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

Most ATMs will accept your 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 fees and interest rates than everyday credit card charges. The moment you insert your card and withdraw cash, your credit card company begins charging you interest on that amount — often when ready, with no grace period.

Not every ATM accepts credit cards. Bank-owned ATMs in your card issuer's network are most likely to work. Third-party ATMs — the ones in convenience stores, bars, or independent networks — may decline your credit card or charge you an additional fee on top of what your card issuer charges. Debit cards work at virtually all ATMs; credit cards do not.

Key Takeaways

  • Using a credit card at an ATM triggers a cash advance, which charges interest when ready and usually costs 3 to 5 percent in fees alone.
  • Your credit card company may charge a cash advance fee (a flat dollar amount or a percentage of the withdrawal), and the ATM operator may charge a separate fee.
  • Cash advances report to credit bureaus and can lower your credit score because they increase your credit utilization ratio.
  • The interest rate on a cash advance is typically higher than your regular purchase APR and starts accruing the same day, with no grace period.
  • If you need cash, using a debit card, visiting your bank branch, or getting cash back at a store checkout is almost always cheaper.

How much a credit card cash advance actually costs

A cash advance at an ATM involves three separate charges. First, your credit card issuer charges a cash advance fee, typically 3 to 5 percent of the amount withdrawn. On a $200 withdrawal, that is $6 to $10 before you leave the machine. Second, the ATM operator may charge you a separate fee — often $2 to $3 — whether or not your card issuer is affiliated with that ATM. Third, interest begins accruing when ready at your cash advance APR, which is usually 5 to 10 percentage points higher than your regular purchase rate.

The interest compounds daily. If your cash advance APR is 25 percent and you withdraw $200, you owe roughly $0.14 per day in interest alone. That does not sound like much, but if the cash sits in your wallet for a month before you pay it back, you have added $4 to $5 in interest on top of the initial $6 to $10 fee. If you carry the balance longer, the interest grows faster.

Some credit cards offer a 0 percent introductory rate on purchases but never on cash advances. Cash advances are excluded from promotional rates almost universally. Check your card's terms to see your specific cash advance APR and fee — these are listed in your cardholder agreement under "Cash Advance" or "Fees and Interest Rates."

Why your credit score can drop after a cash advance

When you take a cash advance, the transaction reports to the credit bureaus just like a purchase does. The cash advance amount counts toward your credit utilization ratio — the percentage of your total credit limit you are using at any given time. If your card has a $5,000 limit and you withdraw $500 in cash, your utilization jumps to 10 percent when ready.

Credit scoring models treat high utilization as a sign of financial stress, even if you plan to pay the balance off tomorrow. A sudden spike in utilization can lower your score by 10 to 50 points, depending on your current score and the scoring model used. The impact is temporary — your score recovers once you pay down the balance — but it happens fast and can affect your ability to get approved for other credit in the meantime.

Which ATMs accept credit cards and which ones do not

ATMs owned by your credit card issuer's bank are your best bet. If you have a Chase credit card, Chase ATMs will almost certainly accept it. Bank-owned ATMs in the same network as your issuer are also likely to work. However, independent ATMs — the ones operated by third parties in retail locations — often decline credit cards or charge higher fees for accepting them.

Before you insert your card, look for a sign on the ATM that says "Credit Cards Accepted" or check the screen after you insert your card. If the machine declines your credit card, it will return the card without charging you. Some ATMs will accept your credit card but only for cash advances, not for balance inquiries or other transactions. The ATM screen will tell you what options are available once you insert your card.

Cheaper ways to get cash when you need it

If you have a debit card linked to a checking account, use that instead. Debit card withdrawals at ATMs in your bank's network are free, and even out-of-network ATM fees are usually $2 to $3 — less than a credit card cash advance fee. If you do not have a debit card, ask for cash back at a grocery store, pharmacy, or other retailer where you are making a purchase. Most stores offer this service free of charge and let you withdraw $20 to $100 depending on the store's policy.

If you are at your bank branch during business hours, you can withdraw cash at the teller window for free, regardless of whether you have a debit card. Some banks also let you withdraw cash from ATMs using your account number and PIN instead of a card. Check with your bank about this option if you have lost your debit card or do not have one yet.

What happens if you cannot pay back a cash advance right away

If you carry a cash advance balance on your credit card, the interest accrues daily at your cash advance APR until you pay it off. Unlike regular purchases, there is no grace period — interest starts the moment the cash leaves the ATM. Your minimum payment will cover some of the interest and a small portion of the principal, but most of your payment goes toward interest if your balance is high.

The longer you carry the balance, the more you pay in interest. A $500 cash advance at 25 percent APR costs roughly $10 per month in interest alone if you only make minimum payments. After six months, you have paid $60 in interest on top of the initial cash advance fee. This is why cash advances are considered a last resort — they are one of the most expensive ways to borrow money on a credit card.

Frequently Asked Questions

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

Yes, temporarily. The cash advance increases your credit utilization ratio, which can lower your score by 10 to 50 points. Your score recovers once you pay down the balance. However, if you carry the cash advance for months, the ongoing high utilization keeps your score depressed during that time.

Can I use a credit card at any ATM?

Most ATMs will accept credit cards, but independent ATMs in retail locations are more likely to decline them or charge higher fees. Bank-owned ATMs in your card issuer's network are your safest bet. The ATM screen will tell you whether your card is accepted before you complete the transaction.

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

A regular purchase has a grace period (usually 21 days) before interest starts, and interest accrues at your purchase APR. A cash advance charges interest when ready at a higher APR, typically 5 to 10 points above your purchase rate, and has no grace period. Cash advances also charge a separate fee upfront.

Will my bank let me set a limit on cash advances?

Many credit card issuers let you set a separate cash advance limit lower than your total credit limit, or disable cash advances entirely. Contact your card issuer's customer service to ask about this option. Setting a low limit or disabling cash advances can prevent accidental withdrawals and protect you if your card is lost or stolen.

What should I do if I accidentally took a cash advance?

Pay it back as soon as possible to minimize interest charges. Call your credit card issuer and ask whether they can waive the cash advance fee if this is your first time — some issuers will do this as a courtesy. Going forward, use a debit card or ask for cash back at a store to avoid this situation.