How to get cash from a credit card

Credit cards offer a convenient way to pay online and in stores. They might also allow you to get cash. But using what’s called a cash advance is different from regular purchases.

Keep reading to learn more about how to get cash from a credit card and some things to consider.

What you’ll learn:

• Getting cash from a credit card is known as a cash advance.

• You might be able to get cash from your credit card at an ATM, by visiting a bank branch or with a convenience check. 

• Getting cash from a credit card may come with fees and higher interest rates than standard credit card purchases.

• Even if you don’t directly receive cash, some transactions might be considered cash advances.

Yes, there are several ways you might get cash from a credit card. 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. That’s why it’s important to read your credit card’s terms first. Depending on the fees involved, you may want to explore other options first.

How much cash you can get from your credit card depends on your issuer’s cash advance limits. You can generally find your cash advance limit by reviewing your card’s terms or your credit card statement.

Here are some examples of ways to use your credit card to get cash.

The process for using an ATM to withdraw cash from your credit card may vary. But it generally works like this:

1. Insert your credit card or use a cardless ATM option to access your account.

2. Enter your credit card PIN. Capital One cardholders can request a PIN online.

3. Select the cash advance option when prompted.

4. Enter the amount of cash you plan to withdraw.

5. Before completing the transaction, make sure you understand any fees that the ATM might charge and other fees related to cash advances.

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. You’ll also likely need to show some form of photo ID, like a driver’s license or passport.

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 simply write the check and make yourself the payee. Then, you can cash or deposit that check.

Before you get cash from your credit card, 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. If you get your cash at an ATM, you might also have to pay an ATM fee.

Cash advances may have a higher interest rate than other credit card purchases.

When you get a cash advance, it likely starts accruing interest right away. Without a grace period, getting cash can end up being more expensive than a typical credit card purchase.

Getting a cash advance could affect your credit utilization ratio. That’s a major credit-scoring factor that measures how much credit you’ve used versus how much credit you have.

There may be other ways to access cash when you need it. But it’s important to understand the details before you make any decisions.

• Checking account or emergency fund: If you have cash in a checking or savings account, you may want to consider tapping into those funds first and avoid the interest and fees associated with a cash advance.

• Personal loans: With a personal loan, the borrower typically gets a lump sum from a lender that they pay back in regular installments. Like any line of credit, it’s important to first understand all the terms of a personal loan, such as the interest rate and payment schedule.

There are also risky alternatives to be aware of. One example is called a cash advance loan. This is a type of payday loan. These short-term, high-interest loans can end up being very expensive. They can be so risky that some states prohibit payday loans altogether.

Even if you don’t directly receive cash, there are other transactions that could be considered cash advances, such as transferring money via mobile payment apps, paying down debts, buying money orders, exchanging dollars for foreign money, buying casino chips and purchasing lottery tickets.

Cash advances can offer a convenient way to get cash from a credit card. But they often come with fees and higher interest rates than those of other credit card transactions. 

If you’re looking for a way to earn cash back rewards on spending you’re already doing, a cash back credit card may be right for you. You can compare Capital One rewards cards and find out whether you’re pre-approved for cards before you apply.