If you're asking yourself “can you use a credit card at the ATM?", the answer is yes. Most credit card companies allow cardmembers to use their credit card at an ATM, which will show up as a cash advance on your credit card statement. You can use your credit card at most ATMs the same way you'd use a debit card, but you aren't drawing from a bank account. Instead, you're drawing from your line of credit.
What is a cash advance on a credit card?
Using your credit card to take out money at the ATM is also known as a credit card cash advance. A cash advance lets you tap into your credit line to access cash. Cash advances at an ATM require your physical card, as well as your PIN. Be aware that you may be subject to daily ATM withdrawal limits and fees, such as a cash advance fee from the issuer. The cash advance APR will also be applied immediately.
There's typically a limit when it comes to how much you can withdraw through a cash advance. They're usually capped at a percentage of your credit card's credit limit.
How to use a credit card at the ATM
Using your credit card at the ATM is similar to using your debit card. You'll want to follow the instructions to withdraw the cash, acknowledge that you accept the fees associated with the cash advance and collect your money.
To start, you'll want to find an ATM, preferably one that is associated with your credit card issuer to avoid extra fees. You'll begin by inserting the credit card and entering your personal identification number (PIN), which you may not know because you don't have to use the PIN when making purchases with a credit card. If you don't know it, call the number on the back of the card to create one or have it reset.
Next, you'll choose the “cash withdrawal" or “cash advance" option and enter the amount of cash you'd like to receive. Once you've selected your amount and made sure to not exceed the card's limit, the ATM will disburse the money.
Using your card at the ATM: things to keep in mind about cash advances
If you're considering using your card at the ATM, make sure you're aware of any fees before you insert your card. It's not uncommon for card issuers to impose cash advance fees every time you use your credit card at the ATM. Some cards charge a flat fee per cash advance while others charge a percentage of the amount advanced.
When it comes to interest rates and cash advances, the interest rates are typically much higher with these than the rates your credit card issuer charges for regular purchases. Cash advances usually don't come with grace periods, which means the interest starts accruing right away.
Does using your credit card at the ATM impact your credit score?
Cash advances themselves won't show up as their own line item on your credit score, but it has the potential to affect the factors that make up your credit score.
When you get a cash advance from a credit card it'll increase your overall credit card balance. It may harm your credit score if the amount that you withdraw causes your credit utilization ratio to rise. Your credit utilization ratio is a large factor in determining your credit score.
Cash advances typically have higher interest rates, so it's important to repay the cash advance as soon as possible and try to pay your balance in full. This may minimize the amount of interest that will accrue on your balance. Note that if you use the ATM to simply check your balance or pay your bill, this won't impact your credit score.
So, you're wondering "can you use a credit card at an ATM?" the answer is yes. A cash advance from a credit card may be a short-term fix when you're short on cash, but there are other options to consider as well.