How to pull cash out of credit card

Credit card cash advances let you tap into your credit line to get cash when you need it, but it's important to understand the costs of a cash advance and to know how credit card cash advances work before you take one out.

What is a credit card cash advance?

A credit card cash advance is effectively a loan granted to you by your credit card issuer. If you have a credit card that allows cash advances, you can access cash in a few different ways:

Cash advances via an ATM

Getting a cash advance from an ATM requires your physical card, as well as a personal identification number (PIN) provided by your card issuer. You might also be subject to daily ATM withdrawal limits and fees similar to those imposed on checking accounts.

Cash advances via convenience check

Your credit card issuer may provide you with convenience checks linked to your card account. Like a normal check, convenience checks allow you to submit payments to a particular person or organization, which are charged against your credit account.

In-person cash advances

You might be able to use your card to take out cash advances in person at a branch. Remember to take identification with you, if this is something you can do.

What is the maximum you can withdraw through a credit card cash advance?

Cash advances are typically capped at a percentage of your card's credit limit. For example, if your credit limit is $15,000 and the card caps your cash advance limit at 30%, your maximum cash advance will be $4,500.

What are the costs associated with credit card cash advances?

Cash advances are an expensive way to access cash. Over and above the actual advance, which you will need to repay, cash advances come with the following charges:

• Fees. Cash advance fees can be substantial, where a typical fee is 5% of the cash advance. In addition, you are likely to pay several dollars in ATM fees if you take out a cash advance via ATM.
• Interest. You will typically pay a higher interest rate on advances than what your card charges for purchases. And unlike purchases, which allow a grace period before interest begins to accrue, cash advance interest starts to accrue as soon as the advance is granted.

Do cash advances on credit cards hurt your credit?

A cash advance that is promptly paid back shouldn't hurt your credit-although cash advances do count towards your credit utilization, or the amount of revolving credit you are using against your credit limits. Credit utilization is a major contributor to your FICO(R) credit score, making up 30% of the FICO(R) scoring model.

Cash advances can lower your credit score if you fail to pay back what you owe. Payment history is the single biggest component of the FICO model, representing 35% of a person's FICO(R) score.

How do I pay less for credit card cash advances?

Cash advance fees and interest rates aren't typically negotiable. But there are other ways to access cash that might be less expensive:

• Finding a credit card with better terms. Get the full picture on what different cards charge for cash advances by closely reading their terms and conditions. If you expect to take out cash advances in the future, consider finding a card with competitive cash advance fees and/or cash advance interest rate.
• Taking out a loan. Even unsecured personal loans will typically charge less in interest than credit card cash advances. If you can get a secured loan, the rate you pay may fall even further.

Credit card cash advances: get all the facts

Credit card cash advances can be a lifeline when you need cash, but be sure you understand the full cost of a cash advance before you take one out. Closely read your card issuer's terms and conditions to learn how your credit card cash advances work as well as what an advance will cost you, and consider whether less-expensive borrowing options might be right for you.

If you’re having trouble getting cash from a credit card, it’s possible that the transaction put you above your credit card’s limit for cash withdraws, which is known as a cash advance. Many credit cards have an overall credit limit and a separate lower limit for cash advances and checks written from your credit card account.

What is a credit card cash advance

Most credit card companies offer you the ability to use your credit card to take out money through what’s known as a cash advance. Unlike a debit card, however, getting cash with your credit card at an ATM is considered a short-term loan and can be expensive.

Fees for a credit card cash advance

Unlike withdrawing money from a bank account, a cash advance pulls money from your line of credit through your credit card. In addition to repaying the money you withdraw, you’ll need to pay additional fees and interest as well.

The fees for a cash advance can be substantial. Depending on your credit card terms, the company may charge a flat fee for withdrawing money, or they’ll charge you a percentage of the cash advance. Keep in mind, you may incur additional ATM fees as well.

Interest for a credit card cash advance

In most cases, you’ll also commonly pay a higher interest rate for a cash advance than you would for a typical credit card purchase. Unlike other purchases that have a grace period before they start to accrue interest, interest on a cash advance starts as soon as you withdraw your money.

Before considering a cash advance, check your credit card’s terms and policies to find out the credit limit and fees associated with it. Your latest credit card statement will also list the current interest rate for cash advances. You can also contact the company directly by using the number on the back of your credit card.

Learn more about managing your credit cards

How do you withdraw cash from a credit card?

Can you withdraw money from a credit card at the ATM?

How do I get cash from my credit card without a PIN?