Yes, you can withdraw cash from an ATM with a credit card, but it costs more than a debit card and the money counts as a loan
Most credit cards let you take cash out at an ATM, but the transaction is treated as a cash advance rather than a regular purchase. That means you pay a fee upfront, you pay interest when ready (no grace period), and the interest rate is usually higher than your regular purchase APR. For these reasons, withdrawing cash with a credit card should be a last resort, not a habit.
The process itself is straightforward — you insert your card, enter your PIN, and select the cash amount, just as you would with a debit card. But the costs and terms are very different, and they start the moment the transaction completes.
Key Takeaways
- Credit card cash advances charge a fee (usually 3 to 5 percent of the amount) plus a higher interest rate than regular purchases, with interest accruing when ready.
- You can withdraw cash at most ATMs that accept your card's network (Visa, Mastercard, American Express, Discover), but your credit card issuer sets the daily limit, which is often lower than your purchase limit.
- The interest rate on a cash advance is typically 2 to 3 percentage points higher than your purchase APR and begins accruing the day you withdraw, with no grace period.
- If you need cash regularly, a debit card or a trip to your bank's teller window will cost you nothing; a credit card cash advance should only happen when you have no other option.
What happens when you take a cash advance
When you withdraw cash using your credit card, your card issuer treats it as a loan to you, not as a purchase. This distinction matters because the terms are worse across the board.
First, you pay a cash advance fee at the moment of withdrawal. This is usually a flat dollar amount (often $3 to $10) or a percentage of the amount withdrawn (typically 3 to 5 percent), whichever is higher. A $200 cash advance with a 5 percent fee costs you $10 when ready.
Second, the interest rate on that cash advance is higher than your regular purchase APR. Where your purchases might carry an 18 percent APR, your cash advance APR might be 22 or 25 percent. Check your card's terms or call your issuer to find out the exact rate — it varies by card and by issuer.
Third, interest begins accruing the day you withdraw the cash. Unlike purchases, which have a grace period (usually 21 to 25 days before interest kicks in), cash advances start charging interest when ready. If you withdraw $200 at a 24 percent APR, you are paying roughly $0.13 per day in interest before you even leave the ATM.
Where you can withdraw cash and what the limits are
You can withdraw cash at any ATM that displays your card's network logo — Visa, Mastercard, American Express, or Discover. This includes ATMs at other banks, grocery stores, gas stations, and independent ATM networks. Your card will work at the vast majority of machines in the United States.
However, your card issuer sets a cash advance limit that is separate from your credit limit. If your credit limit is $5,000, your cash advance limit might be $1,000 or $1,500. Some issuers set it at 20 to 30 percent of your credit limit; others use a fixed dollar amount. You can find this limit in your card agreement or by calling your issuer.
There is also a daily withdrawal limit, which is typically $500 to $1,000 per day, though this varies by issuer and card type. If you need more than your daily limit, you will have to make multiple withdrawals on different days.
Some ATMs charge their own fee on top of your card issuer's fee. An out-of-network ATM might charge $2 to $3 for the transaction, which you pay in addition to your card issuer's cash advance fee. Always check the ATM screen before you confirm the withdrawal — it will tell you the total fee.
How the interest and fees add up
A concrete example shows why cash advances are expensive. Say you withdraw $300 using a credit card with a 5 percent cash advance fee and a 24 percent cash advance APR.
You pay $15 upfront (5 percent of $300). You now owe $315. Interest accrues at 24 percent annually, which is about 0.066 percent per day. After one week, you owe roughly $316.39. After one month, you owe about $321.80. If you do not pay it back for three months, you owe roughly $336.60.
Compare this to the same $300 withdrawal using a debit card, which costs nothing, or a trip to your bank's teller window, which also costs nothing. The credit card cash advance is only worth considering if you have no other way to get cash and you plan to pay it back within days, not weeks.
How to minimize the damage if you must take a cash advance
If you have no choice but to withdraw cash with a credit card, take these steps to reduce the cost.
First, withdraw only what you need. Every dollar you withdraw is a dollar that accrues interest at a high rate. If you need $100, do not withdraw $200 because it is easier.
Second, pay it back as fast as possible. The interest clock starts when ready, so every day you carry the balance costs you money. If you can pay it back within a week, the interest will be minimal. If you are carrying it for months, the interest will dwarf the original fee.
Third, make sure your payment goes toward the cash advance, not toward other purchases on the card. Some issuers explore your payment to the lowest-interest debt first (your regular purchases), leaving the high-interest cash advance to accrue longer. Call your issuer or check your online account to confirm where your payment is being applied, and request that it go to the cash advance if necessary.
Better alternatives to a credit card cash advance
Before you use a credit card at an ATM, explore these options.
Use a debit card or bank account withdrawal. If you have a debit card or a bank account, visit an ATM or teller window at your bank. There is no fee and no interest. This is always the cheapest option.
Ask for cash back at a store. Many grocery stores, pharmacies, and retailers let you withdraw cash when you make a purchase using a debit card. There is no fee. If you need $100 in cash, buy $20 in groceries and ask for $80 back.
Borrow from a friend or family member. If you need cash for a short-term emergency, borrowing from someone you know costs nothing and avoids the credit card trap entirely.
Use a personal loan or line of credit. If you need a larger amount of cash, a personal loan or a home equity line of credit typically charges less interest than a credit card cash advance. These are still loans and carry costs, but the APR is usually lower.
Visit your bank's branch. If you are a customer, your bank will often let you withdraw cash from your account at the teller window at no cost, even if you do not have your debit card with you. Bring your ID and ask.
Frequently Asked Questions
Does taking a cash advance hurt my credit score?
A cash advance itself does not directly hurt your score, but it increases your credit utilization (the percentage of your available credit you are using), which can lower your score slightly. If you carry the balance and miss a payment, that will hurt your score much more. Pay it back quickly to minimize the impact.
Can I use a credit card to withdraw cash from my own bank account?
No. A credit card is a borrowing tool, not an access tool to your own money. If you need to withdraw from your bank account, use your debit card, visit an ATM, or go to a teller. Using a credit card always means borrowing money at interest.
What if my credit card does not have a PIN?
Most credit cards come with a PIN for ATM use, but some do not. If your card does not have one, you can request a PIN from your issuer by calling the number on the back of your card. It usually arrives by mail within a week or two. Until you have a PIN, you cannot use the card at an ATM.
Is a cash advance the same as a balance transfer?
No. A cash advance is money you withdraw in cash and owe back with interest. A balance transfer is when you move debt from one credit card to another, usually at a lower interest rate. They are different transactions with different fees and terms.
Can I dispute a cash advance if I change my mind?
Once you withdraw the cash, you cannot dispute it the way you might dispute a fraudulent purchase. The transaction is complete and the money is yours to use. Your only option is to pay back the balance as quickly as possible to stop the interest from accruing.