Key takeaways
- Most credit card companies allow you to withdraw money using your credit card at a bank or ATM.
- You can easily withdraw money without a PIN by using a convenience check, contactless ATM, peer-to-peer payment service, or by visiting the bank.
- Credit card cash advances come with high fees. Additionally, the interest rate is higher than for regular purchases and begins accruing immediately.
How to get cash from an ATM without charges and additional fees might sound too good to be true, and you’d be right. While it’s possible to withdraw money from an ATM in a pinch – you will need to have a PIN to use a credit card at an ATM – it’s only a good idea to do so in an emergency when you have no other options. First, try to use your debit card without a PIN, simply select the credit option.
The problem with credit card cash advances is that they come with fees and high interest rates, making them costly. While they only should be used as a last resort, it’s still good to know that this option exists and how it works.
In this article, we’ll go over how you can use your credit card to withdraw funds, how to bypass a credit card PIN, and alternative ways to get funds fast – and for less.
Jump to:
- How credit card cash advances work
- How to get cash from a credit card at an ATM or bank
- Can you get cash from a credit card without a PIN?
- Why you should be cautious when it comes to cash advances
- Alternatives to cash advances
- Beware of online cash advance loans
- Frequently asked questions
- Bottom line
How credit card cash advances work
Credit card cash advances allow you to withdraw money from your credit account. You are basically purchasing money and will be charged interest and fees on the transaction.
Cash advances work differently than regular purchases you make in-store or online. With an advance, you are borrowing money against a separate limit. Your cash advance limit is typically only a percentage of your spending limit. You can find out what it is by checking a recent bill or by calling your issuer.
There are three ways to take out a cash advance:
- Visit a bank branch
- Withdraw funds from an ATM
- Write a convenience check and deposit it
To perform use an ATM, you do need a PIN for your credit card. If you don’t already have one, you can request it from your issuer.
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How to get cash from a credit card at an ATM or bank
You can easily get a credit card cash advance from an ATM or a bank teller.
Withdrawing cash with from an ATM with your credit card is very similar to using a debit card. Do credit cards need a PIN? Yes, you do need a PIN number for your credit card. The PIN ensures that only you can access your account.
To withdraw funds from an ATM follow these instructions:
- Insert credit card into an ATM
- Enter your PIN
- Select the ‘cash withdrawal’ or ‘cash advance’ option
- Enter the amount you want to withdraw
- Acknowledge that you accept the associated fees
- Complete the transaction and collect your money
If you don’t have a PIN or would rather deal with a person, you can visit your bank and request an advance from the teller. You will need to provide a government-issued ID to prove your identity.
Knowing how to use a debit card or credit card without a PIN can be helpful in emergencies.
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Can you get cash from a credit card without a PIN?
How can you withdraw money from an ATM without a PIN or OTP? It’s actually pretty easy.
Visit a Bank: Go to your bank and request an advance from the teller. You will need to present a valid government-issued ID. The teller can process the transaction and provide you with the money, though this method often incurs higher fees than using an ATM.
Convenience Checks: Some companies provide convenience checks that are linked to your credit account. You can write these checks to yourself (within your cash advance limit,) then deposit them into your bank account and withdraw the money. While this method doesn’t require a PIN, it does carry the same high fees and interest rates as an advance from an ATM. The big issue with convenience checks is that they are a security risk. If you don’t plan on using them, shred them.
Peer-to-Peer Payment Services: Another option is to use peer-to-peer payment services like PayPal, Venmo, or Cash App. You can send money to a trusted friend or family member using your credit card, and they can withdraw the money and give it to you. Keep in mind that both Venmo and Cash App charge a 3% fee for credit card transactions. You will also more than likely have to pay a cash advance fee to your issuer.
Prepaid Debit Cards: Some issuers allow you to transfer funds from your credit card to a prepaid debit card. Once loaded, you can use this prepaid card to withdraw money from an ATM. This method may incur fees but provides a way to access funds without a PIN.
Contactless or Cardless ATM: You may be able to withdraw money without a PIN using a contactless or pay code-enabled ATM. Add your card to your digital wallet for this to work or you can use the bank’s app. This feature is not available with every issuer. Open your digital wallet and scan the QR code or simply hold your device close the the ATM and withdraw money.
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Why you should be cautious when it comes to cash advances
Cash advances are convenient but they can be costly. You will have to pay additional fees plus higher interest rates. Before you take out an advance, make sure you have a plan to pay the money back as soon as possible.
One-time cash advance fees
Issuers charge a fee each time you withdraw money. These fees are either a flat fee of $5 to $10 or a percentage of the amount withdrawn, whichever is greater. For example, you might be charged 5% of the full withdrawal amount or a minimum fee of $10 plus the ATM or teller fees. Always check your issuer’s terms and conditions to understand the exact fee structure before taking out an advance.
High interest rates
Cash advance interest rates can be double or even triple the standard purchase APR, often exceeding 20%. Additionally, interest begins accruing immediately, without the standard 20 to 30 day grace period. This means you’re charged interest from the moment you withdraw the funds.
Negative effects on credit scores
Taking out an advance does not directly hurt your score. What it does is increases your utilization rate. This is your balance compared to your total limit. A high utilization rate can lower your score and signal to lenders that you may be in financial distress. Additionally, all the fees and higher interest rates make them harder to pay off. If you’re unable to pay off your balance and maintain a low utilization rate, your score will suffer.
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Alternatives to cash advances
Before resorting to a cash advance, consider these alternatives that can help you access funds with lower costs:
Personal Loan: Personal loans typically offer lower interest rates (average of 12.22% as of May 2024) and provide a fixed repayment schedule. This can help manage your debt more effectively.
Borrow from Friends or Family: If possible, borrow money from friends or family. Ensure clear terms are set to avoid any misunderstandings.
Cash Advance App: These apps allow you to borrow money against your next paycheck often with few fees, no interest, and no hard inquiry.
Beware of online cash advance loans
Online cash advance loans often have very high interest rates and fees. The annual percentage rate (APR) can reach triple digits like with payday loans, trapping you in a debt cycle that’s difficult to escape from. Borrowers might face hidden fees, unclear terms, and aggressive collection tactics. Avoid these loans and look for cheaper borrowing options.
Frequently asked questions
Bottom line
Credit card cash advances have some advantages – you can borrow money instantly without a hard inquiry – but can be costly. Between issuer fees, ATM fees, and accruing interest immediately, you can pay a lot for your money. It’s best practice to treat advances as a last resort to be used only in a dire emergency. Know that they are there for when you need funds quickly but try to exhaust all other options first and be sure to pay off the balance as quickly as possible.
