Yes, you can use a credit card at an ATM, but it is not the same as using a debit card
When you insert a credit card into an ATM, you are taking out a cash advance — a short-term loan from your credit card issuer. The ATM does not pull money from a bank account you have already funded. Instead, the card company lends you cash on the spot, and you start paying interest when ready, usually at a higher rate than your regular purchase APR.
Most credit card companies allow cash advances, but they make money on them, so the terms are deliberately unfavorable. You will see a fee, a higher interest rate, and no grace period — interest starts accruing the day you withdraw the cash, not at the end of a billing cycle like a purchase would.
The mechanics are straightforward: insert your card, enter your PIN (which you may need to set up first if you have never done a cash advance), and withdraw up to your cash advance limit. That limit is usually much lower than your credit limit — often 20 to 50 percent of what you can charge.
Key Takeaways
- A credit card cash advance is a loan, not a withdrawal from your own money, and interest starts the moment you take the cash.
- Cash advance fees typically run 3 to 5 percent of the amount withdrawn, charged when ready to your card.
- The interest rate on cash advances is usually 5 to 10 percentage points higher than your regular purchase APR and applies from day one.
- Your cash advance limit is separate from your credit limit and is often much smaller — check your card's terms to find yours.
- Using a credit card for cash should be a last resort; a debit card, bank withdrawal, or personal loan is cheaper in almost every case.
How cash advance fees and interest work
When you take a cash advance, two costs hit you at once. The first is the cash advance fee, a flat percentage of the amount you withdraw. Most issuers charge between 3 and 5 percent, though some charge a flat dollar amount instead (like $5 or $10 minimum). This fee appears on your next statement and counts toward your balance.
The second cost is interest. Your cash advance APR is printed in your card's terms and conditions — look for it under "APR for Cash Advances" or similar language. This rate is almost always higher than your purchase APR. If your purchase rate is 18 percent, your cash advance rate might be 25 percent or more. Unlike a purchase, which has a grace period (usually 21 to 25 days before interest kicks in), a cash advance starts accruing interest on day one.
The math adds up fast. A $500 cash advance at a 4 percent fee plus 25 percent APR costs you $20 upfront and roughly $10 in interest after one month if you do not pay it back when ready. That $530 balance then sits on your card, accruing interest daily until you pay it off.
Why your cash advance limit is lower than your credit limit
Credit card companies set a separate, lower limit for cash advances. If your credit limit is $5,000, your cash advance limit might be $1,000 or $2,500. The company does this because cash advances are riskier for them — they have less control over how the money is used and cannot reverse the transaction the way they can with a disputed purchase.
You can find your cash advance limit in your card's online account, in your cardholder agreement, or by calling the customer service number on the back of your card. Some issuers let you request a higher limit, but many will not increase it. If you hit your cash advance limit, the ATM will decline the transaction.
What happens if you cannot find an ATM that takes your card
Not every ATM accepts credit cards — many only accept debit cards or bank cards. ATMs owned by your card issuer's bank are most likely to work. If you use an out-of-network ATM (one not owned by your bank), you may face an additional fee from the ATM operator on top of your cash advance fee.
If you need cash and cannot find a compatible ATM, you have other options. Many retailers will let you get cash back when you make a purchase with your credit card — ask at the register. Some banks will also give you a cash advance over the counter if you visit a branch in person with your card and ID. Neither option avoids the fees and interest, but they may be more convenient than hunting for an ATM.
When a cash advance makes sense (and when it does not)
A credit card cash advance should be your last resort for getting cash. It is cheaper to use a debit card, withdraw from your own bank account, or borrow from a friend. If you have access to a personal loan, that rate is almost always lower than a cash advance rate.
The only scenario where a cash advance might make sense is a genuine emergency where you have no other option and you can pay back the full amount within a few days. Even then, the cost is high. A $200 cash advance at 4 percent plus 25 percent APR costs you $8 upfront and $1.30 in interest per day. If you pay it back in three days, you have spent $12.90 to access your own credit. If you pay it back in a month, you have spent roughly $30.
If you find yourself regularly needing cash advances, that is a sign your budget does not match your spending. Before taking another one, talk to a credit counselor about building an emergency fund or adjusting your monthly plan. Many nonprofits offer free counseling — you can find one through the National Foundation for Credit Counseling or by calling 211.
How to set up your PIN for ATM use
Before you can use your credit card at an ATM, you need a PIN. If you have never set one up, you can do it through your card issuer's website or app, or by calling the customer service number on the back of your card. The process usually takes a few minutes.
Write down your PIN and store it somewhere safe — not in your wallet or phone. If you forget it, you can reset it online or by phone, but that takes time. If you are in an emergency and need cash when ready, you may not have time to wait for a PIN reset.
Frequently Asked Questions
Does using a credit card at an ATM hurt my credit score?
Not directly. The cash advance itself does not appear on your credit report as a separate transaction. However, if the cash advance increases your credit utilization (the percentage of your total credit limit you are using), that can lower your score slightly. Paying it back quickly minimizes this effect.
Can I use a credit card at any ATM?
Most ATMs that accept credit cards will work, but some are debit-only. ATMs owned by your card issuer's bank are your best bet. Out-of-network ATMs may charge an additional operator fee on top of your cash advance fee, so avoid them if you can.
What is the difference between a cash advance and a balance transfer?
A cash advance gives you physical cash at an ATM or bank counter. A balance transfer moves debt from one card to another. Both have fees and higher interest rates, but a balance transfer is for moving existing debt, while a cash advance is for getting new cash.
If I pay back a cash advance right away, do I still pay interest?
You still pay the upfront cash advance fee no matter what. Interest accrues daily starting the day you withdraw the cash, so even if you pay it back within a few days, you will owe some interest. The longer you carry the balance, the more interest adds up.
Can I use a credit card cash advance to pay off another credit card?
Technically yes, but it is a bad idea. You would pay a cash advance fee, a higher interest rate, and no grace period — all to move debt from one card to another. A balance transfer (if your card offers one) or a personal loan would be much cheaper.