How to Get Cash from a Credit Card at an ATM
About Trevor
Trevor Mahoney is a financial services writer and content creator based out of Los Angeles, California. He holds a Bachelors of Science in Finance from Santa Clara University. In his free time, he enjoys hiking and lounging on the beach.
At a Glance
When you need cash, especially if you need it quickly, you may wonder if there is a way to use your credit card to get it. The answer is yes, through a cash advance from your credit card. However, experts don’t recommend this option due to its cost, impact on your credit score, and red flags for lenders.
In this article, learn more about:
What is a cash advance?
Typically, you use credit cards for making purchases online or in stores. Your available credit is reduced by the amount you spend each time you use the card, and every month you repay the bill in full. If you carry a balance, you’ll accrue interest on that balance.
A cash advance is slightly different. This is when you use your credit card to withdraw cash as essentially a short-term loan against your credit limit. Unlike a typical credit card transaction, you’ll be charged an up-front fee that’s a percentage of the total cash requested, and you’ll start accruing interest right away.
Not all cards offer a cash advance option, but it can be used as a way to get cash in hand fast.
Can you withdraw cash from a credit card at an ATM?
Yes, the way you would get a cash advance using your credit card is from an ATM, though some financial institutions also offer this option.
Start by checking your cardholder agreement for your card, and look for a Cash Advance APR or Cash Advance fees. If these terms exist, you can likely use your card for a cash advance. Also look at your credit card statement for cash advance credit lines or cash advance credit limits, which outline the maximum amount of cash you can take out with an advance.
If you aren’t sure, you can always call your credit card company to confirm. If you’ve decided that a cash advance is your only or best option, here are the steps to follow: Keep in mind if you have to request a PIN, it can take 7-10 business days to get the PIN set up and mailed to you. It’s not something they can provide over the phone or immediately. Unless you’re desperate for cash in hand, you should avoid using your credit card for a cash advance for a few reasons: For example, if your card terms say you’ll owe $20 or 5% of the total, whichever is higher, you’ll owe $20 for withdrawing up to $400, but you’ll owe 5% for any amount above $400. The cash advance option may not be recommended, but the good news is there are other options available you can try depending on your situation and needs: Treated as a balance transfer, the amount becomes the balance of the card, and you’d pay it off at 0% APR. The downside is while some personal loan lenders have a quick approval and fund transfer process, this isn’t a great option if you need cash immediately. Yes, there are several costs associated with getting a cash advance with your credit card. First, you’ll pay a cash advance fee for withdrawing money. You could also owe more fees if you use an ATM. You’ll also start accruing interest on the amount immediately, as there is no grace period. Typically, this interest rate is much higher than for regular spending. Yes – while cash advances don’t show up on your credit report as a “cash advance,” the amount you withdraw can cause the percentage of available credit you’re using to increase. This is called your credit utilization ratio, and the higher your ratio, the more negatively your credit score can be impacted.
FAQs
Does a cash advance with a credit card cost money?
Can getting a cash advance impact my credit score?