Yes, you can withdraw cash from an ATM using a credit card, but it costs you money and works differently than a debit card
A credit card cash withdrawal is called a cash advance. When you use your credit card at an ATM, you are borrowing money directly from your credit card issuer, not drawing from a bank account. The transaction posts to your credit card balance when ready, and interest starts accruing right away — often at a higher rate than your regular purchase APR.
Most ATMs that accept credit cards will process a cash advance, but not all. You need a PIN (personal identification number) to complete the transaction. If you do not have one set up, you can call your credit card issuer to request one, though this may take a few business days to arrive.
Key Takeaways
- Cash advances charge interest from the moment you withdraw the money, with no grace period like purchases have.
- The interest rate on cash advances is typically 3 to 5 percentage points higher than your regular purchase APR.
- Most credit card issuers charge an upfront fee of 3 to 5 percent of the amount withdrawn, in addition to interest.
- You need a PIN to withdraw cash at an ATM; if you do not have one, contact your card issuer to request it.
- Cash advances report to credit bureaus as debt and can lower your credit score if they raise your overall credit utilization.
How the fees and interest work
A cash advance costs you money in two ways: an upfront fee and daily interest. The upfront fee is usually 3 to 5 percent of the amount you withdraw, charged when ready to your credit card balance. So if you withdraw $200, you might pay $6 to $10 just to get the cash.
Interest begins accruing the same day you withdraw the cash. Unlike a regular credit card purchase, which has a grace period (usually 21 to 25 days before interest kicks in), a cash advance has no grace period. The interest rate is also higher — typically 3 to 5 percentage points above your regular APR. If your purchase APR is 18 percent, your cash advance APR might be 23 or 24 percent.
The combination of the upfront fee and high interest makes cash advances expensive. A $200 withdrawal at 5 percent fee plus 24 percent APR costs you $10 upfront, plus roughly $4 in interest if you pay it back in one month. Over three months, the interest alone could exceed $12.
Where you can withdraw cash
Most ATMs in the United States accept credit cards, including machines at banks, convenience stores, and standalone ATM networks. However, some ATMs — particularly those inside banks — may decline credit card transactions and only accept debit cards or bank account withdrawals.
Your credit card issuer may also limit where you can use cash advances. Some cards restrict cash advances to ATMs in the United States only, or exclude certain ATM networks. Check your card's terms or call the issuer before you need cash to confirm which ATMs will work.
ATM operators may also charge a surcharge on top of your credit card issuer's fee. A typical ATM surcharge is $2 to $3, added to your credit card balance. This is separate from the cash advance fee your issuer charges.
Daily and monthly withdrawal limits
Your credit card issuer sets a cash advance limit, which is usually lower than your overall credit limit. You might have a $5,000 credit limit but only a $1,000 cash advance limit. This limit resets daily or monthly depending on your card's terms.
Check your card's terms or log into your online account to find your cash advance limit. If you need to withdraw more than your limit allows, you can contact your issuer to request a temporary increase, though they may decline.
How a cash advance affects your credit
A cash advance increases your credit card balance, which raises your credit utilization ratio — the percentage of your available credit you are using. If you have a $5,000 credit limit and withdraw $500 in cash, your utilization jumps from 0 to 10 percent. Higher utilization can lower your credit score, even if you pay the balance in full the next month.
The cash advance also reports to credit bureaus as debt. If you carry the balance for several months, it signals to lenders that you are borrowing at high interest rates, which can make future loans more expensive or harder to get.
When a cash advance makes sense
A cash advance is rarely the best option, but there are narrow situations where it might be necessary. If you need cash for an emergency and have no other way to get it — no ATM access to a bank account, no friends or family to borrow from, no payday loan option — a short-term cash advance is better than missing a critical payment or going without.
The key is to pay it back as fast as possible. Every day you carry the balance, the interest compounds. If you withdraw $200 and pay it back within a week, the interest cost might be under $1. If you carry it for three months, the cost could exceed $12.
Do not use a cash advance to fund regular spending or to move money between accounts. The fees and interest make it far more expensive than a debit card withdrawal or a bank transfer.
Alternatives to a cash advance
Before you use a credit card cash advance, explore other options. If you have a bank account, use your debit card or visit a bank branch to withdraw cash for free. If you do not have a bank account, look into opening a basic checking account at a credit union or online bank — many have no monthly fees and let you withdraw cash at ATMs nationwide.
If you need cash urgently and do not have a bank account, ask a friend or family member to lend you money, or check whether your employer offers paycheck advances. Some employers will advance you a portion of your next paycheck at no cost.
If you are in a financial crisis and need cash repeatedly, a cash advance is a sign that your income does not cover your expenses. Consider talking to a credit counselor, who can help you build a budget and find resources in your area. Many nonprofits offer free counseling.
Frequently Asked Questions
Can I use any credit card to withdraw cash from an ATM?
Most credit cards allow cash advances, but some do not. Business credit cards and certain rewards cards may restrict cash advances or prohibit them entirely. Check your card's terms or call your issuer to confirm before you try to withdraw cash.
What if I do not have a PIN for my credit card?
Call your credit card issuer and request a PIN. They will mail it to you or may give you a temporary PIN over the phone. The process usually takes 3 to 7 business days. Some issuers let you set your own PIN online or through their mobile app.
Will a cash advance hurt my credit score?
Yes, it can. A cash advance raises your credit utilization ratio, which can lower your score when ready. If you carry the balance for months, the high interest and debt load will continue to hurt your score. Paying it off quickly minimizes the damage.
Is there a difference between a cash advance and a balance transfer?
Yes. A cash advance is money you withdraw from an ATM or bank teller, while a balance transfer moves debt from one credit card to another. Both charge fees and interest, but balance transfers sometimes offer a promotional 0 percent APR period if you transfer within a certain timeframe. Cash advances never have a 0 percent period.
Can I dispute a cash advance if I did not authorize it?
Yes. If someone withdrew cash using your card without permission, contact your issuer when ready and report it as fraud. You are protected under federal law and typically will not be held liable for unauthorized transactions, though you may need to provide a police report or affidavit.