You can withdraw cash from an ATM using a credit card, but it costs more than a debit card and the interest starts immediately
Using a credit card at an ATM is straightforward: insert the card, select "cash advance" (not "withdrawal"), enter your PIN, and choose the amount. The transaction completes like a debit card withdrawal. But what happens after matters more than the mechanics. A cash advance is a loan, not a transfer from your account. Your credit card company charges you a fee upfront — typically 3% to 5% of the amount withdrawn — and begins charging interest on that amount the same day, with no grace period. A $200 cash advance might cost you $6 to $10 in fees plus daily interest charges until you pay it back.
Most people use credit card cash advances only when they have no other option: an ATM is broken, they forgot their debit card, or they need cash in an emergency. If you find yourself at an ATM with only a credit card regularly, that is a sign to reconsider your cash management or to carry a debit card as backup.
Key Takeaways
- Cash advances charge a fee of 3% to 5% of the amount withdrawn, charged immediately when you complete the transaction.
- Interest on a cash advance begins accruing the same day — there is no grace period like there is for regular purchases.
- Your credit card's cash advance limit may be lower than your overall credit limit, and you can find it in your cardholder agreement or by calling the card issuer.
- ATMs owned by your card issuer's bank usually charge no ATM fee, but out-of-network ATMs add a second fee on top of the cash advance fee.
What happens when you insert your credit card into an ATM
When you insert a credit card into an ATM, the machine reads the card and asks what you want to do. You will see options like "withdrawal," "balance inquiry," or "cash advance." Choose "cash advance" — this is the correct option for a credit card. Some ATMs label it differently; look for language that says you are borrowing money, not transferring from an account you own.
The ATM will then ask for your PIN. This is the same four-digit code you use at other ATMs or in-store. If you do not have a PIN set up for your credit card, you will need to contact your card issuer to create one before you can use the ATM. Some cards come with a PIN already assigned; others require you to set one yourself through the issuer's website or app.
After you enter the amount and confirm, the ATM dispenses the cash and prints a receipt. The transaction is complete at that moment, but the financial consequences — the fee and the interest — begin immediately.
Fees and interest charges you will pay
A cash advance triggers two separate charges. The first is the cash advance fee, which your card issuer charges. This is typically 3% to 5% of the amount withdrawn, with a minimum fee of $2 to $5. A $100 withdrawal might cost $3 to $5 in fees; a $500 withdrawal might cost $15 to $25. This fee appears on your next statement.
The second charge is interest, which begins accruing the day you withdraw the cash. Unlike regular credit card purchases, which have a grace period (usually 21 to 25 days before interest kicks in), cash advances have no grace period. If your card's APR for cash advances is 24%, and you withdraw $200, you owe roughly $0.13 in interest the first day, and that compounds daily until you pay the balance off. Over a month, that $200 advance could cost you $4 in interest alone, on top of the initial fee.
If your ATM is not owned by your card issuer's bank, you may also pay an ATM operator fee — typically $2 to $3 — charged by the ATM owner. This is separate from the cash advance fee and appears on your receipt immediately. Using an in-network ATM (one owned by your bank) avoids this extra charge.
How to find your cash advance limit and PIN
Your credit card has a separate cash advance limit, which may be lower than your overall credit limit. If your credit limit is $5,000, your cash advance limit might be $1,500. You can find this limit in your cardholder agreement, which came with your card or is available on your card issuer's website. Log into your online account, go to "account details" or "card information," and look for "cash advance limit" or "ATM withdrawal limit."
If you do not see it listed, call the customer service number on the back of your card and ask. The representative will tell you the exact amount you can withdraw and confirm whether you have a PIN set up. If you do not have a PIN, ask the representative to help you create one, or they may direct you to set it up through the mobile app or website.
Write down your PIN and store it securely — do not write it on the card itself or keep it in your wallet where someone could find it. Treat it the same way you would treat a debit card PIN.
When a cash advance makes sense and when it does not
A cash advance is expensive, so use it only when you genuinely need cash and have no other way to get it. Legitimate scenarios include: your debit card is lost or stolen and you need cash before a replacement arrives; an ATM is broken and you need cash for an immediate expense; or you are traveling and your bank has no ATM access in that location. In these cases, the convenience of the cash advance outweighs the cost.
Do not use a credit card cash advance to fund regular spending, to pay down other debts, or because you prefer not to use your debit card. The fees and interest will compound quickly, and you will end up paying far more than the cash is worth. If you regularly need cash and do not have a debit card, opening a basic checking account with a debit card is cheaper and simpler than relying on credit card cash advances.
How to repay a cash advance quickly
Because interest on a cash advance starts immediately and compounds daily, the cost of the advance grows every day you do not pay it back. If you withdraw $200 at a 24% APR, waiting 30 days to repay it costs you roughly $4 in interest. Waiting 60 days costs roughly $8. The math is simple: pay it back as soon as you can.
When you make a payment to your credit card, the card issuer applies it first to your highest-interest balance. If you have both regular purchases (at a lower APR) and a cash advance (at a higher APR), your payment goes to the cash advance first — this is good. Make a payment as soon as you have the cash, even if it is before your statement due date. Paying early stops the interest clock.
If you cannot pay the full amount back immediately, pay as much as you can. A $100 payment on a $200 advance stops interest from accruing on that $100, cutting your daily interest cost in half.
Alternatives to using a credit card at an ATM
Before you use a credit card cash advance, consider these cheaper or free options. If you have a debit card, use that instead — there is no fee or interest, only a possible ATM operator fee if you use an out-of-network machine. If you do not have a debit card, many banks and credit unions let you withdraw cash from a teller during business hours without a card, as long as you have an account with them.
If you need cash and do not have a bank account, some retailers (grocery stores, pharmacies, big-box stores) offer cash back when you make a purchase with a debit card, at no charge. You can also ask a friend or family member for cash and repay them later. Both of these options cost nothing and are faster than a credit card cash advance.
If you are in a true emergency and have no other way to get cash, a cash advance is better than missing a payment or going without. But it should be a last resort, not a habit.
Frequently Asked Questions
Can I use a credit card cash advance to pay a bill or send money to someone?
Technically yes, but it is not recommended. Some credit card issuers let you use a cash advance to pay bills or transfer money, but the fees and interest are the same as withdrawing cash from an ATM. You would pay 3% to 5% upfront plus daily interest, making it an expensive way to move money. Use a bank transfer, check, or bill pay feature instead.
What is the difference between a cash advance and a balance transfer?
A cash advance is cash you withdraw from an ATM or bank, with a fee and immediate interest. A balance transfer is moving debt from one credit card to another, usually with a lower introductory APR. Both are loans, but a balance transfer is for moving existing debt, while a cash advance is for getting cash. Do not confuse the two.
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 available credit you are using), which can lower your score slightly. If you have a $5,000 limit and take a $1,000 cash advance, your utilization jumps to 20%. Pay it back quickly to bring utilization back down.
Can I withdraw cash from an ATM using a credit card if I do not have a PIN?
No. You need a PIN to use a credit card at an ATM. Contact your card issuer to set one up before you need it. This usually takes a few minutes through the app or website, or you can call customer service and they can help you create one over the phone.
What happens if I do not pay back a cash advance?
The balance carries over to your next statement with interest and late fees if you miss the due date. The interest compounds daily, so the longer you wait, the more you owe. If you do not pay for several months, the card issuer may report the debt to credit bureaus, damaging your credit score and potentially leading to legal action.