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

Most ATMs will accept a credit card, but when you do, you are taking a cash advance — not withdrawing money from your own account. The ATM gives you cash when ready, but your credit card issuer treats it as a loan you owe right away, not a purchase you can pay off later. You will pay a fee to the ATM operator (usually $3 to $5), a fee from your credit card company (typically 3 to 5 percent of the amount), and interest that starts accruing the same day — there is no grace period like there is for regular purchases.

Because of these costs, using a credit card at an ATM should be a last resort, not a regular habit. If you need cash and have a debit card, use that instead. If you do not have a debit card or cannot access your bank account, understand the full cost before you proceed.

Key Takeaways

  • A credit card cash advance at an ATM triggers when ready interest charges and multiple fees that make it expensive compared to other ways to get cash.
  • ATM operators charge a flat fee ($3 to $5 typically), and your credit card company charges a percentage fee (3 to 5 percent) plus interest starting when ready.
  • The interest rate on cash advances is often higher than the rate on regular purchases, and there is no grace period before interest starts.
  • Using a debit card, visiting your bank branch, or asking a store for cash back are all cheaper ways to get money than a credit card cash advance.

How a credit card cash advance actually works

When you insert your credit card into an ATM and request cash, the machine reads your card and connects to your credit card company's system. The company approves the transaction (or declines it if you have hit your cash advance limit), and the ATM dispenses the cash. From that moment, you owe the full amount to your credit card company.

Unlike a purchase you make with the same card — where you get a grace period of 20 to 25 days before interest kicks in — a cash advance starts charging interest on day one. The interest rate is also typically higher than your regular purchase APR. If your card charges 18 percent APR on purchases, the cash advance rate might be 24 percent or higher. That difference matters when ready when you are paying interest daily.

The cash advance also does not count toward any rewards or cash back your card normally offers. You get no benefit from the transaction, only costs.

The fees you will pay

A credit card cash advance involves at least two separate fees, and sometimes three. The ATM operator fee is charged by whoever owns the machine — your bank, another bank, or an independent operator. This fee ranges from $2 to $5 per transaction and appears on your ATM receipt when ready. If you use an out-of-network ATM (one not run by your card issuer), the fee is usually at the higher end.

Your credit card company's cash advance fee is a percentage of the amount you withdraw, typically 3 to 5 percent with a minimum of $5 to $10. If you withdraw $200, a 4 percent fee costs you $8. If you withdraw $100, the fee might still be $5 (the minimum). This fee is added to your credit card balance and starts accruing interest when ready.

The interest charge begins on day one and compounds daily. If you withdraw $200 at a 24 percent APR, you owe roughly $0.13 per day in interest alone, before you have even made a payment. If you carry the balance for a month, that is about $4 in interest on top of the fees you already paid.

When you might have no choice

There are situations where a credit card cash advance is the only option available to you. If you are traveling in a country where your debit card does not work, or if your bank account is frozen or inaccessible, a credit card ATM withdrawal might be the only way to get cash. In an emergency — a car breakdown, a medical bill, a sudden expense — the cost of a cash advance may be worth it.

Even in these cases, understand what you are paying. A $200 cash advance with a $5 ATM fee, a $8 card company fee, and one month of interest at 24 percent costs you roughly $17 total. That is 8.5 percent of the amount you borrowed. If you can avoid it, you should.

Cheaper ways to get cash

If you have a debit card linked to a checking account, use that at any ATM. You will pay only the ATM operator fee (if any), and no interest or percentage fee from your bank. Many banks do not charge their own customers for in-network ATM withdrawals, so the cost is zero.

If you are at a store that accepts debit cards, ask the cashier for cash back when you pay for something. Most grocery stores, pharmacies, and retailers offer this service at no charge. You withdraw cash as part of a regular transaction, and there is no fee or interest.

If you do not have a debit card, visit your bank branch in person during business hours. A teller can withdraw cash from your account directly. If you do not have a bank account, a payday lender or check-cashing service charges a fee for cash, but it is usually lower than a credit card cash advance because there is no interest component.

What happens if you cannot pay back the cash advance

If you do not pay back the cash advance in full, the balance stays on your credit card and continues to accrue interest at the higher cash advance rate. This interest is separate from any interest on regular purchases, so your card may be charging you two different rates at once.

The unpaid balance also counts against your credit utilization ratio — the percentage of your total credit limit you are using. A high utilization ratio damages your credit score, even if you make your minimum payments on time. If you carry the cash advance for months, the damage to your score can affect your ability to borrow money for a car, a home, or other major expenses.

If you are considering a cash advance because you are short on money, that is a sign to look at your budget or talk to a credit counselor. A cash advance is a short-term fix that often makes a money problem worse, not better.

How to avoid needing a credit card cash advance

The best way to avoid the cost of a cash advance is to keep a debit card and a small amount of cash on hand. If you use mostly credit for purchases, set aside $50 to $100 in cash for situations where you need it. This buffer means you are not caught without options.

If you do not have a bank account, opening one is usually free or low-cost. Most banks offer basic checking accounts with no monthly fee if you set up direct deposit or keep a minimum balance. Once you have a debit card, you have access to ATMs everywhere and never need to use a credit card for cash.

If you are in a situation where you regularly need cash advances because you are short on money, that is a sign to look at your spending or talk to someone about your finances. A credit card cash advance is not a solution to a cash flow problem — it is a way to make the problem more expensive.

Frequently Asked Questions

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

Not when ready, but it can over time. The cash advance itself does not show up as a missed payment. However, if you do not pay it back quickly, the balance counts toward your credit utilization ratio, which affects your score. Carrying a high balance on any card — including a cash advance — signals to lenders that you are a higher risk.

Can I use a credit card at any ATM?

Most ATMs accept credit cards, but some do not. ATMs in banks, convenience stores, and airports almost always do. The machine will tell you if it cannot process your card. Keep in mind that using an out-of-network ATM (one not run by your card issuer) usually costs more in fees.

What is the difference between a cash advance and a balance transfer?

A cash advance gives you physical cash at an ATM and charges interest when ready. A balance transfer moves debt from one credit card to another, usually with a lower introductory rate. Both are expensive, but they are different products. A balance transfer is for moving existing debt; a cash advance is for getting cash.

Will my credit card company let me take out a cash advance?

Most will, but there is usually a limit. Your card issuer sets a separate cash advance limit, which may be lower than your overall credit limit. You can find this limit in your card agreement or by calling the number on the back of your card. Some cards do not offer cash advances at all.

Is there ever a time when a credit card cash advance makes sense?

Only in true emergencies where you have no other way to get cash and you can pay it back within days. If you are traveling internationally and your debit card does not work, or if you have a genuine one-time expense and can repay it when ready, the cost might be worth it. For anything else, find another way.