Yes, you can use a credit card at an ATM, but it costs money and works differently than a debit card

Most ATMs accept credit cards, but when you use one, you are taking out a cash advance — not withdrawing money from your account like you would with a debit card. The ATM treats it as a loan. Your credit card company charges you a fee (usually $3 to $5 per transaction), and the cash advance starts accruing interest when ready, often at a higher rate than your regular purchase APR. There is no grace period like there is for purchases.

Because of these costs, using a credit card at an ATM should be a last resort, not a regular habit. If you need cash regularly, a debit card or a trip to your bank's teller window is cheaper.

Key Takeaways

  • A credit card cash advance at an ATM triggers an when ready fee (typically $3 to $5) plus interest that starts accruing right away.
  • Cash advance interest rates are usually higher than your regular purchase APR and have no grace period.
  • The amount you can withdraw is limited by your credit card's cash advance limit, which is often much lower than your credit limit.
  • Using a credit card at an ATM should be reserved for emergencies, not regular cash needs.

How the cash advance fee and interest work

When you insert your credit card into an ATM and withdraw cash, two charges happen when ready. First, the card issuer charges a cash advance fee — a flat dollar amount or a percentage of the withdrawal, whichever is higher. Most issuers charge between $3 and $5 per transaction, though some charge a percentage (often 3% to 5% of the amount withdrawn). A $100 withdrawal could cost you $3 to $5 in fees alone.

Second, interest begins accruing the same day. Unlike a purchase, which has a grace period (usually 21 to 25 days before interest kicks in), a cash advance has no grace period. The interest rate is also higher — often 2% to 5% above your regular APR. If your purchase APR is 18%, your cash advance APR might be 23%. On a $100 withdrawal, that difference adds up fast.

The total cost depends on how long you carry the balance. A $200 cash advance at 5% fee plus 23% APR costs you $10 in fees plus roughly $3.83 in interest per month if you do not pay it back when ready.

Your cash advance limit is separate from your credit limit

Credit card companies set a cash advance limit that is usually much lower than your overall credit limit. If your credit limit is $5,000, your cash advance limit might be $500 or $1,000. You cannot withdraw more than this limit, even if you have available credit.

You can find your cash advance limit in your credit card agreement or by calling the customer service number on the back of your card. Some issuers let you view it online or in their mobile app. If you need to withdraw more cash than your limit allows, you will have to make multiple trips to different ATMs, which means paying the fee multiple times.

When you might use a credit card at an ATM

The main reason to use a credit card at an ATM is an emergency when you have no other way to get cash. Examples include a broken debit card, a closed bank branch, or an unexpected situation where only cash is accepted. In these cases, the convenience of getting cash when ready outweighs the fee and interest cost.

Do not use a credit card at an ATM for regular cash withdrawals, to avoid overdraft fees on a checking account, or because you want to build credit. None of these reasons justify the cost. If you are trying to avoid overdraft fees, contact your bank about overdraft protection or a line of credit instead. If you are trying to build credit, use the card for regular purchases and pay the full balance each month — that is free and more effective.

How to minimize the cost if you must withdraw cash

If you have decided a cash advance is necessary, take these steps to keep the cost as low as possible. First, withdraw only what you need — every dollar you take out is subject to the fee and interest. Second, pay it back as soon as you can. Even paying it back within a few days saves you interest. Third, use an ATM owned by your credit card issuer if possible — some issuers waive the ATM fee for their own machines, though interest still applies.

Before you withdraw, check whether the ATM will charge you a separate fee on top of your credit card company's fee. Many ATMs (especially those in bars, convenience stores, or casinos) charge their own surcharge of $2 to $3. A $100 withdrawal could end up costing you $8 to $10 in fees before interest.

Alternatives to a credit card cash advance

If you need cash and do not have a debit card, several options are cheaper than a credit card ATM withdrawal. Visit your bank or credit union in person and ask a teller to withdraw cash from your checking account — this is free. If you do not have a checking account, ask whether the bank offers a basic account with no monthly fee.

If you are at a store, ask the cashier whether you can get cash back with a debit card purchase — most grocery stores and pharmacies offer this for free. Some retailers also offer this with a credit card, though it may be treated as a cash advance. Ask before you complete the transaction.

If you need cash regularly, opening a checking account with a debit card is the cheapest long-term solution. Most banks offer free checking with no minimum balance. A debit card withdrawal at your bank's ATM costs nothing.

What happens to your credit score when you take a cash advance

A cash advance does not directly hurt your credit score, but it can indirectly. The withdrawal increases your credit utilization — the percentage of your available credit you are using. If you have a $5,000 credit limit and take a $500 cash advance, your utilization jumps to 10%. High utilization can lower your score slightly. The effect is temporary and goes away once you pay the balance down.

The bigger risk is if the cash advance leads you to carry a balance you cannot pay off quickly. Carrying a balance month to month, combined with the high interest rate on cash advances, can damage your score over time because it shows you are relying on credit you cannot repay when ready.

Frequently Asked Questions

Can I use any credit card at any ATM?

Most ATMs accept major credit cards (Visa, Mastercard, American Express, Discover), but not all. Some ATMs only accept debit cards or ATM cards. Before you try, look for the credit card logos on the machine. If you are unsure, call the ATM operator's customer service number (usually displayed on the screen) or ask a nearby employee.

Is a cash advance the same as a balance transfer?

No. A cash advance is money you withdraw from an ATM or bank teller. A balance transfer is moving debt from one credit card to another. Both have fees and higher interest rates than regular purchases, but they are different transactions with different limits and terms.

What if I cannot pay back the cash advance right away?

The balance will accrue interest at your cash advance APR until you pay it off. Make it a priority to pay back as much as you can as quickly as you can. Even a partial payment reduces the interest you owe going forward. If you are struggling to pay, contact your credit card company about a hardship program or payment plan.

Will my credit card company report the cash advance to credit bureaus?

The cash advance itself is not reported separately — it is part of your overall credit card balance. However, if you carry the balance and make late payments, those payment issues will be reported and can hurt your credit score.

Can I use a credit card at a bank teller to get cash instead of an ATM?

Yes. Going to a bank teller and asking for a cash advance on your credit card works the same way as an ATM — you will pay the same fee and interest. However, if you go to your own bank and use your debit card or checking account, there is no fee. Always ask the teller which card or account you should use before you hand over a card.