You can use a credit card at an ATM, but it is a cash advance, not a regular purchase
Yes, most credit cards work at ATMs. When you insert your card and enter your PIN, you are taking out a cash advance — borrowing money directly from your credit card issuer. This is different from using your debit card or withdrawing from a bank account. The money goes into your hand when ready, but the cost starts right away.
Not every ATM accepts credit cards. Bank ATMs usually do. Convenience store and independent ATMs often do not. Your card issuer may also restrict which ATMs you can use or charge you extra fees for using machines outside their network. Check your cardholder agreement or call the number on the back of your card to learn which ATMs accept your specific card.
Key Takeaways
- A credit card cash advance at an ATM costs more than a regular purchase because interest starts when ready with no grace period.
- You pay an upfront cash advance fee (usually 3 to 5 percent of the amount withdrawn) plus a higher interest rate than your regular APR.
- Not all ATMs accept credit cards, and using an out-of-network machine may trigger an additional ATM operator fee.
- Cash advances appear on your credit card statement and count toward your credit utilization, which can lower your credit score.
The fees and interest that come with a cash advance
When you withdraw cash using your credit card, you pay two costs when ready. The first is a cash advance fee, charged by your card issuer. This fee is usually between 3 and 5 percent of the amount you withdraw, though some cards charge a flat dollar amount instead (like $5 or $10). A $200 withdrawal with a 5 percent fee costs you $10 right away.
The second cost is interest. Unlike a regular purchase, which has a grace period (usually 21 to 25 days before interest kicks in), a cash advance starts accruing interest the moment you withdraw it. There is no grace period. The interest rate on cash advances is also higher than your regular purchase APR — often 3 to 5 percentage points higher. If your card charges 18 percent APR on purchases, the cash advance rate might be 23 percent.
You may also pay an ATM operator fee if you use a machine that is not owned by your card issuer's bank. This fee goes to the ATM operator, not your card issuer, and typically ranges from $2 to $5. Some ATMs display this fee on the screen before you complete the transaction; others charge it silently.
How cash advances affect your credit score
A cash advance counts toward your credit utilization ratio — the percentage of your total credit limit that you are currently borrowing. If you have a $5,000 credit limit and take a $500 cash advance, your utilization jumps to 10 percent. High utilization can lower your credit score, even if you pay the balance in full the next day.
The cash advance also appears on your credit report as a separate transaction type. Credit scoring models sometimes treat cash advances differently from regular purchases, viewing them as a sign of financial stress. Lenders see cash advances as riskier behavior than normal spending.
To minimize damage to your score, pay off the cash advance as quickly as possible. Every day you carry the balance, interest compounds and your utilization stays high.
When you might need a credit card cash advance
Credit card cash advances are expensive, so they make sense only in specific situations. If you need cash urgently and have no other way to get it — your debit card is lost, your bank is closed, or you are traveling and cannot access your regular account — a cash advance may be your only option in that moment.
Some people use cash advances to pay bills that do not accept card payments, like rent or utilities. This is almost always a bad financial move because the fees and interest make the cost much higher than the bill itself. If you are considering this, look first for payment plans, bill pay services through your bank, or other ways to pay without borrowing at a high rate.
In a true emergency — medical expense, car repair, or when ready travel — a cash advance might be faster than a personal loan or payday loan, which require applications and approval. But it should be a last resort, not a regular habit.
Alternatives to using your credit card at an ATM
If you need cash, your first choice should be a debit card withdrawal from your own bank account. This costs nothing and does not affect your credit. If your debit card is not available, ask your bank about emergency cash options or visit a branch in person.
A balance transfer to a different card may be cheaper than a cash advance if you need the money for a specific purpose. Some cards offer 0 percent introductory rates on balance transfers, though they still charge an upfront fee. This works only if you are moving debt from one card to another, not if you need actual cash.
If you need cash regularly, consider opening a checking account at a bank with a large ATM network. Many banks offer free ATM access nationwide or worldwide, which saves money over time. Credit unions often have shared branching networks that let you withdraw cash at other credit union locations for free.
How to use a credit card at an ATM if you must
If you decide to proceed with a cash advance, the process is straightforward. Insert your credit card into the ATM just as you would a debit card. When the machine asks whether you want a withdrawal or another transaction, select withdrawal or cash advance. Enter your PIN — the same four-digit code you use for debit transactions, or one you set up specifically for credit card cash advances.
Enter the amount you want to withdraw. The ATM will show you any fees before you confirm. Review these carefully. If the total cost is higher than you expected, cancel the transaction and find another way to get the cash.
Once you confirm, the cash dispenses and the transaction posts to your credit card account. The fee and interest charges appear on your next statement. Pay this balance as soon as possible to stop interest from compounding.
What to do if your card does not work at the ATM
If the ATM rejects your credit card, it could mean several things. The machine may not accept credit cards at all — only debit cards or bank account cards. Some ATMs are programmed to reject credit transactions for security reasons.
Your card issuer may have blocked cash advances on your account. This is a security feature some banks offer to prevent fraud. If you set this up yourself, you can call your card issuer to temporarily remove the block. If the bank set it up, they can explain why and help you decide whether to lift it.
The card may also be expired, damaged, or flagged for suspicious activity. Try a different ATM first. If the problem persists, call the number on the back of your card to troubleshoot with your issuer.
Frequently Asked Questions
Does using a credit card at an ATM hurt my credit score?
Yes, temporarily. The cash advance increases your credit utilization ratio, which can lower your score by a few points. The effect fades once you pay off the balance and your utilization drops. However, the transaction itself does not appear as negative on your credit report — it is the high utilization that matters.
Can I use a credit card cash advance to pay off another credit card?
Technically yes, but it is expensive. You pay the cash advance fee and high interest rate, then use that cash to pay another card. A balance transfer is usually cheaper because the fee is similar but the interest rate is often lower, especially if you find a 0 percent introductory offer.
What is the difference between a cash advance and a balance transfer?
A cash advance gives you physical cash at an ATM and charges a higher interest rate with no grace period. A balance transfer moves debt from one card to another and may offer a lower rate or 0 percent introductory period. Balance transfers are for moving existing debt; cash advances are for getting cash in hand.
Will my bank let me set a limit on credit card cash advances?
Many card issuers let you set a daily or monthly limit on cash advances, or disable them entirely. Call the number on your card or log into your online account to see what options are available. This can protect you if your card is lost or stolen.
Is there a maximum amount I can withdraw as a cash advance?
Yes. Your card issuer sets a cash advance limit, which is often lower than your total credit limit. You might have a $5,000 credit limit but only a $1,000 cash advance limit. Check your cardholder agreement or call your issuer to learn your specific limit.