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

Most credit cards let you use ATMs to pull out cash, but this is a cash advance, not a regular purchase. The moment you take the money out, your card issuer begins charging you interest — usually at a higher rate than your purchase APR. You also pay an upfront fee, either a flat dollar amount (often $3 to $5) or a percentage of the amount withdrawn (typically 3 to 5 percent). Unlike a purchase, there is no grace period. Interest accrues from day one.

The process itself is straightforward: insert your card into any ATM, enter your PIN, select "cash advance" or "withdraw cash," and choose your amount. But before you do this, you should know what it will cost you and whether you have cheaper alternatives.

Key Takeaways

  • Credit card cash advances charge interest immediately with no grace period, making them one of the most expensive ways to get cash.
  • You pay both an upfront fee (usually $3 to $5 or 3 to 5 percent of the amount) and a higher APR than your regular purchase rate.
  • 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 transfers, or borrowing from friends are almost always cheaper than using a credit card at an ATM.

What fees and interest rates you will pay

Every credit card issuer charges different fees and rates for cash advances. The upfront fee is usually either a flat amount (commonly $3 to $5 per transaction) or a percentage of the cash withdrawn (typically 3 to 5 percent). If you withdraw $200, a 3 percent fee costs you $6. A 5 percent fee costs you $10. Some cards charge whichever is higher.

The interest rate on cash advances is separate from your purchase APR and is almost always higher. While a purchase APR might be 18 percent, a cash advance APR could be 24 or 28 percent. This rate applies immediately — there is no 21-day grace period like there is for purchases. If you withdraw $200 and pay it back in 30 days, you will owe roughly $14 in interest alone, plus the upfront fee.

To find your card's exact cash advance fee and APR, check your cardholder agreement or call the number on the back of your card. These terms do not change month to month, so once you know them, you can calculate the true cost before you withdraw.

How to find your cash advance limit

Your credit card issuer sets a separate cash advance limit, which is the maximum you can withdraw at one time. This limit is often much lower than your overall credit limit — sometimes 20 to 50 percent of it. If your credit limit is $5,000, your cash advance limit might be only $1,000.

You can find your cash advance limit by logging into your online account, calling your card issuer, or checking your cardholder agreement. If you have never set up a PIN for your card, you will need to do that before you can use an ATM. Most issuers let you set a PIN online or by phone in a few minutes.

Why a debit card or bank transfer is cheaper

If you need cash urgently, a debit card is almost always the better choice. Using your debit card at an ATM owned by your bank is free. Even at an out-of-network ATM, you typically pay only $1 to $3 in fees — far less than a credit card cash advance.

If you have time to wait, a bank transfer or mobile payment app (like Venmo or PayPal) costs nothing and avoids fees entirely. Borrowing from a friend or family member, while not always practical, is also free. A credit card cash advance should be your last resort, reserved only for true emergencies when no other option exists.

What happens if you cannot pay back the cash advance quickly

If you carry a cash advance balance on your credit card, the interest compounds daily. A $500 cash advance at 25 percent APR costs about $10 in interest per month if you make no payments. The longer you carry the balance, the more you owe.

Cash advances also affect your credit utilization ratio — the amount of available credit you are using. A high ratio can lower your credit score. Additionally, most card issuers apply your monthly payment to purchases first, then to cash advances. This means if you have both a purchase balance and a cash advance balance, your cash advance interest keeps growing while you pay down the purchase.

Frequently Asked Questions

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

Yes, you can use any ATM that accepts your card's network (Visa, Mastercard, American Express, or Discover). However, out-of-network ATMs may charge an additional surcharge on top of your card issuer's cash advance fee, making the total cost even higher.

What if I forget my PIN for my credit card?

Contact your card issuer to reset or create a new PIN. You can usually do this online, by phone, or through their mobile app. The process takes a few minutes and does not affect your account.

Is a cash advance different from a balance transfer?

Yes. A cash advance is cash you withdraw from an ATM or bank teller. A balance transfer moves debt from one card to another. Both charge fees and interest, but they are separate transactions with different rates and limits.

Will a cash advance hurt my credit score?

It can indirectly. A cash advance increases your credit utilization ratio, which makes up about 30 percent of your credit score. The higher your utilization, the lower your score may drop. Paying it off quickly minimizes this damage.

Can I get a cash advance without a PIN?

No, ATMs require a PIN. However, some banks let you withdraw cash at a teller window using your credit card and a photo ID, though this is less common and may have different fees.