How to Get Cash From a Credit Card at an ATM
- 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.
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.
Can you use a credit card at an ATM?
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 28.49% Variable 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 28.49% variable, compared to a 19.24% - 27.49% 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 and cons of using a credit card at an ATM
Pros
- Ability to easily access cash
- Thousands of ATM locations across the country to choose from
- There’s no collateral required
Cons
- 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.
Alternatives to cash advances
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.