Yes, you can use a credit card at an ATM, but it costs you money and works differently than a debit card
When you insert a credit card into an ATM, you are not withdrawing from a bank account you own. Instead, you are taking out a cash advance — a short-term loan from your credit card issuer. The ATM gives you cash immediately, but your credit card company charges you fees and interest starting right away, even if you normally pay your balance in full each month.
This is why using a credit card at an ATM is almost never the right choice. The costs stack up fast, and there are almost always better ways to get cash. Understanding what happens behind the scenes helps you see why.
Key Takeaways
- A credit card cash advance is a loan, not a withdrawal from your own money, and interest starts accruing immediately with no grace period.
- You will pay an ATM fee (usually $3 to $5), a cash advance fee (typically 3% to 5% of the amount), and a higher interest rate than regular purchases.
- The total cost of withdrawing $100 in cash can easily reach $10 to $15 depending on your card and your bank's ATM network.
- If you need cash, using a debit card, visiting your bank's branch, or asking for cash back at a store checkout are all cheaper options.
The three fees you pay when you use a credit card at an ATM
The first fee is the ATM operator fee. If you use an ATM that does not belong to your credit card issuer's network, the ATM owner charges you a fee — usually $2 to $3, sometimes more. If you use your card issuer's own ATM, you may avoid this fee, but not always. Check your card's terms to see which ATMs are free.
The second fee is the cash advance fee charged by your credit card company itself. This is typically 3% to 5% of the amount you withdraw, with a minimum of $5 to $10. So if you withdraw $100, you might pay $3 to $5 just for taking out the cash. If you withdraw $500, the fee could be $15 to $25.
The third cost is interest, and it starts the moment you get the cash. Unlike a regular credit card purchase, which has a grace period (usually 21 to 25 days before interest kicks in), a cash advance begins accruing interest immediately. The interest rate on cash advances is also higher than the rate on purchases — often 2% to 5% higher. If your card charges 18% APR on purchases, the cash advance rate might be 23% or 24%.
How the interest calculation works on a cash advance
Interest on a cash advance is calculated daily from the moment you withdraw the cash. If you withdraw $100 at a 24% annual rate, you are paying roughly $0.07 per day in interest. That does not sound like much, but it adds up.
If you pay back the $100 cash advance in one week, you will owe about $0.50 in interest plus the fees you already paid. If you carry it for a month, you will owe roughly $2 in interest. The longer you carry the balance, the more interest compounds. And because cash advances do not have a grace period, every single day costs you money.
Many credit cards also apply payments to your lowest-interest debt first. This means if you have both a regular purchase balance and a cash advance balance, your payment goes toward the purchase first, and the cash advance keeps accruing interest at the higher rate.
When you might actually need a credit card cash advance
There are rare situations where a cash advance is the only option available to you right now. An example: you are traveling in a place where your debit card does not work, your bank has no branches nearby, and you need cash for a meal or transportation. In that case, yes, use your credit card at an ATM — the cost is worth solving an immediate problem.
But this is genuinely rare. In most situations, you have a cheaper alternative. Before you use a credit card at an ATM, ask yourself: Can I use my debit card instead? Can I go to a bank branch and withdraw cash? Can I ask a store to give me cash back with a purchase? Can I wait until I reach an ATM that is part of my bank's network? If the answer to any of these is yes, do that instead.
Cheaper ways to get cash when you need it
If you have a debit card linked to a checking account, use that at any ATM. You will pay the ATM operator fee if it is out of network, but you will not pay a cash advance fee or interest. Many banks offer free ATM networks — Allpoint, MoneyPass, and CO-OP are three large ones — so check whether your bank participates before you assume you have to pay.
Visit your bank or credit union in person and withdraw cash from a teller. This is free and takes five minutes. If you do not have a debit card or your account is frozen, this is often your fastest option.
Ask for cash back at a grocery store, pharmacy, or other retailer when you make a purchase. Most stores offer this for free and will give you $20 to $100 depending on their policy. You get the cash you need without any fee.
If you are in a true emergency and have no other way to get cash, a credit card cash advance is better than nothing. But it should be your last resort, not your first choice.
How a cash advance affects your credit score
A cash advance shows up on your credit report as a balance on your credit card, just like a purchase does. It counts toward your credit utilization ratio — the percentage of your available credit that you are using. If you have a $5,000 credit limit and you take out a $500 cash advance, your utilization jumps to 10%, which can lower your credit score slightly.
The cash advance itself does not hurt your score more than a regular purchase would. But because cash advances come with higher interest rates and no grace period, they are easier to carry for a long time, which keeps your utilization high and keeps your score down longer.
What to do if you have already taken a cash advance
If you have already withdrawn cash using your credit card, pay it back as fast as you can. Because the interest rate is higher and there is no grace period, every day you carry the balance costs you more than carrying a regular purchase would.
Pay more than the minimum payment if you can. The minimum payment covers interest and a tiny bit of principal, so it takes a very long time to pay off a cash advance if you only pay the minimum. Even an extra $10 or $20 per payment cuts weeks off the payoff timeline.
If you have both a cash advance balance and a regular purchase balance, call your card issuer and ask whether you can direct your payment to the cash advance first. Some issuers will do this if you ask, even though they are not required to. This saves you money on interest.
Frequently Asked Questions
Can I use a credit card at any ATM?
Yes, you can use a credit card at almost any ATM, but you will pay a fee if the ATM is not part of your card issuer's network. Some ATMs may not accept credit cards at all — they only accept debit cards — so you might get a rejection. Check your card's terms to see which ATM networks are free for you.
Is there a limit to how much I can withdraw?
Yes. Your credit card issuer sets a cash advance limit, which is usually lower than your total credit limit. You might have a $5,000 credit limit but only a $1,000 cash advance limit. Check your card's terms or call the issuer to find out your limit.
What if I do not pay back the cash advance right away?
Interest keeps accruing at the higher cash advance rate every single day. If you carry the balance for months, the interest can exceed the original fees you paid. The longer you wait, the more you owe. Paying it back within a few days or weeks is much cheaper than carrying it.
Can I use a credit card at an ATM to pay a bill?
No. An ATM only gives you cash. If you need to pay a bill, you would have to withdraw the cash and then pay the bill separately. This is an expensive way to pay bills — you are better off paying directly from a checking account or using your credit card's online payment system.
Why would anyone ever use a credit card at an ATM?
Usually because they have no other way to get cash right now — their debit card does not work, they are traveling and cannot reach their bank, or they are in an emergency. It is a last-resort option, not a normal way to get cash.