Yes, you can use your credit card at an ATM, but it costs more than a debit card

Most credit cards work at ATMs, but the transaction is treated as a cash advance rather than a regular purchase. This matters because cash advances charge interest immediately—there is no grace period like you get with regular credit card purchases. You also pay an upfront fee, usually 3 to 5 percent of the amount you withdraw, on top of the interest.

The ATM itself may charge an additional fee too, typically $2 to $3, depending on whether it belongs to your card issuer's network. If you use an out-of-network ATM, you might pay both your card issuer's fee and the ATM operator's fee, which can add up quickly on small withdrawals.

Because of these costs, using a credit card at an ATM is expensive compared to withdrawing from a checking account or using a debit card. Most people should treat it as a last resort when they need cash and have no other option.

Key Takeaways

  • Credit card cash advances charge a fee (usually 3 to 5 percent) plus interest that starts accruing immediately, with no grace period.
  • The ATM operator may charge an additional fee of $2 to $3, especially if the machine is not part of your card issuer's network.
  • Interest on cash advances is typically higher than the rate on regular purchases, so the total cost grows quickly if you carry the balance.
  • Using a debit card or withdrawing from a checking account is almost always cheaper than a credit card cash advance.

How the fee structure works

When you insert your credit card into an ATM and select "cash advance," the card issuer charges you a cash advance fee right away. This fee is a percentage of the amount withdrawn—typically 3 to 5 percent, though some cards charge a flat minimum (like $5 or $10) if the percentage would be smaller. A $100 withdrawal might cost $3 to $5 in fees alone.

On top of that, the ATM itself may charge you a separate fee. If the ATM belongs to your card issuer (for example, a Bank of America ATM if you have a Bank of America credit card), you might avoid this second fee or pay a smaller one. If you use an ATM from a different bank or a third-party operator, expect to pay $2 to $3 more. Some ATMs disclose this fee on the screen before you complete the transaction; others charge it silently and you discover it on your statement.

Check your credit card's terms document or call the customer service number on the back of your card to find out your specific cash advance fee percentage. This information is usually listed under "Fees" or "Cash Advance Terms."

Interest starts right away, with no grace period

The biggest difference between a cash advance and a regular credit card purchase is that interest begins accruing immediately. When you buy something with your credit card, you typically have a grace period—usually 21 to 25 days—before interest kicks in. If you pay the full balance by the due date, you pay no interest at all.

Cash advances do not get this grace period. Interest starts the day you withdraw the money. If you withdraw $200 and pay it back the next day, you still owe interest for that one day. The interest rate on cash advances is also usually higher than your regular purchase rate—sometimes 2 to 3 percentage points higher, depending on your card and creditworthiness.

This means a $200 cash advance that you repay within a week might cost you $5 to $10 in fees and interest combined. The longer you carry the balance, the more expensive it becomes.

When you might use a credit card at an ATM

Despite the cost, there are rare situations where a credit card cash advance makes sense. If you are traveling internationally and your debit card is not accepted, a credit card cash advance might be your only way to get local currency. If your debit card is lost or stolen and you need cash before a replacement arrives, a cash advance can bridge the gap. If you are in a genuine emergency and have no other source of cash, the advance is better than nothing.

In each of these cases, the cost is worth paying because the alternative—having no cash at all—is worse. But for routine cash withdrawals, a debit card or a trip to your bank's teller window is always cheaper.

How to minimize the cost if you must use a credit card

If you do need a cash advance, take steps to keep the damage small. First, use an ATM that belongs to your card issuer if possible—this eliminates the ATM operator's fee. Second, withdraw only what you actually need. A $20 withdrawal with a $3 fee is a 15 percent cost; a $200 withdrawal with a $6 fee is only 3 percent. Larger withdrawals spread the fixed fees over more money.

Third, repay the cash advance as quickly as you can. Every day you carry the balance, interest accrues. If you can pay it back within a few days, do so. If you know you will need the cash for weeks, a cash advance is the wrong tool—look for another source of funds instead.

Finally, check whether your credit card offers any cash advance benefits. Some premium cards waive the cash advance fee for the first few withdrawals per year, or offer a lower fee for the first 30 days. These are rare, but worth checking before you assume you will pay the standard rate.

Credit card cash advances and your credit score

A cash advance does not directly hurt your credit score the way a missed payment does. However, it does increase your credit utilization ratio—the amount of available credit you are using. If you have a $5,000 credit limit and you take a $1,000 cash advance, your utilization jumps to 20 percent. High utilization can lower your score slightly, even if you pay the balance in full and on time.

The bigger risk is that a cash advance can be a sign you are running short on cash, which might lead to missed payments or overspending. If you find yourself regularly taking cash advances, that is a signal to look at your budget and spending habits.

Alternatives to credit card cash advances

Before you use a credit card at an ATM, consider these cheaper options. If you have a debit card linked to a checking account, use that instead—most debit card withdrawals are free or cost only $1 to $2 at out-of-network ATMs. If you are at a store, ask the cashier for cash back when you make a purchase; this is usually free. If you need a large amount of cash, visit your bank's branch during business hours and withdraw from a teller; this is always free for account holders.

If you do not have a checking account or debit card, a cash advance might feel like your only option. In that case, look into opening a basic checking account—most banks offer them with no monthly fee and no minimum balance. This gives you access to free ATM withdrawals and is far cheaper than relying on credit card cash advances.

Frequently Asked Questions

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

Not directly, but it increases your credit utilization ratio, which can lower your score slightly. The bigger risk is that regular cash advances suggest financial stress, which might lead to missed payments that do hurt your score.

Can I use any credit card at any ATM?

Most credit cards work at most ATMs, but you will pay a fee from the ATM operator if it is not part of your card issuer's network. Some cards may not support cash advances at all—check your card's terms or call customer service to confirm.

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

A regular purchase has a grace period before interest starts (usually 21 to 25 days), while a cash advance charges interest immediately. Cash advances also charge an upfront fee and usually have a higher interest rate than purchases.

Can I get a cash advance from a credit card online or by phone?

Yes, some card issuers allow you to request a cash advance through their website or by calling customer service. The fee and interest rate are the same as an ATM withdrawal, but you may have to wait a few business days for the money to arrive in your bank account.

What happens if I cannot pay back a cash advance?

The balance carries over to the next month and interest continues to accrue at the cash advance rate. If you miss the minimum payment, you will face a late fee and potential damage to your credit score. If the balance goes unpaid for months, the card issuer may close your account or send it to a collection agency.