Can you get cash back from a credit card?

Summary

• Cardmembers can get cash back from a credit card either by redeeming rewards or taking out a cash advance.
• Cash back rewards give you a percentage of your spending back, which you can redeem as a statement credit, direct deposit, or check.
• A cash advance allows you to withdraw cash from your credit line using an ATM, bank, online transfer, or convenience check, but it comes with higher interest and fees.
• Cash advances begin accruing interest immediately and usually have a separate limit that’s a percentage of your total credit limit.

You can get cash back from a credit card in two ways. The first is through rewards you earn for spending. The other is through a cash advance, which lets you withdraw cash from your card’s available credit.

Both options could put money into your bank account. However, a cash advance usually comes with higher interest and fees that you’ll want to understand before making a withdrawal. Here’s a closer look at how cash back rewards and cash advances work so you can decide which one makes the most sense for your situation.

How to get cash back with a credit card

How you get cash back with a credit card often depends on what type of card you have. Most credit cards allow cash advances, but only certain types of rewards cards offer cash back for purchases.

Earn cash back rewards.

When you use a credit card that offers cash back, you earn a percentage of each eligible purchase as a reward. ”Eligible purchases” are typically defined by spending categories. For example, a card might reward you with 2% cash back on entertainment purchases.

Some cards offer a flat percentage on all spending categories, so every eligible purchase earns the same amount of rewards. Others, like the U.S. Bank Cash+® Visa Signature® Card, have a tiered system, offering 1% cash back in most categories and higher percentages in select categories.

Once you’ve earned enough rewards, you can redeem them in a few ways, depending on your card. Common options include:

• Direct deposit to a linked bank account
• Statement credit that reduces your current balance
• Mailed check from your card provider

Some credit cards also offer other cash back redemption options, like merchant gift cards or loyalty rewards card.

Redeeming rewards is often as simple as logging into your credit card account, viewing your rewards balance, and selecting how you’d like to get your cash back.

Take a cash advance.

A cash advance taps into available credit on your credit card. You usually have four options for getting a cash advance:

• ATM: Insert your card, enter your PIN, and select the cash advance option.
• Bank or credit union: Visit a branch that’s part of your card’s network, present your credit card and identification, and ask the teller for a cash advance.
• Online account: Log in to your credit card account and transfer money into your bank account. (The transfer is treated as a cash advance and will include the same fees and interest.)
• Convenience checks: Write a check to yourself and deposit it in your bank account.

Many card providers periodically mail convenience checks, but you may also be able to request them through your online account. Just remember, they carry the same costs as cash advances taken through banks and ATMs.

What to consider before taking a cash advance

Getting a cash advance is a form of borrowing against your available credit limit — and that alone means you want to think carefully before you make a withdrawal. But cash advances also come with additional costs, higher interest rates, and other drawbacks that may lead you to reserve them for emergencies or short-term needs.

Cash advance fee

Cash advance fees are charges card providers add when you withdraw cash or use a convenience check tied to your credit line. It’s one of the most common credit card fees, typically ranging from 3% to 5% of the withdrawal amount or $10, whichever is higher.¹

That means if you get a cash advance of $400 using a card that charges a 5% fee, your balance for that advance will be $420. But if you only withdraw $100, your balance could be $110 if your provider charges the higher flat amount.

Higher interest rate

Interest rates on cash advances are often much higher than rates for other transactions. Every card is different, but it’s not unusual for cash advances to have an annual percentage rate (APR) — or the yearly cost of borrowing money — close to 30%.²

Moreover, that interest starts accruing immediately. There’s no interest-free grace period like the one you typically get for regular purchases. Plus, the interest applies to both the amount you withdraw and the fee you’re charged for withdrawing it.

Cash advance limit

Most credit cards have a separate cash advance limit — the maximum you can withdraw as cash. This limit is typically a percentage of your card’s total credit limit. For example, if your credit limit is $10,000, your cash advance limit might be $2,000.

You should note that taking out a cash advance counts toward your overall credit limit. Any money you take out as a cash advance reduces the total amount of credit available on that card.

Credit score impact

A cash advance doesn’t lower your credit score directly, but it can still have an impact. The additional balance may increase your credit utilization ratio — the percentage of available credit you're using. A higher utilization ratio may lower your credit score.

On-time payments also play a major role in your score. If you struggle to pay back a cash advance, or if the fees and interest make it harder to pay other bills, your credit score could go down.

However, paying off a cash advance — along with the interest and fees — could have a positive impact over time. Reducing your balance lowers your credit utilization ratio, and making payments on time helps strengthen your overall credit history.

How to get cash a cash advance online

U.S. Bank clients can get a cash advance online or in the mobile app by completing an internal transfer. Here’s how that works using online banking:

1. Log in to your online account.
2. Select Transfer & pay at the top of the page.
3. Select Internal transfers.
4. Choose the credit card account to transfer funds from and the account you’re transferring them to.
5. Enter the amount you’d like to transfer.
6. Review your request.
7. Select Send transfer.

The steps for an internal transfer in the U.S. Bank mobile app are similar:

1. Select Transfer & pay at the bottom of the screen.
2. Select Make an internal transfer.
3. Choose the credit card account to transfer funds from and the account you’re transferring them to.
4. Enter the amount you’d like to transfer.
5. Review your request.
6. Select Transfer $.

Remember, an internal transfer counts as a cash advance when you move funds from your credit card account, so fees and interest apply.

Make the most of your credit card

Whether you’re earning rewards or taking out a cash advance, you want to understand how each option works — and what it costs. Knowing the difference can help you use your credit card confidently and choose the option that fits your goals.