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

Most credit cards let you pull cash directly from an ATM, just like a debit card would. You insert the card, enter your PIN, and take out cash. The transaction goes through instantly. But unlike a debit card withdrawal, which pulls from money you already have, a credit card cash advance borrows against your credit limit—and the bank charges you for it from day one.

The cost is the catch. You pay a cash advance fee (usually 3 to 5 percent of the amount you withdraw, with a minimum of $5 to $10), plus a higher interest rate than regular purchases. That interest starts accruing immediately—there is no grace period like there is for regular credit card purchases. If you withdraw $200 and your card charges a 4 percent fee plus 24 percent APR, you owe $208 before interest, and that interest clock is already running.

Key Takeaways

  • You can withdraw cash at most ATMs using your credit card and PIN, but the bank charges a cash advance fee (typically 3 to 5 percent) plus a higher interest rate than regular purchases.
  • Interest on a cash advance begins accruing immediately with no grace period, so the longer you carry the balance, the more you pay.
  • Your credit card issuer sets a separate cash advance limit, which is often lower than your overall credit limit and may be as low as $200 or $500.
  • If you need cash, using a debit card, visiting your bank branch, or getting cash back at a store checkout are cheaper alternatives than a credit card ATM withdrawal.
  • Repeated cash advances can signal financial stress to lenders and may hurt your credit score over time.

How the fees and interest work

When you withdraw cash from an ATM using a credit card, you are charged two separate costs. The first is the cash advance fee, which your card issuer charges you upfront. This fee appears on your statement as a separate line item and is added to your balance immediately. Most cards charge between 3 and 5 percent of the amount withdrawn, though some charge a flat fee instead (like $5 or $10) if that is higher.

The second cost is interest, and it works differently than interest on regular purchases. With a regular credit card purchase, you get a grace period—usually 21 to 25 days—before interest starts. With a cash advance, interest starts the moment you withdraw the money. There is no grace period. If your card's APR for cash advances is 24 percent and you withdraw $300, you owe $312 in fees plus interest that begins accruing that same day.

The interest rate on cash advances is also typically higher than the rate on regular purchases. Your card might charge 18 percent APR on purchases but 24 percent on cash advances. Check your card's terms to see what rate applies to cash advances—it is usually listed separately from the purchase APR.

Your cash advance limit is separate from your credit limit

Your credit card issuer sets a cash advance limit that is different from your overall credit limit. You might have a $5,000 credit limit but only a $500 cash advance limit. This limit is set by the bank based on your creditworthiness and account history, and you cannot change it yourself.

You can contact your card issuer to ask what your cash advance limit is—it is usually listed in your account online or in your cardholder agreement. Some issuers allow you to request an increase, though this is not may provide. If you try to withdraw more than your limit, the ATM will decline the transaction.

Where you can withdraw cash with a credit card

You can use your credit card at most ATMs that display your card's logo (Visa, Mastercard, American Express, or Discover). This includes ATMs at your card issuer's bank branches, ATMs at other banks, and standalone ATMs in convenience stores and gas stations. However, some ATMs charge an additional ATM operator fee on top of the cash advance fee your card issuer charges.

For example, if you use an out-of-network ATM, you might pay a $3 operator fee plus your card's 4 percent cash advance fee on a $200 withdrawal. That is $8 in fees before interest even starts. Using an ATM owned by your card issuer's bank usually avoids the operator fee, so that is the cheapest option if you have one nearby.

Cheaper ways to get cash when you need it

Before you use a credit card ATM withdrawal, consider these alternatives. If you have a debit card, use that instead—there is no fee or interest. If you do not have cash on hand and need some, ask for cash back when you pay with a debit card at a grocery store, pharmacy, or gas station. Most retailers offer this for free and it is faster than finding an ATM.

If you have a bank account, visit a branch in person and withdraw cash from a teller. There is no fee and no interest. If you are in a bind and need cash urgently, a personal loan from a bank or credit union typically charges less interest than a credit card cash advance, though it takes longer to process. A payday loan is faster but charges much higher interest and fees—only consider it if you can pay it back within two weeks.

If you are regularly using credit card cash advances because you do not have enough cash on hand, that is a sign to look at your budget. You may be spending more than you earn, and borrowing cash at high interest rates will make that problem worse, not better.

How cash advances affect your credit score

A single cash advance does not directly damage your credit score, but repeated cash advances can signal financial distress to lenders. Credit bureaus do not see the difference between a cash advance and a regular purchase on your credit report—both show up as credit card debt. However, if you are regularly taking cash advances and carrying high balances, your credit utilization ratio (the percentage of your available credit you are using) goes up, which can lower your score.

More importantly, cash advances suggest you may be short on cash, which lenders interpret as a sign of financial trouble. If you apply for a mortgage, auto loan, or other credit in the future, lenders may see a history of cash advances and view you as higher risk. Over time, this can make it harder to get approved for credit or get favorable interest rates.

What to do if you have already taken a cash advance

If you have already withdrawn cash using your credit card, pay it back as quickly as you can. Unlike regular credit card purchases, there is no grace period, so every day you carry the balance, interest is accruing. Prioritize paying off the cash advance balance before you make new purchases on the card, because the interest rate on the advance is usually higher.

If you cannot pay it all back at once, make the largest payment you can afford. Even a partial payment reduces the balance and the interest that accrues on the remaining amount. Once the cash advance is paid off, avoid taking another one unless it is truly an emergency.

Frequently Asked Questions

Do I need a PIN to withdraw cash with a credit card?

Yes. You must have a PIN set up with your credit card issuer to use the card at an ATM. If you have never set a PIN, contact your card issuer or set one through your online account. Without a PIN, you cannot withdraw cash at an ATM, though you can still use the card to make purchases.

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

A regular purchase uses your available credit and has a grace period before interest starts (usually 21 to 25 days). A cash advance starts charging interest immediately with no grace period, costs a separate fee, and usually has a higher interest rate. Both count against your credit limit.

Can I get a cash advance from my credit card at a bank teller?

Yes. You can visit a branch of your card issuer's bank and ask a teller for a cash advance. You will still pay the cash advance fee and interest, but you avoid the ATM operator fee. Some banks also allow you to get a cash advance at other banks' branches if they have a partnership agreement.

Will a cash advance hurt my credit score?

A single cash advance does not directly hurt your score, but it increases your credit utilization ratio, which can lower your score slightly. Repeated cash advances suggest financial stress and may make lenders view you as higher risk when you apply for future credit.

How long does it take to pay off a cash advance?

That depends on your payment. If you pay the full balance immediately, it is done. If you carry the balance, it accrues interest every day until it is paid off. The longer you carry it, the more interest you pay. Most people should aim to pay off a cash advance within one or two billing cycles to minimize interest charges.