Can you get cash back with a credit card — and is it a good idea?
People often carry credit cards as a cash alternative, so chances are you probably don’t view your card as a source of cash. But getting cash back from your credit card is possible, whether you’re facing a financial emergency or simply trying to offset your expenses. There’s one important caveat, though: Certain methods of doing so can be costly and should only be considered as a last resort.
If you’re wondering whether you can get cash back with a credit card, here’s what to know about your options, the pros and cons of each, and potential alternatives.
How to get cash back with a credit card
Cash advance
A cash advance involves using a credit card to make a cash withdrawal at an ATM or bank. While this may sound convenient if you need funds to cover an unexpected cost, cash advances are typically expensive.
Fees for cash advances may differ across cards, but you’ll often pay around 5% of the amount withdrawn. You’ll also incur a higher interest rate on the amount withdrawn, typically up to 29.99%. Unlike regular purchases made with your card, interest on cash advances starts accruing immediately after the transaction.
Depending on your credit card issuer and card type, there may also be limits on how much you can withdraw against your credit line. For instance, cash advance withdrawals may be capped at 30% of the available credit on a particular card.
Generally, the drawbacks of cash advances outweigh the benefits. These transactions are very costly, so considering them usually only makes sense if you’ve exhausted all other options.
Pros:
Convenient way to get money quickly
Cons:
High fees apply
High APRs apply immediately
Could harm your credit if you’re unable to repay quickly
Convenience check
A convenience check is a type of cash advance, but instead of getting cash out of an ATM or from a bank teller, you get a paper check from your credit card company. You can then write this check out to a person or company, and once the check clears, the amount appears as a charge on your credit card statement.
As with other cash advances, you’ll incur a hefty fee and a high APR if you use a convenience check. Fees are often 5% of the transaction amount, and APRs can be as high as 29.99%.
While a convenience check can seem like a useful way to get cash when you need it, its high costs often aren’t worth it. Other alternatives could be much cheaper, such as taking out a personal loan, requesting a paycheck advance, or borrowing money from a friend or family member.
Pros:
Convenient way to get money quickly
Cons:
High fees apply
High APRs apply immediately
Could harm your credit if you’re unable to repay quickly
Cash-back credit card
Certain credit cards offer special perks when you use them to make purchases. For instance, you might earn points you can use for travel or cash back. A cash-back credit card is a type of rewards credit card that lets you earn a percentage of cash back on your purchases.
Some cards may offer a flat percentage back on every purchase, while others offer different cash-back rates in certain bonus categories. Here are a few popular options if you’d like to add a new card to your wallet:
Chase Freedom Unlimited®: Earn 3% back at restaurants and drugstores, 5% back on travel booked through Chase, and 1.5% back on everything else.
Capital One Quicksilver Cash Rewards Credit Card: Earn unlimited 1.5% cash back on every purchase and 5% cash back on hotels and rental cars booked through Capital One Travel.
Prime Visa: Earn 5% cash back at Amazon.com, Amazon Fresh, Whole Foods Market, and on Chase Travel purchases; 2% cash back at gas stations, restaurants, and local transit and commuting (including rideshare); and 1% cash back on everything else.
Capital One SavorOne Cash Rewards Credit Card: 8% cash back on Capital One Entertainment purchases, 5% back on hotels and rental cars booked through Capital One Travel, 3% cash back on dining, entertainment, popular streaming services, and grocery stores (not including Target and Walmart) — plus, earn 1% cash back on all other spending.
Blue Cash Everyday® Card from American Express: Earn 3% cash back at U.S. supermarkets, on U.S. online retail purchases, and at U.S. gas stations (each up to $6,000 spent each year, then 1%) — as well as 1% on every other purchase.
Let’s say you have a card that offers 2% unlimited cash back on purchases. If you spend $2,000 during a statement cycle, you’ll earn $40 back. Generally, your rewards can be used for statement credits, but some card issuers may let you use them for other purposes, such as gift cards or merchandise.
A cash-back credit card can be a smart alternative to a credit card that doesn’t earn rewards. This is especially true if you use your credit card frequently.
Pros:
Can help offset your expenses
Rewards may be used for multiple purposes
Often no annual fee
May come with welcome offers and other perks
Cons:
May need good credit to qualify
Earning caps may apply
Alternatives to getting cash back with a credit card
Cash advances on your credit cards could be helpful in a financial emergency, but there are a few alternatives to consider first. Here are some options if you need cash in a pinch and want to avoid high fees and APRs.
Paycheck advance: If your employer offers paycheck advances, this may be one of the best ways to get cash quickly. A paycheck advance lets you get a portion of your next paycheck early, and the amount advanced is deducted from your next check or paid in installments from a few subsequent paychecks.
Buy now, pay later (BNPL) service: These services let you make a purchase now and pay for it over time, and they often don’t charge interest for a set period. Popular services include Klarna, Affirm, and Afterpay. Compare potential rates and fees to choose the least expensive option.
Loan from a loved one: While asking a friend or family member for a loan can be uncomfortable, doing so may help if you’re facing a financial crisis. Just ensure you agree on repayment amounts and terms ahead of time and stick to the agreed-upon schedule after borrowing.
Personal loan: Online lenders, credit unions, and banks offer personal loans, which generally have lower rates than credit cards. These loans could be as small as $500 or as large as $100,000, depending on the lender. The personal loan application process is generally fairly simple, and your loan funds may be disbursed the same day or within a few business days after approval. Note that personal loans are different from payday loans, which aren’t recommended due to their exorbitantly high costs.
Getting cash back with a credit card is possible, but it could be expensive, depending on the method you choose. Cash-back credit cards are a more favorable option for offsetting your costs, since you can earn a percentage back on all your purchases.
If you need cash quickly, consider exploring less expensive alternatives to a cash advance, such as a paycheck advance, BNPL platform, or a low-interest loan from a loved one or financial institution.
This article was edited by Alicia Hahn
Editorial Disclosure: The information in this article has not been reviewed or approved by any advertiser. The details on financial products, including card rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the bank’s website for the most current information. This site doesn't include all currently available offers.