Credit cards work at ATMs, but you pay a fee and interest starts immediately
You can use a credit card at an ATM to withdraw cash, but it is not the same as using a debit card. When you withdraw cash with a credit card, you are taking a cash advance — a short-term loan from your card issuer. The moment you complete the transaction, interest begins accruing on that amount, and you will also pay an upfront fee.
Most credit card issuers charge a cash advance fee of 3% to 5% of the amount withdrawn, with a minimum fee of $5 to $10. On top of that, the interest rate for cash advances is typically higher than the rate for regular purchases — often 2% to 3% higher. If you carry the balance, you will pay interest daily until it is paid off, with no grace period like you might have on purchases.
The process itself is straightforward: insert your card, enter your PIN, select "cash advance" or "withdraw cash," choose your amount, and complete the transaction. But the cost makes this option worth using only when you have no other way to get cash.
Key Takeaways
- A cash advance on a credit card charges an upfront fee (usually 3% to 5%) plus a higher interest rate than purchases, with interest starting immediately.
- You need a PIN to withdraw cash at an ATM with a credit card; if you do not have one, you can request it from your card issuer before you need it.
- The ATM itself may also charge a fee ($2 to $3 is common), which is separate from your card issuer's fee.
- Paying off a cash advance as quickly as possible limits the interest you owe, since there is no grace period.
What you need before you can use a credit card at an ATM
To withdraw cash with a credit card at an ATM, you must have a PIN (Personal Identification Number) set up on your card. Many people do not have a PIN because they rarely use ATMs with credit cards. If you do not have one, contact your card issuer — you can usually set it up online through your account, by phone, or by visiting a branch if it is a bank-issued card.
The PIN is typically four digits, and you choose it yourself. Write it down somewhere safe, separate from your card. Some issuers will mail you a temporary PIN and ask you to change it on your first use; others let you create one immediately online.
You will also need to know your credit limit and how much of it is available. A cash advance counts against your total credit limit, so if you have a $5,000 limit and have already charged $3,000, you can only advance up to $2,000 in cash.
Step-by-step: withdrawing cash at the ATM
Insert your credit card into the ATM slot. The machine will prompt you to enter your PIN — this is the same PIN you set up with your issuer. Do not use your debit card PIN if you have one; they are separate.
After you enter your PIN, the ATM will show you a menu of options. Look for "cash advance," "withdraw cash," or sometimes "credit withdrawal." Select that option. The ATM will then ask you to enter the amount you want to withdraw. Choose carefully: you will pay a fee on whatever amount you take out, so only withdraw what you actually need.
Confirm the amount and complete the transaction. The ATM will dispense your cash and print a receipt. Keep the receipt — it shows the amount withdrawn, the fees charged by the ATM operator, and your transaction reference number. Your card issuer's fee will appear on your next statement.
Fees you will pay: card issuer, ATM operator, and interest
Three separate costs apply to a credit card cash advance. First, your card issuer charges a cash advance fee, typically 3% to 5% of the amount withdrawn. On a $200 withdrawal, that is $6 to $10. This fee appears on your credit card statement.
Second, the ATM operator may charge a surcharge if you are using an out-of-network machine. Banks and ATM networks like Allpoint, MoneyPass, and CO-OP charge $2 to $3 per transaction. If you use an ATM owned by your own bank, this fee is often waived. The ATM screen will tell you the operator's fee before you confirm the withdrawal.
Third, interest accrues immediately on the cash advance. Unlike purchases, which often have a grace period of 20 to 25 days, cash advances start charging interest the day you withdraw the money. The interest rate is higher than your purchase APR — sometimes 5% to 10% higher. If you withdraw $200 and carry it for 30 days at a 25% cash advance APR, you will owe roughly $4.11 in interest alone, on top of the upfront fee.
Why a cash advance costs more than other ways to get cash
A cash advance is expensive compared to using a debit card or visiting your bank. With a debit card, you withdraw your own money with no fee and no interest. With a bank visit, you can withdraw cash from your checking account for free. A cash advance is a loan, not a withdrawal, so you pay for borrowing.
Some credit cards offer better cash advance terms than others. A few cards marketed to people with poor credit charge lower cash advance fees (2% instead of 5%), but the interest rate is usually still high. Check your card's terms — you can find the cash advance APR and fee in your cardholder agreement or online account.
If you regularly need cash, a cash advance is a sign that you should consider opening a checking account or using a debit card instead. If you need cash only occasionally and have no other option, a cash advance works, but plan to pay it back within a week or two to minimize interest.
What to do if you do not have a PIN or your PIN does not work
If you have never set up a PIN on your credit card, the ATM will reject your card. Call your card issuer's customer service number — it is on the back of your card — and ask them to set up a PIN for you. Most issuers can do this over the phone in a few minutes. Some will mail you a temporary PIN and ask you to change it online; others will let you create one immediately.
If you have a PIN but it does not work, double-check that you are entering it correctly. ATMs typically lock you out after three wrong attempts. If you are locked out, you will need to call your issuer to reset it. Do not try to use the same card again at another ATM immediately — wait a few hours or until the next day.
If your card is expired or has been reported lost or stolen, the ATM will not accept it. Contact your issuer to request a replacement card before you need cash.
Alternatives to a credit card cash advance
Before you use a cash advance, consider these cheaper options. If you have a debit card linked to a checking account, use that instead — there is no fee and no interest. If you do not have a debit card, you can open a checking account at most banks in one day, either online or in person.
If you need cash and have no debit card, ask a friend or family member to lend you the money. If you need cash urgently and have no other option, a cash advance is available immediately, but understand that you are paying 3% to 5% upfront plus interest to borrow your own credit limit.
Some employers offer paycheck advances or loans to employees. Some nonprofits and community organizations offer small emergency loans at low or no interest. Check with your employer's HR department or search for "emergency loan" plus your city name to see what is available in your area.
Frequently Asked Questions
Can I use any credit card at any ATM?
Most ATMs accept Visa and Mastercard, but some older machines or machines in remote locations may not. Amex and Discover are less widely accepted at ATMs. Your card issuer can tell you which ATM networks accept your card. You can also look for the card network logo on the ATM before you insert your card.
What is the difference between a cash advance and a balance transfer?
A cash advance is cash you withdraw at an ATM or from a bank teller. A balance transfer is when you move debt from one credit card to another. Both charge fees and interest, but they are separate transactions. A cash advance fee is usually 3% to 5%; a balance transfer fee is often 3% to 5% as well, but the interest rate may be lower for a limited time.
Will a cash advance hurt my credit score?
A single cash advance will not directly hurt your score, but it increases your credit utilization — the percentage of your total credit limit you are using. If you use a large cash advance, your utilization goes up, which can lower your score slightly. Paying it off quickly brings your utilization back down.
Can I get a cash advance without a PIN?
No, you need a PIN to withdraw cash at an ATM. You can get a cash advance without a PIN by visiting a bank teller in person with your credit card and a form of ID, but you will still pay the same fees and interest. Some banks charge an additional fee for teller cash advances.
How long does a cash advance stay on my credit card statement?
The cash advance appears on your statement in the billing cycle when you withdrew it. The fee appears as a separate line item. The balance stays on your account until you pay it off. Interest continues to accrue daily until the balance reaches zero.