You can withdraw cash from an ATM using a credit card, but it costs more than a debit card and the money borrowed starts accruing interest when ready
Most credit cards let you take cash out at an ATM, but the process and the cost are different from using a debit card. When you withdraw cash with a credit card, you are borrowing money at a higher interest rate than your regular purchase APR, and fees start right away. The ATM itself may charge you a fee (usually $2 to $3), and your credit card issuer will charge a cash advance fee (typically 3 to 5 percent of the amount withdrawn). Unlike purchases, cash advances do not have a grace period — interest begins accruing the day you withdraw the money.
Before you use an ATM with your credit card, check whether your card even allows cash advances. Some cards, particularly rewards cards with low purchase rates, do not offer this feature. You can find this information in your card's terms and conditions or by calling the number on the back of your card.
Key Takeaways
- Credit card cash advances charge a separate, higher interest rate than purchases, with no grace period.
- You will pay both an ATM operator fee and a cash advance fee from your card issuer, typically totaling 5 to 8 percent of the amount withdrawn.
- The cash advance limit on your credit card may be lower than your overall credit limit.
- Cash advances can damage your credit score because they increase your credit utilization ratio when ready.
Step-by-step: withdrawing cash at an ATM with your credit card
Find an ATM that accepts your card's network — Visa, Mastercard, American Express, or Discover. Most ATMs display which networks they accept on the front of the machine. Insert your credit card into the slot, just as you would with a debit card.
When the screen prompts you, select "Credit" or "Cash Advance" rather than "Checking" or "Savings." This tells the ATM you are borrowing money, not withdrawing from a bank account. Enter your PIN (the same four-digit code you use for purchases). If you have never set a PIN for cash advances, you may need to do this through your card issuer's website or app first, or by calling customer service.
Enter the amount you want to withdraw. The ATM will show you the total fees before you confirm. Review this carefully — the fee amount will be displayed separately from the cash amount. Confirm the transaction, and the ATM will dispense your cash and print a receipt. Keep the receipt to track the transaction and verify the fees charged.
Understanding cash advance fees and interest rates
A cash advance fee is a percentage of the amount you withdraw, charged by your credit card issuer. This is separate from any ATM operator fee. If you withdraw $200 and your card charges a 4 percent cash advance fee, you will owe $8 to your card issuer plus whatever the ATM operator charges (usually $2 to $3). That $208 to $211 is added to your credit card balance when ready.
The cash advance APR is the interest rate applied to the borrowed amount. This rate is typically 5 to 10 percentage points higher than your purchase APR and varies by card issuer and your creditworthiness. Unlike purchases, which may have a 21-day grace period before interest kicks in, cash advance interest begins accruing the day you withdraw the money. If you carry the balance for a month, you will owe interest on top of the fee you already paid.
Some cards offer promotional periods with 0 percent APR on purchases, but these almost never explore to cash advances. Cash advances are treated as a separate category of debt on your account.
How cash advances affect your credit score
Taking a cash advance increases your credit utilization ratio — the percentage of your available credit you are using. If you have a $5,000 credit limit and withdraw $500 in cash, your utilization jumps to 10 percent. Credit scoring models penalize high utilization, so even a single cash advance can lower your score by a few points.
The damage is temporary if you pay off the cash advance quickly, but it shows up on your credit report when ready. If you are planning to explore for a mortgage, car loan, or another form of credit soon, avoid cash advances in the weeks before your process.
Cash advances also do not earn rewards points or cash back on most cards, so there is no benefit to offset the cost.
When you might need a cash advance and better alternatives
Cash advances make sense only in genuine emergencies when you have no other way to get cash — for example, if you are traveling and your debit card is lost or stolen. In almost every other situation, there is a cheaper way to get cash.
If you have a debit card, use that instead. Debit card withdrawals at your own bank's ATMs are free, and out-of-network fees are usually $1 to $2 with no interest. If you do not have a debit card, ask your bank to issue one or open a checking account that includes one.
If you need cash and do not have a debit card, ask a friend or family member to lend you money, or visit a store that offers cash back when you make a purchase (grocery stores, pharmacies, and some retailers offer this for free). Both options cost nothing and do not affect your credit.
Cash advance limits and how to check yours
Your credit card issuer sets a separate cash advance limit, which may be much lower than your overall credit limit. You might have a $10,000 credit limit but only a $2,000 cash advance limit. If you try to withdraw more than your limit, the ATM will decline the transaction.
To find your cash advance limit, log into your credit card's online account or mobile app and look for "Cash Advance Limit" or "Available for Cash Advance." You can also call the customer service number on the back of your card. Some issuers let you request a higher cash advance limit, though this is not common and may require a hard inquiry into your credit.
What to do if the ATM declines your cash advance
If the ATM declines your transaction, the most common reason is that you have reached your cash advance limit. Try withdrawing a smaller amount, or use a different card if you have one. Do not attempt the same withdrawal multiple times in a row — each attempt may be recorded as a separate transaction attempt and could trigger fraud alerts.
If a smaller withdrawal is also declined, your card issuer may have flagged the transaction as suspicious or your account may have a temporary hold. Call the customer service number on the back of your card to ask why the transaction was declined and whether your account is locked.
If you are traveling internationally, some ATMs do not accept credit cards at all — they accept only debit cards or local payment methods. Ask your card issuer before you travel whether your card works at ATMs in the country you are visiting.
Frequently Asked Questions
Do I need a PIN to withdraw cash with a credit card?
Yes. If you have never set a PIN for cash advances on your credit card, you will need to create one before you can use an ATM. Most card issuers let you set this through their website, app, or by calling customer service. The PIN is usually different from any PIN you use for in-store purchases.
Can I get a cash advance at a bank teller instead of an ATM?
Yes. You can walk into any bank branch and ask a teller for a cash advance using your credit card. The fees and interest rate are the same as an ATM withdrawal. Some people prefer this method because they can ask questions or withdraw larger amounts, but it is not faster or cheaper.
Will a cash advance show up on my credit report?
The cash advance itself does not appear as a separate line item on your credit report, but it increases your credit utilization ratio, which is reported to the credit bureaus. This can lower your credit score temporarily. Once you pay off the balance, the utilization drops and your score recovers.
What is the difference between a cash advance and a balance transfer?
A cash advance is money you withdraw from an ATM or bank teller. A balance transfer is when you move debt from one credit card to another. Both are treated as separate transactions with their own fees and interest rates, but a balance transfer is used to move existing debt, while a cash advance is used to get physical cash.
Can I dispute a cash advance fee if I think it was wrong?
You can contact your card issuer and ask them to review the fee, but they are unlikely to remove it unless the transaction was fraudulent or the fee was charged in error. Cash advance fees are disclosed in your card's terms and conditions, so they are considered legitimate charges. If you believe your card was used without permission, report it as fraud when ready.