How to get cash from a credit card
October 17, 2023 5 min read
When you think about forms of payment, credit cards may come to mind. They’re typically easy to carry around and can come with perks like cash back for purchases. They can also offer conveniences like the ability to get cash from your card account.
Learn more about how to get cash using your credit card. At the same time, keep in mind that it might be costly to your wallet and your credit scores.
- You can usually get cash from your credit card at an ATM or bank branch.
- Convenience checks might be another option. They’re blank checks from credit card issuers that are charged to credit card accounts.
- Getting cash from a credit card may come with fees and higher interest rates than other credit card purchases do.
- Make sure to check your credit card’s terms and conditions before you withdraw cash so you understand the cost and how it could affect your budget.
How does getting cash from a credit card work?
There are several ways you might get cash from a credit card. But no matter which option you choose, the transaction is classified as a cash advance.
With a cash advance, the amount you withdraw against your credit limit is added to your card’s balance. And it has to be repaid like other purchases you make with your card.
Issuers generally charge higher fees and interest rates on cash advances than they do for typical credit card purchases. It’s important to understand your credit card’s terms before getting the cash. And you may want to explore other, less costly options first.
How to use your credit card to get cash
There are several ways to use your credit card to get cash:
Withdraw from an ATM
The process for using an ATM to withdraw cash from your credit card may vary between ATMs. But it generally works like this:
- Insert your credit card or use a cardless ATM option to access your account.
- Enter your credit card PIN.
- Select the cash advance or withdrawal option when prompted and follow the instructions on the ATM screen.
- Enter the amount of cash you plan to withdraw.
- Before completing the transaction, make sure you understand any fees that the ATM might charge and other fees related to cash advances.
- Complete the transaction and take your cash and receipt.
Visit a bank
If an ATM isn’t available, you can visit your bank. A teller or ambassador may be able to help you get cash from your card. Keep in mind that you’ll likely need to show some form of photo ID, like a driver’s license or passport.
Use a check
When you receive your credit card in the mail, it may come with blank checks known as convenience checks. You can use them to make purchases that are drawn against your credit card balance. You can fill out a check and make yourself the payee. Then, you can cash or deposit that check.
It’s important to read the terms and conditions related to the check before using that option. And keep in mind that cash advance fees and higher interest rates likely still apply.
How can I get cash from my credit card without a PIN?
Typically, you’ll need a credit card PIN to get cash from your card at an ATM. But what if you don’t have a PIN? One option is to visit your bank to get cash from your card. You can also generally use a convenience check provided by your credit card company.
Capital One cardholders can sign in to their credit card account to receive a PIN via text or mail.
Beware of online cash advance loans
You might have heard of online cash advance loans. They’re a form of payday loans, which are typically short-term, high-interest loans.
Getting an online payday loan isn’t the same as getting cash from your credit card. When it comes to payday loans, the Federal Trade Commission warns that “some payday lending operations have employed deception and other illegal conduct to take advantage of financially distressed consumers seeking these loans.”
With an online cash payday loan, the loan amount is deposited into the borrower’s checking account. When it’s time to pay it back, the loan amount—plus fees and interest—is withdrawn from the same account. If there isn’t enough money in the account to cover the loan amount, it could result in overdraft fees, insufficient funds fees and other penalties.
Payday loans can be extremely expensive. That’s one reason why some states either prohibit payday loans or take other measures like capping their interest rates and loan amounts.
What to consider when getting cash from a credit card
Before you get cash from your credit card, it’s important to understand how much it might cost. Here are some possible costs to consider:
You may have to pay a service charge to get cash from your credit card. That could be a flat fee or a percentage of the amount of cash you’re withdrawing. The fee could be taken out of your cash withdrawal or added to your credit card balance. And if you get your cash at an ATM, you might also have to pay an ATM fee.
When it comes to credit cards, interest and annual percentage rate (APR) are usually the same thing. Cash advances typically have a significantly higher APR than other credit card purchases do.
Plus, most credit cards don’t offer a grace period on cash withdrawals. When you take cash, you likely start accruing interest right away. This means that getting cash can end up being a lot more expensive than making a typical purchase with your credit card.
Potential impact on credit scores
Your credit utilization ratio is a measure of how much credit you’ve used versus how much credit you have. It’s one of the factors that affect your credit scores.
Getting cash from a credit card in a nutshell
Credit cards can be a convenient form of payment. And they come with certain perks and conveniences like the ability to access cash from your credit card account.
If you’re considering using a credit card to get cash, you’ll likely want to understand the associated costs. That’s because the fees and higher APR that might come along with the cash could affect your budget.