Yes, you can use a credit card at an ATM, but it's a cash advance, not a debit

Most ATMs will let you withdraw cash using a credit card, but the transaction is treated as a cash advance, not a regular purchase. This matters because cash advances come with higher fees and interest rates than regular credit card charges. The moment you insert your card and withdraw money, your credit card company treats it as a loan against your credit limit, and you start paying interest immediately — there is no grace period like there is for purchases.

Not every ATM accepts credit cards. Bank ATMs owned by your card issuer are most likely to work. Independent ATMs in convenience stores, bars, or casinos may also accept credit cards, but they charge their own operator fee on top of what your card issuer charges. Some ATMs will simply refuse a credit card outright.

Key Takeaways

  • Cash advances from a credit card start accruing interest immediately, with no grace period, even if your card normally offers one for purchases.
  • You pay two separate fees: one from your credit card company (usually 3 to 5 percent of the amount withdrawn) and potentially one from the ATM operator.
  • The interest rate on cash advances is typically higher than your regular purchase APR and can range from 20 to 30 percent or more depending on your card.
  • Using a credit card at an ATM counts against your available credit and can lower your credit score if it raises your credit utilization ratio.

How much it costs to withdraw cash with a credit card

Your credit card company charges a cash advance fee, which is usually a flat dollar amount or a percentage of the withdrawal — whichever is higher. Most cards charge between 3 and 5 percent of the amount you withdraw, with a minimum fee of $2 to $5. If you withdraw $100, you might pay $3 to $5 just to get the cash. If you withdraw $500, the fee could be $15 to $25.

On top of that, the ATM operator may charge their own fee, typically $2 to $3. So a $100 withdrawal could cost you $5 to $8 in fees before you even count interest. Check your credit card's terms or call the issuer to find out your specific cash advance fee — it is listed in your cardholder agreement under "cash advance fees" or "transaction fees."

Interest starts accruing the same day. Unlike a purchase, which may have a 21 to 25 day grace period before interest kicks in, a cash advance begins charging interest immediately. The interest rate is usually higher than your regular APR — often 5 to 10 percentage points higher. If your purchase APR is 18 percent, your cash advance APR might be 25 percent or higher.

When your credit card company processes the cash advance

The withdrawal shows up in your account within one to three business days, depending on your bank and the ATM network. The fee appears at the same time. Interest begins accruing from the day of withdrawal, so even if the transaction hasn't fully posted yet, you are being charged.

The cash advance counts against your available credit immediately. If your credit limit is $2,000 and you withdraw $500, your available credit drops to $1,500 right away. This affects your credit utilization ratio — the percentage of your total credit limit you are using. A higher utilization ratio can lower your credit score, even if you pay the balance in full later.

Why using a credit card at an ATM is usually a bad idea

The combination of high fees and immediate interest makes cash advances one of the most expensive ways to borrow money on a credit card. If you need $200 in cash and pay it back in one month, you might pay $6 to $10 in fees plus $4 to $5 in interest — roughly $10 to $15 total, or 5 to 7 percent of the amount borrowed. Over a year, that compounds quickly.

There are almost always cheaper alternatives. Using a debit card at an ATM costs nothing (or a small fee if you use an out-of-network machine). Asking a store cashier for cash back when you make a purchase costs nothing. Borrowing from a friend or family member costs nothing. Even a payday loan, which is predatory, is sometimes cheaper than a credit card cash advance if you pay it back within two weeks.

The only scenario where a credit card cash advance makes sense is if you have no other way to get cash and you pay it back within days. Even then, the fees and interest add up fast.

How to pay back a cash advance

When you make a payment to your credit card, the payment goes toward your lowest-interest debt first. This means if you have both regular purchases (at 18 percent APR) and a cash advance (at 25 percent APR), your payment will reduce the purchase balance before it touches the cash advance. To pay off the cash advance faster, contact your card issuer and ask if you can designate a payment specifically to the cash advance balance.

Some card issuers allow you to direct payments to specific balances; others do not. If yours does not, you will need to pay off all other balances first before the cash advance balance goes down. This is why cash advances are so expensive — you end up carrying the high-interest balance longer than you expected.

Alternatives to using a credit card at an ATM

If you need cash and do not have a debit card, ask a store cashier for cash back. Most grocery stores, pharmacies, and retail chains will give you cash back when you use a debit card or credit card to make a purchase — and it costs nothing. You can usually withdraw $20 to $100 depending on the store's policy.

If you do not have a debit card, open a basic checking account at a bank or credit union. Most offer free checking with no minimum balance, and you get a debit card that works at any ATM. If you are unbanked or underbanked, community banks and credit unions often have lower fees than large national banks.

If you are in a genuine emergency and have no other way to get cash, a credit card cash advance is legal and available — but treat it as a last resort, not a regular way to get spending money.

Frequently Asked Questions

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

It can, because the withdrawal counts against your available credit and raises your utilization ratio. If you normally use 30 percent of your credit limit and then withdraw $500, your utilization might jump to 50 percent, which can lower your score. The impact is temporary — your score recovers once you pay the balance down.

Can I use someone else's credit card at an ATM?

Only if you are an authorized user on the account. Using someone else's card without permission is fraud. If you are an authorized user, you can use the card at an ATM, but the cash advance fee and interest still apply to their account.

What if the ATM declines my credit card?

The ATM may decline because your card issuer does not allow cash advances, your credit limit is too low, or the ATM does not accept credit cards. Call your card issuer to ask whether cash advances are turned on for your account. Some people request that their issuer disable cash advances to prevent accidental use.

Is there a limit to how much I can withdraw?

Yes. Your card issuer sets a separate cash advance limit, which is usually lower than your total credit limit. You might have a $5,000 credit limit but only a $1,000 cash advance limit. Check your cardholder agreement or call the issuer to find out your limit.