Can you use a credit card at an ATM?
You can use a credit card to withdraw cash at an ATM, but it’s typically considered a cash advance. And while cash advances can be convenient, they typically involve higher costs than using a debit card to get cash.
Learn more about how to use your credit card at an ATM and what to consider before you do.
What you’ll learn:
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It’s possible to withdraw money at an ATM using your credit card, but it may be considered a cash advance.
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Cash advances typically have service fees and higher interest rates than do standard credit card purchases.
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You might need your credit card PIN to complete an ATM withdrawal.
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You can check your cash advance limit and card balance to see how much you can withdraw at an ATM.
What is a credit card cash advance?
A credit card cash advance is when you borrow cash against your credit card’s credit limit, using an ATM, a bank or a convenience check. Unlike standard credit card purchases, cash advances often carry fees of 2% to 5%. They also might start to accrue interest immediately.
Other transactions that might be considered cash advances could include using your credit card to:
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Buy casino chips
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Purchase lottery tickets
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Exchange dollars for foreign currency
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Transfer money using digital apps
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Pay debt like a car loan
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Pay bills with third-party services
How to use a credit card at an ATM
Before using your credit card to get cash at an ATM, it may be a good idea to check your cash advance limit and account balance. You can usually find this information by signing in to your account online or checking your monthly statements.
Once you’re ready to get your cash advance at an ATM, the process usually looks something like this:
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Insert your credit card into the ATM or use a cardless ATM option.
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Enter your credit card PIN.
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Follow the instructions on the ATM screen and enter the amount of your cash advance.
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Accept any additional charges, which may include an ATM transaction fee and a cash advance fee.
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Complete the transaction and take your cash and receipt.
Does using a credit card at an ATM hurt your credit scores?
Yes, a cash advance could affect your credit scores, depending on how much you borrow and how quickly you pay down the balance.
When you use a credit card at an ATM, you’re taking out cash against your credit limit. Your card issuer adds the cash advance amount, plus fees and interest, to your credit card balance. This can increase your credit utilization ratio, which is an important credit-scoring factor that measures how much of your available credit you’re using.
Generally, a higher credit utilization ratio can have a negative impact on your credit scores. The Consumer Financial Protection Bureau recommends keeping your credit utilization ratio under 30%.
What to consider before using your credit card at an ATM
A credit card cash advance typically triggers immediate interest charges and fees, with no grace period. You might consider the following before deciding if it’s right for you:
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Additional costs: You may pay a cash advance fee and ATM fees.
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Higher interest rate: Your card issuer may charge you a higher annual percentage rate (APR) on the cash advance than it does for purchases.
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No grace period: Credit card cash advances typically don’t come with a grace period. That means interest might start accruing immediately on the amount you withdraw.
- Potential impact to your credit: Taking a cash advance increases your credit utilization, which may have a negative impact on your credit scores.
Can you use a credit card at an ATM? FAQ
Here are the answers to some frequently asked questions about using your credit card at an ATM:
How expensive is it to use a credit card at an ATM?
The cost of a credit card cash advance can vary, but here are some of the common costs that come with cash advances:
- Cash advance APR: The APR is usually higher on cash advances than on regular purchases.
- Cash advance fee: Card issuers may charge a flat fee or a percentage of the amount withdrawn. For instance, some card issuers charge either $3 or 3% of the amount of the transaction, whichever is greater.
- ATM fees: You may be charged an ATM fee for taking a cash advance at an ATM.
How much cash can you withdraw using your credit card?
The maximum amount you can withdraw with a cash advance can vary. Issuers usually cap cash advances at a percentage of a person’s card’s credit limit. Say you have a $5,000 credit limit and your card issuer caps your cash advance limit at 30%. In this example, your maximum cash advance would be $1,500.
If a cash advance puts you over your credit limit or you’ve already maxed out your credit card, you may not be able to withdraw money using your credit card at an ATM.
ATM dispense limits also vary, so you may need to make multiple transactions to get the full amount of cash you need. And each transaction may incur separate fees.
Can you withdraw cash using your Capital One credit card?
Yes, eligible Capital One cardholders can typically use their credit cards to get cash advances. View important rates and disclosures.
Do you need a PIN for a credit card at an ATM?
You might need a PIN to use your credit card at an ATM. You may have received a PIN when you first got your credit card. If you need to create or change your PIN, you can typically do so by signing in to your account online.
Key takeaways: Can you use a credit card at an ATM?
It’s possible to withdraw cash at an ATM using a credit card. This kind of transaction is called a cash advance. Cash advances often carry fees and higher interest rates, making them more costly than using a debit card to withdraw cash from a checking account.
If you like the convenience and rewards a credit card can offer, you can find out whether you’re pre-approved for a Capital One credit card. It’s quick, and it won’t hurt your credit scores.
