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

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 3% to 5% of the transaction amount) 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.

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.

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 the cash.

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.
• Interac e-Transfers are a good alternative for transferring money to friends or businesses. Many chequing accounts offer a certain number of Interac e-Transfers for free and more for a nominal fee ($1.25) after that. Some will even give you unlimited e-Transfers so you can send money via e-mail as much as you like.
• Consider applying for a personal loan if a large amount of cash is needed to pay off big expenses. According to Statistics Canada, the average personal loan APR is 8%
• 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.