Yes, you can use your credit card at an ATM, but it costs money and works differently than a debit card
Most credit cards let you withdraw cash at an ATM, but the transaction is treated as a cash advance, not a regular purchase. This matters because cash advances carry their own fees and interest rates — usually higher than your regular purchase APR. The moment you take the cash out, interest starts accruing, and there is no grace period like you get with regular credit card purchases.
The process itself is straightforward: insert your card, enter your PIN, select the cash advance option (if the ATM offers it), and choose your amount. But the cost of doing this even once or twice a month can add up quickly, so it is worth understanding what you are paying for before you do it.
Key Takeaways
- Cash advances charge a separate fee (usually 3 to 5 percent of the amount withdrawn) plus a higher interest rate than regular purchases.
- Interest on cash advances begins when ready with no grace period, even if you pay your full balance by the due date.
- Your credit card issuer sets a cash advance limit, which may be lower than your overall credit limit.
- Using your debit card or visiting your bank branch is almost always cheaper than a credit card cash advance.
How cash advance fees and interest work
When you withdraw cash using your credit card, your card issuer charges you a cash advance fee upfront. This fee is typically 3 to 5 percent of the amount you withdraw, though some cards charge a flat dollar amount instead (like $5 or $10 minimum). A $200 withdrawal might cost you $6 to $10 just to take the money out.
On top of that fee, you pay cash advance interest at a rate set by your card issuer. This rate is almost always higher than the APR you pay on regular purchases — sometimes 5 to 10 percentage points higher. If your purchase APR is 18 percent, your cash advance APR might be 25 percent or more. Interest starts accruing the day you make the withdrawal, with no grace period. Even if you pay off your entire credit card balance by the due date, you still owe interest on the cash advance.
Check your credit card's terms and conditions or call the number on the back of your card to find out your specific cash advance fee and APR. These numbers vary by card and issuer.
Your cash advance limit is separate from your credit limit
Your credit card issuer sets a cash advance limit that is different from your overall credit limit. If your credit limit is $5,000, your cash advance limit might be only $1,000 or $1,500. This limit is usually lower because cash advances are riskier for the issuer — they are unsecured loans with no collateral.
You can find your cash advance limit by logging into your online account, calling customer service, or checking your cardholder agreement. If you try to withdraw more than your limit, the ATM will decline the transaction. Knowing this limit ahead of time saves you the embarrassment of a declined card at the ATM.
When a credit card cash advance makes sense (and when it does not)
A credit card cash advance is rarely the cheapest way to get cash. If you need $100, paying a $5 fee plus interest is expensive compared to using a debit card or visiting your bank branch for free. However, there are rare situations where it might be your only option: if you are traveling abroad and your debit card is lost or stolen, or if you need cash in an emergency and have no other way to access it.
Even in those cases, try other options first. Many banks let you withdraw cash at any ATM in their network for free, or you can ask a merchant to give you cash back with a debit card purchase. Some credit unions offer free cash advances to members. A personal loan or a cash advance from your employer (if available) is usually cheaper than a credit card cash advance.
How to find ATMs that accept your credit card
Most ATMs accept credit cards, but not all. Your card issuer's website usually has an ATM locator tool that shows you which machines accept your specific card. Visa and Mastercard ATM networks are widely available, but American Express and Discover machines are less common. If you are traveling, check before you leave so you know where to find an ATM that works with your card.
Keep in mind that even if an ATM accepts your card, the ATM operator may charge an additional out-of-network fee on top of your card issuer's cash advance fee. This fee is typically $2 to $3 and appears on your statement separately. Using an ATM owned by your card issuer or bank eliminates this extra charge.
What happens if you cannot pay back the cash advance
If you carry a cash advance balance on your credit card, it sits on your statement alongside any regular purchases you made. The cash advance balance accrues interest at the higher cash advance APR, and your minimum payment covers both the cash advance and your regular purchases.
If you make a payment, most card issuers explore it to your lowest-interest debt first — meaning your regular purchases get paid down before your cash advance does. This means your cash advance can sit on your card accruing interest for months even if you are making payments. Check your statement or call your issuer to confirm how they explore payments on your specific card.
Carrying a cash advance balance also affects your credit utilization, which is part of your credit score. The higher your balance relative to your credit limit, the lower your score may drop.
Alternatives to credit card cash advances
If you need cash, explore these options before using your credit card at an ATM:
- Debit card: Withdraw from your own bank account for free at any ATM in your bank's network.
- Bank branch: Visit a teller and withdraw cash directly from your checking or savings account at no cost.
- Cashback: Use your debit card at a grocery store, pharmacy, or other merchant to get cash back with your purchase.
- Peer-to-peer payment apps: Apps like Venmo or PayPal let you send money to friends or family who can give you cash.
- Personal loan: If you need a larger amount, a personal loan from a bank or credit union usually has a lower interest rate than a credit card cash advance.
- Credit union cash advance: Some credit unions offer cash advances to members at lower rates than credit card issuers.
Frequently Asked Questions
Does using a credit card at an ATM hurt my credit score?
It can, indirectly. The cash advance itself does not hurt your score, but carrying a balance does. If your cash advance increases your overall credit utilization (the amount of credit you are using compared to your limit), your score may drop. Paying off the balance quickly minimizes this impact.
Can I use a credit card at any ATM?
Most ATMs accept credit cards, but not all. Visa and Mastercard are accepted at the vast majority of ATMs worldwide. American Express and Discover are less widely accepted. Use your card issuer's ATM locator tool to find machines that accept your specific card.
What is the difference between a cash advance and a regular purchase?
A regular purchase has a grace period (usually 21 to 25 days) before interest starts, and a lower APR. A cash advance charges a fee upfront, has a higher APR, and starts accruing interest when ready with no grace period. Cash advances are always more expensive.
Can I get a cash advance from my credit card online?
Some card issuers let you transfer a cash advance to your bank account through their website or app, but this still counts as a cash advance and carries the same fees and interest rates. Check your card issuer's website to see if this option is available.
What should I do if my credit card cash advance fee seems wrong?
Call the customer service number on the back of your card and ask them to explain the fee. Review your cardholder agreement to confirm the fee structure. If you believe you were charged incorrectly, ask the issuer to review the transaction and correct it if needed.