How to Get Money Off Your Credit Card

Accessing money directly from a credit card involves using your available credit line for cash or cash equivalents, rather than for typical purchases. This process differs significantly from standard credit card transactions, often incurring distinct fees and interest structures.

Cash Advances

A credit card cash advance allows you to borrow a specific amount of money against your credit card’s available credit limit. The amount you can withdraw is typically capped at a percentage of your overall credit limit, which can vary by issuer.

You can obtain a cash advance at an Automated Teller Machine (ATM), which requires your credit card and a Personal Identification Number (PIN). Another option is to visit a bank or credit union branch, where you can request a cash advance over the counter by presenting your credit card and a valid government-issued identification. Some credit card issuers also offer the ability to process a cash advance over the phone or through online banking, transferring funds directly from your credit line to a linked checking or savings account.

Cash advances typically involve specific fees charged immediately upon transaction. These fees are commonly structured as either a percentage of the advanced amount or a minimum flat fee, whichever is greater. For instance, a common fee structure might be 3% to 5% of the cash advance amount, with a minimum charge often ranging from $5 to $10.

Interest accrual for cash advances begins immediately from the transaction date, without the grace period typically offered for standard purchases. This means interest charges start accumulating on the full amount, including the fee, from day one. The Annual Percentage Rate (APR) for cash advances is generally higher than the APR for regular purchases, often ranging from around 24% to 30% or more. When making payments, any amount paid above the minimum due is usually applied first to balances with the highest interest rates, which is typically the cash advance balance.

Credit Card Convenience Checks

Credit card convenience checks are pre-printed checks provided by your credit card issuer, allowing you to access funds from your credit line without using the physical card. You can write a convenience check to yourself and deposit it into your bank account to access cash, or write it to a third party to pay bills or make purchases where credit cards are not accepted. These checks are often considered a form of cash advance by the credit card issuer.

Using convenience checks typically incurs fees similar to those for cash advances. The fee is generally a percentage of the amount written on the check, or a flat minimum fee, whichever is higher. This fee is immediately added to your credit card balance.

Like cash advances, interest on convenience checks begins accruing immediately from the transaction date. There is no grace period for these transactions, unlike with standard credit card purchases. The Annual Percentage Rate (APR) applied to convenience checks is often the same higher rate used for cash advances, significantly exceeding the APR for regular purchases. This immediate and higher interest rate contributes to the overall cost of using convenience checks.

Other Methods for Accessing Funds

Other methods exist for accessing funds from a credit card. One such method involves a specific type of balance transfer where funds are moved directly to a bank account. While some balance transfers may offer an introductory 0% APR, direct transfers to a bank account can incur a balance transfer fee, commonly ranging from 3% to 5% of the transferred amount. Interest terms on these transactions can vary, so it is important to review the specific offer details from your card issuer.

Peer-to-peer (P2P) payment services, such as PayPal or Venmo, sometimes allow you to send money using a credit card. When a credit card is used for these transactions, the credit card issuer may classify it as a cash advance. This classification triggers cash advance fees, typically a percentage of the transaction amount (e.g., 3% to 5% or a flat minimum fee), and immediate interest accrual at the higher cash advance APR. Additionally, the P2P platform itself might charge a separate fee for credit card-funded payments, such as a 3% fee on Venmo.

Another way to access cash is through cash back at the point of sale. Some credit card services might offer a similar feature, allowing you to receive a small amount of cash in addition to your purchase. This method is generally limited to small amounts and is not a primary way to access significant funds from a credit card.