Ways to get money off a credit card

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Getting cash from your credit card is called a cash advance. A cash advance borrows money from your credit card account instead of using the credit to buy something. This option can be helpful if you find yourself in an emergency and need cash.

A Federal Reserve study in 2017 stated that 44% of adults could not cover an emergency expense costing $400, or would cover it by selling something or borrowing money. This is an improvement from the 50% of adults who weren't ready for emergency costs when asked in 2013. If at all possible, it's critical to have emergency cash on hand for when life delivers an unexpected situation.

Getting cash from your credit card is simple and here are the steps to take:

1. Check your latest statement to confirm how much cash you can take out. Your cash advance limit can vary depending on the type of card you have.
2. Read the terms of your agreement so you understand if there are fees associated with taking out cash. Usually, there is a one time fee plus interest, and rates are often higher for cash advances than when you charge purchases.
3. Know your personal identification number or PIN number that was assigned to your credit card.
4. Withdraw money from an ATM where your credit card is accepted. Select "credit" when prompted to make a withdrawal from checking, savings or credit.
5. Go to a bank to withdraw money against the limit on your credit card. Check that the bank offers advances from your credit card issuer, such as Mastercard or Visa.

Can I Get a Cash Advance Online?

Another way to receive cash is through a cash advance loan online. An online cash advance loan works when you apply with an online lender for a short-term loan. You fill out an online application and once approved you find out how much money you qualify for.

That money can then be used as an emergency fund to pay off those unexpected bills or expenses. The payment for a cash advance loan can include a fee on top of the monthly payment that is due.

Are Cash Advances a Bad Idea?

Many personal finance experts caution that cash advances from your credit card can be a bad idea and suggest to only use them in an emergency situation. Cash advances from your credit card can be a really expensive short-term loan as the current average interest rate for cash advances is 23.7%, according to CreditCards.com.

Notably, credit reports do not indicate when a cash advance is taken against a credit card account; so cash advances do not directly affect your credit history (as long as you pay them back in a timely manner).

Should I Get a Cash Advance From My Credit Card?

You should ask yourself some questions before getting a cash advance:

• Is the cash advance an emergency to take care of a bill or expense?
• Can you pay the money back in a month or in a few months?
• Can you borrow money from a friend or family member?
• Do you really need to buy what you are about to buy?
• Do you need help improving your personal finance habits?

The more you can learn more about credit, finances and budgeting could help to improve your own situation in the short term versus taking on extra debt.

In a pinch, fast access to cash can help you cover an emergency or unexpected crisis. But one of the most unattractive aspects of credit card cash advances is how expensive they can get. Not only is the interest rate usually higher than on regular credit card purchases, but you’ll typically have to pay a fee as well.

Drawbacks of Cash Advances

• Most carry a fee of 3% to 5% of the advance amount, with a minimum of $10.
• The interest rate is typically higher than on purchases (in some cases, 10 percentage points higher or more).
• Interest accrues with no grace period (meaning you can’t avoid finance charges even if you pay your bill as soon as you get it).
• Only a portion of your credit limit may be available for cash advances.
• Some ATMs limit the amount of cash you can withdraw in a single transaction and charge an ATM fee.

If you’re considering tapping into your credit card’s available credit to access cash, stop and consider the options below first. There are, in fact, creative ways to get cash from a credit card without actually requesting a cash advance. These methods may also have costs, but depending on how much cash you need, they may be more affordable. 

Plus, if you have good credit and qualify for a new credit card, taking these steps using a card with an introductory no-interest offer may help reduce your expense even more, particularly if you just need some time to catch up after a sudden crisis. 

Purchase a Prepaid Gift Card

Buy a prepaid gift card with your credit card and then sell it to someone for cash. You may have to accept a little less than the face value of the card to incentivize someone to purchase it from you, but there are several online marketplaces to assist you like Giftcard Granny and Raise, to name a few. Just make sure whatever discount you offer is less than what you would have paid in cash advance fees and interest.

Note

If you have accumulated credit card rewards, you may be able to redeem them for a gift card, sometimes even for more than face value. For example, you may be able to get a $25 gift card for rewards worth $20.

Find a Friend Who Uses Cash

If you have a friend or relative who’s planning to make a big purchase in cash, you can make the purchase for them using your credit card. In return, your friend can give you their cash (or deposit the funds into your bank account, perhaps using a peer-to-peer payment service.)

Note

The above scenario doesn’t break any rules; however, many major peer-to-peer payment providers forbid using their service to get a cash advance from your credit card, and they could suspend your account or take legal action if you do. User agreements for PayPal, Venmo, and Cash App, for instance, all explicitly prohibit this.

Shift Your Bills Around 

If you can use your credit card for something you would normally pay for with cash (or with money in your bank account), go ahead and free up that cash. This could be particularly helpful if you get a new credit card with an introductory no-interest offer that buys you time to catch up without accruing interest.

Some billers and landlords charge a convenience fee when you pay a bill with a credit card, so make sure to compare your overall costs before choosing the most affordable way for you to get cash. Ideally, the fee is less than the cash advance fee you would otherwise pay, but even if it isn’t, if you’re not hit with a higher cash advance APR, it may still be worth it.  

Buy Something With Your Card, Then Sell It for More

If you’re willing to shop around, you may be able to use discounts, sales, or credit card rewards to purchase items at below-market prices. Then you can sell those items online or to a friend at a higher price. The profit may give you the cash you need, plus a little extra to cover your interest charges if you need some time to pay off the credit card balance. Of course, there’s a chance you won’t be able to make a profit or sell the item at all.

What To Watch Out For

• Many credit card issuers treat things like money order purchases or credit card–funded wire transfers just like cash advances, so don’t be fooled into thinking you’re escaping the higher fees and interest rate of a cash advance if you choose one of those options. Check the terms of your credit card agreement to see how these cash-equivalent transactions are defined.
• While these alternatives may be less expensive than a cash advance, don’t forget you’re still using your credit card to borrow money. If you can’t afford to pay off your credit card balance each month, you’ll still incur finance charges, albeit at the normal APR associated with purchases. 
• If you’ve had a sudden change in your financial situation, you may be distracted. To avoid the possibility of an over-the-limit fee, make sure you have enough available credit to make one of these moves.

Frequently Asked Questions (FAQs)

How do you get a cash advance from a credit card?

You can get a cash advance from a credit card by using an ATM with your PIN or visiting a bank and requesting a cash advance. You'll need to present your physical card at the bank, and they will likely request identification from you as well to confirm the card is yours.

How do you get cash from a credit card without a PIN?

If you don't have a PIN for your credit card, you'll need to visit a bank to withdraw cash. You should request a new PIN from your card issuer as soon as possible. It may take several days to receive your PIN, as these are often mailed out to the address on file for the cardholder.

How do you get money off a credit card without an ATM?

How can I get cash from my credit card without cash advance?

Can you transfer money from a credit card to cash App?