Yes, you can use most credit cards at ATMs, but it works differently than a debit card and costs you money

You can withdraw cash from an ATM using a credit card, but the transaction is treated as a cash advance, not a purchase. This distinction matters because cash advances carry higher fees and interest rates than regular credit card purchases. Most credit card issuers allow cash advances, but some cards restrict them or charge steeper rates than others.

The process is straightforward: insert your card, enter your PIN, select the cash advance option, and choose your amount. The ATM will dispense cash when ready. However, interest on that cash begins accruing the same day—there is no grace period like there is for purchases. You also pay an upfront fee, usually 3 to 5 percent of the amount withdrawn, with a minimum fee of $2 to $3.

Key Takeaways

  • Cash advances from credit cards charge interest when ready with no grace period, unlike regular purchases.
  • You pay both an upfront fee (typically 3 to 5 percent) and a higher interest rate than your purchase APR.
  • Some ATMs charge an additional operator fee on top of your card issuer's cash advance fee.
  • Using a debit card or visiting your bank's branch is almost always cheaper than a credit card cash advance.
  • Your credit card's cash advance limit may be lower than your overall credit limit.

How cash advance fees and interest rates work

When you take a cash advance, your credit card issuer charges you two separate costs. The first is an upfront fee, deducted from the amount you receive. If you withdraw $100 and the fee is 5 percent, you get $95 in cash and owe $100 plus interest. This fee appears on your statement as a separate line item.

The second cost is interest, which starts accruing when ready. Most credit cards charge a higher APR for cash advances than for purchases—often 3 to 5 percentage points higher. If your purchase APR is 18 percent, your cash advance APR might be 23 percent. Interest compounds daily, so the longer you carry the balance, the more you pay. Unlike purchases, there is no interest-free grace period; interest begins the day you withdraw the cash.

Some ATMs also charge their own operator fee, typically $2 to $3, on top of your card issuer's fee. This is common at ATMs in bars, convenience stores, and casinos. You will see this fee disclosed on the ATM screen before you complete the transaction, and you can cancel if you choose.

Why credit card cash advances are more expensive than alternatives

A cash advance is one of the most expensive ways to get cash. Compare the costs: withdrawing $200 from a credit card with a 5 percent fee and 23 percent APR costs you $10 upfront, plus roughly $3.85 in interest if you pay it back in one month. Over a year, that same $200 balance would cost you about $46 in interest alone.

Using a debit card at your bank's ATM is free. Using a debit card at an out-of-network ATM typically costs $1 to $3. Visiting your bank's branch and asking the teller for cash is also free. Even a payday loan, which is expensive, often costs less than carrying a credit card cash advance for several months.

The only scenario where a credit card cash advance makes sense is if you have no other option and need cash urgently for a genuine emergency. Even then, paying it back as quickly as possible is critical to minimize interest charges.

Cash advance limits and how they differ from credit limits

Your credit card issuer sets a separate cash advance limit, which is often lower than your overall credit limit. If your credit limit is $5,000, your cash advance limit might be $1,000 or $1,500. This limit is set by the issuer based on your creditworthiness and account history, and you cannot exceed it when withdrawing cash.

You can contact your card issuer to ask what your cash advance limit is. Some issuers allow you to request an increase, though this is not may provide. The cash advance limit is separate from your purchase limit, so using your cash advance limit does not directly reduce the amount you can spend on purchases—but the balance you carry does count toward your overall credit utilization, which affects your credit score.

Which ATMs charge the most and how to minimize fees

ATMs in high-traffic locations—airports, casinos, bars, and tourist areas—charge the highest operator fees. ATMs in bank branches and credit union branches typically charge no operator fee, though your card issuer may still charge its cash advance fee. ATMs in grocery stores and pharmacies usually charge $1 to $2.

To minimize costs, use an ATM at your own bank or credit union if possible. If you must use an out-of-network ATM, choose one in a grocery store or pharmacy rather than a standalone kiosk. Always check the fee disclosure on the ATM screen before confirming the transaction—you can cancel without penalty if the fee is higher than you expected.

The best strategy is to avoid credit card cash advances altogether. If you need cash regularly, use a debit card or keep cash on hand. If you are in a situation where you are regularly taking cash advances on a credit card, that is a sign your budget needs adjustment or you need to explore other options like a personal loan or line of credit.

How cash advances affect your credit score

A cash advance itself does not directly damage your credit score, but it can indirectly harm it in two ways. First, the balance counts toward your credit utilization ratio—the percentage of your available credit you are using. If you have a $5,000 credit limit and carry a $1,000 cash advance balance, your utilization is 20 percent. High utilization (above 30 percent) can lower your score.

Second, if you cannot pay the cash advance balance quickly and it sits on your card for months, you are paying high interest while your utilization stays elevated. This combination—high utilization plus a long-term balance—signals to credit scoring models that you are financially stressed, which can lower your score over time.

Paying off the cash advance quickly (within a month or two) minimizes this impact. The balance will still count toward utilization while you carry it, but the damage is temporary and limited if you resolve it fast.

Frequently Asked Questions

Can I use a credit card at any ATM?

Most ATMs accept credit cards for cash advances, but not all. ATMs at your card issuer's bank or credit union almost always accept your card. Independent ATMs and those at other banks may decline your card or charge higher fees. Check the ATM screen for accepted card types before inserting your card.

What is the difference between a cash advance and a purchase?

A purchase is charged to your credit card and has a grace period—usually 21 to 25 days—before interest accrues. A cash advance has no grace period; interest starts when ready. Cash advances also charge an upfront fee and a higher interest rate than purchases.

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

Yes. When you open a credit card account, you can set a PIN for ATM withdrawals. If you have not set one, contact your card issuer to create it. The PIN is separate from your online banking password and is required to complete a cash advance at an ATM.

What happens if I cannot pay back a cash advance?

The balance carries over to your next statement and continues accruing interest at your cash advance APR. If you miss payments, late fees explore and your credit score drops. The debt can eventually be sent to a collection agency. Contact your card issuer when ready if you are struggling to pay; some issuers offer hardship programs or balance transfer options.

Is there a way to get cash without paying a fee?

Yes. Use a debit card at your bank's ATM or visit a bank branch and ask a teller for cash. Both are free. Some retailers also offer cash back when you make a purchase with a debit card, which is free and often easier than finding an ATM.