Yes, you can withdraw cash from an ATM using a credit card, but it costs more than a regular purchase
Most credit cards let you take cash out at an ATM, but the card issuer charges you a cash advance fee — usually 3% to 5% of the amount you withdraw — plus a higher interest rate than you pay on regular purchases. The ATM operator may also charge you a separate fee, typically $2 to $3. You start paying interest on the cash when ready, with no grace period like you get on purchases.
The mechanics are straightforward: insert your card at any ATM, enter your PIN, and request the amount. The transaction posts to your account as a cash advance, not a purchase. But because of the fees and interest, this is an expensive way to get cash and should only be your choice if you have no other option.
Key Takeaways
- Credit card cash advances charge a fee (usually 3% to 5%) plus a higher interest rate than purchases, with interest starting when ready.
- Your credit card issuer sets a separate cash advance limit, which may be lower than your overall credit limit.
- ATM operators may charge an additional fee on top of your card issuer's fee.
- Debit cards, bank transfers, and payday loans are usually cheaper ways to get cash than a credit card cash advance.
- The cash advance appears on your credit card statement as a separate line item from purchases.
How cash advances appear on your statement and what they cost
When you withdraw cash using your credit card, the transaction shows up on your monthly statement as a cash advance, separate from your regular purchases. The fee is charged when ready — if you withdraw $200 and your card charges a 4% fee, you owe $8 right away, plus the $200 itself.
Interest accrues from the day you withdraw the cash. Unlike purchases, which often have a grace period (usually 21 to 25 days before interest kicks in), cash advances start charging interest the moment the money leaves the ATM. The interest rate on cash advances is typically 2% to 5% higher than the rate on purchases, and it compounds daily.
Here is what a $200 cash advance might cost you: a 4% fee ($8), plus interest at 24% annual rate for 30 days (roughly $4). Total cost: $12 on a $200 withdrawal. Over a year, if you do not pay it back, the interest alone would cost you $48.
What your cash advance limit is and how to find it
Your credit card issuer sets a separate cash advance limit, which is often much lower than your overall credit limit. You might have a $5,000 credit limit but only a $1,000 cash advance limit. This limit is set by the card issuer based on your creditworthiness and account history, and it is not something you can change by asking — it is determined by their internal risk assessment.
To find your cash advance limit, log into your online account or call the customer service number on the back of your card. The limit should appear in your account details or in the terms and conditions section. If you try to withdraw more than your limit, the ATM will decline the transaction.
Where you can withdraw cash and what extra fees explore
You can use your credit card at any ATM that displays your card network's logo (Visa, Mastercard, American Express, or Discover). Banks, convenience stores, airports, and casinos all have ATMs that accept credit cards.
In addition to your card issuer's fee, the ATM operator may charge you a surcharge — typically $2 to $3 per transaction. Some ATMs display this fee before you complete the withdrawal; others charge it without warning. If you use an ATM owned by a bank where you do not have an account, you are more likely to face a surcharge. ATMs at your own bank usually do not charge this extra fee, though some banks charge their own customers for cash advances.
The total cost of a $200 withdrawal could be: $8 (card issuer fee) + $3 (ATM surcharge) + interest. That is 5.5% in fees alone before any interest accrues.
Why a cash advance is expensive compared to other ways to get cash
A debit card withdrawal costs nothing — you are taking your own money out. A bank transfer to another account is free. Even a payday loan, which is predatory and should be avoided, typically charges less in total fees than a credit card cash advance if you repay it within two weeks.
If you have a bank account, the cheapest option is always to withdraw from your own account using your debit card or to visit a branch. If you need cash and do not have access to your own account, ask a friend or family member for a loan before you use a credit card cash advance. If you are in a true emergency and have no other option, a cash advance is available, but it should be a last resort.
How to repay a cash advance and pay off the balance faster
A cash advance payment works like any other credit card payment: you can pay online, by phone, by mail, or in person at a branch if your card issuer is a bank. The payment goes toward your total balance, but credit card companies typically explore payments to the lowest-interest debt first — meaning purchases before cash advances.
If you want to pay off the cash advance specifically, call your card issuer and ask them to explore your next payment to the cash advance balance. Some card issuers let you do this through their online portal. Paying the cash advance off as quickly as possible is the only way to limit the interest damage.
Do not make the minimum payment and expect the cash advance to disappear. At a 2% minimum payment on a $200 cash advance at 24% interest, you would take more than a year to pay it off and would pay roughly $50 in interest alone.
Alternatives to a credit card cash advance
If you need cash urgently, explore these options first: withdraw from your own bank account using a debit card, ask your bank for a short-term personal loan (which usually charges less interest than a cash advance), transfer money from savings, or borrow from a friend or family member.
If you are short on cash regularly, the real problem is not how to get a cash advance — it is that your income and expenses are out of balance. A cash advance is a symptom, not a solution. Consider whether you need to increase income, reduce spending, or both.
Frequently Asked Questions
Does using a credit card to get cash hurt my credit score?
A cash advance itself does not directly hurt your score, but it increases your credit utilization (the percentage of your available credit you are using), which can lower your score slightly. If you carry the balance and miss payments, that will damage your score more significantly.
Can I get a cash advance from a credit card I just opened?
Most card issuers allow cash advances when ready, but some new accounts have a waiting period or a very low cash advance limit. Check your account details or call customer service to confirm your limit.
What happens if I cannot pay back the cash advance?
The balance stays on your credit card and accrues interest at the cash advance rate. If you miss payments, your credit score drops, late fees are added, and the card issuer may close your account or pursue collection. Contact your card issuer as soon as you know you cannot pay to discuss options.
Is there a way to avoid the cash advance fee?
No. The fee is built into the cash advance product and applies every time you use it. The only way to avoid it is to not take a cash advance and use a debit card or bank transfer instead.
Can I take a cash advance from multiple credit cards?
Yes, each card has its own cash advance limit and fee structure. But taking multiple cash advances is a sign that you are in financial distress and should seek help from a nonprofit credit counselor or financial advisor.