How To Get Cash From A Credit Card At An ATM (2024)

Most credit card lenders offer cardholders the ability to take out cash using an ATM. This is called a cash advance, and it comes with some major downsides and hefty fees. Cardholders can use a credit card at nearly any ATM and withdraw cash as they would when using a debit card, but instead of drawing from a bank account, the cash withdrawal shows up as a charge on a credit card. Forbes Advisor does not recommend using a credit card for a cash advance.

Can You Use a Credit Card at an ATM?

Yes, a credit card may be used at an ATM to withdraw cash, but it’s not a recommended practice. Taking cash from an ATM using a credit card is called a cash advance and not only involves a cash advance transaction fee (often 5% of the transaction amount or $10, whichever is more) but is also subject to a separate, often much higher cash advance APR.

Because cash advance transactions begin to accrue interest the same day a transaction is made, high fees are typically unavoidable when using a credit card to withdraw cash from an ATM.

What Is a Cash Advance?

A cash advance is a cash withdrawal from an ATM using a credit card. The cardholder is essentially purchasing cash from the credit card company as opposed to purchasing an item from a store. Money withdrawn from an ATM gets added to the account balance and will be reflected in monthly statements. One-time fees and high interest rates often accompany cash advances. The average APR for a cash advance is generally higher than APRs for regular purchase transactions. For these reasons, cash advances should be used only as a last resort or in an emergency situation.

Things To Consider Before Taking a Cash Advance

With few exceptions, cardholders should pay off credit card balances every month to avoid paying interest. Always pay off cash advances as quickly as possible to avoid falling into debt.

High Interest Rates

Interest rates for cash advances are usually higher than interest rates for regular purchases. Most credit card companies do not offer a grace period for cash advances, meaning a cardholder is not given time to pay off the balance before interest starts to accrue. Instead, interest accrues on the day the cash advance withdrawal is made. The cardholder faces a huge risk for exponential debt accumulation if cash advance balances are not paid off quickly.

One-time Cash Advance Fees

Every time a cardholder withdraws money from an ATM, the credit card company will usually charge a one-time fee of 3% to 5% or $8 to $10 (whichever is greater). The exact fee will be described in the card’s terms and conditions—so read those carefully before making a cash advance withdrawal (or, better yet, before applying for the card). Cash advance fees plus an ATM fee can quickly add up for the cardholder making this an expensive method to obtain cash.

Negative Effects on Credit Scores

Taking out even one cash advance could lead to a decrease in credit score if not paid off quickly. Just as with regular purchases, cash advances will lower a cardholder’s available credit. If the account balance isn’t paid and interest continues to accrue daily, a cardholder’s credit utilization rate can skyrocket as available credit drops. This can lead to a decrease in credit score. Lenders may also view cardholders as a credit risk if they ever apply for a new card or want to take out a loan for a car or mortgage and available credit is reduced. Note that landlords also may consider credit when deciding to rent a room, apartment or house.

How To Get a Cash Advance on a Credit Card

Withdrawing money from an ATM using a credit card is a simple process. It’s like withdrawing money from an ATM using a debit card with only a few slight differences.

1. Check the latest account statement to see how much money is available to withdraw. This can vary based on the card’s spending limit or the card may have a different cash advance limit.
2. Go to an ATM and insert the credit card.
3. Enter the credit card PIN (call the number on the back of the card to find out the credit card PIN or to set one up).
4. Select the appropriate options if offered: “cash withdrawal” or “cash advance.”
5. If asked to select between “credit” or “debit,” select “credit.”
6. Enter the amount to withdraw.
7. Accept any fees like ATM transaction fees and cash advance fees.
8. Complete the transaction and take out cash.

Alternatives to Cash Advances

Make sure to consider all the options before taking out a cash advance.

• Use a debit card instead of a credit card to take out cash from an ATM that’s in the bank’s network. This way the debit cardholder will avoid any fees for withdrawing cash.
• Payment apps like Venmo or Cash App are a good alternative to transferring money to friends or businesses. They accept credit card transfers for a small fee. This fee will usually be less expensive than the fees and interest associated with a cash advance.
• Consider applying for a personal loan if a large amount of cash is needed to pay off big expenses like rent or medical bills. Personal loans usually have much lower interest rates than cash advances and many credit card APRs (the average 24-month personal loan interest rate as of August 2023 is 12.17% according to the Federal Reserve).
• Borrow money from a friend or family member. While there’s usually a risk to ask friends or family for financial help, as long as the borrower can pay off the loan in a timely fashion, it will likely be easier and cheaper than taking out a cash advance.

Bottom Line

Cash advances should be considered a last resort among the options for getting cash fast. A greater risk of falling into serious debt exists if the account balances aren’t paid off quickly. Interest rates for cash advances are higher than rates for regular purchases. Most credit card companies don’t offer a grace period, which means interest will begin to accrue on the day of the withdrawal. Before taking out a cash advance, try using a debit card, a payment app, a personal loan or even borrowing cash from a friend or family member if at all possible.

Frequently Asked Questions (FAQs)