Can You Use a Credit Card for ATM Withdrawals?

When people think about credit cards, they usually consider them a tool for purchasing goods and services. However, there's another feature that many credit cards offer—credit card cash, often referred to as a cash advance. This can be a helpful option in emergencies, but it's important to understand how it works and the costs involved.

What is Credit Card Cash?

Credit card cash, or a cash advance, is when you 신용카드 현금화 money directly from your credit card account—just like using an ATM with a debit card. Instead of pulling from your checking account, you're borrowing money against your credit limit.

You can get cash using your credit card at an ATM, a bank, or even by using convenience checks that your card issuer may provide. However, it's not as straightforward—or cheap—as using a debit card.

The Hidden Costs of Cash Advances

Getting cash from your credit card can come with significant fees and interest rates. Here’s what to expect:

• Cash Advance Fee: Most issuers charge a fee, often 3% to 5% of the amount withdrawn.

• Higher Interest Rates: Cash advances usually have a higher APR (annual percentage rate) than regular purchases.

• No Grace Period: Unlike purchases, interest on a cash advance starts accruing immediately—there’s no grace period.

That $200 emergency withdrawal could end up costing much more if you're not careful.

When is Using Credit Card Cash Worth It?

There are situations where using credit card cash might make sense:

• Emergency situations where no other payment methods are accepted.

• Travel in places where card payments aren’t available.

• Short-term liquidity needs when you have no access to savings.

Still, it should be a last resort. Explore alternatives like borrowing from friends, using a personal loan, or tapping into a line of credit before taking out a cash advance.

Tips to Minimize the Impact

If you must use credit card cash, keep these tips in mind:

• Withdraw only what you need.

• Pay it back as quickly as possible.

• Avoid repeated use—it can damage your credit and become expensive over time.

Final Thoughts

Credit card cash is a convenient but costly feature. Understanding the fees, interest rates, and potential impact on your finances is key to using it wisely. Always consider your options, and treat cash advances as a short-term solution—not a long-term habit.