Yes, you can use a credit card at an ATM, but it costs more than you think

Most credit cards let you withdraw cash from an ATM, but the transaction is treated as a cash advance, not a regular purchase. This matters because cash advances come with their own fees and interest rate — usually higher than your regular purchase rate. You'll pay a fee upfront (typically 3% to 5% of the amount you withdraw), and interest starts accruing immediately, with no grace period like you get on purchases.

The process itself is straightforward: insert your card, enter your PIN, and withdraw cash just as you would with a debit card. But the financial consequences are what you need to understand before you do it.

Key Takeaways

  • Cash advances charge a separate fee (usually 3% to 5% of the withdrawal amount) plus a higher interest rate than regular purchases.
  • Interest on cash advances starts the day you withdraw, with no grace period, so the cost adds up quickly even if you pay your bill on time.
  • Your credit limit covers both purchases and cash advances, so a large withdrawal can reduce the amount you can spend elsewhere.
  • Some cards don't allow cash advances at all, and some ATMs charge their own fee on top of your card issuer's fee.

How the fees and interest work

When you take a cash advance, your card issuer charges you two things: an upfront fee and a higher interest rate. The upfront fee is usually a percentage of the amount you withdraw — often 3%, 4%, or 5% — with a minimum dollar amount (like $3 or $5). So a $100 withdrawal might cost $3 to $5 just to get the cash out.

The interest rate on cash advances is separate from your purchase APR and is almost always higher. While your purchase rate might be 18%, your cash advance rate could be 24% or more. Unlike purchases, which have a grace period (usually 21 to 25 days before interest kicks in), cash advances start charging interest the moment you withdraw the money. If you carry the balance for a month, you're paying interest on top of the upfront fee.

Your card issuer also applies payments to your balance in a specific order: usually to the lowest-interest debt first. This means if you have both purchases and a cash advance, your payments go toward the purchase balance first, leaving the cash advance to accrue interest longer.

ATM fees from the bank that owns the machine

Beyond what your credit card company charges, the bank or network that owns the ATM may charge you a separate fee. This is called a surcharge and typically ranges from $1 to $3. You'll usually see this fee disclosed on the ATM screen before you complete the transaction, giving you a chance to cancel.

Some ATM networks (like Allpoint or MoneyPass) have agreements with credit card issuers to waive surcharges for cardholders, but this varies by card. Check your card's terms or call your issuer to see if you have access to a surcharge-free ATM network. Using an ATM owned by your card issuer's bank — if you have a bank account there — usually avoids the surcharge.

How cash advances affect your credit limit and credit score

Cash advances count against your total credit limit. If your limit is $5,000 and you withdraw $1,000 in cash, you have $4,000 left to spend on purchases. This matters if you're close to your limit, because using a high percentage of your available credit can lower your credit score temporarily.

The cash advance itself doesn't show up differently on your credit report — it's just part of your overall balance. But if the balance stays high because you're paying interest on it, that elevated balance will be reported to the credit bureaus each month, which can hurt your score. The damage is usually temporary and goes away as you pay the balance down.

When you might need a cash advance (and when you shouldn't)

Cash advances make sense in genuine emergencies when you have no other way to get cash — a broken ATM, a business that doesn't take cards, or a situation where you need physical money immediately. In those cases, the fee and interest are the cost of solving a real problem.

Cash advances don't make sense for everyday cash needs. If you regularly need cash, a debit card or a trip to your bank is far cheaper. They also don't make sense as a way to pay off other debts — the interest rate is too high, and you're just moving money around at a steep cost.

How to check if your card allows cash advances

Not all credit cards allow cash advances. Some cards, particularly those designed for people rebuilding credit, may not offer this feature. You can find out by checking your card's terms and conditions document (usually available on your issuer's website under "Account Documents" or "Disclosures") or by calling the customer service number on the back of your card.

When you call, ask three things: whether your card allows cash advances, what the fee is, and what the cash advance APR is. Write these down so you know the cost before you ever need to use it. If your card doesn't allow cash advances and you need emergency cash, your bank account (if you have one) or a personal loan from a credit union are usually cheaper options.

Alternatives to using your credit card at an ATM

If you need cash, consider these options first: withdraw from your own bank account using your debit card (free), ask a retailer for cash back when you make a purchase (free), or visit your bank's branch during business hours (free). If you don't have a bank account, a credit union account or a prepaid card with ATM access may be cheaper than a credit card cash advance.

If you're in a true emergency and need cash but don't have access to these options, a cash advance is available — but understand the cost. A $200 cash advance with a 4% fee and 24% APR costs you $8 upfront, plus roughly $4 in interest if you pay it back in a month. That's a 6% total cost for one month of borrowing, which is expensive but sometimes necessary.

Frequently Asked Questions

What's the difference between a cash advance and a regular purchase?

A regular purchase is charged your standard APR and has a grace period before interest starts. A cash advance has a higher APR, charges an upfront fee, and starts accruing interest immediately with no grace period. Both count against your credit limit.

Can I use a credit card at any ATM?

Most ATMs accept credit cards, but not all. ATMs at banks and in retail stores are more likely to accept them than standalone machines. Your card issuer may have a network of surcharge-free ATMs — check their website or call to find out which ones near you are free to use.

Will taking a cash advance hurt my credit score?

The cash advance itself doesn't hurt your score, but carrying a high balance will. If you pay off the cash advance quickly, the impact is minimal. If it sits on your card for months, the elevated balance will be reported to credit bureaus and may lower your score temporarily.

What if I don't have a PIN for my credit card?

You'll need to set one up before you can use your card at an ATM. Call the number on the back of your card or log into your online account to set your PIN. Some issuers let you set it immediately; others mail it to you.

Can I use a credit card cash advance to pay off another credit card?

Technically yes, but it's a bad idea. You're paying a 3% to 5% fee plus a higher interest rate just to move money from one card to another. If you're trying to pay off debt, a balance transfer (if your card offers one) or a personal loan from a bank or credit union is much cheaper.