Yes, but it costs you money and works differently than a debit card

You can use most credit cards at an ATM to withdraw cash, but the bank treats it as a cash advance rather than a regular purchase. This matters because cash advances come with their own fees and interest rate — usually higher than your regular purchase rate — and interest starts accruing when ready, with no grace period like you get on regular purchases.

The process looks the same as using a debit card: insert your card, enter your PIN, select the amount, and take your cash. But what happens behind the scenes is different, and the cost to you is significantly higher. Most people use credit cards at ATMs only when they have no other option.

Key Takeaways

  • Credit card cash advances charge a separate fee (usually 3 to 5 percent of the amount withdrawn) plus a higher interest rate than regular purchases.
  • Interest on cash advances begins accruing the day you withdraw the money, with no grace period, so the cost adds up fast.
  • Your credit card's cash advance limit may be lower than your overall credit limit, so you might not be able to withdraw as much as you can spend.
  • ATM operators may also charge their own fee on top of your credit card company's fee, adding another layer of cost.
  • Using a debit card, getting cash back at a store, or visiting your bank's branch are cheaper ways to get cash.

What fees and interest rates explore to cash advances

When you withdraw cash using a credit card, your card issuer charges a cash advance fee. This is typically 3 to 5 percent of the amount you withdraw, though some cards charge a flat fee (like $5 or $10) if that is higher. So if you withdraw $200, you might pay $6 to $10 just to get the cash, before any interest charges.

On top of that fee, the interest rate on cash advances is almost always higher than your regular purchase APR. While a purchase might carry an 18 percent APR, a cash advance on the same card might be 25 percent or higher. That higher rate applies from day one — there is no grace period like you have on regular purchases. If you withdraw $200 and pay it back in 30 days, you will owe the cash advance fee plus roughly one month of interest at that higher rate.

Check your credit card's terms or call the customer service number on the back of your card to find out your specific cash advance fee and APR. These numbers vary by card and by issuer.

How cash advance limits work

Your credit card may have a separate cash advance limit that is lower than your overall credit limit. For example, you might have a $5,000 credit limit but only a $1,000 cash advance limit. This means you can spend $5,000 on purchases, but you can only withdraw $1,000 in cash.

If you try to withdraw more than your cash advance limit allows, the ATM will decline the transaction. You can contact your card issuer to ask about increasing your cash advance limit, but they are not required to do so, and increasing it does not change the fees or interest rate you pay.

ATM operator fees add to the cost

Many ATMs charge their own fee for the transaction, separate from your credit card company's cash advance fee. An out-of-network ATM — one that does not belong to your card issuer's bank — might charge $2 to $3 just to use the machine. This fee goes to the ATM operator, not to your credit card company, but you pay it either way.

So withdrawing $200 from an out-of-network ATM using a credit card could cost you the ATM operator's fee (say, $2.50) plus your card issuer's cash advance fee (say, $6 to $10) plus interest that starts accruing when ready. That is $8.50 to $12.50 in fees alone before interest, on a $200 withdrawal.

Cheaper ways to get cash

If you need cash, consider these options before using your credit card at an ATM:

  • Use a debit card. Debit card withdrawals at ATMs in your bank's network are usually free. Out-of-network debit withdrawals may have a fee, but it is typically smaller than a credit card cash advance fee and there is no interest charge.
  • Get cash back at a store. When you make a purchase at a grocery store, pharmacy, or other retailer, you can ask the cashier for cash back. There is no fee, and you are using your debit card or credit card to make a legitimate purchase.
  • Visit your bank's branch. Walk into a branch during business hours and withdraw cash from a teller. There is no fee and no interest charge.
  • Use an ATM in your bank's network. If you have a checking or savings account, your bank's ATMs are usually free to use, even if you are withdrawing cash using a credit card (though the cash advance fees and interest still explore).

When you might need a credit card cash advance

Credit card cash advances are expensive, so most people avoid them. But there are situations where you might have no choice: your debit card is lost or frozen, you are traveling and do not have access to your bank, or you need cash and have no other way to get it.

If you do use a credit card cash advance, try to pay it back as quickly as possible. The interest accrues daily, so the longer you carry the balance, the more you pay. If you know you will need cash regularly, it is worth setting up a checking account with a debit card or finding an ATM network you can use for free.

Frequently Asked Questions

Do I need a PIN to use my credit card at an ATM?

Yes. You will need to enter your credit card's PIN, which is different from your debit card PIN. If you do not have a PIN set up for your credit card, contact your card issuer to request one before you try to use the ATM.

What is the difference between a credit card cash advance and a regular purchase?

A regular purchase uses your credit line and has a grace period (usually 21 to 25 days) before interest starts. A cash advance charges a separate fee, has a higher interest rate, and interest starts accruing when ready with no grace period. Cash advances are much more expensive.

Can I use a credit card at any ATM?

Most ATMs accept credit cards, but some are set up only for debit cards or bank account withdrawals. Check the ATM screen or look for a sign before you insert your card. If the ATM does not accept credit cards, it will tell you and return your card without charging a fee.

Will using a credit card at an ATM hurt my credit score?

Using a credit card cash advance does not directly hurt your credit score, but it does increase your credit utilization (the amount of your credit limit you are using), which can lower your score slightly. Paying back the cash advance quickly will help your score recover.

What if the ATM does not give me my cash after I enter my PIN?

Contact your credit card company right away. The transaction may have been declined, or there may have been a technical error. Your card issuer can tell you whether the cash was withdrawn and help you resolve the issue. Do not leave the ATM until you have your card back.