unlike regular purchases that may come with a lower interest rate or an introductory 0% APR, cash advances often have steep interest rates. Plus, interest starts accruing immediately, with no grace period.
  • Impact on credit score: Frequent cash advances can have a negative impact on your credit score over time. “They can increase your credit utilization ratio, which is a key factor in credit scoring,” Kibbel says. Additionally, if the balance isn’t repaid quickly, it could lead to higher debt and even missed payments, further damaging your credit.

While a cash advance can be a lifesaver in a pinch, weigh these pros and cons carefully before proceeding. “Cash advances are rarely a good option due to their high costs,” Kibbel says. “Some people also believe cash advances are a good way to earn reward points, which is typically not the case.”

He recommends only using it for emergencies, limiting the amount you withdraw, comparing rates across different cards if you have multiple options, and paying it off as soon as possible to minimize costs and credit damage.

How to get a cash advance from a credit card

Getting a cash advance from your credit card is straightforward. If you choose to go this route, follow the correct steps to avoid unnecessary fees or complications.

Getting a cash advance at the bank

  1. Check your cash advance limit: Before heading to the bank, check your credit card statement or online banking account to find out your cash advance limit. This limit is not the same as your total credit limit, and is typically lower.
  2. Bring your credit card and ID: Visit your bank’s branch with your credit card and a valid ID. The bank teller will need to verify your identity before processing the cash advance.
  3. Request the cash advance: Tell the bank teller that you would like to request a cash advance from your credit card. You’ll need to specify the amount you wish to withdraw, keeping in mind your limit.
  4. Pay the fees: Be aware that banks often charge cash advance fees. You’ll receive the amount you request from the teller, but the advance fee will be added to your credit card balance.
  5. Repay as soon as possible: To avoid high-interest charges, repay the cash advance amount as quickly as possible.

Getting a cash advance from an ATM

  1. Check your cash advance limit: Know your cash advance limit before going to the ATM. This information is available through your online banking or credit card statement.
  2. Locate an ATM that accepts your card: Make sure the ATM you plan to use accepts your credit card network (Visa, MasterCard, etc.). You can also look for ATMs affiliated with your bank to potentially reduce ATM fees.
  3. Insert your credit card and enter your PIN: You will need to insert your credit card into the ATM and enter your PIN. If you don’t have a PIN, contact your credit card issuer to set one up.
  4. Select “Cash Advance:” Once logged in, select the “Cash Advance” option. Some ATMs might label this as “Credit Card Cash Withdrawal.”
  5. Enter the amount: Enter the amount you wish to withdraw, but remember not to exceed your cash advance limit. After confirming the transaction, the ATM will dispense the cash.
  6. Be prepared for fees: Expect to be charged both ATM fees and cash advance fees from your credit card issuer. Interest starts accumulating immediately, so try to repay the amount quickly.

Using convenience checks

Convenience checks are another method offered by credit card companies to access cash. They allow you to write a check to yourself or someone else, which can then be deposited into your bank account or cashed. But if you’re looking for a way to withdraw money from a credit card without charges, be aware: Like cash advances, convenience checks come with fees and interest. Here’s a step-by-step guide:

  1. Review your credit card mailings: Credit card companies often send convenience checks via mail, either with your statement or as separate mailings. Look for these checks in your mailbox. If you don’t have checks on hand, log into your account online or call your credit card issuer to request convenience checks. Some issuers allow you to order them online.
  2. Review the fine print: Before using a convenience check, carefully review the terms, fees, and interest rates associated with it. These details should be included in the accompanying letter or can be found in your online account. Expect fees similar to cash advances—typically around 3% to 5% of the check amount. Interest begins accruing immediately.
  3. Fill out the check: Write the check just as you would with a normal check. Include the date, your name (or someone else’s if you prefer), and the amount you want to withdraw.
  4. Deposit or cash the check: Take the check to your bank and deposit it into your checking or savings account. Alternatively, you can cash it directly.
  5. Track the interest: Monitor the interest accumulation in your credit card account and plan to repay the balance quickly to avoid excessive charges.
  6. Set up a payment plan: If you can’t repay the full amount right away, set up a payment plan to reduce the balance as fast as possible, minimizing interest fees.

Better ways to get cash vs. a cash advance

These alternative methods can help you access funds without the hefty fees and high interest rates typically associated with cash advances. Here are a few smarter ways to get cash using your credit card:

Balance transfers

“While balance transfers aren't designed to access cash directly, they can be used strategically to free up cash in your budget,” Kibbel says. By transferring high-interest credit card debt to a card with a low or 0% introductory APR, you can reduce your monthly payments. This may free up cash that you might otherwise need to use to cover higher interest payments.

Balance transfers usually offer lower interest rates compared to cash advances, especially during promotional periods. However, balance transfer fees—typically ranging from 3% to 5%—may apply. “Have a solid repayment plan in place to avoid falling into more debt when the promotional period ends,” he says.

Personal loans

If you need cash, consider applying for a personal loan instead of a cash advance. “Personal loans can be a more favorable option with lower interest rates and structured repayment plans, but it's important to carefully evaluate your options,” Kibbel says. They provide a lump sum of cash with fixed repayment terms, which can be easier to manage compared to the often unpredictable terms of a cash advance, especially if you have a strong credit history.

Personal loans offer structured repayment plans, which can help you manage your budget better. However, they do involve an application process and credit check, which might not be as immediate as getting a cash advance.

Peer-to-peer platforms

Peer-to-peer (P2P) lending platforms such as Prosper and LendingClub provide an alternative method for getting cash by connecting borrowers with individual investors. Instead of going through traditional banks, you can apply for a loan on these platforms, and if approved, it’s funded by multiple investors. This can be a more accessible option compared to cash advances, especially if you have a good credit score. Follow this step-by-step:

  1. Choose a platform: Select a P2P lending site that fits your needs. Each platform has its own terms, interest rates, and application processes.
  2. Apply for a loan: Complete the online application. You'll need to provide information about your financial situation, including credit history, income, and the amount you wish to borrow.
  3. Receive funding: If approved, your loan request is listed on the platform, and investors can choose to fund it. Once funded, the money is transferred to your bank account.
  4. Repay the loan: Make monthly payments according to the agreed-upon terms. Unlike cash advances, P2P loans usually come with fixed repayment schedules and potentially lower interest rates.

    P2P lending provides an opportunity to access funds without using your credit card directly. However, you may encounter fees for the loan origination or other charges. Additionally, the application process can take some time, and approval is not guaranteed.

Prepaid gift cards

A creative way to convert your credit card limit into cash is by purchasing prepaid gift cards on e-commerce sites or retail stores. Once you have the gift card, you can either sell it through online marketplaces or use services that allow you to transfer the funds into your bank account.

Cashback on purchases

If you want to convert a credit card into cash, try using a rewards credit card that offers cashback. By earning cash back from credit cards on your everyday purchases, you accumulate rewards that can be redeemed for cash. This strategy works well if you consistently use your credit card and pay off the balance in full each month to avoid interest charges.

The main benefit is that this method avoids additional fees and interest charges. However, accumulating sufficient rewards for a significant cash amount takes time, so it may not be ideal for urgent cash needs.