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

When you use a credit card at an ATM, you are taking out a cash advance. The ATM dispenses cash to you right then, but your credit card company treats this differently from a regular purchase. You will pay a fee upfront—usually between $3 and $10 per transaction, depending on your card issuer and the ATM operator. More importantly, interest starts accruing the moment you withdraw the cash, with no grace period like you get on regular purchases. Most credit cards charge 20% to 30% annual interest on cash advances, and that interest compounds daily.

The mechanics are straightforward: insert your credit card into an ATM, select "cash advance" or "withdraw cash," enter your PIN, and take the money. But the financial cost makes this an expensive way to get cash unless you have no other option.

Key Takeaways

  • Cash advances from ATMs charge an upfront fee (typically $3 to $10) plus daily interest starting immediately, with no grace period.
  • Interest rates on cash advances are usually higher than rates on regular credit card purchases and vary by card issuer.
  • Your credit card company reports the cash advance to credit bureaus, which can affect your credit score if the balance is high relative to your limit.
  • Debit cards, bank accounts, and payment apps are cheaper ways to get cash than credit card cash advances.

How the fee and interest work together

The fee hits your account immediately when you complete the transaction. If you withdraw $200 and pay a $5 fee, you now owe $205 on your credit card. That $205 begins accruing interest the same day—not at the end of the month like a purchase would.

Interest on a cash advance is calculated daily and added to your balance. If your card charges 25% annual interest, that works out to roughly 0.068% per day. On a $200 advance, you would owe about $0.14 in interest the first day, $0.28 the second day, and so on. The longer you carry the balance, the more interest compounds. If you pay back the $200 in 30 days, you could owe $15 to $20 in interest alone, plus the original fee.

Why your credit card company charges more for cash advances

Credit card companies see cash advances as riskier than regular purchases. When you buy something with your card, the merchant guarantees the transaction and the card company can dispute it if something goes wrong. With a cash advance, there is no merchant involved—you have the cash in hand, and the card company has no recourse if you cannot pay it back.

The higher interest rate and upfront fee are how the card company compensates for that risk. Some cards also set a lower credit limit for cash advances than for regular purchases, meaning you might not be able to withdraw as much cash as you could spend in a store.

What happens to your credit score

A cash advance appears on your credit report as a balance on your credit card account. If you withdraw a large amount relative to your credit limit, your credit utilization ratio—the percentage of your available credit you are using—goes up. High utilization can lower your credit score, even if you pay the balance in full the next month.

For example, if you have a $5,000 credit limit and withdraw $3,000 in cash, you are using 60% of your available credit. Credit scoring models typically reward utilization below 30%, so this cash advance could hurt your score temporarily. The damage is usually temporary—your score rebounds once you pay down the balance—but it is a real cost to consider.

ATM fees from the ATM operator

In addition to your credit card company's cash advance fee, the ATM operator may charge you a separate fee. If you use an out-of-network ATM—one that does not belong to your credit card issuer's bank—you might pay $2 to $3 to the ATM operator on top of the fee from your card company. Some ATMs display this fee on the screen before you complete the transaction; others do not.

Using an in-network ATM (one run by the bank that issued your credit card) usually avoids the operator fee, but you still pay your card company's cash advance fee. Check your card's terms or your bank's website to find which ATMs are in-network.

Cheaper ways to get cash

If you have a debit card linked to a checking account, use that instead. Debit card ATM withdrawals are free at in-network ATMs and cost only the operator fee at out-of-network machines—no interest, no cash advance fee. If you do not have a debit card, ask a cashier at a grocery store or pharmacy to let you withdraw cash back when you make a purchase. This is free and does not trigger a cash advance.

Payment apps like Venmo, PayPal, or Cash App also let you transfer money to friends or withdraw to your bank account for free or a small flat fee, usually lower than a credit card cash advance. If you are in a bind and need cash urgently, these are better options than your credit card.

When a cash advance might make sense

Cash advances are expensive, but there are rare situations where they are the only option. If you have no debit card, no bank account, and no access to payment apps, and you need cash immediately, a cash advance is better than nothing. If you can pay back the full amount within a few days, the interest cost stays low.

However, if you are considering a cash advance because you cannot afford something, that is a warning sign. Carrying a cash advance balance is one of the most expensive ways to borrow money. A personal loan, a line of credit, or even a payday loan (though also expensive) would cost less in interest over time. If you are struggling financially, look for other resources before turning to a credit card cash advance.

Frequently Asked Questions

Can I use any ATM to withdraw cash with my credit card?

Yes, most ATMs accept credit cards for cash advances, but you will pay a fee from the ATM operator if it is out-of-network. In-network ATMs (run by your card issuer's bank) usually charge only your card company's cash advance fee, not an additional operator fee. Check your card issuer's website to find in-network ATMs near you.

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

A regular purchase has a grace period—you do not pay interest if you pay the full balance by the due date. A cash advance charges interest from day one with no grace period. Cash advances also have an upfront fee and usually a higher interest rate than purchases on the same card.

Does a cash advance hurt my credit score?

It can, temporarily. The cash advance increases your credit utilization ratio, which can lower your score. The damage is usually temporary and your score rebounds once you pay down the balance. However, if you carry the balance for months, the ongoing interest and high utilization will keep your score lower.

Can I get a cash advance if I have reached my credit limit?

Some credit cards set a separate, lower cash advance limit. You might have a $5,000 credit limit for purchases but only a $1,500 cash advance limit. Check your card's terms or call your card issuer to find out your cash advance limit.

What happens if I cannot pay back a cash advance?

The balance stays on your credit card and interest continues to accrue daily. If you miss payments, your card issuer will report it to credit bureaus, which will damage your credit score. You may also face late fees and a higher interest rate. Contact your card issuer if you are struggling to pay—they may offer a hardship program or payment plan.