You can use a credit card at an ATM, but it costs you money and works differently than a debit card
When you insert a credit card into an ATM, you are not withdrawing from a bank account you own. Instead, you are taking a cash advance — a short-term loan from your credit card issuer. The ATM dispenses cash, but your credit card company charges you a fee for the transaction, plus interest that starts accruing when ready. This is different from using a debit card, where you withdraw money that is already yours.
Most credit card issuers allow cash advances at ATMs, but the terms vary by card and by bank. Some cards have lower advance limits than your overall credit limit. Others charge higher interest rates on advances than on regular purchases. Before you use a credit card at an ATM, it helps to know what your card's specific terms are — and whether this is actually the cheapest way to get cash.
Key Takeaways
- A credit card cash advance at an ATM is a loan, not a withdrawal from your own money, and interest starts charging when ready with no grace period.
- You will pay an ATM fee from the machine operator, a cash advance fee from your credit card issuer (usually 3 to 5 percent of the amount), and a higher interest rate than you pay on regular purchases.
- Your credit card issuer sets a separate cash advance limit that may be lower than your overall credit limit, and some cards do not allow advances at all.
- Using a credit card for a cash advance can hurt your credit score because it increases your credit utilization and shows as a new inquiry on your report.
How a credit card cash advance works at the ATM
When you insert your credit card into an ATM and request cash, the machine contacts your credit card issuer to confirm you have available credit. If approved, the ATM dispenses the cash and charges your credit card account. The transaction appears on your statement as a cash advance, separate from any regular purchases you make.
The key difference from a debit card is timing. With a debit card, the money leaves your bank account when ready. With a credit card cash advance, you are borrowing money that you will have to repay later. Your credit card issuer begins charging interest on the advance right away — there is no grace period like there is for regular purchases. This means interest starts accumulating the day you withdraw the cash, even if you pay your full statement balance by the due date.
Fees and interest rates for credit card cash advances
Using a credit card at an ATM triggers multiple charges. First, the ATM operator charges a fee — usually $2 to $5 per transaction, depending on the machine and the bank that owns it. Second, your credit card issuer charges a cash advance fee, typically 3 to 5 percent of the amount you withdraw. On a $200 advance, that could be $6 to $10 just to get the cash.
The interest rate on a cash advance is almost always higher than the rate on regular purchases. While a purchase might carry an APR of 15 to 20 percent, a cash advance APR could be 25 to 30 percent or more. Because interest starts accruing when ready with no grace period, a $200 advance at 25 percent APR costs you roughly $1.37 per day in interest alone. If you carry the advance for a month, you will owe $41 in interest on top of the $8 to $10 in fees.
Some credit cards do not allow cash advances at all, or they set a cash advance limit that is much lower than your overall credit limit. Check your card's terms or call the issuer before you go to an ATM.
How to find your cash advance limit
Your credit card issuer sets a separate limit for cash advances, distinct from your regular credit limit. This limit is often 20 to 50 percent of your total credit limit, but it varies by card and by issuer. You cannot withdraw more cash than this limit allows, even if you have available credit for regular purchases.
To find your cash advance limit, log into your credit card account online or call the customer service number on the back of your card. The limit is usually listed in your account details or in the terms and conditions section. Some issuers also show it on your monthly statement. If you do not see it listed, ask the representative directly — they can tell you the exact amount you can advance.
Why using a credit card for cash is expensive compared to alternatives
A credit card cash advance is one of the most expensive ways to get cash. If you need money, consider these alternatives first: withdraw from your own bank account using a debit card (no fee, no interest), use a bank teller to withdraw cash over the counter (usually free for account holders), or ask a retailer if you can get cash back when making a purchase with your debit card (typically free).
If you do not have a bank account or debit card, a cash advance might feel like the only option. But even then, other routes are cheaper. A payday loan or personal loan from a credit union often has lower fees and interest rates than a credit card advance. A cash advance from your employer, if available, costs nothing. Even a short-term loan from a friend or family member is better than paying 25 to 30 percent interest plus fees.
The only scenario where a credit card cash advance makes sense is if you are in a genuine emergency, have no other way to get cash, and can repay the advance within a few days. The longer you carry the balance, the more interest you pay, and the math gets worse quickly.
How a cash advance affects your credit score
Taking a cash advance can hurt your credit score in two ways. First, it increases your credit utilization ratio — the percentage of your available credit that you are using. If you have a $5,000 credit limit and a $1,000 cash advance limit, and you withdraw $500, your utilization jumps to 10 percent of your total limit. Credit scoring models penalize high utilization, so this can lower your score by a few points.
Second, the cash advance may show up as a new inquiry or account activity on your credit report. Some issuers report cash advances differently than regular purchases, which can signal to lenders that you are in financial stress. This can make it harder to get approved for new credit or can result in higher interest rates on loans you do get.
The impact is usually temporary — your score will recover once you pay off the advance and your utilization drops. But if you take multiple cash advances or carry the balance for months, the damage adds up.
Steps to take a cash advance at an ATM
If you have decided that a cash advance is necessary, here is how to do it. First, locate an ATM that accepts your credit card. Most ATMs display logos for the card networks they accept — Visa, Mastercard, American Express, and Discover. You can also use your card issuer's website or app to find ATMs in your area.
Insert your credit card into the ATM and enter your PIN. Select "Withdrawal" or "Cash Advance" from the menu (the exact wording varies by machine). Enter the amount you want to withdraw, keeping in mind your cash advance limit and the fees you will pay. Confirm the transaction. The ATM will dispense the cash and print a receipt. Keep the receipt — it shows the amount withdrawn and any fees charged by the ATM operator.
The cash advance fee from your credit card issuer will appear on your next statement, separate from the ATM operator's fee. Review your statement carefully to make sure you were not charged twice or charged an unexpected amount.
Frequently Asked Questions
Can I use any credit card at any ATM?
Most credit cards work at most ATMs, but not all. ATMs display logos showing which card networks they accept. Some credit cards do not allow cash advances at all, so check your card's terms first. If your card is not accepted at a particular ATM, try a different machine or a different bank's ATM.
What is the difference between a cash advance and a regular purchase?
A regular purchase has a grace period — you do not pay interest if you pay your full balance by the due date. A cash advance has no grace period; interest starts accruing the day you withdraw the cash. Cash advances also carry a higher interest rate and an upfront fee, while regular purchases do not.
Can I get a cash advance if I have reached my credit limit?
No. Your cash advance limit is separate from your regular credit limit, but you still need available credit to take an advance. If you have maxed out your credit limit, you cannot take a cash advance. You would need to pay down your balance first.
How long does it take for a cash advance to show up on my statement?
The cash advance appears on your account within one to three business days, depending on your issuer. The fee and interest charges appear on your next monthly statement. Interest accrues daily from the moment you withdraw the cash, so the longer you wait to pay it back, the more you owe.
Can I transfer a cash advance balance to another credit card?
Some credit cards allow balance transfers, but most do not include cash advances in a transfer offer. Cash advances are treated as a separate type of debt. Check your new card's terms to see if it covers cash advances, and ask the issuer before you attempt a transfer.