Yes, you can withdraw cash from a credit card at an ATM, but it costs more than a regular purchase
You can use most credit cards to pull cash out of an ATM, just like you would with a debit card. The card issuer treats this as a cash advance — a short-term loan against your credit limit. The moment you complete the withdrawal, interest starts accruing at a rate that is almost always higher than your regular purchase rate. You will also pay an upfront fee, usually 3 to 5 percent of the amount withdrawn.
The process itself is straightforward: insert your card, enter your PIN, select the cash advance option (not "withdrawal" — that language matters at some ATMs), and take your money. But the financial cost is steep enough that most people should treat this as a last resort, not a convenience.
Key Takeaways
- Cash advances charge interest when ready, with no grace period like you get on purchases, and the interest rate is typically 5 to 10 percentage points higher than your regular APR.
- You pay an upfront fee of 3 to 5 percent of the cash amount, charged by your card issuer, plus a separate ATM operator fee if you use an out-of-network machine.
- Your available credit for cash advances may be lower than your total credit limit, and some cards restrict cash advances to a percentage of your limit.
- The cash advance appears on your statement separately from purchases and does not benefit from any rewards or cash-back program your card offers.
How the fees and interest work
When you take a cash advance, you face three separate costs. First, your card issuer charges a cash advance fee — typically 3 to 5 percent of the amount withdrawn. If you withdraw $200, you might pay $6 to $10 just to get the cash. This fee is added to your balance when ready.
Second, the ATM operator may charge you a fee if you use a machine outside their network. This is usually $2 to $3 per transaction and goes to the bank or company that owns the ATM, not your card issuer. Your card issuer will show this fee on your statement separately.
Third, and most expensive over time, is the interest. Cash advances start accruing interest the day you withdraw the money — there is no grace period. The interest rate on cash advances is almost always higher than your regular purchase APR. If your card charges 18 percent APR on purchases, the cash advance rate might be 25 or 28 percent. That higher rate applies until you pay off the entire cash advance balance.
Here is a concrete example: you withdraw $200 at an ATM. Your card issuer charges a 5 percent fee ($10), and the ATM operator charges $3. You now owe $213. If your cash advance APR is 25 percent and you pay nothing for a month, you will owe roughly $217 by the time your next statement arrives.
Your cash advance limit may be lower than your credit limit
Credit card issuers often set a separate, lower limit for cash advances than your overall credit limit. You might have a $5,000 credit limit but only a $1,000 cash advance limit. This means you cannot withdraw more than that amount, even if you have unused credit available for purchases.
You can find your cash advance limit by logging into your online account, calling the number on the back of your card, or checking your most recent statement. Some cards do not allow cash advances at all — certain secured cards and some student cards fall into this category.
The cash advance limit is separate from your purchase limit, so withdrawing $500 in cash does not reduce the $5,000 you can still spend on purchases. However, both count toward your total credit utilization, which affects your credit score.
Where you can withdraw cash and what it costs
You can withdraw cash at any ATM that displays your card's logo — Visa, Mastercard, American Express, or Discover. Most banks and credit unions have ATMs, as do many convenience stores, gas stations, and casinos.
The fee structure depends on where you go. If you use an ATM owned by your card issuer's bank, you typically pay only the card issuer's cash advance fee — no additional ATM operator fee. If you use an out-of-network ATM, you pay both the card issuer's fee and the ATM operator's fee, which can total 6 to 8 percent of the amount withdrawn.
Some cards offer limited cash advance fee waivers — for example, one free cash advance per month or no fee at certain partner ATMs. Check your cardholder agreement or account details to see if yours does.
Why cash advances are expensive compared to alternatives
A cash advance is almost never the cheapest way to get cash. If you need money urgently, consider these options first: withdraw from a savings account or checking account at your bank, use a debit card at an ATM, ask a friend or family member for a loan, or visit a local credit union that offers small short-term loans.
If you are considering a cash advance because you cannot pay a bill or cover an expense, that is a sign to pause and look at the underlying problem. Taking a cash advance at 25 percent interest to pay a bill that is due today often creates a larger problem next month. A personal loan from a bank or credit union, a payment plan with the creditor, or a hardship program through your card issuer may be better options.
If you have already taken a cash advance, pay it off as quickly as possible. Because interest accrues daily and the rate is high, every dollar you pay toward the cash advance balance saves you more money than paying the same dollar toward a regular purchase.
How a cash advance affects your credit score
Taking a cash advance does not directly hurt your credit score, but it can indirectly. The withdrawal increases your credit utilization — the percentage of your available credit you are using. If you have a $5,000 limit and withdraw $500 in cash, your utilization jumps to 10 percent. High utilization (above 30 percent) can lower your score.
The cash advance also appears on your credit report as a separate transaction type, which some scoring models weight differently than purchases. More importantly, if you cannot pay off the cash advance quickly, the interest charges will cause your balance to grow, pushing utilization even higher.
The damage is temporary — your score will recover once you pay down the balance — but it is another reason to treat cash advances as a true emergency measure, not a regular way to get cash.
How to avoid needing a cash advance
The best strategy is to keep cash on hand or have a debit card linked to a checking account with a small emergency fund. Even $100 to $200 set aside prevents most situations where a cash advance feels necessary.
If you use a credit card for most purchases, set up a separate checking account at a different bank and transfer a small amount each week. This creates a cash buffer without requiring you to carry large amounts of physical money.
If you are in a situation where you regularly need cash advances — because you do not have access to a bank account, because your paycheck is delayed, or because you are living paycheck to paycheck — talk to a credit counselor or financial coach. Many nonprofits offer free guidance on building an emergency fund and managing cash flow. You can find local resources through the National Foundation for Credit Counseling or by calling 211.
Frequently Asked Questions
Can I use a credit card to withdraw cash from a bank teller instead of an ATM?
Yes. Most banks will process a cash advance over the counter if you show your card and ID. The fees and interest rates are the same as an ATM withdrawal. Some banks charge an additional fee for teller-processed cash advances, so ask before you request it.
What is the difference between a cash advance and a balance transfer?
A cash advance gives you physical cash and charges interest when ready. A balance transfer moves debt from one card to another and may have a lower introductory rate. Cash advances are for getting cash; balance transfers are for moving existing debt.
Will my credit card company let me withdraw my entire credit limit as cash?
No. Your cash advance limit is usually 20 to 50 percent of your total credit limit, and it is set by the issuer. You cannot change it yourself, but you can call and ask if the issuer will increase it — though there is no may provide they will.
Does paying off a cash advance early save me money on interest?
Yes. Interest on cash advances is calculated daily, so paying it off early reduces the total interest you pay. If you took a cash advance, prioritize paying it off before you pay anything else on the card.
Can I use a credit card cash advance to pay another credit card bill?
Technically yes, but it is a bad idea. You are borrowing at 25 percent interest to pay a bill that might be at 18 percent interest. You are making your debt more expensive, not solving the underlying problem. Contact your card issuer about a hardship program or payment plan instead.