Best Credit Cards in September 2024Articles
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LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
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Advertising Disclosure
LendingTree is an advertising-supported comparison service. The site features products from our partners as well as institutions which are not advertising partners. While we make an effort to include the best deals available to the general public, we make no warranty that such information represents all available products. We are compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order).
Written by
Tracy Brackman
Edited by
Robin Ratcliff
Updated on:
Content was accurate at the time of publication.
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If you need quick access to cash, you can use a credit card to withdraw cash from an ATM. This type of transaction, also known as a cash advance, essentially follows the same process as a debit card: You’ll insert your credit card into an ATM machine, then input your PIN number, followed by the amount you wish to borrow.
But because cash advances can come with pricey fees and high interest charges, we don’t recommend them. Instead, you may want to consider borrowing money from a family member or friend or taking out a personal loan.
What is a cash advance?A cash advance allows you to borrow money from your credit card against your line of credit. You can typically get a cash advance at an ATM or bank branch, via an online transfer or by using a convenience check from the issuer.
Yes, you can use a credit card to withdraw cash from an ATM. Just know, however, that you’ll have to pay a cash advance fee — typically 5% of the amount of each transaction. You’ll also likely pay a higher interest rate for a cash advance than you would for a regular purchase. Plus, there’s no grace period, so you’ll start incurring interest charges immediately after withdrawing your cash.
For example, the Chase Sapphire Preferred® Card charges a cash advance fee of either $10 or 5% of the amount of each transaction, whichever is greater. So if you withdraw $500 from the ATM using your card, you’ll pay a $25 cash advance fee. The card also has a cash advance APR of 29.99% variable, compared to 21.49%-28.49% Variable APR for purchases. Plus, if you use the card at an ATM that’s not associated with Chase bank, you’ll likely be charged an additional ATM fee.
How to use a credit card at an ATM
The process of using a credit card to withdraw money from an ATM is very similar to using a debit card. But before getting started, you’ll need a PIN (personal identification number), which you can request by calling the number on the back of your credit card.
You’ll then follow these steps:
- Insert your credit card into the ATM
- Choose the “cash withdrawal” or “cash advance” option
- Enter the amount of cash you want to withdraw
- Accept any fees that may be associated with the transaction
- Collect your cash after it’s dispensed
Note that you likely won’t be able to complete the transaction if the amount you’re trying to withdraw exceeds the credit limit or cash advance limit of your card or the ATM’s daily withdrawal limit.
Pros | Cons |
---|---|
Ability to easily access cash Thousands of ATM locations across the country to choose from There's no collateral required | There isn't a grace period on cash advances You'll incur high interest charges You'll be charged a cash advance fee There may be additional ATM fees Cash advances won't earn credit card rewards |
Tips for using a credit card at an ATM
We don’t recommend using a credit card to withdraw cash from an ATM. But if you find yourself in a bind with no other choices, we suggest these tips:
→ Use an ATM that’s associated with the credit card issuer. This can help you avoid additional ATM fees.
→ Know your credit limit before withdrawing cash. To avoid negatively impacting your credit, you should keep your credit utilization ratio low. This means you shouldn’t withdraw more than 30% of your available credit limit. For example, if you have a credit limit of $8,000, you shouldn’t withdraw more than $240.
→ Because there’s generally no grace period on cash advances, you’ll start incurring interest charges right away. Therefore, it’s best to pay off your cash advance as soon as possible.
Instead of getting a cash advance on your credit card, you may want to consider the following options:
- Use a debit card to access cash. By using a debit card to withdraw money from an ATM instead of a credit card, you can avoid incurring interest charges and cash advance fees.
- Get a personal loan. If you need quick access to cash, you may be able to get a lower interest rate from a personal loan. You also won’t be charged a cash advance fee.
- Borrow money from a friend or family member. If you have a friend or family member who’s willing to loan the money to you, you can potentially avoid interest charges altogether. However, you should make sure to agree upon the repayment terms prior to accepting the loan.
The content above is not provided by any issuer. Any opinions expressed are those of LendingTree alone and have not been reviewed, approved, or otherwise endorsed by any issuer. The offers and/or promotions mentioned above may have changed, expired, or are no longer available. Check the issuer's website for more details.
On this page
- Can you use a credit card at an ATM?
- How to use a card at an ATM
- Pros and cons
- Tips for withdrawing cash
- Alternatives to cash advances
Recommended Articles
- How To Get Cash From a Credit Card
- Credit Card Convenience Checks: What You Need to Know Before You Use One
- Chase Sapphire Preferred: Full Benefits Guide
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