Yes, you can withdraw cash from an ATM using a credit card, but it costs more than a debit card and works differently than you might expect
Most credit cards let you take cash out at ATMs, but the transaction is called a cash advance, and it is treated separately from regular purchases. The moment you withdraw the cash, interest starts accruing — there is no grace period like there is for regular card purchases. You also pay an upfront fee, usually 3% to 5% of the amount withdrawn, plus whatever fee the ATM operator charges.
Not every ATM accepts credit cards the same way. Some machines have a separate slot or menu option for credit card cash advances. Others will not process them at all. Your card issuer may also set a limit on how much you can withdraw in a single transaction or per day, which is often lower than your credit limit.
Key Takeaways
- Cash advances start charging interest immediately with no grace period, unlike regular purchases.
- You pay both a card issuer fee (typically 3% to 5%) and the ATM operator's fee on top of the cash amount.
- Your card issuer sets a separate cash advance limit that may be much lower than your overall credit limit.
- The interest rate for cash advances is often higher than the rate for regular purchases on the same card.
How the fees and interest actually add up
If you withdraw $200 from an ATM using a credit card, you might pay $6 to $10 in card issuer fees alone (3% to 5% of $200), plus $2 to $3 for the ATM operator fee. That is $8 to $13 before any interest charges. Then interest begins accruing immediately at your card's cash advance rate, which is often 2% to 5% higher than your regular purchase APR.
The math gets worse if you carry the balance. A $200 cash advance at a 25% APR cash advance rate costs about $50 in interest over a year if you make no payments. Add the upfront fees and you have paid $58 to $63 just to borrow $200 for twelve months. By comparison, a $200 purchase on the same card at 20% APR costs about $40 in interest over a year.
Some cards charge a flat fee instead of a percentage — for example, $5 per cash advance regardless of amount. If you are withdrawing a large sum, a flat fee may be cheaper. Check your card's terms or call the issuer to find out which structure applies to your card.
Where you can and cannot use a credit card for cash
ATMs owned by your card issuer's bank network usually process credit card cash advances without issue. If your card is a Visa, you can use most Visa-branded ATMs. Mastercard cardholders can use Mastercard ATMs. Discover and American Express have their own networks, though Discover is accepted at many third-party ATMs.
Independent ATMs — the ones in convenience stores, bars, or gas stations — vary widely. Some accept credit cards, others accept only debit cards, and some accept both but charge higher fees for credit card transactions. The ATM screen will tell you whether it accepts your card type before you insert it.
Banks and credit unions sometimes restrict cash advances to their own ATMs or partner networks. If you are a customer of a smaller institution, ask whether your card works at ATMs outside your network, and what the fees are.
Your cash advance limit versus your credit limit
Credit card issuers set a separate limit for cash advances, which is often 20% to 50% of your total credit limit. If your credit limit is $5,000, your cash advance limit might be $1,000 or $2,500. This limit is set by the issuer and does not change just because you have available credit on your card.
You can find your cash advance limit in your card's terms and conditions, on your online account dashboard, or by calling the issuer's customer service number on the back of your card. Some issuers let you request an increase, though it is not may provide.
If you hit your cash advance limit, you cannot withdraw more until you pay down the balance. The cash advance balance is tracked separately from your regular purchase balance, so paying your regular purchases does not free up cash advance room.
Why cash advances are more expensive than other borrowing options
A credit card cash advance is one of the most expensive ways to borrow money. Personal loans from banks or credit unions typically charge 6% to 36% APR with no upfront fees. Payday loans are predatory and should be avoided, but even they are sometimes cheaper than a credit card cash advance when you factor in the immediate interest and multiple fees.
If you need cash regularly, a debit card linked to a checking account is free — you pay nothing to withdraw your own money. If you need to borrow, a personal loan or a line of credit from your bank is cheaper than a credit card cash advance. A credit card cash advance should be a last resort, not a routine way to get cash.
The only scenario where a cash advance makes sense is if you have a 0% introductory APR on cash advances (rare) and you can pay it back before the intro period ends. Most cards do not offer this, so check your terms before assuming you have it.
How to minimize the damage if you must take a cash advance
If you have no other option, withdraw the smallest amount you actually need. Every dollar you do not withdraw saves you the upfront fee and interest. If you need $100, do not withdraw $200 just because the ATM offers it.
Pay it back as fast as possible. Cash advance interest accrues daily, so every day you carry the balance costs you money. If you can pay it back within a week, the interest charge will be minimal. If you are carrying it for months, the interest will dwarf the original fee.
Make the payment directly to the cash advance balance, not to your overall card balance. Some card issuers apply payments to the lowest-interest balance first (usually regular purchases), which means your cash advance keeps accruing interest while you pay down cheaper debt. Call the issuer or check your online account to direct the payment specifically to the cash advance.
Alternatives to credit card cash advances
If you need cash and do not have a debit card, ask a friend or family member to lend you the money. If that is not possible, visit your bank or credit union and ask about a personal loan or line of credit. These typically have lower rates and no upfront fees.
Some employers offer paycheck advances or emergency loans to employees. If you are in a bind, ask your HR department whether this is an option. Credit counseling agencies sometimes offer emergency assistance or can connect you with local resources.
If you are in a situation where you regularly need cash advances, that is a sign your budget does not match your income. A nonprofit credit counselor can help you work through this without charging you a fee. The National Foundation for Credit Counseling (NFCC) has a directory of agencies in your area.
Frequently Asked Questions
Does taking 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 available credit you are using), which can lower your score slightly. If you carry the balance and miss payments, that will hurt your score more significantly. The cash advance limit is separate from your regular credit limit, so using it does not affect your utilization of regular credit.
Can I use a credit card to withdraw cash at a bank teller window?
Yes, most banks will process a cash advance at the teller window if you present your credit card and ID. You will pay the same fees and interest as an ATM withdrawal. Some banks charge an additional fee for teller-processed cash advances, so ask before you request it.
What happens if I withdraw more than my cash advance limit?
The ATM or teller will decline the transaction. You cannot exceed your cash advance limit, even if you have available credit on your card. If you need more cash, you would have to pay down the existing cash advance balance first, or use a different payment method.
Is the interest rate for cash advances the same as my regular APR?
No. Cash advance APR is almost always higher than your regular purchase APR. Check your card's terms or call the issuer to find out the specific rate. The difference is often 5% to 10%, which adds up quickly on borrowed money.
Can I get a cash advance from a credit card I have not activated yet?
No. You must activate your card before you can use it for any transaction, including cash advances. Activation usually takes a few minutes online or over the phone once you receive the card.