You can withdraw cash from an ATM using your credit card, but it costs you money and starts charging interest immediately

A credit card cash advance lets you pull money directly from an ATM using your card's PIN. Unlike a debit card withdrawal, this is a loan — not a transfer from your own account. The moment you take the cash, your credit card issuer charges you a fee (usually 3% to 5% of the amount), and interest starts accruing at a rate that is typically higher than your regular purchase APR. Most cards charge between 20% and 30% annual interest on cash advances, with no grace period.

The process itself is straightforward: insert your card, enter your PIN, select "cash advance" or "withdrawal," choose your amount, and take your cash. But the financial cost makes this option worth using only when you have no other way to get cash and need it urgently.

Key Takeaways

  • Cash advances charge an upfront fee of 3% to 5% plus a higher interest rate than regular purchases, with no grace period before interest starts.
  • Your credit card issuer sets a separate cash advance limit, which may be lower than your credit limit and does not increase when you pay down your balance.
  • Interest on a cash advance accrues daily from the moment you withdraw the money, so even a short-term advance costs more than it appears.
  • ATMs owned by your card issuer's bank typically charge no ATM fee, but out-of-network ATMs add another $2 to $4 charge on top of the cash advance fee.
  • Alternatives like getting cash back at a store checkout, using a debit card, or borrowing from a friend cost far less than a credit card cash advance.

How the cash advance fee and interest actually work

When you take a cash advance, two charges hit your account immediately. The first is the cash advance fee, calculated as a percentage of the amount you withdraw. If your card charges 4% and you withdraw $200, you pay $8 right away. This fee appears on your statement and counts toward your balance.

The second charge is interest, which begins accruing the same day you withdraw the cash. Unlike purchases, which often have a grace period (usually 21 to 25 days before interest kicks in), cash advances charge interest from day one. If your card's cash advance APR is 25% and you withdraw $200, you owe roughly $1.37 in interest for the first month, plus the $8 fee. The longer you carry the balance, the more interest compounds.

Your issuer applies your monthly payment to the lowest-interest balance first, which means if you have both purchases and a cash advance, your payment goes toward the purchase balance before touching the cash advance. This keeps the high-interest cash advance balance growing longer.

Finding your cash advance limit and PIN

Your credit card has a separate cash advance limit, which your issuer sets independently of your credit limit. You might have a $5,000 credit limit but only a $1,000 cash advance limit. This limit does not increase when you pay down your balance — it stays fixed unless your issuer raises it or you request an increase.

To find your cash advance limit, log into your online account or call the customer service number on the back of your card. The representative can tell you the exact amount and may offer to raise it, though doing so does not change the fee or interest rate.

If you have never used your card for a cash advance, you may not have set a PIN. Most issuers let you create one online, through their app, or by calling customer service. You will need this PIN to withdraw cash at an ATM — the card alone is not enough.

Which ATMs charge extra fees and how to avoid them

ATMs fall into two categories: those owned by your card issuer's bank and those owned by other banks or independent networks. Using an ATM owned by your issuer (such as a Chase ATM if you have a Chase card) typically charges no additional fee beyond the cash advance fee your card issuer charges. Using an out-of-network ATM adds a surcharge, usually $2 to $4, on top of everything else.

Some ATMs display the fee before you complete the transaction — you will see a screen asking if you want to proceed and showing the total charge. Read this carefully. A $200 withdrawal at an out-of-network ATM could cost you $8 (4% cash advance fee) plus $3 (ATM surcharge) plus daily interest, totaling $11 or more before you even leave the machine.

To minimize fees, use your issuer's ATM network. Most major banks have thousands of ATMs nationwide. If you do not know where they are, search your card issuer's website or app for "ATM locator" — it will show you the nearest in-network machines.

When a cash advance makes sense (and when it does not)

A credit card cash advance is rarely the cheapest way to get cash, but it may be your only option in specific situations. If you need cash urgently and have no access to a debit card, no nearby store that gives cash back, and no one to borrow from, a cash advance gets you the money immediately. The cost is high, but it is better than missing a time-sensitive payment or being unable to pay for something essential.

A cash advance does not make sense if you have other options. Getting cash back at a grocery store or pharmacy checkout costs nothing and takes 30 seconds. Using a debit card at an ATM costs nothing. Borrowing from a friend or family member costs nothing. Even a payday loan, which is expensive, often charges less than a credit card cash advance when you factor in the fee plus interest.

If you find yourself regularly needing cash advances, that is a sign your budget does not match your spending. Consider whether you need to adjust your monthly expenses or build an emergency fund so you have cash on hand without borrowing.

How cash advances affect your credit score

A cash advance itself does not appear separately on your credit report — it shows as part of your credit card balance. However, it can harm your credit score in two ways. First, it increases your overall balance, which raises your credit utilization ratio (the percentage of your available credit you are using). A higher utilization ratio lowers your score. Second, if you carry the cash advance balance for months, the ongoing interest charges keep your balance high, keeping your utilization high and your score depressed.

The cash advance does not trigger a hard inquiry or appear as a separate account, so it does not directly damage your score the way a new credit card application does. But the balance it creates can hurt you for as long as you carry it.

How to pay off a cash advance quickly

If you have taken a cash advance, pay it off as fast as you can. Every day you carry the balance, interest accrues at a rate much higher than a regular purchase. If you withdrew $200 at 25% APR, paying it back in one month costs roughly $4 in interest alone, plus the original $8 fee. Paying it back in three months costs roughly $12 in interest.

When you make a payment, ask your issuer how they apply it. Some issuers let you direct a payment to the cash advance balance specifically, which ensures your money goes toward the highest-interest debt. Others apply payments to the lowest-interest balance first. Knowing which method your issuer uses helps you decide whether to make extra payments or pay off the cash advance in full immediately.

If you have multiple balances on the same card, paying the cash advance first saves you the most money because it carries the highest interest rate.

Frequently Asked Questions

Can I use my credit card at any ATM?

You can use your card at any ATM that displays your card's network logo (Visa, Mastercard, American Express, or Discover). However, out-of-network ATMs charge a surcharge on top of your card issuer's cash advance fee. Using an ATM owned by your issuer's bank avoids the surcharge.

What is the difference between a cash advance and a balance transfer?

A cash advance withdraws cash from an ATM and charges a fee plus high interest immediately. A balance transfer moves debt from one card to another and may offer a lower introductory rate for a set period. Cash advances are for getting physical cash; balance transfers are for moving existing debt between cards.

Will a cash advance show up on my credit report?

The cash advance itself does not appear as a separate line item, but the balance it creates counts toward your total credit card balance and affects your credit utilization ratio. If you carry the balance for months, it can lower your credit score by keeping your utilization high.

Can I get a cash advance if I have reached my credit limit?

No. Your cash advance limit is separate from your credit limit, but you cannot exceed your total credit limit. If you are at your credit limit, you cannot take a cash advance until you pay down your balance.

What should I do if I forgot my cash advance PIN?

Call your card issuer's customer service number or log into your online account to reset your PIN. Most issuers let you create a new one immediately online or over the phone. You will need the new PIN before you can withdraw cash at an ATM.