Yes, you can withdraw cash from an ATM with a credit card, but it costs more than a debit card and the interest starts immediately

Most credit cards work at ATMs that display your card's logo — Visa, Mastercard, American Express, or Discover. You insert the card, enter your PIN, and withdraw cash just as you would with a debit card. The difference is that this transaction is a cash advance, not a withdrawal from your own account. Your credit card issuer lends you the money on the spot, and you begin paying interest right away — usually at a higher rate than your regular purchase APR.

The catch is cost. A typical cash advance carries a fee of 3 to 5 percent of the amount withdrawn, plus a higher interest rate (often 20 to 30 percent APR) that accrues from the day you take the cash. If you withdraw $200, you might pay $6 to $10 in fees alone, then interest on top. There is no grace period like there is for purchases. This makes cash advances one of the most expensive ways to borrow money on a credit card.

Key Takeaways

  • You need a PIN to withdraw cash at an ATM with a credit card; if you do not have one, contact your card issuer to set it up.
  • Cash advances charge a fee (usually 3 to 5 percent) plus a higher interest rate (often 20 to 30 percent APR) that begins accruing immediately with no grace period.
  • Not all ATMs accept credit cards, so look for your card's logo on the machine before you try to withdraw.
  • Your credit card issuer sets a cash advance limit, which may be lower than your overall credit limit and should be listed in your account terms.

How to find an ATM that accepts your credit card

ATMs display logos for the card networks they accept. Look for your card's brand — Visa, Mastercard, American Express, or Discover — on the front of the machine. Most large bank ATMs accept all four networks, but smaller or independent ATMs may accept only one or two.

Your card issuer's website or mobile app usually has an ATM locator tool. Visa, Mastercard, and Discover each maintain searchable networks of participating machines. If you are traveling or in an unfamiliar area, use these tools before you need cash so you know where to go.

What you need before you can withdraw cash

You must have a PIN (personal identification number) set up on your credit card. Many people never set one because they do not plan to use ATMs. If you do not have a PIN, contact your card issuer — you can usually set one up online, through their mobile app, or by calling the number on the back of your card. It takes minutes and is free.

You also need to know your cash advance limit, which is separate from your overall credit limit. If your credit limit is $5,000, your cash advance limit might be only $1,000 or $1,500. Check your account terms or call your issuer to find out. Some issuers let you request a higher cash advance limit, though this is not may provide.

The fees and interest you will pay

A cash advance fee is charged at the time you withdraw. This is typically 3 to 5 percent of the amount withdrawn, though some cards charge a flat fee (like $5 or $10) if that is higher. A $300 withdrawal at 4 percent costs $12 in fees alone.

Interest accrues from the day you withdraw the cash — there is no grace period like there is for purchases. If your cash advance APR is 25 percent and you withdraw $300, you owe roughly $6.25 in interest per month until you pay it back. The longer you carry the balance, the more interest compounds.

Some cards charge a higher APR for cash advances than for purchases. Check your card's terms to see if the rates differ. Even if they are the same, the lack of a grace period makes cash advances significantly more expensive than regular purchases.

When a cash advance makes sense

A cash advance is rarely the cheapest way to get cash, but there are situations where it may be your only option. If you need cash urgently and have no access to a debit card, ATM, or bank account, a credit card cash advance is faster than a personal loan or payday loan.

If you have a 0 percent introductory APR on your card and that rate applies to cash advances (it usually does not, but check), a cash advance might be worth the upfront fee. In most cases, though, you are better off using a debit card, visiting your bank's branch, or asking a friend or family member to lend you cash.

Alternatives to credit card cash advances

A debit card withdrawal costs nothing and draws from your own money. If you have a bank account, this is almost always cheaper and simpler than a credit card cash advance.

A personal loan from a bank or credit union typically carries a lower interest rate than a cash advance, though it takes longer to process (usually a few days to a week). If you know you will need cash regularly, a personal loan or a line of credit may be worth exploring.

Payday loans and other short-term lenders are also expensive, but some people find them easier to access than credit cards or bank loans. Compare the APR and total fees before you borrow from any source.

How cash advances affect your credit

A cash advance shows up on your credit report as a balance on your credit card, just like a purchase does. It counts toward your credit utilization ratio — the amount of available credit you are using. If you have a $5,000 limit and a $1,000 cash advance, your utilization jumps to 20 percent, which can lower your credit score slightly.

Paying off the cash advance quickly helps. Because interest accrues immediately, paying it back as soon as you can saves you money and brings your utilization back down. Some people pay off a cash advance within days to minimize interest charges.

Frequently Asked Questions

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

A purchase is charged to your card and has a grace period before interest accrues. A cash advance is borrowed money that accrues interest immediately, usually at a higher rate, and charges a fee upfront. Both count as debt on your credit card balance.

Can I use a credit card at any ATM?

Only at ATMs that display your card's logo. Most major bank ATMs accept Visa, Mastercard, American Express, and Discover, but smaller or independent machines may not. Check the ATM locator on your card issuer's website to find participating machines.

What happens if I do not have a PIN set up?

You cannot withdraw cash without a PIN. Contact your card issuer to set one up — it is free and usually takes a few minutes online or by phone. Once set, you can use it at any ATM that accepts your card.

Do cash advances count toward my credit limit?

Yes. A cash advance reduces your available credit just like a purchase does. If you have a $5,000 limit and withdraw $500, you have $4,500 left to spend. The cash advance balance accrues interest until you pay it off.

Can I pay off a cash advance early without a penalty?

Yes. There is no early payoff penalty on cash advances. Paying it off as soon as you can saves you interest, since interest accrues from day one. Some people pay off a cash advance within days to minimize the total cost.