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How to Liquidate Credit Cards Into Cash

Dena Standley | October 19, 2022

Dena Standley
Legal Expert, Paralegal
Dena Standley, BA

Dena Standley is a seasoned paralegal with more than 20 years of experience in legal research and writing, having received a certification as a Legal Assistant/Paralegal from Southern Technical College.

Edited by Hannah Locklear

Hannah Locklear
Editor at SoloSuit
Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

You can liquidate your credit card to get cash.

Summary: Strapped for cash? Here is SoloSuit's guide to liquidating your credit card with cash advances and other methods.

Buying with credit cards is great, but sometimes you need cash. If you find yourself in a tight spot financially, you may have wondered if your credit cards can help. And they can.

Ideally, you should use credit cards for purchases instead of withdrawing cash, as with debit cards. However, cash advances on credit cards have become all too common in recent years. How do cash advances work? Are they for you? And are there other ways to liquidate credit cards into cash? Let's find out.

What are cash advances?

A cash advance off your credit card is a loan that your credit card provider lends you against the credit line. You can withdraw it from an ATM if you have a pin or over the counter at the bank. Issuers set different limits you can borrow, known as the credit limit.

If your creditor allows cash advances, the procedure is simple. At the ATM:

  • Insert your credit card.
  • Enter the credit card PIN.
  • Select the "cash advance" option.
  • Select credit if asked to choose between checking, debit, or credit.

But just how convenient are cash advances? Accessing cash when you desperately need it can save your life. Imagine that your car breaks down, you don't have the money to fix it, and no one will let you pay with credit. Or you suddenly lose your job and hence your source of income. Getting a hold of some cash can come as a relief.

That said, however, you shouldn't run the ATM just yet. It's necessary to learn about the possible drawbacks of cash advances.

Drawbacks of cash advances

The convenience of cash access is not without its share of cons. Liquidating credit cards into cash is a spurious practice with significant financial risks. Cash advances are:

  • Cash advances can be expensive: Cash advances are not free of charge. You have to pay for the convenience over and above the APRs. It's payment for accessing the cash advance. They also carry higher interests than regular credit card purchases. Interests start to accrue instantly as there is no grace period.
  • Cash advances have a lower limit: Whenever you withdraw cash instead of buying with your card, the limit is only a percentage of your credit limit.
  • Case advances are risky: While accessing cash in a pinch is a blessing, cash advances can quickly ruin your credit if you don't keep up with the payments. You may not anticipate the higher interest rates and charges, which quickly add up.

So, are there other ways to get cash off of your credit card?

Other ways to liquidate credit cards into cash

Cash advances come with pros and cons, but there are other options for getting cash out of your credit cards. If you are wary of cash advances, try one of the following:

Convenience checks

Some credit card issuers provide blank checks that you can write to anyone. To encourage you to use them, they may offer a no-interest period. You can write one to yourself. If you do so within the stated time, you may get cash in your bank account with zero interest. Comb through the terms and conditions attentively to ensure the pros outnumber the cons.

Buying cheaply and reselling

There is always something on sale if you care to find out. If you need cash, you can shop around for items that you can quickly sell to get the money you need. You can resell for more and earn a profit with proper due diligence.

Banks consider certain purchases, like money orders and wire transfers, as cash advances. The interest rates for such are just as high. So if you decide to buy and resell products, make sure you are saving money.

Pay more bills with credit cards

Shifting bills around can free up some cash. To do this, pay with credit for services you would usually buy with cash. Your landlord may agree to credit.

Remember that the landlord (and other service providers) may require a convenience fee for paying with credit. They ask for this payment because they are in business for cash, not credit. You can negotiate to an amount, not more than you are willing to pay. If it's too expensive, you may be better off with a cash advance.

Find someone who uses cash

A friend or family member who usually buys with cash can help. Offer to pay for what they need with your card in exchange for the money. They can give you the cash or deposit it in your account. Peer-to-peer cash apps are also handy for such transactions.

It's crucial to watch out for any legalities. Some peer-to-peer payment apps (like Venmo and PayPal) explicitly prohibit using their services to liquidate credit cards. However, there are several legal ways to receive cash from a peer.

Buy a Prepaid Gift Card

Gift cards are a great idea to get the most cash out of your credit card. The intention is to buy and then resell the card for cash. You may be fortunate enough to sell at the gift card's value or slightly lower. Either way, you get the money you need.


Cashing out your credit card can be a blessing and a nightmare if you fall behind in repayments. If you are scared of the risks involved, you may try other options to access cash rather than the credit card.

Alternatives to cashing out your credit card

If you take some time to brainstorm, you may realize that you don't have to cash your credit card. There are alternative ways to get cash. You can:

  • Forego unnecessary expenses to free up the cash you need.
  • Borrow soft loans from friends or family.
  • Take out a personal loan with lower interest rates.
  • Try the age-old yard sale of items you no longer use.

Yes, credit cards can come to the rescue when you urgently need cash. Even though consumers quickly think of cash advances, there are several less expensive ways to get some money against your credit cards. What works for you may not be what works for the next person. So carefully access your situation before deciding which option is best for you.

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