Yes, you can use a credit card at an ATM, but it costs you money and works differently than a debit card
Most ATMs accept credit cards, but when you use one, you are not withdrawing from a bank account — you are taking out a cash advance. The machine lends you money against your credit limit, and you pay interest on that borrowed amount when ready. This is different from swiping your card at a store. A cash advance starts charging interest the day you take it out, with no grace period like you get on regular purchases.
The fees and interest rates make cash advances expensive. You will pay an upfront fee (usually 3 to 5 percent of the amount withdrawn, with a minimum of $5 to $10) plus a higher interest rate than your regular purchase APR — often 20 to 30 percent or more. If you need cash, using your debit card or visiting your bank's branch is almost always cheaper.
Key Takeaways
- A credit card cash advance at an ATM charges you an upfront fee (typically 3 to 5 percent) plus a higher interest rate than regular purchases.
- Interest on a cash advance begins accruing when ready with no grace period, even if you normally have 21 days interest-free on purchases.
- Your credit card issuer sets a separate cash advance limit, which may be lower than your total credit limit.
- Using a debit card, visiting your bank branch, or getting cash back at a store checkout costs far less than a credit card cash advance.
How a credit card cash advance works at the ATM
Insert your credit card into an ATM just as you would a debit card. The machine will ask whether you want a withdrawal or a cash advance — select cash advance. You will then enter the amount you want and your PIN. The ATM dispenses the cash, and the transaction posts to your credit card account as a loan against your available credit.
The cash advance limit is separate from your regular credit limit. Your card issuer decides how much you can borrow this way, and it is often lower than what you can spend on purchases. Check your card's terms or call the customer service number on the back to find out your cash advance limit before you go to the ATM.
Fees and interest charges you will pay
Every credit card cash advance comes with two costs: a transaction fee and interest. The transaction fee is usually 3 to 5 percent of the amount withdrawn, with most issuers charging a minimum of $5 to $10. So if you withdraw $100, you might pay $3 to $5 in fees alone. If you withdraw $500, the fee could be $15 to $25.
Interest starts accruing the moment you take the cash, at a rate that is typically higher than your purchase APR. While a regular purchase might carry an APR of 15 to 20 percent, a cash advance APR is often 25 to 30 percent or higher. There is no grace period — you do not get 21 days interest-free like you do on regular purchases. Interest compounds daily until you pay the balance off.
To see the exact fee and APR for your card, check your cardholder agreement or log into your online account. The issuer is required to disclose both numbers, though they may be buried in the fine print.
When your bank or card issuer might block a cash advance
Some banks and card issuers restrict or block cash advances entirely. If your account is new, if you have missed payments, or if your credit score has dropped, your issuer may lower your cash advance limit to $0 or deny the transaction at the ATM. You will not know until you try.
Some issuers also block cash advances at certain ATMs — for example, only allowing them at their own branded machines or at partner networks. If the ATM rejects your card, try a different machine or call your card issuer to ask whether cash advances are currently allowed on your account.
Cheaper ways to get cash when you need it
If you have a debit card linked to a bank account, use that instead. Debit card withdrawals at your bank's ATM are free, and even at out-of-network ATMs you will usually pay only $2 to $3 in fees — far less than a credit card cash advance.
Many stores offer cash back at checkout with no fee. When you buy something at a grocery store, pharmacy, or retailer, ask the cashier for cash back and the amount is added to your purchase. You pay for the goods with your credit card (and earn rewards if your card offers them), but you get the cash without a separate advance fee.
If you do not have a debit card, visit your bank or credit union branch in person. Tellers can withdraw cash from your account or, in some cases, issue a cash advance at a lower rate than an ATM would charge. Call ahead to confirm the branch is open and ask what forms of ID you need to bring.
How a cash advance affects your credit score
A cash advance does not directly hurt your credit score the way a missed payment does, but it can harm your score indirectly. When you take out a cash advance, your credit utilization — the percentage of your available credit you are using — goes up. If you normally use 30 percent of your $5,000 limit and you take a $500 cash advance, your utilization jumps to 40 percent. Credit scoring models penalize high utilization, so your score may drop a few points.
The impact is usually temporary. Once you pay off the cash advance, your utilization drops and your score recovers. However, if you carry the balance and pay interest for months, the ongoing high utilization will keep your score lower for longer.
Paying off a cash advance quickly
Pay off a cash advance as soon as you can, because interest compounds daily and the APR is high. When you make a payment to your credit card, the issuer applies it first to your lowest-interest balance (usually regular purchases) and last to your highest-interest balance (the cash advance). This means you keep paying interest on the cash advance even after you have paid off your purchases.
To speed up repayment, call your issuer and ask whether you can make a payment that goes directly toward the cash advance balance. Some issuers allow this; others do not. If yours does not, your only option is to pay down the entire card balance until the cash advance is gone.
Frequently Asked Questions
Can I use a credit card at any ATM?
Most ATMs accept credit cards, but not all. ATMs in banks, convenience stores, and airports usually do. However, some machines may not have the cash advance function enabled, or your card issuer may block the transaction. If one ATM declines your card, try another or call your issuer to confirm cash advances are allowed.
What is the difference between a cash advance and a balance transfer?
A cash advance is money you withdraw at an ATM or from a teller, and it charges a fee plus a high APR when ready. A balance transfer is moving debt from one card to another, usually at a lower promotional rate for a set period. They are different transactions with different costs and purposes.
Will a cash advance show up on my credit report?
The cash advance itself does not appear on your credit report, but the balance does. If you carry the balance for months, the high utilization will show on your report and may lower your credit score. Once you pay it off, the impact fades.
Can I use a credit card at an ATM if I have a zero balance?
Yes. A cash advance draws against your available credit, not against a balance you already owe. Even with a zero balance, you can take out a cash advance up to your cash advance limit, and you will when ready owe the fee and interest on that amount.
What happens if I cannot pay back a cash advance?
If you do not pay, the balance stays on your card and interest keeps accruing. Late payments damage your credit score and may trigger penalty APRs on your entire card balance. Your issuer may also close your account or send the debt to a collection agency if it goes unpaid for several months.