Yes, you can withdraw cash from an ATM using a credit card, but it costs more than you think
Most credit cards let you take cash out at an ATM, but the moment you do, you start paying fees and interest that don't explore to regular purchases. A cash advance is a short-term loan from your credit card issuer. The bank treats it differently from a purchase — you pay a fee upfront, a higher interest rate starts accruing when ready (no grace period), and the transaction shows up separately on your statement.
The catch is that cash advances are expensive by design. You might pay 3 to 5 percent of the amount you withdraw just as a fee, plus an ATM operator fee of $2 to $5, plus interest that starts the day you withdraw the money. If you need cash, this is usually the most costly way to get it.
Key Takeaways
- Cash advances charge an upfront fee (typically 3 to 5 percent), an ATM operator fee, and interest that begins when ready with no grace period.
- The interest rate on a cash advance is almost always higher than the rate on purchases — often 5 to 10 percentage points higher.
- You can withdraw cash at any ATM that accepts your card's network (Visa, Mastercard, American Express, Discover), but the issuer sets your cash advance limit separately from your credit limit.
- Paying back a cash advance is slower than paying back a purchase because payments go to the purchase balance first, then to the cash advance.
- Alternatives like a personal loan, borrowing from a friend, or using a debit card cost far less if you have access to them.
How the fees and interest work
When you take a cash advance, your credit card issuer charges you a cash advance fee right away. This fee is a percentage of the amount you withdraw — check your card's terms to find the exact rate, but 3 to 5 percent is standard. On a $500 withdrawal, that's $15 to $25 before you even leave the ATM.
Then the ATM operator may charge you an additional fee. If you use an out-of-network ATM (one not run by your card issuer's bank), expect $2 to $5 on top of the card issuer's fee. Some ATMs charge both a fee to you and a fee to your card issuer, which your issuer may pass along.
Interest starts accruing the moment you withdraw the cash — there is no grace period like there is for purchases. The interest rate on a cash advance is typically 5 to 10 percentage points higher than your purchase APR. If your purchase rate is 18 percent, your cash advance rate might be 25 or 28 percent. That interest compounds daily, so the longer you carry the balance, the more you pay.
Where you can withdraw cash and what limits explore
You can withdraw cash at any ATM that displays your card's logo — Visa, Mastercard, American Express, or Discover. Your card issuer has agreements with thousands of ATMs worldwide, and you can use any of them. In-network ATMs (those run by your card issuer's bank) usually charge no ATM fee, though the cash advance fee still applies.
Your card issuer sets a separate cash advance limit that is different from your credit limit. You might have a $5,000 credit limit but only a $1,000 cash advance limit. Check your card's terms or log into your online account to find your cash advance limit. If you try to withdraw more than that limit, the ATM will decline the transaction.
Some card issuers let you increase your cash advance limit by calling customer service, but doing so doesn't change the fees or interest rate — it just lets you borrow more at the same high cost.
How payments are applied when you carry a cash advance
If you have both a purchase balance and a cash advance balance on your card, your payment goes to the purchase first. This is called the payment hierarchy, and it means your cash advance sits and accrues interest while you pay down the cheaper purchase balance.
For example, suppose you have a $300 purchase at 18 percent APR and a $200 cash advance at 25 percent APR. You make a $200 payment. That $200 goes entirely to the purchase, leaving the $200 cash advance untouched. The cash advance keeps accruing interest at 25 percent while you chip away at the purchase.
To pay off a cash advance faster, you need to pay more than the minimum or make a payment large enough to cover the purchase balance first, then the cash advance. This is why cash advances are so costly — the interest keeps compounding while your payment goes elsewhere.
Why a cash advance is usually the most expensive option
A cash advance is designed to be a short-term emergency tool, not a regular way to get cash. The fees and interest add up quickly. On a $500 cash advance at 5 percent fee plus 25 percent APR, you pay $25 upfront. If you carry the balance for one month, you pay roughly $10 in interest. After three months, you've paid $35 to $40 just in fees and interest — that's 7 to 8 percent of the original amount.
Compare that to other options: a personal loan from a bank or credit union typically charges 6 to 36 percent APR with no upfront fee. A payday loan is predatory and expensive, but usually doesn't charge an upfront percentage fee. Borrowing from a friend or family member costs nothing. Using a debit card costs nothing. Even a balance transfer to a 0 percent promotional card (if you have one available) costs less than a cash advance.
The only scenario where a cash advance makes sense is if you need cash for a genuine emergency, you have no other option, and you can pay it back within days. Even then, the cost is steep.
How to take a cash advance if you must
If you decide to proceed, the process is straightforward. Find an ATM that accepts your card, insert your card, enter your PIN, select "Withdraw Cash" or "Cash Advance," and enter the amount. The ATM will show you the fee before you confirm. The cash is dispensed when ready, and the transaction appears on your statement within one to two business days.
Some card issuers also let you take a cash advance at a bank teller window or through a convenience check (a check your issuer mails you that you can cash at a bank). These methods have the same fees and interest rates as an ATM withdrawal.
Before you withdraw, know your cash advance limit and the exact fee your card charges. Call the customer service number on the back of your card or log into your online account. Knowing the cost upfront helps you decide whether the cash advance is worth it.
Frequently Asked Questions
Does taking a cash advance hurt my credit score?
A cash advance itself doesn't directly hurt your score, but it increases your credit utilization (the amount of available credit you're using), which can lower your score slightly. If you carry the balance and miss a payment, that will hurt your score more significantly. The cash advance shows up on your credit report as a separate transaction type, but payment history matters more than the type of transaction.
Can I take a cash advance from a credit card I just opened?
Most card issuers set a cash advance limit when they open your account, though it's often lower than your credit limit. Some new cards have a $0 cash advance limit until you've used the card for a few months. Check your card's terms or call customer service to find out your limit.
What's the difference between a cash advance and a balance transfer?
A balance transfer moves debt from one card to another (usually to a card with a lower or 0 percent promotional rate). A cash advance is a loan against your credit line that you withdraw as cash. Balance transfers have a fee but no interest during a promotional period. Cash advances charge both a fee and interest from day one.
Can I use a credit card to withdraw cash from a bank teller instead of an ATM?
Yes, most banks let you take a cash advance from a teller using your credit card. The fee and interest rate are the same as an ATM withdrawal. You'll need to show your card and ID, and the teller will process it as a cash advance, not a debit transaction.
What happens if I can't pay back the cash advance?
If you don't pay, the balance stays on your card and interest keeps accruing. After 30 days, the missed payment appears on your credit report and your score drops. After 60 days, your card issuer may increase your interest rate on all balances. After 180 days, the issuer may charge off the debt and sell it to a collection agency. At that point, a collector can sue you for the amount owed.