How to Get Cash From a Credit Card

Can You Get Cash Back From a Credit Card?

You can get cash back from a credit card, but it's treated as a cash advance. This transaction comes with steep fees and carries a higher interest rate than you'll be charged for regular purchases, making it an expensive form of debt.

What to Consider Before Getting Cash From Your Credit Card

There are several factors to consider before getting cash from your credit card.

Fees

You could potentially face two different fees when you get cash from your credit card:

• An ATM fee if you use another bank's ATM for a cash withdrawal.
• A cash advance fee charged by your credit card issuer. This fee is either a flat fee or a percentage of the cash advance, whichever is higher.

The more cash you withdraw, the higher the fees you'll pay.

High Interest Rates

Cash advance transactions typically have the highest interest rate of any transaction on your credit card. Because a cash advance does not have a grace period, that higher interest begins accruing right away. The combination of a high interest rate and no grace period means you'll pay higher finance charges for getting cash back from your credit card. This is true even if you pay the balance in full by your due date.

Limited Withdrawal Amounts

Your limit for withdrawing cash may be lower than your credit limit for purchases. Any existing purchases or transferred balance may reduce the credit you have available for a cash advance. Not only that, some ATMs may limit the amount of cash you can withdraw. These limitations may prevent you from withdrawing the amount you need.

Potential Credit Impact

Taking out a cash advance could hurt your credit, particularly if the cash advance is high enough to raise your credit utilization ratio, or percentage of available credit you're using on your credit card. Credit card utilization has a significant impact on credit scores, so keeping a low balance, ideally in the single digits, is typically best for credit scores.

How to Get Cash Back From a Credit Card

If you're considering a cash advance, check your online account for how much credit is available for cash withdrawal. Review your cash advance fee and annual percentage rate (APR) to understand the cost of the transaction.

When you're out of other options, you can use one of the following methods to get cash back from a credit card.

ATM Withdrawal

If you've ever used your debit card to withdraw cash at an ATM, the process for getting cash back from a credit card at an ATM will be familiar. Simply insert your credit card into the ATM and enter your PIN when prompted. Select the option to make a withdrawal and follow the prompts on screen. If you don't remember getting a PIN from your card issuer when you opened your account, you can contact them to ask for one.

If you're using another bank's ATM, you may receive a warning about an ATM fee. Accept the fee if necessary and the cash will be dispensed to you. Once you've received the cash, remember to take your card and end the transaction.

At the Bank

Depending on your credit card network, you may be able to withdraw cash at a participating bank if you don't have your PIN and can't use an ATM. Inform the bank teller that you'd like to take a credit card cash advance and specify the amount. Have your credit card and government-issued ID ready to show the teller.

Cash Back at the Register

At select retailers, you may have the option to request cash back during a transaction. When you're at the checkout, look for the option on the credit card terminal to receive cash back. Next, you'll be prompted to specify the amount of cash you'd like to receive. After confirming the amount, the cash will be dispensed to you along with your purchase.

Convenience Check

If your credit card issuer has mailed convenience checks to you, you can use them to get cash or deposit money into your checking account. Simply fill out the check by writing your name or "cash" as the payee and the amount of cash you want to receive. Then, endorse the check by signing the back and take it to your bank to cash or deposit.

You can alternatively use mobile check deposit if your bank offers the option. Log in to the mobile app, select the mobile check deposit option and follow the prompts on screen to deposit the check electronically.

Can I Get a Cash Advance Online?

Some credit cards may allow you to get a cash advance online using online banking or the mobile app. The exact steps may vary by credit card issuer, but you'll typically select the option to transfer money, choosing your credit card as the source and your checking account as the destination.

Alternatives to Getting Cash From Your Credit Card

While they may be a convenient option when you're in a bind, cash advances aren't a good idea generally. Because it's an expensive way to get money, it's best to avoid borrowing money from your credit card if possible.

Consider alternatives before turning to a cash advance as a last resort.

• Use your emergency savings. This way, you avoid debt, fees and interest. Just be sure you have a plan to replenish your savings as soon as possible.
• Redeem rewards for cash back. Depending on your credit card, you can opt for a statement credit, direct deposit or check mailed to you. A statement credit may be the fastest option to redeem your rewards.
• Take out a personal loan. If you have decent credit, you may qualify for a lower interest rate on a personal loan.
• Rely on overdraft protection. Though it's not the best option, taking the money out of your bank account and paying an overdraft fee may be less expensive than the cost of a cash advance. Just be sure to replenish the cash as soon as possible to avoid having your account sent to collections or the bank closing your account.
• Borrow from family or friends. It can be awkward and uncomfortable, but a loan from a loved one can save you in interest charges. Be sure you stick with your payment agreement to avoid damaging your relationship.
• Sell some assets. If you have valuable jewelry, electronics or artwork, you may be able to come up with enough cash to avoid borrowing money.
• Pick up a side gig. You can earn extra income to cover your expenses and you won't have to take on new debt.
• Negotiate with your creditors. Extending your payment due dates may allow you to take care of your most urgent needs and make up your payments at a later date.

The Bottom Line

If you've ruled out alternative options and determine a cash advance is the only viable choice, make sure you understand the costs and the risks. While you can't avoid the cash advance fee, you can minimize interest by repaying the cash advance balance quickly.

You can check the impact to your credit by checking your credit score for free. A cash advance may cause you to lose points initially, but your score could recover as you reduce your balance.