Yes, but you are borrowing money at a higher cost than a purchase
Most credit cards work at ATMs, but using one to withdraw cash is not the same as using your debit card. When you withdraw cash with a credit card, you are taking a cash advance — a short-term loan from your credit card issuer. The money comes from your credit limit, not from a bank account you own.
The catch is that cash advances cost more than regular purchases. You pay an upfront fee (usually 3 to 5 percent of the amount withdrawn), and interest starts accruing when ready — there is no grace period like there is for purchases. If you carry a balance, that interest compounds daily until you pay it back.
Not every ATM will accept your credit card. Most ATMs that take credit cards are owned by your card issuer's bank or are part of a network your card belongs to. Standalone ATMs in convenience stores or bars often reject credit cards entirely. Your card issuer's website or app will show you which ATMs accept your card.
Key Takeaways
- A credit card cash advance charges an upfront fee of 3 to 5 percent plus daily interest with no grace period, making it much more expensive than a purchase.
- Not all ATMs accept credit cards; your card issuer's app or website shows which ones do in your area.
- The cash advance limit is often lower than your credit limit and may be a separate number you need to find out from your issuer.
- If you need cash regularly, a debit card or a bank withdrawal is far cheaper than repeated credit card cash advances.
How much does a cash advance actually cost
The fee structure for a cash advance varies by card issuer, but the pattern is consistent: you pay more than you would for a purchase. A typical cash advance fee is 3 to 5 percent of the amount withdrawn, charged when ready. If you withdraw $200, you might pay $6 to $10 just to get the cash.
Interest is the larger cost. Most credit cards charge a higher interest rate on cash advances than on purchases — often 2 to 3 percentage points higher. If your purchase APR is 18 percent, your cash advance APR might be 21 percent. Unlike purchases, interest on a cash advance starts accruing the day you withdraw it. There is no 21-day grace period. If you carry the balance for a month, you will owe roughly 1.75 percent of the amount in interest alone, on top of the upfront fee.
Over a year, a $200 cash advance at a 5 percent fee and 21 percent APR costs you $42 in fees and interest if you pay it back in 12 monthly installments. A debit card withdrawal costs nothing.
What is your cash advance limit
Your credit card issuer sets a separate cash advance limit, which is usually much lower than your credit limit. If your credit limit is $5,000, your cash advance limit might be $500 or $1,000. This limit is not something you choose — the issuer decides it based on your credit history and account activity.
You can find your cash advance limit by logging into your card's online account, calling the customer service number on the back of your card, or checking your most recent statement. Some issuers show it in the app. If you do not know the number, call before you go to the ATM — trying to withdraw more than your limit will be declined, and some ATMs charge a fee for a failed transaction.
If you need to withdraw more cash than your limit allows, you have two options: make multiple withdrawals (which means paying the fee multiple times), or use a different payment method like a debit card or bank withdrawal.
Which ATMs accept credit cards
ATMs owned or operated by your card issuer's bank almost always accept your card. If you have a Chase credit card, Chase ATMs will take it. If you have a Bank of America card, Bank of America ATMs will accept it. These are the safest bets.
Many credit card networks — Visa, Mastercard, Discover — have agreements with ATM networks, so you may be able to use your card at ATMs outside your bank. Your card issuer's website or mobile app has an ATM locator tool that shows you which machines accept your specific card in your area. Use that tool before you leave home, because not all ATMs in a network accept all cards.
Standalone ATMs in gas stations, bars, convenience stores, and other retail locations often do not accept credit cards at all. They are set up only for debit cards and bank cards. If an ATM does accept your credit card, it will usually display a Visa or Mastercard logo on the machine itself.
When a cash advance makes sense
A credit card cash advance is expensive enough that you should avoid it in most situations. But there are rare cases where it is the least bad option. If you are in an emergency and need cash when ready and have no other way to get it, a cash advance is faster than waiting for a bank transfer or loan approval. You get the money in seconds.
If you can pay back the cash advance within a few days, the interest cost stays low. A $200 advance paid back in three days costs roughly $3 in interest. That is still more than a debit card withdrawal, but it is not catastrophic.
In almost every other situation, there is a better option. If you need cash regularly, ask your bank about a debit card or set up a withdrawal from your checking account. If you are short on money and considering a cash advance to cover expenses, that is a sign to look at your budget or find additional income — borrowing at 21 percent APR will make the problem worse, not better.
How to withdraw cash without using a credit card
If you have a bank account, the simplest way to get cash is to visit your bank's branch and withdraw from your checking or savings account. There is no fee, no interest, and no limit beyond what you have in the account. If you do not have time to visit a branch, most banks let you withdraw cash at their ATMs using a debit card, which is also free.
If you do not have a bank account, you have other options. Some employers offer paycheck advances or early pay programs. Some employers also partner with financial services companies that let you access your paycheck before payday. Credit unions often offer small loans at lower rates than credit card cash advances. Some retail stores offer cash back when you make a purchase with a debit card, which costs nothing.
If you are in a true emergency and have no bank account or debit card, a credit card cash advance is an option, but it should be a last resort. The cost is high, and it does not solve the underlying problem of not having access to your own money.
Frequently Asked Questions
Can I use a credit card at any ATM?
No. Most ATMs accept only debit cards and bank cards. ATMs owned by your card issuer's bank usually accept your credit card, and some ATMs in larger networks accept credit cards, but many standalone ATMs do not. Use your card issuer's ATM locator tool to find machines that accept your card before you go.
What happens if I cannot pay back a cash advance right away?
Interest accrues daily at your cash advance APR, which is usually higher than your purchase APR. If you carry the balance for months, the interest cost grows quickly. Pay back the cash advance as soon as you can. If you cannot, contact your card issuer to discuss a payment plan or hardship options.
Is there a difference between a cash advance and a balance transfer?
Yes. A cash advance is money you withdraw as cash and pay interest on when ready. A balance transfer moves debt from one card to another and may have a lower introductory rate. Both are expensive, but they work differently. A cash advance is for getting physical cash; a balance transfer is for moving existing debt.
Can I use a credit card at an ATM if I do not have a PIN?
No. To withdraw cash at an ATM, you need a PIN (personal identification number) for your credit card. If you do not have one, contact your card issuer to set one up. This usually takes a few minutes on the phone or through the app.
Will using a credit card at an ATM hurt my credit score?
A cash advance itself does not hurt your score, but it does increase your credit utilization — the amount of your credit limit you are using. If your utilization goes above 30 percent, it can lower your score slightly. Paying back the advance quickly will bring your utilization back down.