Yes, you can use a credit card at an ATM, but it's a cash advance, not a debit
Most ATMs will let you insert a credit card and withdraw cash, but the transaction is treated as a cash advance, not a regular purchase. This matters because cash advances come with higher fees and interest rates than regular credit card charges. The ATM will ask you to enter your PIN (the same one you use at a debit card ATM), and the money will appear in your hand — but your credit card company will when ready start charging you interest on that amount.
Not every ATM accepts credit cards. Bank-owned ATMs in the network of your credit card issuer are most likely to work — for example, a Chase credit card at a Chase ATM. Independent ATMs and machines at convenience stores or casinos are less predictable. The machine will tell you whether it accepts your card before you commit to the transaction.
Key Takeaways
- A credit card cash advance charges interest from the moment you withdraw the money, with no grace period like you get on purchases.
- Cash advance fees typically run 3 to 5 percent of the amount withdrawn, charged on top of the interest rate.
- The interest rate on a cash advance is usually higher than your regular purchase APR and varies by card and issuer.
- Using a credit card for cash should be a last resort when you have no other way to get money, because the cost adds up quickly.
How much a credit card cash advance actually costs
A cash advance has three separate costs. First, there is the cash advance fee, charged upfront. Most credit card issuers charge between 3 and 5 percent of the amount you withdraw — so pulling out $200 might cost you $6 to $10 right away. Some cards charge a flat fee instead (like $5 or $10 per transaction), which is better if you are withdrawing a large amount but worse if you are withdrawing a small one.
Second, there is the interest rate. The APR on a cash advance is almost always higher than the APR on regular purchases with the same card. If your purchase APR is 18 percent, your cash advance APR might be 25 percent or higher. Check your card's terms or call the issuer to find out the exact rate before you withdraw.
Third, there is no grace period. When you make a regular purchase, you typically have 21 to 25 days before interest starts accruing. With a cash advance, interest starts the day you withdraw the money. If you withdraw $200 at a 25 percent APR, you are paying roughly $0.14 per day in interest alone, before the fee.
Example: You withdraw $300 from an ATM using your credit card. The fee is 4 percent ($12). The APR is 25 percent. If you pay back the $300 in one month, you will owe roughly $12 (fee) + $6.25 (interest) = $18.25 in charges on top of the $300 principal. That is a 6 percent cost for one month of borrowing.
When your credit card issuer might block a cash advance
Some credit card issuers let you set a cash advance limit lower than your credit limit, or disable cash advances entirely. If you have done this, the ATM will decline your card. You can call your issuer to raise or re-enable the limit, but this takes time.
Your issuer may also block a cash advance if you have reached your credit limit, if your account is past due, or if there is suspected fraud on the account. The ATM will not tell you which one — it will just decline. Call the customer service number on the back of your card to find out why.
Alternatives that cost less than a credit card cash advance
If you need cash urgently, explore these options first. A debit card withdrawal at your bank's ATM is free (or costs only the ATM fee charged by the machine owner, usually $1 to $3). A personal loan from a bank or credit union typically has a lower interest rate than a cash advance, though it takes longer to process. A payday loan is expensive but often cheaper than a cash advance if you repay it within two weeks. Asking a friend or family member for a short-term loan costs nothing.
If you are in a bind and have no debit card, some banks will let you withdraw cash using just your account number and ID, or will advance you a small amount on a pending deposit. Call your bank and ask what options exist for your situation.
How a cash advance affects your credit score
The cash advance itself does not show up on your credit report as a separate item. However, it increases your credit card balance, which raises your credit utilization ratio — the percentage of your available credit you are using. If you normally use 20 percent of your limit and you withdraw a cash advance that pushes you to 40 percent, your credit score may drop slightly. The effect is temporary and reverses as you pay down the balance.
Missing a payment on the cash advance, or letting the balance sit for months, will hurt your score more than the initial withdrawal. Pay it back as fast as you can.
How to pay back a credit card cash advance
When you make a payment to your credit card, the issuer applies it to your balance in a specific order set by law. Payments go first to the lowest-interest debt (usually regular purchases), then to higher-interest debt (like cash advances). This means if you have both a purchase balance and a cash advance balance, your payment will chip away at the purchase first, leaving the cash advance to accrue interest longer.
To pay off a cash advance faster, call your issuer and ask if you can make a payment that goes directly to the cash advance portion. Some issuers allow this; others do not. If yours does not, the only way to prioritize the cash advance is to pay your entire statement balance in full, then make additional payments that will go toward the cash advance.
Frequently Asked Questions
Can I use a credit card at any ATM?
Most ATMs will accept a credit card, but not all. Bank-owned ATMs in your card issuer's network are most reliable. Independent ATMs at convenience stores, casinos, or airports may decline credit cards or charge a higher fee. The machine will tell you before you complete the transaction.
What's the difference between a cash advance and a regular purchase?
A regular purchase has a grace period (usually 21 to 25 days) before interest starts. A cash advance charges interest when ready, has a higher APR, and includes an upfront fee. Both count toward your credit limit and utilization ratio.
Will a cash advance hurt my credit score?
The withdrawal itself does not hurt your score, but it raises your credit utilization, which may cause a small temporary drop. Missing payments or carrying the balance for months will hurt your score more. Pay it back quickly to minimize damage.
Can I set a limit on how much I can withdraw as a cash advance?
Yes. Most issuers let you set a cash advance limit lower than your credit limit, or disable cash advances entirely. Call the customer service number on your card to change this setting.
Is there ever a time when a credit card cash advance makes sense?
Rarely. It makes sense only if you have no other way to get cash and you can pay it back within days. If you are considering a cash advance to cover a regular expense, that is a sign you need a different borrowing option or a budget adjustment.