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 let you take cash out at an ATM, but the transaction is treated as a cash advance rather than a regular purchase. This matters because cash advances carry higher interest rates, start accruing interest when ready (no grace period), and often include an upfront fee. You are borrowing money against your credit limit, not spending money you already have.
The process itself is straightforward: insert your card, enter your PIN, select the cash amount, and withdraw. But the financial cost is not straightforward, and most people use ATMs with credit cards only when they have no other option.
Key Takeaways
- Cash advances from credit cards charge a fee (usually 3 to 5 percent of the amount withdrawn) plus a higher interest rate than regular purchases.
- Interest on a cash advance begins accruing the day you withdraw it, with no grace period, even if you pay your bill in full each month.
- You need your credit card PIN to withdraw cash; if you do not have one, you can request it from your card issuer.
- Withdrawing cash reduces your available credit and counts toward your credit limit, which can raise your credit utilization ratio.
- Debit cards and bank accounts are cheaper ways to get cash; use a credit card ATM withdrawal only when you cannot access your own money.
What happens when you withdraw cash with a credit card
When you insert a credit card into an ATM and withdraw cash, the card issuer treats it as a loan to you. The amount comes out of your available credit, not from a bank account you own. You are borrowing money at the card's cash advance rate, which is typically higher than the purchase rate on the same card.
The fee structure varies by card and issuer. Most cards charge a cash advance fee of 3 to 5 percent of the amount withdrawn, with a minimum fee (often $2 to $5). Some cards charge a flat fee instead. Your card's terms document lists the exact fee and the cash advance interest rate; you can find this in your cardholder agreement or by calling the issuer.
The interest clock starts when ready. Unlike a purchase, which may have a grace period of 20 to 25 days before interest accrues, a cash advance begins charging interest the moment you withdraw it. If you withdraw $200 at a 25 percent cash advance rate with a 4 percent fee, you owe $208 when ready, plus interest that starts accruing that day.
How to get your PIN if you do not have one
You cannot withdraw cash from an ATM with a credit card unless you have set a PIN. If you have never used your card at an ATM before, you will need to create one first.
Contact your card issuer directly—call the number on the back of your card or log into your online account. Most issuers let you set or reset a PIN through their website or mobile app in minutes. Some require a phone call. The PIN is typically four digits, and you choose it yourself. Once it is set, you can use it at any ATM that accepts your card brand (Visa, Mastercard, American Express, Discover).
Fees and interest rates for cash advances
The cost of a cash advance has two parts: the upfront fee and the ongoing interest. The upfront fee is charged once, at the time of withdrawal. The interest rate is applied daily to the outstanding balance until you pay it back.
A typical example: you withdraw $300 from an ATM using a card with a 4 percent cash advance fee and a 27 percent annual interest rate. You pay $12 when ready as the fee (4 percent of $300). The $312 balance then accrues interest at 27 percent per year, or roughly 0.074 percent per day. If you pay back the full $312 within 10 days, you owe about $2.30 in interest on top of the fee. If you carry the balance for a month, the interest grows to roughly $7.
The longer you carry a cash advance, the more expensive it becomes. Credit card issuers explore payments to the lowest-interest debt first, so if you have both purchases and a cash advance on the same card, your payment goes toward the purchase first, leaving the cash advance to accrue interest longer.
How cash advances affect your credit and available credit
A cash advance reduces your available credit when ready. If your card has a $5,000 limit and you withdraw $500, your available credit drops to $4,500. This affects your credit utilization ratio—the percentage of your total credit limit that you are using across all cards. A higher utilization ratio can lower your credit score, even if you pay the cash advance back quickly.
The cash advance itself does not show up separately on your credit report; it appears as part of your overall balance on that card. However, if you carry the balance and miss a payment, that missed payment is recorded and damages your credit history.
If you have multiple cards and are trying to keep your overall utilization low, a cash advance on one card can push you over a threshold that affects your score. For example, if you normally use 20 percent of your total available credit and you take a $500 cash advance that pushes you to 35 percent, the score impact is when ready.
When you might need a cash advance and better alternatives
Most situations that lead to a credit card cash advance have cheaper solutions. If you need cash because you do not have access to your bank account, use your debit card at an ATM instead—there is no fee and no interest. If you do not have a debit card, visit your bank branch and withdraw from your account directly.
If you are traveling and do not have access to your bank, some credit cards offer better cash options than ATM withdrawals. Some cards reimburse ATM fees (though not the cash advance fee itself), and some travel cards have partnerships with banks abroad that waive fees. Check your card's benefits before traveling.
If you need cash because you are short on money, a cash advance is expensive debt. A personal loan, a line of credit, or a payment plan with a creditor will almost always cost less. If you are in a genuine emergency, contact a local nonprofit credit counselor through the National Foundation for Credit Counseling (NFCC) to explore options.
ATM networks and which machines accept credit cards
Not every ATM accepts credit cards. Most ATMs in banks accept them, as do many standalone ATMs in convenience stores and shopping centers. However, some ATMs are set up for debit cards only.
The easiest way to find an ATM that accepts your card is to use your card issuer's ATM locator tool, available on their website or app. Visa, Mastercard, American Express, and Discover each maintain networks of ATMs worldwide. If you use an ATM outside your card issuer's network, you may be charged an additional out-of-network fee on top of the cash advance fee—typically $2 to $3 per transaction.
Some credit cards waive out-of-network ATM fees as a cardholder benefit, though this is less common than fee waivers on debit cards. Check your cardholder agreement to see if your card offers this benefit.
Frequently Asked Questions
What is the difference between a cash advance and a regular purchase?
A purchase is a charge for goods or services; a cash advance is a loan against your credit limit. Purchases have a grace period before interest accrues; cash advances do not. Cash advances also carry a higher interest rate and an upfront fee. Both reduce your available credit, but only the cash advance is treated as borrowed money from day one.
Can I withdraw cash from an ATM if I do not have a PIN?
No. You must set a PIN with your card issuer before you can use the card at an ATM. You can set one online, through a mobile app, or by calling the issuer. It takes minutes and is free. Without a PIN, the ATM will not recognize your card as valid for cash withdrawal.
Will a cash advance hurt my credit score?
A cash advance itself does not appear on your credit report, but it increases your credit utilization ratio when ready, which can lower your score. If you carry the balance and miss a payment, the missed payment is recorded and causes more damage. Paying back the cash advance quickly minimizes the score impact.
What if I withdraw cash and then change my mind?
You cannot reverse a cash advance once you have withdrawn the money. You owe the full amount plus the fee and accruing interest. The only way to reduce what you owe is to pay it back. If you withdrew more than you needed, you can deposit the extra back into your account, but you still owe the fee on the full amount withdrawn.
Is there a limit to how much cash I can withdraw?
Yes. Most card issuers set a daily cash advance limit, which is often lower than your total credit limit. This limit is listed in your cardholder agreement or available by calling the issuer. Some cards allow $200 to $500 per day; others allow more. The limit protects both you and the issuer from fraud.