Can you use a credit card at an ATM?
If you’ve ever gotten cash from an ATM, you’ve probably used your debit card to make a withdrawal from your checking account. But is using your credit card to get cash from an ATM an option? It can be, but that convenience may involve costs that using a debit card won’t.
Here’s what to keep in mind about using your credit card at an ATM.
What you’ll learn:
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It’s possible to withdraw money at an ATM using your credit card. This is known as a cash advance.
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Cash advances typically have service fees and higher interest rates than regular purchases.
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You’ll need your credit card PIN to complete the transaction. You can request one from your card issuer.
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You can check your cash advance limit and your card balance to know how much you might be able to withdraw at an ATM.
What is a cash advance on a credit card?
When you use a credit card to withdraw cash, it’s known as a cash advance. In this case, the money won’t come from a bank account like it does with a typical ATM withdrawal. Instead, the cash advance shows up as a charge on your credit card. You then repay your card issuer for the amount you borrowed, plus any fees and interest the issuer charges for the transaction.
How to get a cash advance from a credit card at an ATM
Before using your credit card at an ATM, it may be a good idea to check your cash advance limit and your account balance. You can usually find this information by signing into 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 then enter the amount of your cash advance.
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Accept any additional charges, which may include an ATM transaction fee and 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 a cash advance against your credit limit. This may affect your credit because your card issuer adds the cash advance amount to your credit card balance. That 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 getting a cash advance with your credit card
Using your credit card at an ATM can be convenient when you need to withdraw cash. But there are a number of things to consider, including:
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Additional costs: You may pay a cash advance fee and any applicable 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.
Using a credit card at an ATM FAQ
Here are frequently asked questions about using your credit card at an ATM.
How much does it cost to withdraw cash at an ATM using a credit card?
The cost of a cash advance can vary with each transaction. When using a credit card to withdraw cash at an ATM, here are some of the common costs you might incur:
- 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 other than a Capital One ATM.
How much cash can you withdraw using your credit card?
The maximum amount you can withdraw with a cash advance can vary with the card issuer and cardholder. Issuers usually cap the available amount 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.
You may need to perform more than one transaction to acquire the full amount of cash desired. ATM dispense limits vary from ATM to ATM. Each transaction may incur separate additional fees.
Can you withdraw cash using your Capital One credit card?
Yes, Capital One credit cards can typically be used to get cash advances. View important rates and disclosures.
Key takeaways: Using a credit card at an ATM
It’s possible to withdraw cash at an ATM using a credit card. But it often involves a fee and a higher interest rate. So it’s more costly than using a debit card to withdraw cash from a checking account.
If you like the convenience a credit card can offer—and potential rewards—you can find out whether you’re pre-approved for a Capital One credit card before applying. It’s quick and it won’t hurt your credit score.
