Yes, you can use a credit card at an ATM, but it costs money and works differently than a debit card
Most ATMs will accept a credit card, but what happens next is not the same as withdrawing from a checking account. When you insert a credit card into an ATM, you are taking out a cash advance — a short-term loan from your credit card company. The machine dispenses cash, but you are borrowing that money at a higher interest rate than your regular credit card purchases, and fees start when ready.
The process looks identical to using a debit card: you insert the card, enter your PIN, choose an amount, and walk away with cash. But the cost structure is completely different. A cash advance is treated as a loan, not a purchase, so it bypasses your regular credit card benefits and starts accruing interest right away — often before your next statement arrives.
Key Takeaways
- Cash advances from a credit card charge a higher interest rate than regular purchases, typically 3 to 5 percent higher, and interest starts accruing when ready with no grace period.
- Most credit card companies charge an upfront fee for cash advances, usually 3 to 5 percent of the amount withdrawn, plus the ATM operator may charge an additional fee.
- Cash advances do not earn rewards points or cash back, even if your card normally offers them on purchases.
- The cash advance counts toward your credit utilization ratio, which can lower your credit score if it pushes your total debt higher.
How much a cash advance actually costs you
The fees and interest on a cash advance add up fast. Your credit card company typically charges a cash advance fee of 3 to 5 percent of the amount you withdraw — so pulling out $200 costs $6 to $10 right away. On top of that, the ATM operator may charge an additional $2 to $3.50 surcharge if you are using an out-of-network machine.
Then comes the interest. Cash advances carry a higher APR than purchases — often 5 to 10 percentage points higher than your regular rate. If your card charges 18 percent APR on purchases, the cash advance rate might be 23 or 24 percent. Unlike purchases, there is no grace period: interest starts accruing the day you withdraw the money. If you withdraw $200 at a 24 percent APR, you owe roughly $4 in interest after one month, even if you pay the full balance when ready.
The math gets worse if you only make minimum payments. A $500 cash advance at 24 percent APR with a 5 percent fee costs you $25 upfront, then $10 per month in interest if you pay $50 monthly. You end up paying roughly $60 to $70 total for that $500.
When your credit card company might decline the cash advance
Not every credit card allows cash advances, and not every cardholder can access the full credit limit. Some cards — particularly rewards cards and cards for people rebuilding credit — do not offer cash advances at all. Check your card's terms or call the number on the back to confirm whether cash advances are available.
Even if your card allows them, your cash advance limit is often lower than your credit limit. You might have a $5,000 credit limit but only a $1,000 cash advance limit. The card company sets this separately to reduce their risk. If you try to withdraw more than your limit, the ATM will decline the transaction.
Why a cash advance hurts your credit score
A cash advance affects your credit in two ways. First, it counts toward your credit utilization ratio — the percentage of your available credit you are using. If you have a $5,000 limit and carry a $2,000 balance, your utilization is 40 percent. If you then take a $1,000 cash advance, your utilization jumps to 60 percent. Credit scoring models penalize high utilization, so your score can drop even if you pay the cash advance back when ready.
Second, the cash advance itself is a new debt inquiry and a new account activity, both of which can trigger a small, temporary dip in your score. The impact is usually modest — 5 to 10 points — but it adds up if you take multiple cash advances in a short time.
Alternatives that cost less than a cash advance
If you need cash urgently, a credit card cash advance is usually the most expensive option available. A personal loan from a bank or credit union typically charges 6 to 36 percent APR with no upfront fee, making it cheaper than a cash advance even at the high end. A payday loan is predatory and should be avoided, but it is still worth comparing the total cost to a cash advance if you are desperate.
The cheapest option is borrowing from a friend or family member, or using a debit card if you have one. If you have a checking account, your debit card withdraws directly from your balance with no interest or fees (except possibly an out-of-network ATM fee). If you do not have a debit card, many banks and credit unions will issue one for free even if you have poor credit.
If you are in a true emergency and have no other options, a cash advance is faster than a personal loan — you get the money in minutes rather than days. But it should be a last resort, not a regular way to get cash.
How to minimize the damage if you do take a cash advance
If you decide a cash advance is necessary, take these steps to keep the cost as low as possible. First, withdraw only what you need. Every dollar you borrow costs you interest and fees, so do not round up or take extra "just in case." Second, use an ATM that belongs to your card's network if possible — many card companies have partnerships with ATM networks that waive or reduce the surcharge.
Third, pay it back as fast as you can. Unlike a purchase, a cash advance has no grace period, so every day you carry the balance costs you money. If you took a $300 cash advance, make it a priority to pay that $300 back within a week or two, even if you have to skip other payments temporarily. The interest savings will be worth it.
Finally, do not make a habit of it. If you find yourself taking cash advances regularly, that is a sign you are spending more than you earn. That is the real problem to solve, not just the cash advance itself. Consider talking to a credit counselor about budgeting or debt management — many nonprofits offer free sessions.
Frequently Asked Questions
Can I use a credit card at any ATM?
Most ATMs accept credit cards, but some machines in remote locations or small businesses may not. The ATM will tell you when ready if it cannot process a credit card. Using an out-of-network ATM usually costs more in surcharges, so check whether your card's network has a partner ATM nearby.
Do I need a PIN to take out a cash advance?
Yes. If you do not have a PIN set up for your credit card, you will need to call the number on the back and request one before you can use the ATM. Some cards allow you to set a PIN online through your account.
What happens if I cannot pay back the cash advance?
The unpaid balance stays on your credit card and accrues interest at the cash advance rate. If you miss payments, it damages your credit score and may trigger late fees. The card company can also raise your interest rate or close your account. Contact them when ready if you cannot pay — they may offer a hardship plan.
Is a cash advance the same as a balance transfer?
No. A balance transfer moves debt from one card to another and usually has a lower fee and rate. A cash advance is borrowing new money from your card at a higher rate. They are different products with different costs.
Will a cash advance show up on my credit report?
The cash advance itself does not appear separately on your credit report, but the balance does. It counts toward your total credit card debt and your utilization ratio, both of which affect your credit score.