You can use your credit card at an ATM — but should you?

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Can you use a credit card at an atm

Many credit cards permit cash advances — and you can generally do one at an ATM. A credit card cash advance is a withdrawal of cash from your credit card account. Essentially, you’re borrowing against your credit card balance to get cash instead of making a purchase. There may be costs to taking a credit card cash advance and, in many cases, limits on the amount you can withdraw. 

Will my credit card work at any ATM?

Most ATMs accept credit card cash withdrawals. Some exceptions to the rule exist, but most ATMs will not present a problem — as long as your credit card permits it. But be mindful; ATM surcharges and other fees that may be associated with your card can add up fast.

Credit card cash withdrawals increase your credit card debt. These debts are treated like any other credit card debt — and many come with high-interest fees. 

In addition, that interest may immediately accumulate for credit card cash withdrawals because interest may be calculated differently for cash advances than purchases. It’s a good idea to read the terms and conditions associated with your credit card before you make a cash advance.

Three reasons why credit card cash advances can be a bad idea

Credit card cash advances provide short-term gratification with the potential for long-term pain. While credit cards help people build credit, getting into credit card debt minimizes those benefits. 

Before considering a credit card cash advance at an ATM, take a look at these disadvantages.

  1. Your credit score may fall

Incurring debt can result in a drop in your credit score. If you take out a cash advance and pay off the debt right away, you may positively impact your payment history, which is good. Failing to pay off your debt promptly could result in a dwindling credit score.

  1. Cash advance fees can put you deeper in debt

A cash advance fee is a fee that is charged to the credit card account when taking cash from an ATM or over the counter.

  1. High interest rates

Some credit cards charge high interest rates when you borrow money, and sometimes interest is calculated differently than for purchases. Interest may also start immediately, and not on the next statement cycle.

Credit card cash advance alternatives

Here are ways you may be able to avoid incurring the debt that often comes with credit card cash advances:

Improve your budget planning

Although improving your budget doesn’t provide a cash advance, it helps you to avoid needing one. Cutting down on expenses could help provide a cushion to protect your finances.

A RoarMoney℠ account from MoneyLion can help you track your spending. The Spend Tracker feature keeps your financial health in perspective, helping you avoid excessive borrowing.

Build your credit

Check out a program like MoneyLion’s Credit Builder Plus if you want help building or rebuilding your credit. More than half of Credit Builder Plus members raise their score by 42+ points within 60 days.1 This powerful membership costs $19.99/month and includes some nice little benefits: 

  • 24/7 credit monitoring. You can check your credit score monitoring dashboard — powered by TransUnion — any time.
  • Access to up to $1,000. Unlike with most credit builder funding, you’ll get some of your loan funds right away to help with your short-term needs — while also setting aside savings and building credit.
  • Access to higher 0%-APR cash advances with InstacashSM. With no interest. No monthly fee. No credit check.
  • Cash back rewards up to $19.99 per month with the Lion’s Share Loyalty Program.

Consider a 0% APR cash advance

Some cash advances come with 0% APR, but only if you know where to look. MoneyLion Instacash allows members to receive cash advances up to $250 without interest — up to $1,000 if you set up a recurring direct deposit to a RoarMoney account. 

FAQ

How much does it cost to use a credit card at an ATM? 

It varies. Check the terms and conditions for the credit card you are using. 

Can you use a credit card at an ATM without a PIN?

A PIN is required to use a credit card at an ATM.

What is the maximum amount you can withdraw from credit cards?

 It varies, depending on the terms and conditions you agreed to when you were approved for the credit card. 

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