Can You Get Money Off a Credit Card?

Credit cards are primarily designed for purchases and building credit history. However, cardholders can access cash directly from their credit line. These transactions differ significantly from standard credit card use and come with distinct terms and costs. Understanding these differences is important before accessing cash.

Accessing Cash Through an Advance

A cash advance functions as a short-term loan drawn directly from your credit card’s available credit limit. This transaction is treated differently by card issuers compared to a regular purchase, providing immediate physical funds.

You can use your credit card at an ATM, which requires a Personal Identification Number (PIN) to complete the withdrawal. Alternatively, you can visit a bank or credit union branch that partners with your card issuer, presenting your credit card and a valid photo identification to a teller for the cash. Some card issuers also allow cash advances to be processed over the phone, transferring funds to a linked bank account.

Cash advances incur specific fees and interest charges. Card issuers generally charge an upfront cash advance fee, commonly 3% to 5% of the amount withdrawn, or a flat fee, such as $5 or $10, whichever is greater. Interest on cash advances begins accruing immediately from the transaction date, with no grace period. The Annual Percentage Rate (APR) for cash advances is usually higher than the APR for purchases, often exceeding 25% or 30%. Credit cards often have a separate, lower limit for cash advances than for regular purchases, commonly 20% to 50% of your total credit limit.

Accessing Cash Through Convenience Checks

Convenience checks are pre-printed checks provided by credit card issuers, linked directly to your credit card account. These checks allow you to write against your available credit line, drawing funds from your credit card, not a checking account.

You can use them to deposit into your bank account, pay bills, or make purchases from merchants who do not accept credit cards. The amount written on the check is charged to your credit card balance.

Card issuers typically treat convenience checks as cash advances. They usually come with similar upfront fees and immediate interest accrual at the higher cash advance APR. There is generally no interest-free grace period for these transactions, meaning interest begins to accumulate from the moment the check clears. Any amount accessed through convenience checks also counts towards your credit card’s cash advance limit.

Accessing Cash Through Direct Transfers

Some credit card issuers offer the option to transfer funds directly from your credit card’s available credit line into a linked bank account. This method provides an electronic way to access cash from your credit card, often without needing a physical ATM or a paper check.

The process for obtaining a direct transfer usually involves initiating the transaction through your card issuer’s online banking portal or by contacting customer service. The funds are then electronically moved to your designated checking or savings account. The speed of these transfers can vary, with some being instant, while others may take a few business days to process.

The costs associated with direct transfers can differ based on how the card issuer categorizes the transaction. If treated as a cash advance, the transfer will incur cash advance fees and immediate interest accrual at the higher cash advance APR. However, if the transfer is part of a specific promotional offer, such as a balance transfer promotion, it might be subject to a balance transfer fee and a different, potentially lower, interest rate for a limited period. Review the specific terms and conditions provided by your card issuer to understand the applicable fees and interest rates before initiating a direct transfer.