Yes, you can use a credit card at an ATM, but it's a cash advance, not a regular withdrawal
When you insert a credit card into an ATM and take out cash, you're not withdrawing money from a checking account. You're borrowing money from your credit card issuer — the bank or company that issued the card. That borrowed money is called a cash advance, and it works differently from a regular purchase on your card.
The moment you complete the transaction, interest starts accruing on that cash. You don't get a grace period like you do with regular purchases. If you carry a balance on your credit card, the cash advance interest rate is often higher than your regular purchase rate. You'll also pay a fee upfront — usually 3 to 5 percent of the amount you withdraw, though this varies by card issuer.
Most people use credit cards at ATMs only when they have no other choice: their debit card is lost, they need cash urgently, or they're traveling and don't have access to their bank's ATM network. If you have other ways to get cash, those are almost always cheaper.
Key Takeaways
- A credit card cash advance charges interest from day one, with no grace period, and costs a fee of 3 to 5 percent upfront.
- The interest rate on cash advances is typically higher than the rate on regular purchases, sometimes by 5 percentage points or more.
- You can find your card's cash advance terms in your cardholder agreement or by calling the number on the back of your card.
- Using a credit card at an ATM should be a last resort when you cannot reach your own bank's ATM or get cash another way.
How the cash advance fee and interest rate work
When you take out a cash advance, your card issuer charges you a fee right away. This fee is a percentage of the amount you withdraw — typically 3 to 5 percent, though some cards charge a flat dollar amount instead (like $5 or $10) if that's higher. If you withdraw $200 and the fee is 4 percent, you owe $8 in fees before you even leave the ATM.
Interest starts accruing when ready. If your regular purchase APR is 18 percent, your cash advance APR might be 23 or 24 percent. That higher rate applies only to the cash advance balance, not to regular purchases. The interest compounds daily, so the longer you carry the balance, the more you owe.
Let's say you withdraw $300 at a 4 percent fee and 24 percent APR. You owe $12 in fees when ready. If you pay back the $300 in one month, you'll also owe roughly $6 in interest. Total cost: $18 for borrowing $300 for 30 days. A personal loan or even a payday loan might cost less, depending on your situation.
Where you can use a credit card to get cash
Most ATMs that display your card's logo will accept it for a cash advance. Visa and Mastercard ATMs are everywhere — in grocery stores, gas stations, bars, and on street corners. American Express and Discover cards work at fewer ATMs, so you may have to search for one. Your card issuer's website usually has an ATM locator tool.
You can also get a cash advance at a bank teller window, even if it's not your bank. Walk in with your credit card and ask for a cash advance. The fee and interest rate are the same as at an ATM, but you might feel more comfortable asking a person than using a machine.
Some credit card issuers let you transfer your credit card balance to a special checking account or request a check, which counts as a cash advance. These options carry the same fees and interest rates as an ATM withdrawal.
Why cash advances are expensive compared to other borrowing
A credit card cash advance is one of the most expensive ways to borrow money. The combination of an upfront fee, a high interest rate, and no grace period makes it costly even for short-term borrowing.
If you need cash for an emergency, compare the cost of a cash advance to other options. A personal loan from a bank or credit union usually has a lower interest rate and no upfront fee. A payday loan has a high rate but might cost less if you repay it in two weeks. Even using a debit card at an out-of-network ATM — which typically costs $2 to $3 — is cheaper than a credit card cash advance if you're only borrowing a small amount.
The only time a cash advance makes sense is when you have no other option and you repay it within days. If you're carrying a balance on your credit card already, a cash advance makes your debt problem worse because the interest rate is higher and there's no grace period.
How to find your card's cash advance terms
Your credit card issuer is required to disclose the cash advance fee and APR in your cardholder agreement — the document you received when you opened the account. You can also find this information on your monthly statement or on your issuer's website, usually in a section called "Rates and Fees" or "Pricing Information."
If you can't find it, call the number on the back of your credit card and ask the customer service representative for your cash advance fee and APR. Write both numbers down so you know the cost before you use an ATM.
Some cards offer a lower cash advance fee for the first 30 or 60 days after you open the account. If you're considering a new card partly because you need cash, check whether it has a promotional cash advance fee. This can save you money if you're in a tight spot, but it's not a reason to open a card you don't otherwise need.
What happens if you can't repay a cash advance
If you don't repay the cash advance in full by your statement due date, the balance rolls over to the next month and interest keeps accruing. The high interest rate on cash advances means your debt grows quickly. After a few months, you could owe significantly more than you borrowed.
A cash advance also counts against your credit limit, just like a regular purchase. If you have a $2,000 limit and you take out a $500 cash advance, you only have $1,500 left to spend. This can hurt your credit score if your credit utilization — the percentage of your limit you're using — gets too high.
If you're already struggling with credit card debt, taking a cash advance will make it harder to pay down. Focus on paying off your regular balance first, then avoid cash advances altogether.
Alternatives to using a credit card at an ATM
Before you use a credit card for cash, try these options in order:
- Use your debit card at your bank's ATM. This is free and the money comes directly from your checking account.
- Use your debit card at an out-of-network ATM. You'll pay $2 to $3 in fees, but that's much less than a credit card cash advance.
- Ask a friend or family member to lend you cash. If you can repay them within a few days, this costs nothing.
- Get cash back when you buy something. Many stores let you withdraw cash at the register with a debit card at no charge.
- Visit your bank or credit union in person. A teller can give you cash without a fee if you have a checking account there.
- Take out a personal loan. If you need a larger amount and can wait a few days, a personal loan from a bank or credit union usually has a lower rate than a cash advance.
A credit card cash advance should be your last resort, not your first choice.
Frequently Asked Questions
Does using a credit card at an ATM hurt my credit score?
A cash advance itself doesn't show up on your credit report as a separate item, but it does increase your credit utilization — the percentage of your credit limit you're using. If your utilization goes above 30 percent, it can lower your score. The impact is temporary and your score will recover once you pay down the balance.
Can I use a credit card at an ATM if I'm traveling internationally?
Yes, but it's expensive. You'll pay the cash advance fee, the high interest rate, and often an additional foreign transaction fee of 1 to 3 percent. Before you travel, ask your bank whether your debit card works at ATMs in your destination country, or whether your credit card issuer offers a lower-fee way to get foreign cash.
What's the difference between a cash advance and a balance transfer?
A balance transfer moves debt from one credit card to another, usually with a lower interest rate for a promotional period. A cash advance is borrowing new money against your credit card. Balance transfers have an upfront fee but no interest during the promo period. Cash advances charge interest from day one. They're different products for different situations.
Will my credit card issuer let me take out a cash advance if I'm near my credit limit?
The cash advance counts against your credit limit, so you can only withdraw up to the amount of available credit you have left. If you have a $2,000 limit and you've used $1,900, you can only take out a $100 cash advance. Some issuers also set a separate cash advance limit that's lower than your overall credit limit.
Can I dispute a cash advance charge if I didn't authorize it?
If someone else used your card without permission, contact your card issuer right away and report it as fraud. You're protected under federal law and won't be responsible for unauthorized charges. If you authorized the cash advance but regret it, the issuer won't reverse the fee, but you can stop the interest from growing by paying back the balance as soon as possible.