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Using a cash-back credit card can earn you cash back on everyday purchases like gas and groceries. This is a straightforward way to ensure you’re rewarded for purchases you already make.
Some credit cards also allow you to withdraw cash, but this method typically involves high fees and interest.
How to get cash back with a credit card
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 cash-back rewards cards may offer flat-rate rewards back on every purchase, while others offer different cash-back rates in certain bonus categories. Here are some of the best cash-back credit cards available:
Chase Freedom Unlimited®
Enjoy 5% cash back on travel purchased through Chase Travel℠, 3% cash back on drugstore purchases and dining at restaurants (including takeout and eligible delivery service), and 1.5% on all other eligible purchases.
Capital One Savor Cash Rewards Credit Card
Earn 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 eligible 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 eligible purchase. Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or on Amazon.com at checkout.
Blue Cash Preferred® Card from American Express
Earn 6% cash back at U.S. supermarkets (on up to $6,000 in purchases annually, then earn 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back on transit and U.S. gas stations, including taxis/rideshare, parking, tolls, trains, buses, and more, and 1% cash back on all other eligible purchases. Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.
Discover it® Cash Back
Earn 5% cash back on everyday purchases at different places each quarter — including grocery stores, restaurants, gas stations, and more — up to the quarterly maximum and 1% unlimited cash back on all other eligible purchases.
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. You might also be able to redeem cash back for a deposit into a bank account, such as a checking or savings account.
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
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Can help offset your expenses
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Rewards may be used for multiple purposes
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Often no annual fee
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May come with welcome offers and other perks
Cons
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May need good credit to qualify
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Earning caps may apply
Read more: Cash back or points: Which credit card rewards are better?
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 can vary 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 charges on cash advances start 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 limit. 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
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Convenient way to get money quickly
Cons
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High fees apply
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High APRs apply immediately
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Could harm your credit score if you’re unable to repay quickly
Read more: Should you use a credit card cash advance in an emergency?
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
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Convenient way to get money quickly
Cons
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High fees apply
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High APRs apply immediately
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Could harm your credit if you’re unable to repay quickly
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.
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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. You might also qualify for early direct deposit through your financial institution.
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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 BNPL services include Klarna, Affirm, and Afterpay. Compare potential rates and fees to choose the least expensive option.
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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 personal finance crisis. Just ensure you agree on repayment amounts and terms ahead of time and stick to the agreed-upon schedule after borrowing.
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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 depending on the method you choose, it could be expensive. Cash-back cards are a more favorable option for offsetting your costs since you can earn a percentage back on all your eligible 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.
Read more: Buy now, pay later vs. credit cards: Which should you use for your next purchase?
FAQs about getting cash back with a credit card
Can you withdraw cash with a credit card?
Yes, many credit card companies allow you to withdraw cash from an ATM or bank by taking out a cash advance. However, cash advances often charge high fees and interest can start accruing immediately.
Read more: Can you use a credit card at an ATM, and how much does it cost?
Can you get cash back with a credit card without a PIN?
If your credit card requires a PIN to get a cash advance from an ATM and you don’t have one or forgot it, consider going into a bank to withdraw cash. You will need your credit card and a government-issued photo ID. You can also contact your card issuer to set up a PIN or request a new one.
Read more: Do credit cards have PINs?
Can you get cash back when using a credit card at the grocery store?
Most credit card issuers don’t allow cardholders to receive cash back when completing a purchase at a grocery store, as this feature is typically reserved for debit cards. However, Discover cards have the option to receive up to $120 every 24 hours when checking out at applicable stores, including Albertson’s, Aldi, Smith’s, and Trader Joe’s.
Are there fees for getting cash back with a credit card?
You often have to pay a cash advance fee of around 5% to take out a cash advance with a credit card. You might also have to pay ATM fees if you’re using an ATM. In addition, cash advances tend to have higher interest rates than purchases, and there’s typically no grace period for interest to start accruing.
Read more: Credit card fees explained: 8 types you should know
How can I get cash back from my credit card purchases?
The easiest way to get cash back on credit card purchases is to use a rewards credit card to pay for expenses. Depending on the credit card you use and its rewards program, you can earn cash back, points, or miles on eligible purchases.
Editorial Disclosure: The information in this article has not been reviewed or approved by any advertiser. All opinions belong solely to Yahoo Finance and are not those of any other entity. 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. Credit score alone does not guarantee or imply approval for any financial product.
