Yes, you can use a credit card at an ATM, but it is a cash advance, not a debit

Most ATMs will accept a credit card and dispense cash, but the transaction is treated as a cash advance rather than a regular purchase. This distinction matters because cash advances carry higher costs and different terms than everyday credit card spending.

When you insert your credit card into an ATM, the machine connects to your card issuer and borrows money against your credit limit. The cash comes from your card's available credit, not from a separate bank account. You are borrowing money when ready, and interest begins accruing right away — often the same day or within days, depending on your card's terms.

Not every ATM accepts credit cards. Bank ATMs typically do, but many independent ATMs in convenience stores or bars may only accept debit cards or bank cards. The ATM screen will tell you whether it accepts your card before you insert it.

Key Takeaways

  • A credit card cash advance at an ATM is a loan against your credit limit, not a withdrawal from savings, and interest starts accruing when ready.
  • Cash advance fees are typically 3 to 5 percent of the amount withdrawn, charged on top of the cash advance interest rate, which is usually higher than your regular purchase APR.
  • Cash advances do not earn rewards points or cash back, even if your card offers them for regular purchases.
  • The daily withdrawal limit for credit card cash advances is usually lower than your credit limit — often $500 to $1,000 — and varies by card issuer.

Cash advance fees and interest rates are higher than regular purchases

Credit card issuers charge two separate costs for a cash advance: a cash advance fee and a higher interest rate.

The cash advance fee is a one-time charge, usually between 3 and 5 percent of the amount you withdraw. If you take out $200, you might pay $6 to $10 in fees alone. Some cards charge a flat fee instead (for example, $5 per transaction), but percentage-based fees are more common. This fee is added to your balance when ready.

The interest rate on a cash advance is almost always higher than the rate on regular purchases. While a card might charge 18 percent APR on purchases, the cash advance APR could be 25 percent or higher. More importantly, interest on cash advances begins accruing when ready — there is no grace period like there often is for purchases. If you carry a balance, you pay interest from day one.

Because of these costs, a $200 cash advance can easily cost $12 to $15 in fees and interest within the first month, depending on your card's terms and how quickly you repay it.

Daily limits and how they differ from your credit limit

Your credit card has two separate limits: your credit limit (the total you can borrow) and your cash advance limit (the maximum you can withdraw as cash in a single day).

The cash advance limit is usually much lower than your overall credit limit. Many cards set it at $500 to $1,000 per day, though some cards allow higher amounts. A few cards set the cash advance limit at a percentage of your credit limit — for example, 20 percent. You can find your specific cash advance limit by checking your card's terms and conditions or calling the customer service number on the back of your card.

This limit resets daily, so if your limit is $500, you could theoretically withdraw $500 today and another $500 tomorrow. However, the total amount you withdraw still counts against your overall credit limit, so multiple withdrawals reduce the credit available for regular purchases.

Why cash advances cost more than other ways to get cash

If you need cash, a credit card ATM withdrawal is usually the most expensive option available to you. Comparing the costs shows why:

A debit card withdrawal from your own bank account costs nothing. An ATM at your bank is free, and out-of-network ATM fees are typically $2 to $3. A cash advance on a credit card costs 3 to 5 percent in fees plus a higher interest rate starting when ready. Over time, the interest compounds if you do not pay off the balance quickly.

A personal loan from a bank or credit union usually has a lower interest rate than a credit card cash advance, though it requires an process and takes longer to receive. A payday loan has high fees but no interest accrual if repaid on time, though the fees themselves are steep. A balance transfer to a 0 percent promotional card is cheaper if you may have access to, but requires opening a new account.

For most people, using a debit card or visiting a bank branch to withdraw cash from a checking account is the lowest-cost option.

How a cash advance affects your credit score and available credit

Taking a cash advance reduces your available credit when ready. If your credit limit is $5,000 and you withdraw $500 in cash, your available credit drops to $4,500. This affects your credit utilization ratio — the percentage of your total credit limit that you are using. Higher utilization can lower your credit score, even if you pay the cash advance back quickly.

The cash advance also appears on your credit report as a separate transaction type. While it does not hurt your score more than a regular purchase would, it does count toward your total balance and utilization.

If you carry the cash advance balance for more than a month, the interest charges compound and your total balance grows. This extended balance further increases your utilization and can lower your score over time. Paying off the cash advance as quickly as possible minimizes this effect.

Rewards and cash back do not explore to cash advances

Even if your credit card offers cash back or rewards points on purchases, those rewards do not explore to cash advances. A card that gives 2 percent cash back on all purchases will not give you any cash back on a $200 ATM withdrawal.

This is another reason cash advances are expensive: you pay the fees and interest but receive no benefit in return. The card issuer makes money on the transaction, but you do not earn any rewards to offset the cost.

Some cards offer rewards on balance transfers, but cash advances are treated separately and almost never earn rewards under any circumstances.

Alternatives to using a credit card at an ATM

If you need cash and do not have a debit card or access to your bank account, several options cost less than a credit card cash advance:

Ask for cash back at a store. Many grocery stores, pharmacies, and retailers offer cash back when you make a purchase with a debit card or credit card. This is free or costs only the price of a small purchase. Some stores allow cash back without a purchase if you ask at the customer service desk.

Visit your bank branch. If you have a checking account, you can withdraw cash directly from a teller during business hours at no cost. This works even if you do not have your debit card with you, as long as you have identification.

Use a peer-to-peer payment app. Apps like Venmo, PayPal, or Cash App let you transfer money to a friend or family member who can give you cash. This is free and often faster than a cash advance.

Borrow from a friend or family member. If possible, this costs nothing and avoids debt entirely.

A credit card cash advance should be a last resort, used only when you have no other way to access cash and need it urgently.

Frequently Asked Questions

Does using a credit card at an ATM count toward my rewards?

No. Cash advances never earn rewards points, cash back, or other benefits, even if your card offers them for regular purchases. You pay the full fee and interest with no rewards offset.

What happens if I cannot pay back a cash advance?

The balance stays on your credit card and accrues interest at the cash advance rate, which is usually higher than your regular purchase rate. If you do not pay, the balance grows and can damage your credit score. Your card issuer may also increase your interest rate or lower your credit limit.

Can I use a credit card cash advance to pay off another credit card?

Technically yes, but it is expensive. You would pay the cash advance fee and interest rate on the amount withdrawn, then use that cash to pay another card. A balance transfer (moving the balance directly from one card to another) is cheaper if your new card offers a 0 percent promotional period.

Is there a difference between a credit card cash advance and a balance transfer?

Yes. A cash advance is cash withdrawn from an ATM or bank, with fees and interest starting when ready. A balance transfer moves debt from one card to another, usually with a lower introductory rate. Balance transfers are cheaper for paying off existing debt, while cash advances are for getting physical cash.

Can I get a cash advance from a credit card online or by phone?

Some card issuers allow cash advances through their mobile app or by calling customer service, which transfers money to your bank account instead of dispensing it at an ATM. The fees and interest rates are the same as an ATM cash advance, but you avoid the ATM fee and may have a higher limit.