Yes, you can withdraw cash from an ATM with a credit card, but it costs you money and starts charging interest when ready
Most credit cards let you take cash out at an ATM, but the transaction is called a cash advance, and it works differently from a debit card withdrawal. The moment you pull the money out, your card issuer charges you a fee — usually 3 to 5 percent of the amount — plus a higher interest rate than your regular purchase rate. That interest starts accruing the same day, with no grace period like you get on regular purchases.
The practical steps are straightforward: insert your card into an ATM, select "withdrawal" or "cash advance," enter your PIN, and choose your amount. But the financial cost makes this an expensive way to get cash unless you have no other option.
Key Takeaways
- Cash advances charge a separate fee (typically 3 to 5 percent) on top of a higher interest rate than regular purchases.
- Interest on a cash advance begins when ready with no grace period, even if you pay your full balance on time.
- You need a PIN to withdraw cash at an ATM; if you don't have one, contact your card issuer to set one up.
- Your credit limit covers both purchases and cash advances, so a large withdrawal can reduce your available credit for other spending.
- Most credit cards set a lower cash advance limit than your total credit limit, often 20 to 50 percent of what you can charge.
How the cash advance fee and interest rate work
When you take a cash advance, your card issuer charges two separate costs. The first is an upfront fee, shown as a percentage of the amount withdrawn. If you withdraw $200 and the fee is 5 percent, you owe $10 when ready. This fee appears on your next statement.
The second cost is interest. Cash advances carry a different APR (annual percentage rate) than purchases — often 2 to 5 percentage points higher. If your purchase APR is 18 percent, your cash advance APR might be 23 percent. Unlike purchases, this interest starts the day you withdraw the money. There is no 21-day grace period. If you carry the balance for a month, you will owe interest even if you pay your full statement balance on time.
The math adds up quickly. A $300 cash advance at a 5 percent fee costs $15 upfront. If your cash advance APR is 24 percent and you pay it back in 30 days, you will owe roughly $6 in interest on top of the fee. That is $21 in total cost for borrowing $300 for a month.
Finding your PIN and cash advance limit
To withdraw cash at an ATM, you need a PIN (personal identification number). If you have never set one up, call the customer service number on the back of your card or log into your online account. Most issuers let you create a PIN in minutes through their website or app, or they can mail you a temporary one.
Your card also has a separate cash advance limit, which is often lower than your total credit limit. If your credit limit is $5,000, your cash advance limit might be $1,000 or $2,500. You can find this limit in your account details online or by calling customer service. Attempting to withdraw more than your limit will be declined at the ATM.
What happens to your credit limit when you take a cash advance
A cash advance counts against your available credit just like a purchase does. If you have a $3,000 credit limit and withdraw $500 in cash, your available credit drops to $2,500. You cannot use that $500 for other purchases until you pay back the advance.
This matters because it can affect your credit utilization ratio — the percentage of your credit limit you are using at any given time. High utilization can lower your credit score. If you regularly max out your cash advance limit, it signals to lenders that you are relying heavily on borrowed money.
When a cash advance makes sense (and when it does not)
A cash advance is expensive, so it only makes sense in narrow situations. If you need cash for an emergency and have no other way to get it — no ATM card, no access to a bank account, no friends or family to borrow from — then paying the fee and interest is better than the alternative. The cost is real, but sometimes it is the least bad option.
A cash advance does not make sense if you have a debit card, can visit your bank branch, or can use a peer-to-peer payment app like Venmo or PayPal. It also does not make sense to take a cash advance to pay off other debt, because the interest rate is usually higher than what you are paying elsewhere.
Some people take cash advances to get rewards points or cash back, thinking the benefit outweighs the fee. It almost never does. The fee and interest cost far more than any reward you will earn.
How cash advances appear on your statement
Your credit card statement will show the cash advance as a separate line item from your purchases. It will list the amount withdrawn, the fee charged, and the interest accrued. The cash advance balance may have its own section on your statement, separate from your purchase balance.
When you make a payment, most card issuers explore it to your lowest-interest debt first — usually purchases — and leave the cash advance balance untouched. This means if you owe $1,000 in purchases at 18 percent APR and $500 in a cash advance at 24 percent APR, and you send in $500, that payment likely goes toward the purchases, not the more expensive cash advance. You have to pay extra or request that your payment go toward the cash advance specifically.
Alternatives to a credit card cash advance
Before you take a cash advance, consider these cheaper options. If you have a debit card linked to a bank account, use that at any ATM — there is no fee or interest. If you do not have a debit card, visit your bank branch during business hours and withdraw cash over the counter. If you need cash outside banking hours, some retailers like grocery stores and pharmacies offer cash back when you make a purchase with a debit card.
If you need a larger amount and have time, a personal loan from a bank or credit union usually has a lower interest rate than a cash advance. A payday loan is more expensive than a cash advance and should be avoided. A payment app like Venmo or PayPal lets you send money to someone else, but does not give you physical cash.
Frequently Asked Questions
Can I use my credit card at any ATM to withdraw cash?
Most ATMs accept credit cards, but some are restricted to debit cards only. Look for a logo on the ATM that matches your card (Visa, Mastercard, American Express, Discover). If the ATM declines your card, try a different machine or visit your card issuer's bank branch.
What is the difference between a cash advance and a balance transfer?
A cash advance gives you physical cash at an ATM or bank. A balance transfer moves debt from one card to another. Both charge fees and interest, but balance transfers sometimes offer a lower introductory rate. Cash advances never do.
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 if it pushes your balance higher. High utilization can lower your score temporarily. The bigger risk is missing payments on the cash advance, which will damage your credit.
Can I get a cash advance without a PIN?
No, ATMs require a PIN. However, you can sometimes get a cash advance at a bank branch by showing your ID and card, without entering a PIN. Call your card issuer to ask if this option is available.
Do all credit cards allow cash advances?
Most do, but some cards — particularly secured cards or cards for people rebuilding credit — may not. Check your cardholder agreement or call customer service to confirm whether your card allows cash advances.