Yes, you can use a credit card at an ATM, but it costs you money and works differently than a debit card
Most ATMs will accept a credit card, but when you do, you are taking out a cash advance — not a withdrawal from your own account. The ATM charges you a fee (usually $3 to $5 per transaction), your credit card company charges you a separate fee (often 3 to 5 percent of the amount withdrawn), and interest starts accruing when ready at a higher rate than your regular purchase APR. There is no grace period on cash advances the way there is on purchases. If you need cash, using a debit card or visiting your bank branch is almost always cheaper.
Key Takeaways
- A credit card cash advance at an ATM triggers two separate fees — one from the ATM operator and one from your credit card company — plus when ready interest charges.
- Interest on cash advances starts the day you withdraw the money, with no grace period, and the rate is typically higher than your purchase APR.
- You can find your cash advance APR and fees in your credit card agreement or by calling the number on the back of your card.
- Using a debit card, visiting your bank branch, or getting cash back at a store checkout is cheaper than a credit card cash advance in nearly every situation.
How credit card cash advances work at the ATM
When you insert your credit card into an ATM and select "cash advance" or "withdraw cash," the machine is lending you money against your credit limit, not giving you access to money you already have. You enter the amount you want, the ATM dispenses the cash, and the transaction is recorded as a loan on your credit card account.
The ATM operator — whether it is your bank, another bank, or an independent ATM network — charges you a fee for the transaction. This fee appears on your receipt and is separate from any fee your credit card company charges. Some ATMs display the fee before you complete the transaction; others do not. If you do not see a fee notice, you can usually press a button to decline and try a different ATM.
Fees and interest you will pay
A credit card cash advance triggers costs at three points: the ATM fee, the credit card company fee, and the interest charge.
The ATM operator fee ranges from $2 to $5 per transaction, depending on the ATM network and whether it is in your bank's network. Using an ATM outside your bank's network costs more than using one inside it.
Your credit card company fee is typically 3 to 5 percent of the amount you withdraw. If you take out $200, you might pay $6 to $10 just for the cash advance fee. This fee is added to your balance when ready.
Interest starts accruing right away — there is no grace period like there is for purchases. The interest rate for cash advances is usually 2 to 5 percentage points higher than your regular purchase APR. If your purchase APR is 18 percent, your cash advance APR might be 23 percent. That interest compounds daily until you pay off the balance.
Where to find your cash advance terms
Your credit card agreement lists your cash advance APR, cash advance fee, and any other terms specific to cash advances. You can find this document online in your credit card account portal, or call the customer service number on the back of your card and ask for your cash advance terms.
Some cards offer a lower cash advance fee or APR for the first 30 or 60 days, but this is rare. Most cards charge the full fee and APR from the first dollar withdrawn. Check your specific card's terms before you use the ATM.
Cheaper ways to get cash
If you need cash, using your credit card at an ATM should be your last option. Here are the alternatives:
- Use a debit card at an ATM. If you have a debit card linked to a checking account, use that instead. There is no interest charge, and the ATM fee (if any) is much smaller than a credit card cash advance fee.
- Get cash back at a store. When you make a purchase at a grocery store, pharmacy, or other retailer, you can ask the cashier for cash back. This is free and does not trigger any fees or interest.
- Visit your bank branch. Walk into a branch of your bank during business hours and withdraw cash from a teller. There is no fee, and you can withdraw as much as you need (within reason).
- Use a credit card at a bank teller. Some banks will process a cash advance at the teller window instead of an ATM. The fees may be the same, but you can ask the teller about your options before you proceed.
When a credit card cash advance might make sense
There are very few situations where a credit card cash advance is the right choice. The main scenario is an emergency when you have no other way to get cash — your debit card is lost, the store is closed, and you have no other option. Even then, pay off the cash advance as fast as you can, because the interest rate is high and compounds daily.
If you find yourself needing cash advances regularly, that is a sign your budget needs attention. Consider setting up a small emergency fund in a savings account so you have cash available without relying on expensive credit card advances.
How a cash advance affects your credit score
A cash advance does not directly hurt your credit score, but it does increase your credit utilization — the percentage of your total credit limit that you are using. If you have a $5,000 credit limit and you take out a $500 cash advance, your utilization jumps to 10 percent. High utilization can lower your score slightly. The cash advance also appears as a separate transaction on your credit report, which some lenders view differently than regular purchases.
More importantly, if you cannot pay off the cash advance quickly, the high interest rate means your balance grows fast. Carrying a large balance hurts your credit score more than the cash advance itself does.
Frequently Asked Questions
Can I use a credit card at any ATM?
Most ATMs accept credit cards, but not all. ATMs at your bank almost always accept your credit card. ATMs at other banks or independent networks may or may not. The ATM screen will tell you if it accepts credit cards before you insert your card. If it does not, you can try a different ATM or use one of the cheaper alternatives listed above.
What is the difference between a cash advance and a regular purchase?
A regular purchase uses your credit limit and has a grace period — you do not pay interest if you pay the full balance by the due date. A cash advance has no grace period, interest starts when ready, and the APR is higher. You also pay a cash advance fee on top of the interest.
Will my bank let me take out a large cash advance?
Your credit card company may set a daily or monthly limit on cash advances, which is often lower than your total credit limit. Call the number on the back of your card to find out your cash advance limit before you go to the ATM. Some cards also require you to set up a PIN before you can use the card at an ATM.
How long does it take to pay off a cash advance?
That depends on how much you owe and how much you pay each month. Because the interest rate is high, most of your payment goes toward interest rather than principal at first. Use an online calculator or call your credit card company to see how long it will take to pay off a specific amount.
Can I avoid the cash advance fee?
No. Every credit card charges a cash advance fee, and every ATM charges an operator fee. The only way to avoid these fees is to not take a cash advance. Use a debit card, get cash back at a store, or visit your bank branch instead.