Yes, you can withdraw cash from an ATM using a credit card, but it costs you money and starts charging interest immediately

Most credit cards let you take cash out at ATMs, but the transaction is treated as a cash advance — not a regular purchase. The moment you withdraw the money, your card issuer charges you a fee (usually 3 to 5 percent of the amount, with a minimum of $2 to $10), and interest starts accruing at a higher rate than your regular purchase APR. You do not get a grace period like you do with purchases. If you withdraw $200, you might pay $10 to $15 in fees alone, plus daily interest from day one.

The process itself is straightforward: insert your credit card into an ATM, enter your PIN, select "cash advance" or "withdrawal," and choose your amount. But before you do it, understand that this is an expensive way to get cash and should only happen when you have no other option.

Key Takeaways

  • Cash advances from credit card ATMs charge a fee of 3 to 5 percent plus a higher interest rate than regular purchases, with no grace period.
  • Interest on a cash advance begins accruing immediately, even if you pay off your credit card balance in full at the end of the month.
  • Your credit card issuer sets a cash advance limit, which is often lower than your overall credit limit and may require a separate PIN setup.
  • Debit cards, bank ATMs, and cash-back at stores are cheaper or free alternatives to credit card cash advances.

What happens when you use a credit card at an ATM

When you insert a credit card into an ATM and request cash, the transaction is flagged as a cash advance from the moment you confirm it. Your card issuer immediately charges you a fee — typically 3 to 5 percent of the amount withdrawn. So a $200 withdrawal costs $6 to $10 in fees right away. Some cards charge a flat fee instead (like $5 per transaction), which is sometimes better for larger amounts but worse for small ones.

The interest rate on cash advances is separate from your purchase APR and is almost always higher — often 5 to 10 percentage points above what you pay on regular purchases. Unlike a purchase, which may have a 21-day grace period before interest kicks in, a cash advance starts accruing interest on day one. If your purchase APR is 18 percent and your cash advance APR is 25 percent, you are paying that 25 percent rate from the moment you withdraw the money, even if you pay it back the next day.

The payment you make goes toward your cash advance balance last, not first. If you have both a purchase balance and a cash advance balance, your payment covers the purchase first, leaving the cash advance to accrue interest longer.

Your cash advance limit is separate from your credit limit

Your credit card issuer sets a cash advance limit that is usually much lower than your overall credit limit. If your credit limit is $5,000, your cash advance limit might be $500 or $1,000. You cannot exceed this limit, even if you have unused credit available. You can call your card issuer to ask what your cash advance limit is, or check your online account or statement.

Some cards require you to set up a PIN before you can use the card at an ATM. If you have never done a cash advance before, you may need to call the customer service number on the back of your card to create one. Without a PIN, the ATM will reject the card.

How much this actually costs you

The total cost of a cash advance depends on how long you carry the balance. Here is a real example: you withdraw $300 from an ATM using a credit card with a 3 percent fee and a 24 percent cash advance APR.

  • Fee: $9 (3 percent of $300)
  • Interest for 30 days: approximately $18 (24 percent APR ÷ 12 months = 2 percent per month)
  • Total cost: $27 for borrowing $300 for one month

If you carry that $300 balance for three months, the interest alone reaches $54, plus the original $9 fee. Compare this to using a debit card at your own bank's ATM (free) or asking for cash back at a store when you make a purchase (free). The cost of a credit card cash advance adds up fast.

Cheaper ways to get cash right now

Before you use a credit card at an ATM, try these options first. If you have a debit card linked to a checking account, use that at any ATM in your bank's network — it is free. If you do not have a debit card, ask for cash back when you make a purchase at a grocery store, pharmacy, or gas station using your credit card. You get the cash instantly with no extra fee, though you are still borrowing on your credit card.

If you need cash and have a friend or family member nearby, ask to borrow it. If you have a credit union membership, credit unions often have surcharge-free ATM networks that extend beyond their own branches. Some banks also reimburse ATM fees charged by other banks, so check your account terms.

If you are in a situation where you regularly need cash and cannot access it cheaply, that is a sign to open a checking account with a debit card. Most banks offer free checking with no minimum balance, and a debit card gives you free ATM access.

What to do if you have already taken a cash advance

If you have already withdrawn cash using your credit card, pay it back as quickly as possible. The longer the balance sits, the more interest you pay. Make a payment larger than your minimum payment if you can, because your regular payment will cover other balances first.

Check your statement to confirm the fee amount and the interest rate being charged. If the fee seems wrong or the rate is higher than what you were quoted, call your card issuer to ask. Mistakes happen, and some issuers will reverse a fee if you ask and have a clean payment history.

Going forward, avoid cash advances unless it is a genuine emergency. If you find yourself needing cash regularly, set up a debit card or a separate savings account that you can access without paying fees.

Frequently Asked Questions

Can I use any credit card at any ATM?

Most credit cards work at most ATMs, but some ATMs may not accept certain card types or issuers. Your card issuer may also charge an additional fee if you use an out-of-network ATM. Check your card's terms or call customer service to find ATMs that accept your card without extra fees.

What if I forgot my PIN?

Call the customer service number on the back of your credit card and ask to reset or create a PIN. The process usually takes a few minutes, and you can set a new PIN over the phone. Some issuers allow you to set a PIN online through your account.

Does a cash advance hurt my credit score?

A cash advance itself does not directly hurt your score, but carrying a high balance does. If your cash advance pushes your overall credit utilization above 30 percent of your total credit limit, it can lower your score. Paying it off quickly keeps this impact minimal.

Can I get a cash advance from a credit card at a bank teller?

Yes. You can walk into a bank branch and ask a teller for a cash advance using your credit card, even if it is not your bank. The fee and interest rate are the same as an ATM withdrawal. Some banks may charge an additional fee for this service.

Is there a limit to how much cash I can withdraw?

Yes. Your card issuer sets a cash advance limit, which is usually lower than your credit limit. You also cannot withdraw more than your available credit. Some ATMs have daily withdrawal limits as well, typically $500 to $1,000 per day.