Yes, you can use most credit cards at ATMs, 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 called a cash advance — and it is treated very differently from a regular purchase. The moment you take cash out, your card issuer charges you a fee (usually $3 to $5 per withdrawal, though some cards charge a percentage of the amount), and interest starts accruing immediately at a higher rate than your regular purchase APR. There is no grace period like there is for purchases. You start paying interest the same day.
The reason credit card companies charge more for cash advances is simple: they see it as riskier. When you buy something, the merchant is accountable. When you withdraw cash, you could spend it on anything, and the card company has no way to recover it if you don't pay. That risk gets passed to you in the form of higher fees and interest rates.
Key Takeaways
- Cash advances from a credit card charge an upfront fee (typically $3 to $5 or a percentage of the amount) and a higher interest rate than purchases, with no grace period.
- Interest on a cash advance starts accruing immediately, even if you pay your full balance by the due date.
- Your credit card's cash advance limit may be lower than your overall credit limit, and you can find it in your cardholder agreement or by calling the card issuer.
- Using a credit card for cash is almost always more expensive than using a debit card or visiting your bank, and should only be done in genuine emergencies.
How the cash advance fee and interest rate work
When you withdraw cash at an ATM using your credit card, two costs hit you at once. First, there is the cash advance fee, which appears on your next statement. This fee is usually a flat amount ($3 to $5) or a percentage of the withdrawal (often 3% to 5%), whichever is higher. If you withdraw $100 and the fee is 5%, you owe $105 immediately.
Second, the card issuer charges a higher cash advance APR than your regular purchase APR. Where your purchases might carry an APR of 18%, a cash advance could be 25% or higher. This rate is applied to the full amount you withdrew, starting the day you take the money out — not on your statement due date. If you withdraw $100 and don't pay it back for a month, you will owe roughly $2 in interest on top of the fee you already paid.
The math gets worse quickly if you carry the balance. A $500 cash advance with a $15 fee and 25% APR costs you $15 upfront plus about $10 in interest per month if you don't pay it down. Over six months, you have paid $75 in fees and interest alone.
Finding your cash advance limit
Your credit card has a separate cash advance limit that is often lower than your overall credit limit. If your card has a $5,000 credit limit, your cash advance limit might be $1,000 or $1,500. This limit is set by the card issuer based on your creditworthiness and the card's terms.
You can find your cash advance limit in three ways: check your cardholder agreement (the document that came with your card or is available online in your account), log into your online account and look for a section labeled "Account Details" or "Credit Limits," or call the customer service number on the back of your card and ask directly. The representative will tell you the exact amount you can withdraw.
Which ATMs accept credit cards and which don't
Not every ATM accepts credit cards. Most ATMs owned by your card issuer's bank will accept your card, but ATMs at other banks or in retail stores may not. Before you go to an ATM, check whether it displays your card's logo (Visa, Mastercard, American Express, or Discover). If the logo is there, the ATM will likely accept your card.
If an ATM does not accept your card, you will find out only after you insert it — the machine will reject it and return your card. Some ATMs charge an additional fee (called a non-network ATM fee) if your card is not from that bank, on top of the cash advance fee your card issuer charges. This can push the total cost of a single withdrawal to $8 or $10. Always look for an ATM that displays your card's logo to avoid this extra charge.
Why a cash advance is almost always a bad idea
The cost of a cash advance makes it one of the most expensive ways to get cash. Compare the options: if you need $200, a cash advance costs you roughly $10 to $15 in fees plus interest. A debit card withdrawal from your own bank costs nothing. Visiting a bank teller costs nothing. Even a payday loan, which is notoriously expensive, is sometimes cheaper than a credit card cash advance if you pay it back within two weeks.
The only time a cash advance makes sense is in a genuine emergency when you have no other option — your debit card is lost, your bank is closed, and you need cash immediately. Even then, you should pay it back as fast as possible. Do not use a credit card cash advance to fund everyday spending or to avoid overdraft fees on your checking account. The interest and fees will cost you far more than the problem you are trying to solve.
How a cash advance affects your credit score
A cash advance itself does not directly hurt your credit score, but it can indirectly. When you withdraw cash, your available credit decreases, which raises your credit utilization ratio — the percentage of your total credit limit that you are using. If you have a $5,000 limit and you withdraw $500 in cash, your utilization jumps to 10%. High utilization (above 30%) can lower your score.
Additionally, if you carry the cash advance balance and miss a payment, that missed payment will be reported to the credit bureaus and will damage your score. The best way to avoid this is to pay off the cash advance immediately, before the interest compounds and before it inflates your utilization ratio. Paying it back within a few days of withdrawal keeps the damage minimal.
Alternatives to a credit card cash advance
If you need cash, explore these options first: withdraw from your own bank account using a debit card or by visiting a teller (free), ask a friend or family member to lend you money (free), visit your bank and ask about a short-term personal loan (usually cheaper than a cash advance), or use a credit union if you are a member (often offers better rates than banks).
If you are in a true emergency and have no access to your bank account, a cash advance is a last resort — but it should never be your first choice. Even waiting until your bank opens the next morning is usually better than paying the fees and interest on a cash advance. The cost of that convenience is simply too high.
Frequently Asked Questions
Can I use a credit card cash advance to pay off other debts?
Technically yes, but it is a bad idea. You are borrowing at a high rate (25% or more) to pay off debt that might be at a lower rate. You also pay an upfront fee on top of the higher interest. If you are trying to consolidate debt, a personal loan or balance transfer card (which has a lower rate for transfers) is a much better choice.
What happens if I don't pay back a cash advance?
The balance stays on your credit card and accrues interest at your cash advance APR. If you miss the minimum payment, the missed payment is reported to credit bureaus and your credit score drops. The card issuer can also raise your APR further or close your account. You remain legally obligated to pay it back.
Do all credit cards charge the same cash advance fee?
No. Fees vary by card issuer and card type. Some cards charge a flat $3 fee, others charge 5% of the amount. A few premium cards may offer lower fees or waive them for the first few withdrawals, but these are rare. Check your cardholder agreement to see your card's specific fee.
Can I use a credit card cash advance at a store checkout instead of an ATM?
Some stores let you request cash back when you make a purchase with a credit card, but this is still treated as a cash advance and carries the same fees and interest rates. It is not the same as getting cash back with a debit card, which is free. Always ask the cashier whether the transaction will be treated as a cash advance before you proceed.
Is there a way to avoid the cash advance fee?
Not if you use the ATM. The fee is built into the cash advance product. The only way to avoid it is to not take a cash advance. If you need cash regularly, use a debit card or keep cash on hand so you do not have to rely on credit card withdrawals.