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

Most ATMs accept credit cards, but when you use one, you are taking a cash advance rather than withdrawing from a checking account. The ATM reads your card, confirms your credit limit, and dispenses cash directly from your credit card balance. This is not the same as using a debit card — you are borrowing money on your credit card, not accessing money you already have.

The transaction starts charging interest when ready. Unlike a purchase, which may have a grace period before interest accrues, a cash advance begins accruing interest the moment you withdraw the money. You also pay an upfront fee — typically 3 to 5 percent of the amount withdrawn, though some cards charge a flat fee instead. Your card issuer sets both the interest rate and the fee, and they can differ from your regular purchase rate.

Not every ATM accepts credit cards. Bank ATMs usually do, but many standalone ATMs in convenience stores or bars do not. The ATM screen will tell you whether it accepts credit cards before you insert yours. If it does not, you will need to find another machine or use a different payment method.

Key Takeaways

  • A credit card cash advance at an ATM charges interest from day one, unlike a purchase, which may have a grace period.
  • You pay an upfront fee of 3 to 5 percent of the cash withdrawn, set by your card issuer, on top of the interest.
  • Not all ATMs accept credit cards; bank ATMs are more likely to than standalone machines in retail locations.
  • The interest rate for cash advances is often higher than the rate for purchases on the same card.

How the fee and interest rate work

The cash advance fee appears on your statement as a separate charge. If you withdraw $200 and your card charges a 4 percent fee, you owe $8 when ready, added to your balance. Some cards charge a flat fee instead — for example, $3 or $5 per transaction — regardless of how much you withdraw. Check your card's terms to know which applies to yours.

Interest on a cash advance typically runs 1 to 3 percentage points higher than your purchase APR. If your card charges 18 percent APR on purchases, the cash advance rate might be 21 or 22 percent. Interest accrues daily on the full amount you withdrew, starting the day of the transaction. Unlike a purchase, there is no grace period — interest begins when ready.

The total cost adds up quickly. A $200 cash advance with a 4 percent fee ($8) and a 22 percent APR costs you roughly $8 upfront plus about $3.67 in interest for the first month if you do not pay it back. The longer you carry the balance, the more interest you pay.

When ATM cash advances make sense

A credit card cash advance is expensive, so it makes sense only in specific situations. If you need cash for an emergency and have no other way to get it, a cash advance may be your only option. If you have a debit card or can use another payment method, that is almost always cheaper.

Some people use cash advances to move a balance from one card to another, though this is rare and usually not worth the fees. If you are considering this, calculate the total cost first — the cash advance fee plus interest — and compare it to what you would pay by keeping the balance where it is.

Cash advances can also affect your credit score. The transaction increases your credit utilization ratio (the amount of available credit you are using), which can lower your score temporarily. Paying off the advance quickly helps minimize this effect.

Alternatives to using a credit card at an ATM

If you need cash, a debit card is almost always cheaper. Debit cards withdraw money directly from your checking account with no interest or cash advance fee. If you do not have a debit card, you can visit your bank's branch and withdraw cash over the counter for free.

Some retailers offer cash back when you make a purchase with a debit or credit card. This is free and does not carry the fees or interest of a cash advance. You can also transfer money to a friend or family member using a payment app like Venmo or PayPal, then ask them to give you cash.

If you are in a situation where you regularly need cash advances, that may signal a larger cash flow problem. A budget or a conversation with a financial counselor can help you understand where your money is going and whether you need to adjust your spending or income.

How to find an ATM that accepts your credit card

Your card issuer's website usually has an ATM locator tool. Log into your account, look for a link labeled "Find an ATM" or "ATM Locator," and enter your location. The tool shows you nearby ATMs that accept your card and often tells you the fee charged by that machine.

Bank ATMs are more likely to accept credit cards than standalone machines. If you bank with a national chain like Chase, Bank of America, or Wells Fargo, you can use their ATMs nationwide. Credit unions often participate in shared branching networks, so you can use ATMs at other credit unions in the network.

Standalone ATMs in convenience stores, bars, and gas stations sometimes accept credit cards, but not always. The screen will display whether your card is accepted before you insert it. If the machine does not accept credit cards, you will need to find another ATM or use a different way to get cash.

What happens if you do not pay back a cash advance

If you do not pay back a cash advance, it behaves like any other credit card balance. Interest continues to accrue daily, and the balance grows. If you miss a payment, your card issuer reports it to the credit bureaus, which damages your credit score. After 30 days of missed payments, the issuer may charge a late fee and increase your interest rate.

After 180 days of nonpayment, the issuer typically closes your account and may send the debt to a collection agency. A collection account stays on your credit report for seven years and makes it harder to borrow money in the future. Paying off the cash advance as soon as you can is the best way to avoid these consequences.

Frequently Asked Questions

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

It can, temporarily. A cash advance increases your credit utilization ratio, which is part of your credit score calculation. The effect is usually small and goes away once you pay off the balance. However, if you miss payments on the cash advance, that will damage your score more significantly.

Can I use a credit card at any ATM?

Most bank ATMs accept credit cards, but many standalone ATMs do not. The ATM screen will tell you whether it accepts credit cards before you insert yours. Your card issuer's website has a locator tool that shows which ATMs near you accept your card.

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

A purchase may have a grace period before interest starts, but a cash advance charges interest when ready. Cash advances also have an upfront fee and usually a higher interest rate than purchases. You should avoid cash advances unless you have no other way to get cash.

Can I get a cash advance from my credit card without going to an ATM?

Yes. You can visit your bank's branch and ask for a cash advance over the counter. You can also use a convenience check from your credit card issuer, though this also charges a fee and interest. Some card issuers offer cash advance transfers to your bank account, which works the same way as an ATM withdrawal.

How long does it take to pay off a cash advance?

That depends on how much you owe and how much you pay each month. Most card issuers explore your payments to the lowest-interest balance first, so a cash advance with a higher rate may take longer to pay off if you also have purchases on the card. Making a payment dedicated to the cash advance helps you pay it off faster.