ATMs accept credit cards, but withdrawing cash this way costs you significantly more than using a debit card
Yes, most ATMs will accept your credit card. However, using a credit card at an ATM is not the same as using a debit card. When you insert a credit card into an ATM and withdraw cash, you are taking a cash advance — a short-term loan from your credit card issuer. The moment you complete the transaction, interest starts accruing at a rate that is usually much higher than your regular purchase APR.
The fees and interest charges make cash advances expensive. You will pay an upfront fee (typically 3 to 5 percent of the amount withdrawn), plus daily interest that begins immediately with no grace period. If you withdraw $200, you might pay $6 to $10 just to get the cash, then pay interest every single day until you pay back the full amount.
Key Takeaways
- Credit card cash advances charge an upfront fee of 3 to 5 percent plus interest that starts the same day, with no grace period like purchases have.
- The interest rate on cash advances is usually 5 to 10 percentage points higher than your regular purchase APR and varies by card issuer.
- Using a debit card at an ATM costs far less — usually $1 to $3 per transaction with no interest charges.
- If you need cash and do not have a debit card, a personal loan or cash-back option at a store is cheaper than a credit card cash advance.
How cash advance fees and interest work
When you withdraw cash using your credit card, your card issuer treats it as a loan to you, not a purchase. This means two separate charges hit your account immediately.
The cash advance fee is a one-time charge calculated as a percentage of the amount you withdraw. Most card issuers charge between 3 and 5 percent, though some charge a flat fee (like $5 or $10) if that is higher. A $300 cash advance at 4 percent costs $12 in fees alone.
The cash advance APR is the interest rate applied to the balance. This rate is separate from your purchase APR and is almost always higher — often 5 to 10 percentage points above what you pay on regular purchases. If your purchase APR is 18 percent, your cash advance APR might be 25 or 28 percent. Interest accrues daily starting the day you withdraw the cash, and there is no grace period. You begin paying interest immediately, even if you pay off the balance within days.
Why cash advances cost more than other ways to get cash
A debit card withdrawal at the same ATM costs $1 to $3 and charges no interest. A credit card cash advance costs 3 to 5 percent upfront plus daily interest at a rate 5 to 10 points higher than your purchase rate. Over time, the difference is substantial.
If you need $300 and carry the balance for one month: a debit card costs $3, a credit card cash advance costs roughly $12 in fees plus $6 to $7 in interest — about $18 to $19 total. If you carry it for three months, interest alone can exceed $20.
Asking for cash back at a grocery store or retailer when you make a purchase costs nothing and gives you the cash immediately. Taking out a personal loan from a bank or credit union, if you have time, usually charges less interest than a cash advance and spreads the cost over a longer period.
Which ATMs accept credit cards
Most ATMs in the United States accept credit cards, but not all. Bank-owned ATMs almost always do. Independent ATMs at convenience stores, bars, and gas stations usually accept credit cards, though some are set up for debit only.
Before you insert your card, look for a label or screen message that says the machine accepts credit cards. If you are unsure, call the location or try another ATM. Attempting a cash advance at an ATM that does not support it will not harm your card, but it wastes time.
Your credit card issuer may also restrict cash advances on your account. Some cards do not allow them at all. Check your card's terms or call the number on the back of your card to confirm whether cash advances are available before you try to use an ATM.
What happens to your credit score when you take a cash advance
A cash advance does not directly damage your credit score, but it can harm it indirectly. The transaction increases your credit utilization ratio — the amount of available credit you are using. If your credit limit is $5,000 and you take a $1,000 cash advance, your utilization jumps to 20 percent. High utilization signals risk to credit scoring models and can lower your score by a few points.
The real damage comes if you carry the balance. High interest charges make it easy to fall behind on payments, and missed or late payments will significantly hurt your score. The cash advance itself is reported to credit bureaus as a balance on your account, so it remains visible until you pay it off.
Alternatives to credit card cash advances
If you need cash and do not have a debit card or access to your bank account, several options cost less than a credit card cash advance.
Cash back at a store: When you make a purchase with a credit card at a grocery store, pharmacy, or retailer, you can ask for cash back. The amount is added to your purchase total and charged at your regular purchase APR, not the higher cash advance rate. You pay no separate fee. This works only if you are making a purchase anyway.
Personal loan: If you have time to wait a few days, a personal loan from a bank, credit union, or online lender usually charges less interest than a cash advance. Rates vary widely based on your credit, but many personal loans charge 6 to 36 percent APR — lower than most cash advance rates. You also know the exact repayment schedule upfront.
Borrow from a friend or family member: If possible, borrowing without interest is always cheaper than any financial product.
Payday loan: A payday loan is expensive and should be a last resort, but it is sometimes cheaper than a credit card cash advance if you repay it within two weeks. Payday loans typically charge $15 to $20 per $100 borrowed, which equals 390 to 520 percent APR. However, if you need $300 for one week, a payday loan might cost $45 to $60, while a credit card cash advance could cost $12 in fees plus $2 to $3 in interest — making the credit card cheaper in this narrow scenario. This changes quickly if you cannot repay on time.
How to pay off a cash advance quickly
If you have already taken a cash advance, the priority is to pay it off as fast as possible. Every day you carry the balance, interest accumulates at a high rate.
Pay more than the minimum payment. Minimum payments on credit cards are designed to keep you in debt as long as possible. If you took a $300 cash advance at 25 percent APR and pay only the minimum (usually 1 to 3 percent of the balance), you could spend months paying it off and pay $50 or more in interest alone.
If you have other money available — savings, a paycheck coming in, a tax refund — use it to pay down the cash advance balance before you pay anything else on the card. The interest rate on the cash advance is so high that paying it off is almost always the best use of available money.
Do not take another cash advance to pay off the first one. This creates a cycle of fees and interest that becomes very difficult to escape.
Frequently Asked Questions
Can I use a credit card at any ATM?
Most ATMs accept credit cards, but not all. Bank ATMs almost always do. Independent ATMs at convenience stores or gas stations may accept only debit cards. Check for a label on the machine or try inserting your card — if the machine does not accept it, you will get a message and your card will be returned unharmed.
What is the difference between a cash advance and a regular purchase?
A regular purchase is charged at your purchase APR and has a grace period (usually 21 to 25 days) before interest starts. A cash advance has a higher APR and no grace period — interest starts the day you withdraw the cash. Cash advances also charge an upfront fee; purchases do not.
Will a cash advance show up on my credit report?
Yes. The cash advance balance appears on your credit report as a balance on your account. It increases your credit utilization ratio and can lower your credit score slightly. The impact is larger if you carry the balance for a long time or miss payments.
Is there any way to avoid the cash advance fee?
No. Every credit card issuer charges a cash advance fee — it is built into the terms of your card. The only way to avoid it is to not take a cash advance. Using cash back at a store or getting a personal loan are cheaper alternatives.
How long does a cash advance stay on my credit card?
The cash advance balance stays on your account until you pay it off. Interest continues to accrue daily until the full amount is repaid. Paying more than the minimum payment reduces the balance faster and saves you money on interest.