Chauncey grew up on a farm in rural northern California. At 18 he ran away and saw the world with a backpack and a credit card, discovering that the true value of any point or mile is the experience it facilitates. He remains most at home on a tracto.
Chauncey Crail ContributorChauncey grew up on a farm in rural northern California. At 18 he ran away and saw the world with a backpack and a credit card, discovering that the true value of any point or mile is the experience it facilitates. He remains most at home on a tracto.
Written By Chauncey Crail ContributorChauncey grew up on a farm in rural northern California. At 18 he ran away and saw the world with a backpack and a credit card, discovering that the true value of any point or mile is the experience it facilitates. He remains most at home on a tracto.
Chauncey Crail ContributorChauncey grew up on a farm in rural northern California. At 18 he ran away and saw the world with a backpack and a credit card, discovering that the true value of any point or mile is the experience it facilitates. He remains most at home on a tracto.
Contributor Caroline Lupini Managing Editor, Credit Cards & Travel RewardsCaroline Lupini has been traveling the world with the help of credit card rewards since 2011. She has visited over 110 countries and is able to utilize her knowledge of credit cards and to make travel both less expensive and more luxurious. Caroline.
Caroline Lupini Managing Editor, Credit Cards & Travel RewardsCaroline Lupini has been traveling the world with the help of credit card rewards since 2011. She has visited over 110 countries and is able to utilize her knowledge of credit cards and to make travel both less expensive and more luxurious. Caroline.
Caroline Lupini Managing Editor, Credit Cards & Travel RewardsCaroline Lupini has been traveling the world with the help of credit card rewards since 2011. She has visited over 110 countries and is able to utilize her knowledge of credit cards and to make travel both less expensive and more luxurious. Caroline.
Caroline Lupini Managing Editor, Credit Cards & Travel RewardsCaroline Lupini has been traveling the world with the help of credit card rewards since 2011. She has visited over 110 countries and is able to utilize her knowledge of credit cards and to make travel both less expensive and more luxurious. Caroline.
| Managing Editor, Credit Cards & Travel Rewards
Updated: Oct 17, 2023, 12:24pm
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.
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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.
No single credit card is the best option for every family, every purchase or every budget. We've picked the best credit cards in a way designed to be the most helpful to the widest variety of readers.
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.
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.
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.
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.
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.
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.
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.
Make sure to consider all the options before taking out a cash advance.
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.
Usually, the only way to use a credit card to withdraw cash without racking up much in interest fees nor any transaction charges on a cash advance is to find a card with no cash advance fees and to pay off a cash advance transaction on the same day it’s made. This may still incur a small interest fee, but it can be minimized by paying down your cash advance balance as quickly as possible.
There are few options beyond visiting an ATM when seeking cash from your credit card, but you do have some. Typically, withdrawing cash from a credit card without using a pre-established PIN at an ATM can be accomplished by visiting a branch of your card-issuing bank in person and requesting a cash advance from a teller. You may also be able to request a check or bank transfer from your issuer, but which options exist will likely be issuer-specific—call the number on the back of your card to ask about your options.
You can typically only get cash back from a store credit card if the card offers cash advances. Many closed-loop store cards do not offer cash advance options. Those co-branded store cards that do offer cash advances are more likely to be network-associated cards for making purchases or transacting with vendors other than the card’s co-branding store.
