Yes, you can withdraw cash from an ATM with a credit card, but it costs you more than a debit card and the interest starts immediately
Most credit cards allow cash advances — withdrawals from an ATM that put cash in your hand but add a debt to your card balance. The transaction is not the same as a purchase. Your card issuer treats it as a loan, charges you a separate fee upfront, and begins charging interest on the amount the moment you take it out, with no grace period.
The process itself is straightforward: insert your card into an ATM, select "cash advance" or "withdraw cash," enter your PIN, and take the money. But the cost structure is what matters. A $200 cash advance might cost you $6 to $10 in fees alone, plus interest that accrues daily until you pay it back.
Not all ATMs accept credit cards for cash advances. Bank ATMs that belong to your card issuer are most likely to work. ATMs at other banks, convenience stores, or independent networks may decline the transaction or charge an additional fee on top of your card issuer's fee.
Key Takeaways
- Cash advances charge a separate fee (usually 3 to 5 percent of the amount) and begin accruing interest immediately, with no grace period like purchases have.
- Your credit card's cash advance limit is often lower than your overall credit limit, and you can find it in your cardholder agreement or by calling your issuer.
- ATMs owned by your card issuer are most likely to process the transaction; other ATMs may decline it or charge additional fees.
- The interest rate on cash advances is typically higher than the rate on purchases, sometimes by 5 percentage points or more.
How the cash advance fee works
When you take a cash advance, your card issuer charges a cash advance fee calculated as a percentage of the amount withdrawn. This fee is typically 3 to 5 percent, though some cards charge a flat amount instead (such as $5 or $10 minimum). The fee is added to your balance immediately and appears on your next statement.
A $200 withdrawal at 4 percent costs $8. A $500 withdrawal at 5 percent costs $25. The fee is not negotiable and does not depend on how long you keep the money. You pay it whether you repay the cash advance in full the next day or carry it for months.
Your cardholder agreement lists your card's cash advance fee. If you do not have it, call the number on the back of your card and ask for the cash advance fee percentage. Some cards marketed to people rebuilding credit charge higher percentages (up to 10 percent), while premium cards sometimes charge lower rates (2 to 3 percent).
Interest rates and when they start
Cash advances carry a different interest rate than purchases on the same card. The cash advance rate is usually 5 to 10 percentage points higher. If your purchase APR is 18 percent, your cash advance APR might be 24 or 25 percent.
Interest begins accruing the day you withdraw the cash. Unlike purchases, which have a grace period (usually 21 to 25 days before interest is charged), cash advances have no grace period. If you withdraw $200 on the 1st of the month and pay it back on the 15th, you still owe interest for all 15 days.
The interest is calculated daily. On a $200 cash advance at 24 percent APR, you owe roughly $1.32 per day in interest. Over 30 days, that is about $40 in interest charges, on top of the initial fee. This is why cash advances are expensive even for short-term borrowing.
Cash advance limits and how to find yours
Your card issuer sets a cash advance limit separate from your overall credit limit. You might have a $5,000 credit limit but only a $1,000 cash advance limit. Some cards set the cash advance limit at 20 to 25 percent of your credit limit; others set it lower or higher.
You can find your cash advance limit in your cardholder agreement, on your online account dashboard, or by calling your issuer. The limit is not always displayed on your statement. If you try to withdraw more than your limit, the ATM will decline the transaction.
Your cash advance limit can be increased by requesting a higher limit from your issuer, though approval is not may provide. Some issuers allow you to set your own cash advance limit lower than the default, which can help prevent accidental withdrawals.
Which ATMs accept credit card cash advances
ATMs owned by your card's issuer are the most reliable. If you have a Chase card, Chase ATMs will almost always accept it for a cash advance. If you use an ATM from a different bank, the transaction may be declined, or you may be charged an additional fee by that ATM's owner on top of your card issuer's fee.
Convenience store ATMs, airport ATMs, and independent ATM networks are less likely to accept credit cards for cash advances. Many of these machines only accept debit cards or ATM cards. Even if they do accept credit cards, the additional fee can be $2 to $5 per transaction.
Before you travel or plan to use an unfamiliar ATM, call your card issuer to ask which ATM networks accept your card for cash advances. Some issuers participate in networks like Allpoint or MoneyPass, which can expand your options.
How a cash advance affects your credit and account
A cash advance is reported to the credit bureaus as a balance on your account, just like a purchase. It counts toward your credit utilization ratio — the percentage of your available credit you are using. If you have a $5,000 limit and take a $1,000 cash advance, your utilization jumps to 20 percent, which can lower your credit score slightly.
The cash advance balance is also separate from your purchase balance on your account. If you make a payment, your card issuer applies it to the lowest-interest balance first (usually purchases), leaving the cash advance to accrue interest longer. This is called the order of repayment, and it works against you.
If you carry a cash advance balance month to month, it will show on your credit report as an active balance. This does not harm your credit directly, but it increases your utilization and the interest you owe, both of which matter to lenders reviewing your application.
Alternatives to cash advances
If you need cash, a cash advance is usually the most expensive option. A debit card withdrawal from your own bank account costs nothing. A personal loan from a bank or credit union typically charges lower interest than a cash advance, though it requires an application and approval.
Some credit cards offer balance transfer checks — checks linked to your credit account that you can deposit into your bank account. These usually have a lower fee than cash advances (1 to 3 percent) and sometimes a lower interest rate, though the grace period is usually shorter or nonexistent.
If you are in a bind and need small amounts of cash regularly, asking your employer about early pay or a paycheck advance may be faster and cheaper than a credit card cash advance. Some employers offer this benefit at no cost.
Frequently Asked Questions
Can I use any credit card at any ATM to get a cash advance?
No. Your card must be accepted by the ATM's network, and the ATM must offer cash advance as an option. ATMs at your card issuer's bank are most reliable. Other banks' ATMs may decline the transaction or charge an additional fee. Always check with your issuer about which ATM networks accept your card.
What is the difference between a cash advance and a purchase on my credit card?
A cash advance charges a separate fee (3 to 5 percent), has a higher interest rate, and begins accruing interest immediately with no grace period. A purchase has no upfront fee, a lower interest rate, and a grace period of 21 to 25 days before interest is charged. Cash advances are much more expensive.
If I pay back a cash advance right away, do I still owe interest?
Yes. Interest on a cash advance begins the day you withdraw it, with no grace period. Even if you repay it within a few days, you owe interest for each day the money was outstanding. The fee is also charged upfront and is not refunded.
Does a cash advance lower my credit score?
A cash advance increases your credit utilization ratio, which can lower your score slightly. It also appears as a balance on your credit report. The impact is usually small unless the balance is large or you carry it for a long time. Paying it off quickly minimizes the damage.
Can I get a cash advance if I have reached my credit limit?
No. Your cash advance limit is part of your overall credit limit. If you have used your full limit, you cannot take a cash advance. You must pay down your balance first or request a higher credit limit from your issuer.