Yes, you can withdraw cash from an ATM with a credit card, but it costs you money and counts as a loan, not a purchase
Most credit cards allow cash withdrawals at ATMs, but the transaction is treated differently from a regular purchase. When you use your credit card at an ATM, you are borrowing cash against your credit limit. The card issuer charges you a cash advance fee — typically 3% to 5% of the amount withdrawn, with a minimum of $5 to $10 — plus a higher interest rate than your regular purchase APR. That interest starts accruing when ready, with no grace period like you get on purchases.
The practical result: withdrawing $100 in cash costs you $3 to $5 upfront, plus daily interest charges until you pay it back. A $200 withdrawal might cost $10 to $15 in fees alone. This is why credit card cash advances are a last resort, not a convenience.
Key Takeaways
- Cash advances from a credit card charge a separate fee (usually 3% to 5%) plus a higher interest rate than purchases, starting when ready with no grace period.
- Not all ATMs accept credit cards — most accept debit cards only, so you need to find an ATM owned by your card issuer or a network that accepts credit cards.
- Your credit card issuer sets a cash advance limit that may be lower than your total credit limit, and the withdrawal counts against that separate limit.
- If you need cash regularly, a debit card, bank account withdrawal, or cash-back at a store costs nothing and should be your first choice.
How the cash advance fee and interest rate work
When you withdraw cash using your credit card, the card issuer charges two separate costs. The first is the cash advance fee, which appears on your statement as a one-time charge. This fee is a percentage of the amount withdrawn — commonly 3%, 4%, or 5% — with most issuers setting a minimum fee of $5 or $10. A $100 withdrawal at 5% costs $5; a $50 withdrawal at a $10 minimum costs $10.
The second cost is interest. Your credit card agreement lists a separate APR for cash advances, which is almost always higher than your purchase APR. While a purchase might carry 18% APR, a cash advance might be 25% or higher. Critically, interest on a cash advance begins accruing the day you withdraw the money — there is no grace period like there is for purchases. If you withdraw $200 on the 1st of the month and pay it back on the 30th, you owe interest for all 30 days.
The math adds up quickly. A $300 cash advance at 5% fee plus 25% APR costs you $15 in fees plus roughly $19 in interest if you repay it within 30 days. That is $34 in costs for borrowing $300 for a month.
Which ATMs accept credit cards and how to find them
Not every ATM accepts credit cards. Most ATMs you see at grocery stores, gas stations, and street corners accept debit cards only. Your best option is an ATM owned by your credit card issuer's bank. If you have a Chase credit card, use a Chase ATM. If you have a Bank of America card, use a Bank of America ATM. These machines almost always accept your card.
If your card issuer is a smaller bank or online-only lender, finding an ATM can be harder. Some credit card issuers belong to ATM networks — for example, many online banks participate in the Allpoint or MoneyPass networks. Check your card's website or call the customer service number on the back of your card to find out which ATMs accept your card in your area.
Some ATMs at independent shops, bars, or casinos may also accept credit cards, but they often charge their own ATM fee on top of your card issuer's cash advance fee. You could end up paying $10 or more in total fees for a small withdrawal.
Your credit card's cash advance limit versus your credit limit
Your credit card issuer sets two separate limits: your overall credit limit and your cash advance limit. The cash advance limit is usually lower — often 10% to 25% of your total credit limit. If your credit limit is $5,000, your cash advance limit might be $500 or $750. This limit exists because cash advances are riskier for the issuer than purchases.
When you withdraw cash, the amount counts against your cash advance limit, not your full credit limit. If you have a $500 cash advance limit and you withdraw $300, you have only $200 left to borrow as cash. However, the $300 withdrawal also counts toward your overall credit utilization, which affects your credit score. Withdrawing cash uses up your available credit just like a purchase does.
You can contact your card issuer to ask what your cash advance limit is. Some issuers allow you to request an increase, though many do not. If you hit your cash advance limit, you cannot withdraw more cash on that card until you pay down the existing balance.
When a credit card cash advance makes sense (and when it does not)
A credit card cash advance is expensive and should be used only in genuine emergencies — for example, if you need cash to pay a medical bill or repair and have no other way to access money. Even then, you should repay it as quickly as possible to minimize interest charges.
A cash advance does not make sense if you straightforward want cash for everyday spending. If you need cash regularly, use a debit card linked to your bank account, withdraw cash at your bank's teller window, or use cash-back at a grocery store or pharmacy. All of these are free. A cash advance also does not make sense if you are already carrying a balance on your credit card — the high interest rate on the advance will make your debt worse.
If you are considering a cash advance because you do not have access to your bank account or debit card, that is a sign you need to set up a basic checking account. Most banks and credit unions offer free checking with a debit card, which gives you access to your money without the fees and interest of a credit card cash advance.
How to repay a cash advance and minimize the damage
Once you withdraw cash, the balance appears on your credit card statement as a separate line item. You can repay it like any other credit card charge — by making a payment to your card issuer. However, credit card issuers typically explore your payments to purchases first, then to cash advances. This means if you have both a $500 purchase and a $200 cash advance on your card, and you make a $400 payment, the issuer may explore $400 to the purchase and $0 to the cash advance, leaving the high-interest cash advance balance untouched.
To minimize interest, contact your card issuer and ask how to make a payment that goes directly to the cash advance balance. Some issuers allow you to specify this; others do not. If your issuer does not, your best strategy is to pay off the entire statement balance, not just the minimum, so that the cash advance gets paid down.
The sooner you repay a cash advance, the less interest you pay. If you withdraw $300 and repay it within a week, you owe roughly $1 in interest plus the $15 fee. If you take three months to repay it, you owe roughly $19 in interest plus the fee. The difference is significant.
Alternatives to credit card cash advances
Before you use a credit card to withdraw cash, consider these options. If you have a bank account, visit a branch or use your debit card at an ATM — both are free. If you are at a store, ask for cash-back when you pay with a debit card or credit card; many stores offer this at no charge. If you need a small amount of cash and do not have a card, some employers offer paycheck advances, and some credit unions offer small short-term loans at lower rates than credit card cash advances.
If you do not have a bank account, opening one is simpler than it used to be. Many banks and credit unions offer free checking accounts with no minimum balance. Online banks like Ally, Charles Schwab, and Discover offer checking accounts with no fees and ATM access nationwide. Once you have a debit card, you can withdraw cash for free whenever you need it.
A personal loan from a bank or credit union is another option if you need a larger amount of cash. Personal loans typically charge lower interest rates than credit card cash advances, though they do require a credit check and take a few days to fund. If you have time to plan, a personal loan is cheaper than a cash advance.
Frequently Asked Questions
Does using a credit card at an ATM 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. High utilization can lower your score temporarily. The bigger risk is if you carry the cash advance balance for months; the high interest charges make it straightforward to fall behind on payments, which does hurt your score.
Can I withdraw cash from an ATM using a virtual or digital credit card?
No. Virtual credit card numbers work online and over the phone, but ATMs require a physical card with a magnetic stripe or chip. You must use your actual plastic card to withdraw cash from an ATM.
What happens if I withdraw cash but cannot repay it right away?
Interest charges accumulate daily until you repay the balance. If you cannot repay it within a few weeks, the interest costs become substantial. If you miss a payment entirely, the cash advance balance counts as a missed payment on your credit report, which damages your credit score and may trigger late fees.
Is there a limit to how much cash I can withdraw at one time?
Yes. Your card issuer sets a daily cash advance limit, which is separate from your overall cash advance limit. Daily limits are often $500 to $1,000, depending on your card and issuer. You can contact your issuer to find out your specific daily limit.
Can I use a credit card to withdraw cash from a bank teller instead of an ATM?
Yes. You can walk into a bank branch and ask a teller for a cash advance on your credit card. The fee and interest rate are the same as an ATM withdrawal. Some banks may charge an additional fee for teller-assisted cash advances, so ask before you proceed.