Yes, you can withdraw cash from a credit card at an ATM, but it costs more than a regular debit card withdrawal and counts as a loan, not a purchase
When you withdraw cash from an ATM using a credit card, you are borrowing money from your credit card issuer at that moment. The ATM gives you cash, your credit card account is charged, and you owe that money back with interest starting immediately — there is no grace period like there is with regular purchases. This is called a cash advance.
The process itself is straightforward: insert your credit card into an ATM that accepts credit cards, enter your PIN, select "cash advance" or "withdraw cash," and choose your amount. But the fees and interest that follow are why most people should avoid this unless they have no other option.
Key Takeaways
- A credit card cash advance charges you a fee (usually 3 to 5 percent of the amount) plus interest that starts accruing immediately with no grace period.
- Not all ATMs accept credit cards — most accept only debit cards — so you may need to visit your credit card issuer's own ATMs or a bank branch.
- The interest rate on cash advances is typically higher than the rate on regular purchases, sometimes 5 to 10 percentage points higher.
- Cash advances are reported to credit bureaus as debt and can lower your credit score if they push your overall credit card balance higher.
What happens to your account when you take a cash advance
The moment you withdraw cash, your credit card balance increases by the amount you withdrew plus the cash advance fee. If you withdrew $200 and the fee is 3 percent, your balance is now $206. Interest begins accruing on that $206 the same day — not at the end of the billing cycle like a purchase would.
You do not get a grace period on cash advances. With a regular purchase, you might have 21 to 25 days before interest kicks in. With a cash advance, interest starts immediately. This means a $200 cash advance at 25 percent APR costs you roughly $1.37 per day in interest alone, before you pay any of it back.
The cash advance also counts toward your credit utilization ratio — the percentage of your total credit limit you are using. If you have a $5,000 limit and take a $500 cash advance, your utilization jumps to 10 percent. Higher utilization can lower your credit score, even if you pay it back quickly.
The fees and interest rates you will pay
Credit card issuers charge two separate costs for a cash advance: a one-time fee and a higher interest rate.
The cash advance fee is usually 3 to 5 percent of the amount you withdraw, with a minimum fee (often $5 to $10). Some cards charge a flat fee instead. If you withdraw $100, you might pay $3 to $5 just to get the cash. If you withdraw $1,000, you might pay $30 to $50. Check your card's terms to see which structure yours uses.
The interest rate on cash advances is typically 5 to 10 percentage points higher than your regular purchase APR. If your card charges 18 percent APR on purchases, the cash advance rate might be 25 or 28 percent. This higher rate applies only to the cash advance balance, not your entire card balance — but it makes the cash advance expensive to carry.
Some cards also charge an ATM operator fee on top of the credit card issuer's fee. If you use an out-of-network ATM, the ATM owner might charge you $2 to $3 as well. So a $100 withdrawal could cost you $5 to $8 in fees before interest even begins.
Where you can actually withdraw cash with a credit card
Not every ATM accepts credit cards. Most ATMs you see at grocery stores, gas stations, and convenience stores accept only debit cards and prepaid cards. Your best options are:
- Your credit card issuer's own ATMs. If your card is issued by a bank or credit union, their ATMs almost always accept credit card cash advances with no ATM operator fee. Chase, Bank of America, Wells Fargo, and most other large banks have their own ATM networks.
- Bank branches. You can walk into any branch of your card issuer and ask a teller for a cash advance. They will verify your identity and process it on the spot.
- ATMs in other countries. International ATMs are more likely to accept credit cards than domestic ones, though the fees are usually higher.
- Specialty ATMs. Some ATMs in casinos, hotels, and nightclubs accept credit cards, but they typically charge much higher operator fees.
If you are not sure whether an ATM accepts credit cards, look for a Visa or Mastercard logo on the machine. If you do not see one, it probably does not accept credit cards. You can also call your card issuer's customer service line to find ATMs near you that accept credit card cash advances.
When a cash advance might make sense
A cash advance is expensive, so it should only be a last resort. The situations where it might be necessary are rare:
You need cash immediately and have no other way to get it. If you are traveling in a country where your debit card does not work, or you are in an emergency and your bank is closed, a cash advance might be your only option. The cost is worth it if the alternative is worse.
You are comparing it to an even worse option. A cash advance at 25 percent interest is still cheaper than a payday loan at 400 percent APR, or borrowing from someone who charges you interest. But this should not be your first choice — it should be your last.
In almost every other situation, there is a better way to get cash: use a debit card, visit your bank's branch, ask a friend or family member, or wait until you can access your money through a normal withdrawal. The fees and interest on a cash advance add up quickly, and they make it harder to pay down your credit card balance.
How to pay back a cash advance
When you make a payment to your credit card, the payment goes toward your balances in a specific order set by law. Payments are applied first to the balance with the highest interest rate, then to lower rates. Since your cash advance has the highest rate, your payment will go toward it first — which is good news.
Pay as much as you can toward the cash advance as quickly as possible. Every day you carry it, interest is accruing. If you took a $500 cash advance at 25 percent APR, paying it off in one month costs you about $10 in interest. Paying it off in three months costs you about $31. The longer you wait, the more you pay.
Do not take another cash advance to pay off the first one. That just adds another fee and extends the problem. If you are in a situation where you need repeated cash advances, that is a sign you need to look at your overall budget or find other sources of income.
Alternatives to a credit card cash advance
Use a debit card. If you have a checking account, your debit card can withdraw cash from any ATM that accepts it, usually with no fee or a small fee from the ATM operator only. This is almost always cheaper than a credit card cash advance.
Visit your bank or credit union in person. You can withdraw cash from your checking or savings account at any branch during business hours. No fees, no interest, no complications.
Ask for cash back at a store. When you make a purchase with a debit card at a grocery store, gas station, or pharmacy, you can ask for cash back. The store gives you the cash and deducts it from your account. No fee, no interest.
Borrow from a friend or family member. If someone you trust can lend you cash, that is free and does not affect your credit. Just be clear about when and how you will pay it back.
Use a personal loan. If you need a larger amount of cash, a personal loan from a bank or credit union usually has a lower interest rate than a credit card cash advance. You will pay interest, but it is typically less than a cash advance rate.
Frequently Asked Questions
Can I use my credit card PIN at a regular ATM to withdraw cash?
No. Most ATMs only accept debit cards and prepaid cards. Even if you have a PIN for your credit card, a regular ATM will not process a credit card transaction. You need to find an ATM that specifically accepts credit cards, usually at your card issuer's bank or at a bank branch.
Does a cash advance hurt my credit score?
It can. A cash advance increases your credit utilization ratio, which makes up about 30 percent of your credit score. If the cash advance pushes your balance higher, your score may drop. The impact is usually temporary — your score recovers as you pay the balance down — but it is real.
What is the difference between a cash advance and a balance transfer?
A cash advance is when you withdraw cash from an ATM or bank. A balance transfer is when you move debt from one credit card to another. Balance transfers sometimes have lower interest rates and no fee, making them cheaper than a cash advance. But they only work if you have another card and existing debt to move.
Can I dispute a cash advance if I did not authorize it?
Yes. If someone used your card without permission, contact your card issuer immediately. You are protected by federal law against unauthorized charges. Report it as fraud, and the issuer will investigate. But if you authorized the cash advance, you cannot dispute it just because you regret paying the fees.
Will paying off a cash advance quickly help my credit score?
Yes. Paying it off quickly lowers your credit utilization ratio, which helps your score recover. The sooner you pay it back, the less interest you pay and the faster your score bounces back. This is another reason to treat a cash advance as a short-term emergency measure, not a regular way to get cash.