Can You Use a Credit Card to Withdraw Money From an ATM Without Charges?

You can use a credit card to withdraw money from the ATM. However, you can’t withdraw money from your credit card without charges. And it’s expensive to withdraw cash using a credit card. You’ll pay high interest rates on the amount you withdraw, plus ATM fees.

Using your debit card at the ATM is your best bet. However, if you don’t have the funds and need cash quickly, we recommend you turn to solutions like cash advance apps. In this article, we’ll explore these alternatives and share tips to minimize your costs if you must use a credit card at the ATM.

Can you withdraw money from a credit card without charges?

No, you can’t withdraw cash from your credit card without charges. Credit card companies consider this a cash advance, which comes with interest costs. Additionally, most ATMs charge fees to withdraw cash. 

How do credit card cash advances work?

To get a credit card cash advance, you enter your credit card at an ATM just as you would with a debit card and put in your personal identification number (PIN). 

If you don’t know your PIN, you can call your credit card issuer to ask. Typically, you’ll get a PIN with your introductory paperwork when you get the card in the mail. Depending on the issuer, you might be able to locate your PIN online on your account. If you don’t have a PIN at the ATM, you won’t be able to withdraw cash. 

You might also receive cash advance checks from your credit card issuer. You can fill out a check and deposit them in your account. However, the Consumer Financial Protection Bureau warns that getting a credit card cash advance is expensive due to the fees and interest costs.

Costs and fees of credit card cash advances

Because you’re borrowing money using your credit card, you have to pay the credit card company interest in addition to other fees. Here is a breakdown of some costs you might incur if you use a credit card to withdraw money at an ATM.

Costs and fees of credit card cash advances
Cash advance fees	Varies based on the credit card issues; typically 3% or more of the amount you withdraw. Some credit card companies also charge a flat fee, like $10 instead of a percentage.
Cash advance interest costs	The CFPB reports cash advance interest rates are typically higher than credit card interest rates, meaning they can be as high as 29.9%.
ATM fees	Varies by ATM machine; typically $2-$5 per transaction

Another downside of getting a cash advance with your credit card is that it can negatively affect your credit score. When you take out a cash advance, you increase the amount of debt you have in relation to your credit.

The debt you owe is 30% of your credit score, which is the second largest factor that makes up your score. Taking out a cash advance can lower your score because you increase your debt. This is especially true if you don’t pay it back right away. 

Do any credit cards allow fee-free cash withdrawals?

Yes, some credit cards offer fee-free cash withdrawals. That means that you won’t have to pay a flat fee or a percentage of your withdrawal to access money. However, you still have to pay interest costs on cash advances. 

Credit unions are a good place to find credit cards that don’t charge fees for cash advances. Here are some examples.

• PenFed Platinum Rewards Visa Signature Card
• DCU Visa Platinum Secured Credit Card
• StarOne Visa Signature Rewards Card

Before applying for a credit card, it’s important to read your credit card agreement forms to ensure you understand the costs when using it. For example, PenFed clearly lists on its cardholder agreement that the APR (annual percentage rate) for a cash advance is 17.99% and that there are no cash advance fees.

The same is true if you get cash advance checks in the mail. Sometimes, these checks come with introductory APRs, so it’s important to read the fine print so you know when your interest costs increase.

Are cash advance apps a better alternative?

If you want to borrow smaller amounts of money, a cash advance app can be a more affordable option than a credit card cash advance. Credit card cash advances come with high interest costs, and many cash advance apps don’t charge interest.

However, according to a survey from the Center for Responsible Lending (CRL), consumers who frequently use cash advance apps and pay expedited fees and tips can experience APRs similar to payday loans.

So, a cash advance app is a better alternative than a credit card cash advance so long as you use an app with little or no fees and use it infrequently for a small amount.

What is a cash advance app?

A cash advance app is a financial app consumers download onto their phones. To use one, you download the app and sign up by creating an account. Then, you’ll need to link your bank account and select a monthly subscription plan if the app requires it. Once your account is set up and linked, request the amount of cash you need, up to the app’s limit. 

You can choose to get cash right away, usually for a fee. Otherwise, many apps offer cash advances with no fees if you don’t mind waiting a few days for the transfer to complete. 

While you can’t use the cash advance app itself at the ATM, you can withdraw the money the app deposits into your bank account and then get the cash out using your debit card.

Many cash advance apps take an automatic payment on your payday, whereas you pay your credit card cash advance back as part of your regular credit card bill payment.

Benefits of cash advance apps

There are several benefits to using a cash advance app instead of a cash advance from your credit card.

• Many cash advance apps don’t have interest charges, and credit card cash advances do.
• Some cash advance apps include budgeting tools, credit monitoring, automatic savings, and money tips. Most credit cards don’t have those built-in features.
• Many cash advance apps don’t charge fees for standard cash advances. (If you want cash instantly, there is a fee.)
• For many apps, signing up does not affect your credit score. With a credit card cash advance, borrowing money affects the “amounts owed” part of your credit score.

What are the best cash advance apps?

Here are some of the best cash advance apps, especially if you need help with small, short-term expenses. These companies don’t have separate interest charges, but they do charge transfer fees. Some apps will ask for tips in lieu of transfer fees.

Cash advance app	Transfer fees	Max. advance	Membership fees
EarnIn	$1.99 – $4.99 for instant cash advances	$750	No
Empower	$1 – $8 for instant transfer	$300	$8/month
Brigit	$0.99 for instant advances	$250	$9.99/month
Dave	$1.99 – $13.99 instant funding	$500	$1/month

Depending on the amount you borrow using a cash advance app and the company’s transfer fee, the APR can be lower or much higher than credit card cash advance costs. For that reason, it’s always best to compare lending options before borrowing.

Other alternatives to credit card cash advances

Use a debit card instead

A debit card is often the most cost-effective way to access cash because it’s linked directly to your checking or savings account. When you withdraw money using a debit card, you avoid the high fees and interest rates that come with credit card cash advances. 

You might still pay ATM fees, but they’re typically much lower than the costs associated with credit card advances. Plus, using a debit card won’t affect your credit score or increase your debt.

Consider a personal loan or line of credit

Personal loans or lines of credit offer another alternative to credit card cash advances. Personal loans often come with lower interest rates and fixed repayment terms, making them a more predictable and manageable option. 

A line of credit provides flexible access to funds up to a certain limit, and you only pay interest on the amount you borrow. Both options can be better suited for larger expenses or long-term financial needs compared to high-cost cash advances.

Emergency fund or savings

Using an emergency fund or savings is ideal if you need quick cash. Unlike loans or credit card advances, withdrawing from your savings won’t incur interest charges or fees, and you won’t need to worry about repayment. 

Building an emergency fund can provide a buffer for unexpected expenses and prevent you from relying on high-cost borrowing options. If you don’t have an emergency fund yet, consider starting one to cover at least three to six months’ worth of expenses.

Ask the expert

Catherine Valega

CFP®

I don’t recommend using cash advances regularly. Instead, I recommend building a 6 – 18-month emergency fund where you can access cash if needed.

How to minimize cash advance fees if you must use a credit card

If you need a credit card to get a cash advance, there are a few ways to minimize cash advance fees. The first is to use an in-network ATM to save you the $2 to $5 it costs to withdraw money.

Some credit cards also send out cash advance or convenience check offers, where you get a lower APR for a set period of time. You can save on interest costs if you pay back the cash advance before the intro offer period expires. 

Finally, many credit unions offer credit cards with lower-than-average cash advance interest rates. Doing research to find credit cards with lower fees and interest rates for cash advances can help you save if you borrow money using this method.

Ask the expert

Catherine Valega

CFP®

I recommend creating a savings plan, even if just a few dollars each month, to build up your emergency savings account. In theory, if you don’t have the cash for purchases, you should not be making those purchases. I like to set up auto-transfers—so that when income comes in, it is automatically sent to a savings account. It gets it out of your daily account that you may be more likely to spend. If you use online savings accounts, that’s even better because to access cash, it takes a few days—it is not instant. Get in the habit of paying yourself first by automating savings.

FAQ

Are cash advance apps safe to use?

Yes, most cash advance apps are safe to use, provided they are well-known and trusted. Apps such as EarnIn, Dave, and Brigit use encryption and secure methods to protect your data and transactions. 

However, always read the app’s privacy policy and terms to ensure it aligns with your security expectations. Checking user reviews and ratings can also help verify an app’s safety.

How much can I borrow with a cash advance app?

The amount you can borrow with a cash advance app varies depending on the app and your financial profile. 

Typically, these apps offer advances ranging from $20 to $500. Your income, spending habits, and the app’s specific terms will determine your borrowing limit. Some apps may increase your limit over time with consistent use and repayment.

Do cash advance apps have hidden fees?

While most cash advance apps are transparent about their fees, it’s important to read the fine print. Common fees include membership fees, instant transfer fees, and optional tips. 

Unlike credit card cash advances, these apps do not charge traditional interest rates, but some may have additional costs for expedited services. Review the app’s fee structure to avoid unexpected charges.

What happens if I don’t repay a cash advance?

If you don’t repay a cash advance from an app, you could face restrictions on future advances or additional fees. Unlike credit card cash advances, most cash advance apps don’t report to credit bureaus, so your credit score won’t be affected immediately. 

However, repeated failure to repay can result in loss of access to the app’s services. It’s best to repay the advance as soon as possible to maintain access and avoid penalties.