Yes, you can withdraw cash from an ATM using a credit card, but it costs more than you might expect
Most credit cards let you take cash out at an ATM, but the bank charges you a fee for doing it — usually between $3 and $5 per transaction — and the interest rate on that cash is higher than the rate on purchases. You start paying interest immediately, with no grace period. This is called a cash advance, and it is one of the most expensive ways to borrow money on a credit card.
The process itself is simple: insert your card into any ATM, enter your PIN, and withdraw cash up to your credit limit. But the cost structure is what matters. A $200 cash advance might cost you $5 in fees plus interest that starts accruing the same day. If you carry that balance for a month, you could pay $15 or more just to have had access to that $200.
Understanding when a cash advance makes sense — and when it does not — can save you real money.
Key Takeaways
- Cash advances charge a separate fee (usually $3 to $5) plus a higher interest rate than regular purchases, with interest starting immediately.
- Your cash advance limit may be lower than your overall credit limit, and some cards do not allow cash advances at all.
- The interest rate on cash advances is typically 2 to 5 percentage points higher than your purchase APR and has no grace period.
- A debit card, personal loan, or credit card balance transfer are usually cheaper ways to get cash than a credit card cash advance.
How the cash advance fee and interest work
When you take a cash advance, your card issuer charges you two separate costs. The first is an upfront fee, usually a percentage of the amount you withdraw (often 3% to 5%) with a minimum of $3 to $5. So a $100 withdrawal might cost $5 in fees alone.
The second cost is interest. Unlike a purchase, which may have a grace period of 20 to 30 days before interest kicks in, a cash advance starts accruing interest the moment you withdraw it. The interest rate is also higher — typically 2 to 5 percentage points above your regular purchase APR. If your card charges 18% APR on purchases, the cash advance APR might be 23% or higher.
This means a $200 cash advance at 23% APR costs roughly $3.80 in interest per month if you do not pay it back. Add the $5 upfront fee, and you have already paid $8.80 just to borrow $200 for 30 days.
What your cash advance limit actually is
Your credit card company sets a separate cash advance limit, which is often much lower than your overall credit limit. You might have a $5,000 credit limit but only a $500 cash advance limit. This limit is set by the issuer based on your credit history and account activity, and you cannot change it by yourself.
You can call your card issuer and ask what your cash advance limit is. They will tell you the number in one call. Some cards do not offer cash advances at all — certain secured cards and some student cards restrict them entirely.
Where you can withdraw cash and what happens if you use a foreign ATM
You can withdraw cash at any ATM that displays your card's logo — Visa, Mastercard, American Express, or Discover. Most banks and credit unions have ATMs, as do many convenience stores and airports.
If you use an ATM outside your card issuer's network, you may face an additional fee from the ATM operator on top of the cash advance fee from your card issuer. A foreign ATM might charge $2 to $3, and your card issuer might charge another $3 to $5. This can push the total cost of a single $100 withdrawal to $10 or more.
Using an ATM owned by your card issuer's bank — or a bank in their network — avoids the second fee.
When a cash advance might make sense
A cash advance is rarely the right choice, but there are narrow situations where it might be worth considering. If you need cash for an emergency and have no other way to get it, a short-term cash advance is cheaper than a payday loan, which can charge 400% APR or more. If you can pay back the cash advance within a few days, the interest cost stays low.
Another scenario: if you are in a situation where you must have cash immediately and your only alternative is a high-interest payday loan or overdraft fee, a cash advance from a credit card with a lower APR might be the lesser harm. But this should be a last resort, not a habit.
For most everyday needs, there are cheaper options.
Cheaper alternatives to a credit card cash advance
A debit card withdrawal costs nothing and should be your first choice if you have one. You are withdrawing your own money, not borrowing.
A personal loan from a bank or credit union typically charges 6% to 36% APR depending on your credit, which is lower than most cash advance rates. The loan is fixed-term, so you know exactly when it will be paid off.
A balance transfer to a different credit card might offer 0% APR for 6 to 21 months if you have good credit. You can withdraw cash using that card at a lower rate than your current card's cash advance rate, though you still pay the upfront fee.
Asking a friend or family member for a short-term loan, or borrowing against your paycheck through your employer, costs nothing if the terms are informal.
How to avoid needing a cash advance
The best strategy is to keep cash on hand before you need it. Withdraw money from your debit account or savings account during regular banking hours, when there is no fee. If you use cash regularly, set aside a small amount each week.
If you find yourself needing cash advances repeatedly, that is a sign your budget does not match your spending. A cash advance is a symptom, not a solution. Consider whether you are spending more than you earn, and if so, where you can cut back or earn more.
Some people use cash advances to pay other bills when their credit card balance is already high. This is a debt spiral — you are borrowing at a high rate to service existing debt. If this describes your situation, talking to a credit counselor (often free through nonprofit organizations) can help you see your options.
Frequently Asked Questions
Can I use a credit card to withdraw cash at a bank teller instead of an ATM?
Yes. You can walk into a bank branch and ask the teller for a cash advance using your credit card. The fee and interest rate are the same as an ATM withdrawal — the method does not change the cost. Some banks may require you to have an account with them to do this.
Does a cash advance hurt my credit score?
A cash advance itself does not directly hurt your score, but it increases your credit utilization (the percentage of your limit you are using), which can lower your score slightly. If you do not pay it back quickly, the interest charges and growing balance will hurt your score more over time.
What if I cannot pay back the cash advance?
The balance rolls into your regular credit card debt and accrues interest at the cash advance rate. If you miss payments, your issuer will report it to the credit bureaus, and your score will drop. Contact your card issuer to discuss a payment plan before you miss a payment.
Is there a way to get a higher cash advance limit?
You can call your card issuer and ask them to increase it, but they are not required to grant the request. They will review your account history and credit score. Even if they increase it, using a higher cash advance limit does not change the fee or interest rate — it just means you can borrow more at the same high cost.
Do all credit cards offer cash advances?
Most do, but not all. Secured cards, student cards, and some specialty cards restrict or prohibit cash advances. Check your card's terms or call the issuer to confirm whether cash advances are available on your account.