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. The transaction is called a cash advance, and it comes with its own fees and a higher interest rate than regular purchases. You will pay a fee upfront — usually 3 to 5 percent of the amount you withdraw — plus interest that starts accruing the same day, with no grace period.
The process itself is straightforward: insert your card, enter your PIN, and select the cash withdrawal option. But before you do, you should understand what it will actually cost you and whether you have other options that are cheaper.
Key Takeaways
- Cash advances charge a separate, higher interest rate than purchases, typically 20 to 30 percent, with no grace period.
- You will pay an upfront fee of 3 to 5 percent of the amount withdrawn, charged by your card issuer.
- Some ATMs charge an additional operator fee on top of your card issuer's fee.
- Interest begins accruing the day you withdraw the cash, not at the end of your billing cycle.
- Your credit card statement will show the cash advance separately from your regular purchases.
What happens when you withdraw cash at an ATM
When you insert your credit card and request cash, the ATM communicates with your card issuer to verify you have available credit. If approved, the machine dispenses the cash and records the transaction as a cash advance on your account.
Your card issuer charges you a cash advance fee when ready. This fee is a percentage of the amount withdrawn — typically 3 to 5 percent — with a minimum dollar amount (often $3 to $10). So if you withdraw $200, you might pay $6 to $10 just for taking out the cash. Some issuers charge a flat fee instead of a percentage, so check your cardholder agreement to see which applies to your card.
On top of your issuer's fee, the ATM operator may charge you an additional fee. This is common at ATMs in convenience stores, bars, or hotels. That fee can range from $1 to $3 and goes to the ATM owner, not your card issuer.
How the interest rate works differently for cash advances
Cash advances have a separate, usually higher interest rate than your regular purchase APR. While your purchase rate might be 18 percent, your cash advance rate could be 25 or 30 percent. Your card issuer sets this rate and discloses it in your terms and conditions.
Unlike purchases, there is no grace period for cash advances. Interest starts accruing the day you withdraw the money, not at the end of your billing cycle. This means even if you pay off the cash advance within a few days, you will owe interest for those days.
The interest compounds daily. If you withdraw $200 at a 25 percent APR, you owe roughly $0.14 per day in interest alone, before the cash advance fee. Over a month, that adds up to about $12 in interest charges on top of the upfront fee you already paid.
How to find your cash advance limit and APR
Your credit card has a separate cash advance limit, which may be lower than your overall credit limit. You can find this limit by logging into your online account, calling the number on the back of your card, or checking your most recent statement.
Your cash advance APR and fee are listed in your cardholder agreement, which you received when you opened the account. If you no longer have it, you can request it from your issuer or find it on their website. Some issuers also show this information in your online account under "Rates and Fees" or "Account Terms."
Before you withdraw cash, confirm that the amount is within your cash advance limit. If you try to withdraw more than your limit allows, the ATM will decline the transaction.
When a cash advance makes sense and when it does not
A cash advance is expensive and should be a last resort. It makes sense only if you absolutely need cash and have no other way to get it — for example, if you are traveling and your debit card is lost or stolen, or if a business accepts only cash and you have no other payment method available.
It does not make sense if you have a debit card, a checking account with ATM access, or a friend who can lend you cash. It also does not make sense to use a cash advance to pay off other debts, because the interest rate is usually higher than what you are paying on those debts.
If you are considering a cash advance because you do not have enough money in your checking account, that is a sign to pause and reconsider. Taking out expensive cash now will make your financial situation harder, not easier.
How cash advances affect your credit score
A cash advance does not directly hurt your credit score the way a late payment does. However, it does increase your credit utilization — the percentage of your available credit that you are using. If you normally use 30 percent of your credit limit and you take out a $500 cash advance on a $2,000 limit, your utilization jumps to 55 percent. High utilization can lower your score slightly.
The bigger risk is that a cash advance can become a debt spiral. If you cannot pay it off quickly, the interest and fees compound, and you end up carrying a balance. Carrying a balance lowers your score and costs you money every month.
Alternatives to getting cash from an ATM with your credit card
If you need cash, explore these options first: withdraw from your own bank's ATM using your debit card (free or low-cost), ask your bank for a cash withdrawal at the teller window (free), use a store's cash-back feature when you make a purchase (free), or borrow cash from a friend or family member (free).
If you do not have a debit card or checking account, some banks and credit unions offer second-chance checking accounts with low fees. Opening one of these accounts is cheaper than repeatedly taking cash advances.
If you are in a true emergency and need cash fast, a personal loan from a credit union or bank usually has a lower interest rate than a credit card cash advance, though it takes longer to process.
Frequently Asked Questions
Can I withdraw cash from any ATM with my credit card?
Yes, most ATMs accept credit cards for cash withdrawals. However, some ATMs in certain locations — like banks or credit unions — may only accept their own cards or debit cards. Your best bet is to use an ATM from a major network like Visa or Mastercard, which are widely accepted.
What is the difference between a cash advance and a regular purchase?
A regular purchase uses your credit line and has a grace period — you do not pay interest if you pay the full balance by your due date. A cash advance has no grace period, charges interest when ready, and usually has a higher APR. Both appear on your statement, but they are tracked separately.
Do I have to use my PIN to withdraw cash with a credit card?
Yes, you will need to enter your PIN at the ATM. If you do not have a PIN for your credit card, you can request one from your issuer. Some cards come with a PIN automatically; others require you to set one up online or by phone.
Can I get a cash advance from a bank teller instead of an ATM?
Yes. You can walk into any bank or credit union and ask for a cash advance using your credit card. The fees and interest rate are the same as an ATM withdrawal. Some people prefer this method because they can withdraw larger amounts and avoid ATM operator fees.
What happens if I cannot pay back a cash advance?
The balance carries over to your next billing cycle and continues accruing interest at your cash advance rate. If you miss a payment, you may face late fees and damage to your credit score. The longer you carry the balance, the more interest you pay. Contact your issuer if you are struggling to pay — some offer hardship programs that may lower your rate temporarily.