Yes, you can withdraw cash at an ATM with a credit card, but it costs you money and starts charging interest immediately

Most credit cards let you take cash out at an ATM, but the transaction is called a cash advance, and it is treated differently from a regular purchase. The moment you withdraw the cash, your card issuer charges you a fee — usually 3 to 5 percent of the amount withdrawn, with a minimum fee of $5 to $10. That cash advance also begins accruing interest right away, often at a higher rate than your regular purchase APR, and there is no grace period. If your card's purchase APR is 18 percent, your cash advance APR might be 24 or 25 percent.

The mechanics are straightforward: insert your card into an ATM, select "cash advance" or "withdraw cash," enter your PIN, and choose the amount. The ATM will dispense the cash and charge your account. But the cost structure is what matters. A $200 cash advance with a 4 percent fee costs you $8 immediately, plus interest that begins accruing the same day.

Key Takeaways

  • Cash advances charge a separate fee (usually 3 to 5 percent) at the moment of withdrawal, separate from any ATM operator fees you may also owe.
  • Interest on a cash advance starts accruing immediately with no grace period, and the APR is typically higher than your purchase APR.
  • Your credit card issuer sets a cash advance limit that may be lower than your credit limit, and you can find this limit in your account details or by calling the card's customer service number.
  • Paying off a cash advance should be your priority because the interest rate and fees make it one of the most expensive ways to borrow money on a credit card.

How the cash advance fee and interest work

When you withdraw cash, two separate charges hit your account. The first is the cash advance fee, charged by your card issuer. This fee appears as a line item on your statement and is calculated as a percentage of the amount withdrawn. If you withdraw $300 and your fee is 4 percent, you pay $12 immediately. Some cards charge a flat fee instead (for example, $10 per advance), and a few premium cards waive the fee entirely, but these are rare.

The second charge is interest, which begins accruing the day you withdraw the cash. Unlike a purchase, which typically has a grace period of 21 to 25 days before interest kicks in, a cash advance has no grace period. If your cash advance APR is 25 percent and you withdraw $300, you owe roughly $6.25 in interest after one month, even if you pay the full $300 back immediately after withdrawing it. The interest compounds daily, so the longer you carry the balance, the faster it grows.

Your statement will show the cash advance as a separate line item from your purchases, and the issuer may apply your payments to purchases first before paying down the cash advance. This means if you have both a purchase balance and a cash advance balance, your payment might reduce the purchase balance (which has a lower interest rate) while the cash advance keeps accruing interest at the higher rate.

Finding your cash advance limit and PIN

Your credit card issuer sets a cash advance limit that is separate from your credit limit. You might have a $5,000 credit limit but only a $1,000 cash advance limit. This limit is set by the issuer based on your account history and creditworthiness, and it is not something you negotiate at the ATM.

To find your cash advance limit, log into your online account or mobile app and look for "account details," "limits," or "cash advance limit." If you cannot find it there, call the customer service number on the back of your card and ask. The representative will tell you the exact amount you can withdraw.

You also need a PIN to withdraw cash. If you set up your card online or received a PIN when the card arrived, use that. If you do not have a PIN or cannot remember it, you can request a new one through your online account, your mobile app, or by calling customer service. The issuer will mail it to you or display it in your account, depending on the card. Do not attempt to withdraw cash without a PIN — the ATM will reject the transaction.

ATM operator fees and which ATMs to use

In addition to your card issuer's cash advance fee, you may also owe a fee to the ATM operator. If you use an out-of-network ATM — one that does not belong to your card issuer's bank — the operator typically charges $2 to $3. Your card issuer may also charge you an out-of-network fee on top of that, ranging from $1 to $3. So a $200 withdrawal at an out-of-network ATM could cost you $8 to $10 in fees before interest even starts.

To avoid operator fees, use an ATM owned by your card issuer's bank or a bank in its network. Most major card issuers belong to ATM networks — for example, Visa and Mastercard have their own networks, and many regional banks participate in shared networks like Allpoint or MoneyPass. Check your card's website or app to find in-network ATMs near you. Using an in-network ATM eliminates the operator fee but does not eliminate your card issuer's cash advance fee or the interest.

How cash advances affect your credit and account

A cash advance does not directly hurt your credit score in the moment you withdraw it, but it does increase your credit utilization ratio. If you have a $5,000 credit limit and you withdraw $500 in cash, your utilization jumps to 10 percent. Credit scoring models penalize high utilization, so a large cash advance can lower your score slightly. The effect is temporary — your score recovers as you pay down the balance — but it is immediate.

Carrying a cash advance balance also signals to your issuer that you may be in financial stress, which could trigger a review of your account. In rare cases, an issuer may lower your credit limit or close the account if they see repeated cash advances. More commonly, they will simply charge you the interest and fees and leave the account open.

If you miss a payment on a cash advance, it is treated like any other missed payment: it reports to the credit bureaus after 30 days of non-payment, damages your score, and may trigger late fees and a higher APR on your entire card balance.

When a cash advance makes sense and when it does not

A cash advance is expensive, so it should only be a last resort. The only scenario where it might make sense is if you need cash immediately and have no other option — for example, you are traveling abroad and your debit card does not work, or you need cash for an emergency and cannot wait for a bank transfer. Even then, you should pay it back as quickly as possible.

A cash advance does not make sense if you are trying to pay off debt, if you are already carrying a balance, or if you need cash for everyday spending. In those situations, the interest and fees will compound your financial stress. If you are considering a cash advance to cover a shortfall, that is a sign you need to address your budget or look for other sources of money — a personal loan, a payment plan with a creditor, or help from family.

Some people use cash advances to move money between accounts or to pay bills that do not accept card payments. This is almost never worth it. The fees and interest will cost more than any benefit you gain from the timing or convenience.

How to pay off a cash advance

Once you have withdrawn cash, your priority should be paying it back. Make a payment as soon as you can, because every day the balance sits, interest accrues. If you cannot pay the full amount immediately, pay as much as you can afford, because even a partial payment reduces the interest you owe going forward.

When you make a payment to your credit card, the issuer applies it according to their payment allocation rules. Most issuers apply payments to the lowest-interest balance first (usually purchases), then to higher-interest balances (like cash advances). This means if you have a $500 purchase balance at 18 percent APR and a $200 cash advance at 25 percent APR, and you make a $300 payment, the issuer might apply $300 to the purchase and $0 to the cash advance. To ensure your payment goes to the cash advance, call customer service and request that your next payment be applied to the cash advance specifically. Some issuers will honor this request; others will not, so confirm before you pay.

The fastest way to eliminate a cash advance is to stop using your card for new purchases while you pay it down. Every dollar you spend on a new purchase is a dollar that does not go toward the cash advance balance.

Alternatives to a credit card cash advance

If you need cash, there are usually cheaper options than a credit card cash advance. A personal loan from a bank or credit union typically has a lower interest rate and no upfront fee. A payday loan is expensive but may be cheaper than a cash advance if you can pay it back within two weeks. A balance transfer to a card with a 0 percent introductory APR does not help you get cash, but it can help you move an existing cash advance balance to a lower-interest card. A debit card cash withdrawal at your bank costs nothing if you have a checking account. A payment plan with a creditor or merchant lets you spread a bill over time without borrowing at all.

If you are in a situation where a cash advance seems like your only option, pause and think about whether you can delay the purchase, use a debit card instead, or ask for a payment plan. The cost of a cash advance is almost always higher than the cost of waiting or finding an alternative.

Frequently Asked Questions

Can I withdraw more cash than my cash advance limit?

No. The ATM will reject any withdrawal that exceeds your cash advance limit. Your limit is set by your card issuer and is separate from your credit limit. If you need more cash, you can request a higher limit by calling customer service, but the issuer is not required to grant it.

Does a cash advance show up on my credit report?

The cash advance itself does not appear on your credit report, but the balance does. If you carry a cash advance balance, it increases your credit utilization ratio and can lower your credit score. Once you pay it off, the effect fades within a few months.

What happens if I withdraw cash but do not pay it back?

The balance will accrue interest at your cash advance APR every day. If you miss a payment, it will report to the credit bureaus after 30 days and damage your credit score. Your issuer may also close your account or lower your credit limit.

Can I use my credit card to withdraw cash from a bank teller instead of an ATM?

Yes. Most banks will process a cash advance at the teller window if you present your credit card and PIN. The fee and interest are the same as an ATM withdrawal. You may also be able to request a cash advance by phone or online, though this is less common.

Is there a way to avoid the cash advance fee?

Some premium credit cards waive cash advance fees, but these cards are rare and usually come with an annual fee. For most cards, the only way to avoid the fee is to not take a cash advance. If you frequently need cash, a debit card or a checking account with ATM access is a better choice.