Yes, you can withdraw cash from an ATM using 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 this is not the same as using your debit card. When you withdraw cash with a credit card, you are borrowing money at a higher rate than your regular purchase rate. The transaction is called a cash advance, and it comes with its own fees and interest clock that starts the moment you pull the money out.

The reason credit card companies charge more for cash advances is simple: they see it as riskier than a purchase. You are taking physical money rather than buying something, so there is less to repossess if you do not pay back. That risk gets passed to you as a higher cost.

Key Takeaways

  • Cash advances charge a separate, usually higher interest rate than purchases, and interest begins accruing immediately with no grace period.
  • You will pay a cash advance fee on top of the interest—typically 3 to 5 percent of the amount withdrawn, with a minimum charge of a few dollars.
  • The amount you can withdraw is limited by your cash advance limit, which is often much lower than your overall credit limit.
  • Using a credit card for cash should be a last resort; getting cash from your bank account, a friend, or a paycheck advance costs far less.

How the fees and interest work

When you take a cash advance, you pay two separate charges. First is the cash advance fee, which your card issuer takes out immediately. This fee ranges from 3 to 5 percent of the amount you withdraw, though some cards charge a flat minimum (often $3 to $10) if the percentage would be smaller. If you withdraw $200, expect to pay $6 to $10 just to get the cash.

Second is the interest rate. Your card's regular purchase APR (the rate you pay on everyday purchases) does not apply to cash advances. Instead, cash advances have their own, higher APR—often 5 to 10 percentage points above your purchase rate. If your purchase APR is 18 percent, your cash advance APR might be 25 percent. That interest starts accruing the day you withdraw the money. Unlike purchases, there is no grace period where you can pay it back interest-free.

The math adds up quickly. A $200 cash advance at a 25 percent APR costs you roughly $4.17 in interest per month if you do not pay it back. Add the $6 to $10 upfront fee, and you have already paid $10 to $14 just to borrow $200 for a month.

Your cash advance limit is separate from your credit limit

Your credit card company sets a cash advance limit that is usually much lower than your overall credit limit. If your card has a $5,000 credit limit, your cash advance limit might be only $500 or $1,000. This limit exists because the card issuer sees cash advances as higher risk.

You can usually find your cash advance limit in your card's terms and conditions, on your online account dashboard, or by calling the customer service number on the back of your card. If you try to withdraw more than this limit, the ATM will decline the transaction.

Where you can withdraw cash and what happens at the ATM

You can use your credit card at most ATMs that display your card's logo—Visa, Mastercard, American Express, or Discover. ATMs at your card issuer's bank often charge no fee, but ATMs at other banks typically charge a surcharge of $2 to $3 on top of the cash advance fee your card issuer charges. Some ATMs charge both a surcharge and a fee from your card issuer, so you could pay $5 to $8 just in fees before interest.

The process is straightforward: insert your card, enter your PIN, select "cash withdrawal" or "cash advance," choose your amount, and confirm. The money comes out immediately. But before you do this, understand that you are not just withdrawing your own money—you are borrowing it.

Why a cash advance should be your last option

The cost of a cash advance makes it one of the most expensive ways to get cash. If you need money urgently, consider these alternatives first: withdrawing from your own bank account (free), asking a friend or family member for a loan (free or low-cost), requesting a paycheck advance from your employer (often free or low-cost), or visiting a credit union that offers small loans (usually cheaper than a cash advance).

Even a payday loan, which has a terrible reputation, is sometimes cheaper than a credit card cash advance if you pay it back within two weeks. That is how expensive cash advances are. The only time a cash advance makes sense is if you have no other option and you can pay the money back within a few days, before interest compounds.

How to pay back a cash advance

When you make a payment to your credit card, the card issuer applies it to your balance in a specific order set by law. Payments go first to the lowest-interest debt (usually purchases), then to higher-interest debt (like cash advances). This means if you have both purchases and a cash advance on your card, your payment will pay off the cheap debt first and leave the expensive cash advance balance sitting there, accruing interest.

To pay off a cash advance faster, contact your card issuer and ask if you can make a payment that goes directly to the cash advance balance. Some issuers allow this; others do not. If yours does not, your only option is to pay down your entire card balance until the cash advance portion is gone.

Frequently Asked Questions

Can I use a credit card to withdraw cash from my bank's ATM?

No. Your bank's ATM recognizes only your debit card or bank account number. A credit card is a loan product, not a bank account, so it cannot access your own money. You can only use a credit card to borrow cash through a cash advance at an ATM that accepts your card brand.

What is the difference between a cash advance and a regular purchase?

A purchase is a transaction where you buy something; the card issuer pays the merchant, and you pay the card issuer back. A cash advance is when you borrow cash directly from the card issuer. Cash advances have higher interest rates, charge upfront fees, and start accruing interest immediately with no grace period.

Will a cash advance hurt my credit score?

A cash advance itself does not 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 on time, the missed payment will hurt your score much more.

Can I get a cash advance without a PIN?

Most ATMs require a PIN to process a cash advance. Some card issuers let you set a PIN online or by phone if you do not have one. A few cards allow cash advances over the counter at a bank branch without a PIN, but you will need your physical card and ID.

Is there a limit to how much cash I can withdraw per day?

Yes. Your card issuer sets a daily cash advance limit, which is separate from your overall cash advance limit. This might be $200 to $500 per day depending on your card. The ATM may also have its own daily withdrawal limit. Check your card's terms or call customer service to find out your specific limits.