Yes, you can withdraw cash from an ATM with a credit card, but it costs you money and starts charging interest when ready
Most credit cards let you take cash out at an ATM, but this is not the same as using your debit card. When you withdraw cash with a credit card, you are taking a cash advance — a short-term loan from your credit card issuer. The moment the money leaves the ATM, interest starts accruing at a rate that is usually higher than your regular purchase APR. You also pay an upfront fee, typically 3 to 5 percent of the amount withdrawn.
The process itself is straightforward: insert your credit card into an ATM, enter your PIN, select "withdrawal" or "cash advance," and choose your amount. But the financial cost is not straightforward, and most people should avoid this unless they have no other option.
Key Takeaways
- Cash advances charge a separate, higher interest rate than purchases, with no grace period — interest begins the day you withdraw.
- You pay an upfront fee of 3 to 5 percent of the cash amount, charged when ready to your card.
- Not all ATMs accept credit cards; bank ATMs and networks like Allpoint are most likely to work.
- Your credit card issuer sets a cash advance limit, which may be lower than your credit limit and requires a separate PIN.
How the fees and interest work
A cash advance fee is charged the moment you complete the transaction. If you withdraw $200 and your card charges a 5 percent fee, you owe $10 when ready. Some cards charge a flat fee instead — say $5 or $10 per withdrawal — regardless of amount. Check your card's terms to know which applies to yours.
Interest on a cash advance typically runs 2 to 5 percentage points higher than your purchase APR. If your purchase rate is 18 percent, your cash advance rate might be 23 percent. Unlike purchases, there is no grace period: interest accrues from day one, not from your statement date. This means a $200 withdrawal at 23 percent APR costs you roughly $3.85 in interest after one month if you do not pay it back.
The combination of the upfront fee plus the high interest rate makes cash advances expensive fast. A $500 withdrawal with a 5 percent fee ($25) plus 25 percent APR costs you roughly $10 in interest after one month, for a total of $35 in the first month alone.
Which ATMs accept credit cards
Not every ATM will take a credit card. Bank-owned ATMs at your card issuer's bank usually work — if you have a Chase credit card, Chase ATMs will accept it. ATMs in the Allpoint network, which includes machines at many convenience stores and pharmacies, often accept credit cards. Some independent ATM operators also accept them, but this varies widely.
The best way to find out is to look for an ATM that displays a Visa, Mastercard, or American Express logo on the machine itself. If you are unsure, call your card issuer's customer service line and ask which ATM networks accept cash advances on your card. They can also tell you whether your card has a cash advance limit and what your PIN is.
Your cash advance limit and PIN
Your credit card issuer sets a separate cash advance limit, which is often lower than your total credit limit. You might have a $5,000 credit limit but only a $1,000 cash advance limit. This limit is set by the issuer based on your creditworthiness and is not something you can change on your own, though you can call and ask if it can be raised.
You also need a PIN to withdraw cash, separate from any PIN you use for purchases. If you do not have one, you can request it from your card issuer before you need it. Some issuers mail it to you; others let you set one online or by phone. Without a PIN, you cannot complete a cash advance at an ATM.
Why this is usually a bad idea
Cash advances are designed for emergencies when you have no other way to get cash. They are not a substitute for a debit card or a way to get cash back at a store. The fees and interest make them one of the most expensive ways to borrow money on a credit card.
If you need cash regularly, a debit card tied to a checking account is free and has no interest. If you are in a true emergency and have no debit card, a cash advance is better than nothing — but it should be paid back as quickly as possible. Every day you carry the balance, the interest compounds.
Alternatives to a cash advance
If you need cash but want to avoid the high fees and interest, consider these options first: withdraw cash back at a grocery store or pharmacy when you make a purchase with your debit card; visit your bank's branch and withdraw from your checking account; use a peer-to-peer payment app like Venmo or PayPal to transfer money from someone else; or ask a friend or family member to lend you cash.
If you do not have a debit card or checking account, opening one at a bank or credit union is usually free and takes less than an hour. This gives you access to ATMs and cash without the cost of a credit card cash advance.
How a cash advance affects your credit score
A cash advance itself does not directly hurt your credit score, but carrying a high balance on your credit card does. When you take a cash advance, you are increasing your card's balance, which raises your credit utilization ratio — the percentage of your available credit you are using. A high utilization ratio can lower your score.
Additionally, if you cannot pay back the cash advance quickly and miss a payment, that missed payment will be reported to the credit bureaus and will damage your score. The best approach is to treat a cash advance as a short-term loan you will pay back within one or two billing cycles.
Frequently Asked Questions
Can I get a cash advance at any ATM?
No. Your credit card must be accepted by that specific ATM. Bank ATMs owned by your card issuer and machines in the Allpoint network are your best bet. ATMs at independent operators may or may not accept credit cards. Look for the Visa, Mastercard, or American Express logo on the machine.
What is the difference between a cash advance and a regular purchase?
A cash advance charges a higher interest rate with no grace period, plus an upfront fee. A purchase has a lower rate and usually a 21-day grace period before interest starts. Never use a cash advance for everyday spending.
Do I have to pay back a cash advance all at once?
No. You can pay it back over time like any other credit card balance. However, interest accrues daily at a high rate, so paying it back quickly saves you money. Treat it as a short-term loan, not a long-term balance.
What if I forgot my cash advance PIN?
Call your credit card issuer's customer service number on the back of your card. They can reset your PIN or send you a new one. You may need to verify your identity with personal information before they issue a new PIN.
Does taking a cash advance hurt my credit score?
Not when ready, but it raises your credit utilization ratio, which can lower your score slightly. If you miss payments or carry the balance for months, the damage is greater. Pay it back quickly to minimize the impact.