Yes, you can use a credit card at an ATM, but it is a cash advance, not a regular purchase

Most ATMs accept credit cards, but withdrawing cash this way is treated differently than swiping your card at a store. The transaction is called a cash advance, and it comes with its own fees and interest rate — usually higher than your regular purchase rate. Your credit card company charges you interest on the cash advance starting immediately, with no grace period like you get on regular purchases.

The ATM operator may also charge you a fee — typically $2 to $5 per withdrawal — on top of what your credit card issuer charges. Some ATMs display this fee before you complete the transaction; others show it only after. If you use an out-of-network ATM (one not run by your card issuer's bank), both fees usually apply.

Because cash advances are expensive and start accruing interest right away, most people should use a debit card or withdraw cash from a bank teller instead. But if you have no other option, understanding how the charges work helps you decide whether it is worth the cost.

Key Takeaways

  • Credit card cash advances charge interest immediately with no grace period, unlike regular purchases.
  • Your credit card issuer charges a cash advance fee (usually 3 to 5 percent of the amount withdrawn) plus a higher interest rate than regular purchases.
  • The ATM operator may charge an additional $2 to $5 fee, which you may see on the screen before you confirm the withdrawal.
  • Using a debit card or withdrawing cash from a bank teller costs less and should be your first choice if available.
  • Cash advances can temporarily lower your credit score because they increase your credit utilization and appear as a separate type of debt.

How much a cash advance actually costs

A credit card cash advance involves two separate charges: one from your card issuer and one from the ATM operator. Your card issuer charges a cash advance fee, which is usually a percentage of the amount you withdraw — commonly 3 to 5 percent, though some cards charge a flat fee of $5 to $10 instead. A $200 withdrawal with a 4 percent fee costs you $8 before you even leave the ATM.

The ATM operator's fee is separate. If you use an ATM owned by your bank, you may pay nothing. If you use an out-of-network ATM, expect $2 to $5. Some ATMs in bars, casinos, or convenience stores charge $3 to $6. The ATM screen usually shows this fee and asks you to confirm before the transaction goes through.

Interest starts accruing immediately on the full amount you withdrew. If your regular purchase APR is 18 percent, your cash advance APR might be 22 or 25 percent. Unlike purchases, there is no grace period — interest begins the day you withdraw the cash. If you pay back the $200 in one week, you will owe roughly $1 in interest on top of the cash advance fee.

The total cost depends on how long you carry the balance. Paying it back within a few days keeps interest low. Carrying it for a month or longer makes the interest charge significant.

Why your credit score may drop after a cash advance

A cash advance can temporarily lower your credit score in two ways. First, it increases your credit utilization ratio — the percentage of your available credit you are using. If you have a $5,000 credit limit and withdraw $500 in cash, your utilization jumps to 10 percent just from that transaction. Credit scoring models treat higher utilization as higher risk, even if you pay it back immediately.

Second, some credit card issuers report cash advances separately from regular purchases on your credit report. This can signal to lenders that you are short on cash, which may lower your score slightly. The effect is usually temporary — your score recovers once you pay off the balance and your utilization drops.

If you are planning to apply for a mortgage, car loan, or other credit soon, avoid cash advances. The timing matters: a cash advance a few weeks before a loan application could affect the interest rate you are offered.

When you might use a credit card at an ATM despite the cost

Cash advances are expensive, so most people should avoid them. But there are situations where the cost is worth paying. If you are traveling internationally and your debit card does not work, a credit card cash advance may be your only option to get local currency. If you need cash urgently and have no other way to get it, the fee is better than the alternative.

Some people use cash advances as a last resort when they have no access to their bank account — for example, if their debit card is lost or frozen. In these cases, the cash advance fee is a cost of solving an immediate problem, not a regular spending choice.

Never use a credit card cash advance to pay another debt or to fund regular spending. The interest and fees make it one of the most expensive ways to borrow money. If you find yourself regularly needing cash advances, that is a sign your budget needs adjustment or you need to build an emergency fund.

How to minimize the cost if you do need cash

If you have decided a cash advance is necessary, take steps to keep the cost as low as possible. First, withdraw only what you need — every dollar you withdraw costs you the cash advance fee plus interest. Second, use an ATM owned by your card issuer's bank if possible, to avoid the ATM operator's fee. You can usually find these on your card issuer's website or app.

Third, pay back 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 are carrying a balance on your card already, pay down that balance first — your regular purchases usually have a lower interest rate than cash advances.

Fourth, check your card's terms before you withdraw. Some cards have a lower cash advance fee or APR than others. If you have multiple credit cards, use the one with the lowest cash advance fee. You can find this information in your card's terms and conditions or by calling the issuer.

Alternatives to credit card cash advances

Before you use a credit card at an ATM, explore other options. A debit card withdrawal costs nothing and does not accrue interest — this is almost always the better choice if your debit card works. If your debit card is not available, ask a friend or family member to lend you cash, or visit your bank's branch to withdraw from your savings account.

Some employers offer paycheck advances or emergency loans to employees. Credit unions often offer small loans at lower rates than credit card cash advances. If you need cash for an emergency, these options are usually cheaper than a credit card cash advance.

If you are traveling and your debit card does not work internationally, notify your bank before you leave and ask about their international withdrawal options. Many banks partner with ATM networks abroad that charge lower fees than using a credit card.

Frequently Asked Questions

Does using a credit card at an ATM count toward my cash back rewards?

No. Cash advances do not earn rewards, cash back, or points. Only regular purchases earn rewards on most credit cards. This is another reason to avoid cash advances — you get none of the benefits of using a credit card.

Can I use a credit card at any ATM?

Most ATMs accept credit cards, but not all. ATMs in banks, grocery stores, and gas stations usually do. Some ATMs in small businesses or remote locations may not. The ATM screen will tell you if your card is not accepted before you enter your PIN.

What is the difference between a cash advance and a balance transfer?

A cash advance gives you physical cash and charges a fee plus a high interest rate. A balance transfer moves debt from one card to another and may have a lower introductory rate. Both are expensive, but they work differently and appear separately on your credit report.

Will my credit card issuer let me withdraw my full credit limit as a cash advance?

No. Most issuers set a separate, lower cash advance limit — often 20 to 50 percent of your credit limit. You can find your cash advance limit in your card's terms or by calling the issuer. This limit protects both you and the card company from the risk of a large cash advance.

Can I dispute a cash advance fee if I did not know about it?

You can contact your card issuer and ask them to reverse the fee, especially if the ATM did not clearly display it before you confirmed the transaction. Some issuers will reverse one fee as a courtesy, but they are not required to. Read your card's terms to understand the fee structure before you use an ATM.