Can I use a credit card at an ATM?

Yes, but it’s usually a bad idea.

It works. It’s allowed. It’s expensive.

What using a credit card at an ATM actually means

Using a credit card at an ATM is not a normal withdrawal.

It is called a cash advance.

That means:

• Cash is borrowed from the credit limit
• Interest starts immediately
• Extra fees are charged

No grace period. No delay.

How ATM withdrawal with a credit card works

The moment cash is taken out:

• Withdrawal fee is applied
• Interest starts the same day
• Daily interest keeps adding

This is very different from card shopping spends.

Shopping gets time.

ATM cash does not.

Charges involved in using a credit card at an ATM

This is where people regret it.

Usually charged:

• Cash advance fee (often 2–3% or a minimum amount)
• High interest rate
• GST on fees and interest

Even a small withdrawal grows quickly if not repaid fast.

Why banks allow credit cards at ATMs

Because emergencies happen.

Situations like:

• Medical expenses
• Travel trouble
• No access to bank funds

ATM cash from a credit card is meant as a last-resort option.

Not for regular use.

Impact on credit score

Using a credit card at an ATM can affect credit health.

Reasons include:

• High credit utilisation
• Risk-heavy usage pattern
• Increased repayment pressure

One-time use may not hurt much. Repeated use usually does.

Limits on ATM withdrawal

Credit cards have separate limits for cash withdrawal.

Important to know:

• Cash limit is lower than total credit limit
• Daily ATM limits apply
• Some cards block cash advance by default

Settings may need to be enabled first.

Better alternatives before using an ATM

Quick tip. Before withdrawing cash using a credit card, consider:

• Using debit card or UPI
• Borrowing short-term from trusted sources
• Using emergency savings
• Converting card spends into EMI

Most options cost less.

When ATM usage might make sense

Very limited cases.

• Genuine emergency
• No access to bank funds
• Clear plan to repay immediately

Speed of repayment matters more than the amount withdrawn.

FAQ

Can a credit card be used at an ATM?

Yes, if cash advance is enabled.

Is there an interest-free period?

No, interest starts immediately.

Does ATM withdrawal affect credit score?

It can, especially if done often.

In short

Credit cards can be used at ATMs.

It is costly and risky.

Best kept for real emergencies only.

Still deciding whether ATM cash from a credit card is worth the cost?