How to Get Cash From Your Credit Card

Credit cards are primarily for purchases, offering convenience and benefits. However, situations may arise where physical cash is needed. It is possible to convert a portion of your credit card’s available credit into cash, but understanding the specific methods and their associated costs is important. Each approach to obtaining cash from a credit card carries distinct financial implications.

Understanding Cash Advance Options

A cash advance allows you to borrow cash directly against your credit card’s available credit limit. This transaction functions like a short-term loan, drawing funds from a designated cash advance limit. This limit is a specific percentage of your overall credit limit and is lower than your total credit line. For instance, a credit card with a $5,000 overall limit might only permit a cash advance of $1,000 or $500. Financial institutions set this lower limit because they view cash advances as higher-risk transactions.

Most credit card issuers impose a transaction fee for cash advances, often 3% to 5% of the amount withdrawn, or a flat minimum fee like $10 or $15, whichever is greater. Cash advances carry a higher Annual Percentage Rate (APR) compared to standard purchases, with rates often reaching 29.99% or more. Interest on a cash advance begins accruing immediately from the transaction date, with no grace period.

You can obtain a cash advance through two primary methods. Many credit cards allow ATM withdrawals, which require a Personal Identification Number (PIN) that may need to be set up beforehand. The withdrawn amount is added to your credit card balance. Alternatively, you can visit a bank branch and request a cash advance from a teller by presenting your credit card and identification.

Accessing Funds Through Credit Card Checks

Credit card checks, often called convenience checks, offer another way to access cash from your credit card account. These checks are mailed to you by your credit card issuer and function similarly to personal checks, allowing you to write them for a specific amount. The funds drawn from these checks come from your credit card’s cash advance line, not your standard purchase limit.

These checks come with terms that mirror those of a direct cash advance. They incur transaction fees, similar to the 3% to 5% or flat minimum fee applied to ATM cash advances. The interest rate on funds accessed via convenience checks is higher than your purchase APR, and interest begins accruing immediately without a grace period. Review the terms printed on the convenience checks, as fees and rates can vary.

To utilize a credit card check, fill it out for the desired amount, sign it, and then cash it at a bank or deposit it directly into your bank account. The check amount, along with any applicable fees, is added to your credit card balance, subject to the cash advance terms. This method provides flexibility when a physical check is more convenient than an ATM withdrawal.

Utilizing Purchase-Based Cash Back

A distinct option for obtaining cash is through purchase-based cash back at a retail location. This method differs from a cash advance and does not incur the same fees or immediate interest charges. Many merchants, such as grocery stores or pharmacies, offer this service at the point of sale.

When making a purchase with your credit card at a participating retailer, you can request a specific amount of cash back during checkout. This involves selecting the “cash back” option on the payment terminal after swiping or inserting your card and entering your PIN. The amount of cash back available is limited, ranging from $5 to $50, though some stores may allow up to $200.

This transaction adds the requested cash amount to your total purchase, which is charged to your credit card as a regular purchase. Since it is treated as part of a purchase, it falls under your standard purchase APR and benefits from any applicable grace period. This means interest would not accrue immediately if you pay your statement balance in full by the due date. Not all credit cards support this feature.