How to get cash from a credit card (2024)

Credit cards can make everyday spending convenient, secure and rewarding. If you’re short on cash, you can also tap a portion of your card’s credit limit in the form of a cash advance.

You should generally avoid getting a cash advance on a credit card, but it can be worth considering if your only alternative is an even more expensive payday loan. Here’s what you need to know about how to get cash from a credit card and what to consider before you do.

What are credit card cash advances?

A cash advance, alternatively called a credit card cash withdrawal, allows you to access some of your card’s credit limit in the form of cash. Credit card users may consider a cash advance for financial emergencies and cash-only situations.

You may be able to get a cash advance at a local bank branch or an ATM, through your online account, or via a convenience check from your credit card company.

Other transactions that don’t involve cash as directly may still register as cash advances. For example, if you use your credit card to buy foreign currency or load up a sports betting app, you’re likely also taking out a cash advance.

In most cases, cash advances carry transaction fees and higher annual percentage rates (APRs) than balance transfers or purchase balances.

How to use cash advance convenience checks

A convenience check is a paper check linked to your credit card. You can make the check payable to another party or even to yourself.

Credit card issuers may send convenience checks at their discretion, or you can try requesting them by phone or through your online account. When you use a convenience check, you’ll likely see interest charges start right away, even before your statement closes.

Sometimes, convenience checks can facilitate balance transfers, where you move your debt from one credit card to another. In these instances, your check may come with a promotional APR that allows you to pay off your debt with low or no interest for a set period of time

Before you use a convenience check with a promotional APR, carefully review the terms. There’s generally still a fee, and you may find other catches.

“Sometimes, these offers only apply if you use the check to transfer a balance to that particular card,” said Howard Dvorkin, a certified public accountant and chairman of Debt.com. “If you deposit the check into your bank account, you could be paying upwards of 20% interest plus fees.”

Risks involved in getting cash from a credit card

If you need cash, a credit card cash advance can be a convenient way to solve your problem. But before you pursue one, understand the risks.

Impact on credit score

Requesting a cash advance won’t directly affect your credit score because you’re not applying for new credit, but it will increase your balance. Your credit utilization rate — your card’s balance divided by its credit limit — is an influential factor in your credit score.

If you generally maintain a low credit utilization rate, a small cash advance may not have much of an impact. But if an advance causes your utilization rate to spike, your credit score could take a significant hit until you pay it off.

Credit experts often recommend keeping your utilization rate below 30%, but there’s no hard-and-fast rule.

Fees and interest rates

Cash advances are usually costly. You’ll typically see a cash advance fee worth 5% of the advance amount (or at least $5 or $10) added to your balance or subtracted from the advance. If you get an advance at an ATM or bank branch, you may pay an additional fee.

You can expect the interest rate on the advance to be higher than the card’s rate for purchases. What’s more, cash advances start accruing interest from the date of the transaction. In contrast, credit card purchases often come with a grace period that lets you avoid interest charges when you pay your balance on time and in full every month.

Alternatives to cash advances from credit cards

Before you consider a credit card cash advance, be sure to research and compare all of your options. Depending on your situation and needs, here are some alternatives you could pursue:

• Salary advance: Consider asking your payroll manager whether you can get an advance on your next paycheck and, if so, what terms might come with the deal.
• Personal loan: If you have a more significant financial need, a personal loan could be a better fit. Personal loans are available to borrowers across the credit spectrum, but your options may be limited and expensive if you have fair or poor credit.
• Loan from a family member or friend: You may feel embarrassed asking a loved one to help you financially. But creating a contract with a clear repayment plan could help you avoid jeopardizing your relationship.
• Retirement funds: You may be able to tap your retirement in the form of a 401(k) loan or a withdrawal from a 401(k) or individual retirement account. Before you choose this option, however, consider the potential tax consequences and possible lost gains.

Note that all of these alternatives have advantages and disadvantages. Make sure you understand the pros and cons of each and how they apply to your situation to determine the best path forward.

Also, consider ways to improve your financial situation by cutting costs, boosting your credit score and creating a safety net so you don’t have to make such a difficult decision in the future.

Is getting cash from a credit card ever worth it?

In most cases, it’s best to avoid credit card cash advances. If your credit is in decent shape, you can usually get access to cash at a much lower cost.

However, if your financial situation is dire and your credit score is in poor shape, many of these cheaper alternatives may not be an option. With options that don’t require a credit check, such as payday loans and auto title loans, you’re likely to see APRs around or above 300%.

In that scenario, you’ll likely pay less with a credit card cash advance.

Remember, though, that it never makes sense to use a cash advance for something you don’t need. “If it’s not an emergency, it’s a mistake,” said Dvorkin.