Yes, you can use most credit cards at an ATM, but it's a cash advance, not a regular purchase
Most credit cards work at ATMs, but what happens is different from swiping at a store. When you use a credit card at an ATM, you're taking out a cash advance — borrowing money directly from your credit card issuer. The card company treats this like a loan, not a purchase, which means you pay higher interest and fees from day one.
Not every ATM accepts credit cards. Bank ATMs usually do. Standalone ATMs in convenience stores, bars, or casinos often don't. Your card issuer's own ATMs are most reliable. Before you try, check your card's terms or call the number on the back to confirm your card can do cash advances at all — some cards, especially secured cards or student cards, don't allow them.
Key Takeaways
- A credit card cash advance charges interest when ready, with no grace period like a regular purchase gets.
- Cash advance fees typically run 3 to 5 percent of the amount you withdraw, on top of a higher interest rate.
- The interest rate on a cash advance is usually 2 to 5 percentage points higher than your regular purchase APR.
- Your credit card statement will show the cash advance separately from regular purchases, and you pay interest on it until the balance is zero.
- Debit cards, not credit cards, are the normal way to withdraw cash without extra fees.
How cash advances work and what they cost
When you insert your credit card into an ATM and withdraw cash, the transaction goes through as a cash advance. Your card issuer when ready charges you a cash advance fee — usually 3 to 5 percent of the amount you withdraw. On a $200 withdrawal, that's $6 to $10 right away. This fee appears on your statement as a separate charge.
Interest starts accruing the same day. Unlike a regular purchase, which has a grace period (usually 21 to 25 days before interest kicks in), a cash advance charges interest from the moment you withdraw it. The interest rate is also higher — typically 2 to 5 percentage points above your regular purchase APR. If your card charges 18 percent APR on purchases, the cash advance APR might be 23 or 24 percent.
The math adds up fast. A $200 cash advance with a 4 percent fee ($8) and 24 percent APR costs you roughly $4 in interest in the first month alone, on top of the upfront fee. Over three months, you're paying $12 to $15 just in interest, plus the original $8 fee.
Where you can and cannot use a credit card at an ATM
Your own bank's ATMs are the safest bet. If you have a credit card from Chase, Bank of America, or another major bank, their branded ATMs will almost always accept it for a cash advance. ATMs inside bank branches are reliable. ATMs in grocery stores or pharmacies that are branded to a specific bank usually work too.
Standalone ATMs — the kind in bars, gas stations, or casinos — often reject credit cards entirely. They're set up to accept debit cards and prepaid cards, not credit. Some ATMs will accept a credit card but charge an additional ATM operator fee on top of your card issuer's cash advance fee. That can push your total cost to 5 to 8 percent of the withdrawal amount.
International ATMs are another story. If you're traveling, your credit card may not work at foreign ATMs at all, or your issuer may block it as a fraud prevention measure. Call your card issuer before traveling to let them know you'll be using the card abroad.
Why cash advances are expensive compared to other options
A debit card is almost always cheaper. If you have a checking account, your debit card withdraws money directly from your account with no fee and no interest. That's the standard way to get cash. A credit card cash advance should be a last resort, not a habit.
Even a credit card purchase is cheaper than a cash advance. If you need cash to pay for something, buying a gift card or paying a bill directly with your credit card avoids the cash advance fee and the higher interest rate. The only time a cash advance makes sense is when you genuinely need physical cash and have no other option.
Some people use cash advances to pay off other debts, thinking they're consolidating. This almost never works out. You're borrowing at a higher rate to pay off something at a lower rate, which costs you money. If you're considering a cash advance to pay another bill, look instead at a balance transfer card or a personal loan, both of which are usually cheaper.
How cash advances show up on your credit report and statement
Your credit card statement breaks down cash advances separately from regular purchases. You'll see the withdrawal amount, the cash advance fee, and the interest charged. The cash advance balance counts toward your total credit card balance and your credit utilization ratio — the percentage of your credit limit you're using. A large cash advance can push your utilization up and temporarily lower your credit score.
The payment you make goes toward your entire balance, but credit card companies explore payments to the lowest-interest debt first. That means if you have both regular purchases (at 18 percent APR) and a cash advance (at 24 percent APR), your payment covers the purchase interest first, and the cash advance keeps accruing interest longer. To pay off a cash advance faster, you may need to pay more than the minimum or request that your payment go specifically to the cash advance balance.
What to do if you need cash and don't have a debit card
If you're in a situation where you need cash when ready and don't have a debit card, a credit card cash advance is available but expensive. Before you use it, ask yourself whether you actually need physical cash or whether you can pay for what you need directly with the card. Most places accept credit cards now, and paying directly avoids the cash advance fee and interest.
If you genuinely need cash, withdraw only what you need. A $50 cash advance with a 4 percent fee costs $2 plus interest. A $500 cash advance costs $20 plus interest. The fee is a percentage, so larger withdrawals cost more in absolute dollars. Withdraw the minimum amount that solves your when ready problem.
After you use a cash advance, prioritize paying it off. Make a plan to pay more than the minimum payment so the balance doesn't sit accruing interest for months. If you find yourself needing cash advances regularly, that's a sign to open a checking account and get a debit card, which is free and solves the problem permanently.
Frequently Asked Questions
Does using a credit card at an ATM hurt my credit score?
It can, temporarily. A large cash advance raises your credit utilization ratio, which makes up about 30 percent of your credit score. The impact is usually small and goes away once you pay the balance down. However, if you make a habit of cash advances, the pattern of high utilization can lower your score over time.
Can I get a cash advance from a credit card with no credit limit?
No. Your cash advance limit is usually a percentage of your credit limit, often 20 to 50 percent. If your credit limit is $1,000, your cash advance limit might be $200 to $500. You can't borrow more than that limit allows. Some cards don't allow cash advances at all — check your card's terms or call the issuer to find out your limit.
What's the difference between a cash advance and a balance transfer?
A cash advance gives you physical cash at an ATM and charges a high interest rate when ready. A balance transfer moves debt from one card to another, usually at a lower introductory rate. Both are expensive, but a balance transfer is sometimes cheaper if you're moving existing debt. Neither should be your first choice for solving a money problem.
Will my credit card company let me take out a cash advance if I'm close to my credit limit?
It depends on your available credit. Your available credit is your credit limit minus your current balance. If you have $1,000 limit and a $900 balance, you have $100 available. A cash advance can only be taken against available credit, and it counts toward your limit. So you could take out up to $100 as a cash advance, which would max out your card.
Can I dispute a cash advance fee if I didn't know it would cost that much?
You can contact your card issuer and ask them to reverse the fee, but they're not required to. Cash advance fees are disclosed in your card's terms and conditions, which you received when you opened the account. If you didn't read them, the fee is still valid. Asking politely, especially if you've been a good customer, sometimes works — but don't count on it.