Yes, you can withdraw cash at an ATM with a credit card, but it costs more than a debit card and counts as a loan
Most credit cards let you withdraw cash at ATMs, but the transaction is treated as a cash advance rather than a regular purchase. This matters because cash advances charge interest when ready — there is no grace period like there is for regular credit card purchases. You also pay an upfront fee, usually 3 to 5 percent of the amount withdrawn, on top of a higher interest rate that often exceeds your card's standard purchase rate.
The mechanics are straightforward: insert your card into an ATM, select "cash advance" or "withdraw cash" (the exact wording varies by machine), enter your PIN, and choose the amount. The money appears in your account within seconds. But the cost structure is what makes this different from using a debit card, and why most people should treat it as a last resort rather than a routine way to get cash.
Key Takeaways
- Cash advances charge interest from the moment you withdraw the money, with no grace period, and the interest rate is usually higher than your card's purchase rate.
- You pay an upfront fee — typically 3 to 5 percent of the amount withdrawn — on top of the interest charges.
- Your credit card's cash advance limit may be lower than your overall credit limit, so you might not be able to withdraw as much as you can spend.
- The total cost of a cash advance makes it expensive compared to using a debit card or visiting a bank branch.
How cash advances differ from regular credit card purchases
When you use your credit card to buy something, the purchase goes into a billing cycle with a grace period — usually 21 to 25 days — during which you can pay the balance in full without paying any interest. A cash advance skips that grace period entirely. Interest starts accruing the day you withdraw the money, even if you pay it back within a week.
The interest rate on a cash advance is also separate from your purchase rate. If your card charges 18 percent APR on purchases, the cash advance rate might be 24 or 28 percent. Some cards charge the same rate for both, but most charge more for cash advances. You can find your card's cash advance rate and fee in your cardholder agreement or by calling the number on the back of your card.
Fees and interest rates you will encounter
The upfront fee is the first cost. Most cards charge either a flat dollar amount (often $5 to $10) or a percentage of the withdrawal (3 to 5 percent), whichever is greater. So if you withdraw $100, you might pay $5 flat or 3 percent ($3), meaning you pay $5. If you withdraw $500, you pay either $5 flat or 3 percent ($15), meaning you pay $15.
Interest begins accruing when ready at the cash advance rate. If you withdraw $500 at 25 percent APR and pay it back after 30 days, you owe roughly $10 in interest plus the $15 fee — $25 total on a $500 withdrawal. If you carry the balance longer, the interest compounds and the cost grows quickly. Some ATMs also charge their own fee (often $2 to $3) on top of your card issuer's fee, though this varies by machine and location.
Your cash advance limit versus your credit limit
Your credit card issuer sets a separate cash advance limit that is often lower than your overall credit limit. You might have a $5,000 credit limit but only a $1,000 cash advance limit. This limit is set by the card issuer based on your creditworthiness and account history, and you cannot change it yourself.
You can contact your card issuer to ask what your cash advance limit is, and some issuers allow you to request an increase. However, they are not required to grant it. If you try to withdraw more than your limit, the ATM will decline the transaction. The limit exists partly because cash advances are riskier for the issuer — they are unsecured loans with no collateral — and partly to protect cardholders from taking on debt they cannot repay.
When you might need a cash advance and what to do instead
Cash advances make sense only in genuine emergencies when you have no other way to get cash — your debit card is lost, the bank is closed, and you need money when ready. In almost every other situation, there is a cheaper option. If you need cash regularly, use your debit card at your bank's ATM (usually free) or at a bank branch. If you do not have a debit card, ask your bank about getting one.
If you are in a situation where you are considering a cash advance because you do not have enough money to cover an expense, that is a sign to pause and reassess. Taking a cash advance to pay a bill or cover a shortfall means you are borrowing at a high rate to cover spending you cannot afford. The interest and fees will make the problem worse, not better. A personal loan from a bank or credit union, if you can get one, will have a lower rate than a cash advance.
How to find ATMs that accept your card
Most ATMs accept credit cards, but not all. Your card issuer's website usually has an ATM locator tool that shows which machines accept your card and whether they charge a fee. Visa and Mastercard also operate their own locators on their websites. Bank ATMs in your card's network (if your card is issued by a bank) are more likely to be free or charge lower fees than independent ATMs.
ATMs in convenience stores, bars, and casinos often charge higher fees — sometimes $3 to $5 per transaction on top of your card issuer's fee. If you know you will need cash, plan ahead and withdraw it from a bank branch or a network ATM before you are in a situation where you have to use an expensive machine.
What happens to a cash advance on your credit report
A cash advance appears on your credit card statement like any other transaction, and the balance counts toward your overall credit utilization — the percentage of your available credit that you are using. If you have a $5,000 limit and a $500 cash advance balance, your utilization is 10 percent. High utilization can lower your credit score, so paying off the cash advance quickly helps protect your score.
The cash advance itself does not show up separately on your credit report as a different type of debt. However, if you miss payments on the cash advance, that missed payment will be reported and will damage your credit. Because cash advances accrue interest so quickly, they are straightforward to let grow if you do not pay them off promptly.
Frequently Asked Questions
Can I use a credit card at any ATM?
Most ATMs accept credit cards, but not all. Some ATMs only accept debit cards or bank cards. Your card issuer's website has a locator tool that shows which machines accept your specific card. Independent ATMs in stores or bars are more likely to accept credit cards than bank ATMs, but they usually charge higher fees.
What is the difference between a cash advance and a balance transfer?
A cash advance is money you withdraw from an ATM or bank counter. A balance transfer is when you move debt from one credit card to another. Both are treated as loans by your card issuer, but they have different fees and rates. Cash advances charge interest when ready; balance transfers sometimes have a 0 percent introductory rate for a set period.
Will a cash advance hurt my credit score?
A cash advance itself does not hurt your score, but a high balance does. If your cash advance pushes your overall credit utilization above 30 percent, it can lower your score slightly. Paying off the cash advance quickly brings utilization back down. Missing payments on a cash advance will damage your score significantly.
Can I get a cash advance without a PIN?
Most ATMs require a PIN to process a cash advance. Some bank branches let you withdraw cash using your credit card without a PIN if you show a photo ID, but this is less common. If you do not have a PIN, contact your card issuer to set one up, or visit a branch of the bank that issued your card.
Is there a limit to how much cash I can withdraw?
Yes. Your card issuer sets a cash advance limit that is separate from your credit limit, and ATMs often have daily withdrawal limits as well. You might be able to withdraw only $500 per day even if your cash advance limit is $2,000. Check your cardholder agreement or call your issuer to find out both limits.