Yes, you can use a credit card at an ATM, but it costs more than a debit card
Most ATMs accept credit cards, but the transaction is treated as a cash advance, not a regular purchase. A cash advance charges you interest when ready — there is no grace period like you get on regular credit card purchases. You also pay an upfront fee, usually 3 to 5 percent of the amount you withdraw, plus a per-transaction fee from the ATM operator (often $2 to $3). These costs add up fast, which is why using a credit card at an ATM should be a last resort, not a habit.
The key difference is that when you swipe your credit card at a store, the purchase goes on your statement and you can pay it off interest-free during your grace period. When you use the same card at an ATM, the bank treats it as borrowing cash against your credit limit. Interest starts accruing the day you withdraw it.
Key Takeaways
- Credit card cash advances charge interest when ready with no grace period, unlike regular purchases.
- You pay both a cash advance fee (typically 3 to 5 percent) and an ATM operator fee ($2 to $3) on top of interest.
- Your credit card's cash advance interest rate is usually higher than the rate on regular purchases.
- Using a debit card, getting cash back at a store, or borrowing from a friend costs far less than a credit card ATM withdrawal.
How much a credit card ATM withdrawal actually costs
The total cost depends on three separate charges. First, your credit card issuer charges a cash advance fee — this is a percentage of the amount you withdraw, typically 3 to 5 percent. If you withdraw $100, you pay $3 to $5 just for the withdrawal. Second, the ATM operator charges a separate fee, usually $2 to $3 per transaction. Third, interest accrues on the full amount when ready at your cash advance rate, which is often 2 to 5 percentage points higher than your regular purchase rate.
A concrete example: you withdraw $200 from an ATM using your credit card. Your card charges a 4 percent cash advance fee ($8), the ATM charges $2.50, and your cash advance rate is 24 percent annually. If you pay back the $200 in one month, you owe roughly $4 in interest plus the $10.50 in fees — a total cost of $14.50 on a $200 withdrawal. That is a 7 percent cost for one month of borrowing.
If you carry the balance longer, the interest compounds and the cost grows. Carrying a $200 cash advance for six months at 24 percent interest costs roughly $24 in interest alone, plus the original $10.50 in fees.
When your credit card issuer might block a cash advance
Some credit card issuers set a cash advance limit that is lower than your credit limit. You might have a $5,000 credit limit but only a $500 cash advance limit. This is a deliberate restriction — the card issuer is protecting itself because cash advances are riskier for them (you are borrowing money directly rather than making a purchase they can dispute).
A few issuers, particularly those focused on rewards or travel, do not allow cash advances at all. Check your cardholder agreement or call the number on the back of your card to find out your cash advance limit before you need it. If you try to withdraw more than your limit, the ATM will decline the transaction.
Cheaper ways to get cash when you need it
If you need cash and do not have a debit card or ATM card, several options cost far less than a credit card cash advance. The cheapest is to get cash back at a store when you make a purchase — most grocery stores, pharmacies, and retailers offer this for free. You pay with your debit card or credit card and ask for cash back; the amount is added to your purchase total. There is no separate fee and no interest if you use a debit card.
If you have a debit card, using it at any ATM in your bank's network is free or costs only $1 to $2 at out-of-network ATMs — far less than a credit card cash advance. If you do not have a debit card, you can open a basic checking account at most banks in a few minutes, often with no minimum balance.
Borrowing cash from a friend or family member, while not always convenient, costs nothing. If you are in a genuine emergency and need cash fast, this is worth considering before you pay 7 to 10 percent in fees and interest.
Why credit card companies offer cash advances at all
Credit card issuers offer cash advances because they make money on them. The fees and high interest rate generate revenue that regular purchases do not. They also know that some cardholders will use them out of desperation or lack of awareness, which is profitable for the issuer.
From your perspective, this is a feature you should avoid. The card issuer is betting that you will not do the math on the cost. If you find yourself regularly needing cash advances, that is a sign that your budget does not match your income — a problem that a cash advance will make worse, not better, because you are paying interest on borrowed money while your underlying situation stays the same.
What happens to your credit score when you take a cash advance
A cash advance does not directly hurt your credit score the way a late payment does. However, it does increase your credit utilization ratio — the percentage of your available credit you are using. If you have a $5,000 credit limit and take a $500 cash advance, your utilization jumps to 10 percent (or higher if you have other balances). High utilization can lower your score by a few points.
The bigger risk is that a cash advance often signals financial stress. If you are taking cash advances regularly, you are more likely to miss payments later, which will damage your score significantly. Lenders see cash advances as a warning sign that a borrower is running out of money.
Frequently Asked Questions
Can I use a credit card at any ATM?
Most ATMs accept credit cards, but not all. ATMs in banks, grocery stores, and gas stations usually do. Some ATMs in bars, casinos, or private locations may not. The ATM screen will tell you if it accepts credit cards before you insert your card. If it does not, you will need to find another ATM or use a different payment method.
Is the interest rate on a cash advance the same as my regular purchase rate?
No. Cash advance rates are almost always higher — often 2 to 5 percentage points above your regular purchase rate. If your purchase rate is 18 percent, your cash advance rate might be 23 percent. Check your cardholder agreement or call your card issuer to find out your specific rates.
What if I pay back the cash advance right away?
You still pay the upfront cash advance fee and the ATM operator fee. Interest accrues daily, so even if you pay back the full amount within a few days, you owe a small amount of interest. The fees alone make this expensive compared to other ways of getting cash.
Can I use a credit card at my bank's ATM to withdraw cash?
Yes, but it is still treated as a cash advance with all the associated fees and interest. Using your bank's ATM does not change the terms — only the payment method (debit card versus credit card) changes whether it is a cash advance or a regular withdrawal.
Will taking a cash advance hurt my chances of getting approved for new credit?
Not directly, but it can lower your credit score slightly by increasing your utilization ratio. If you take multiple cash advances in a short time, it signals financial stress to lenders, which can make them less likely to approve you for new credit or offer you better rates.