You can move money from one credit card to another, but it costs money and counts as a cash advance, not a purchase
Transferring money from one credit card to another is possible, but it works differently than paying a bill. When you move money between cards, your card issuer treats it as a cash advance — not a regular purchase. This matters because cash advances charge higher interest rates (often 3 to 5 percentage points above your purchase rate), start accruing interest when ready with no grace period, and usually include an upfront fee of 3 to 5 percent of the amount you transfer.
The most common reason people attempt this is to consolidate debt or move a balance to a card with a lower rate. If that is your goal, a balance transfer is almost always cheaper than a cash advance, because balance transfers offer a promotional rate (often 0 percent for 6 to 21 months) and charge a smaller fee. The distinction matters: a balance transfer moves your existing debt from one card to another. A cash advance gives you actual money to spend.
Key Takeaways
- Moving money between credit cards counts as a cash advance, which charges higher interest and fees than a balance transfer or regular purchase.
- Balance transfers are the cheaper option if you are trying to move existing debt from one card to another, because they offer promotional rates and lower fees.
- Cash advances from a credit card start charging interest when ready and do not have a grace period, unlike regular purchases.
- The three ways to move money between cards are ATM withdrawal, bank transfer using your card number, and balance transfer — each with different costs and timelines.
The difference between a cash advance and a balance transfer
A balance transfer moves an existing balance you owe on one card to a different card. You contact the new card issuer, give them your old card details, and they pay off that balance directly. You now owe the new card instead. Balance transfers come with a promotional interest rate (frequently 0 percent for the first 6 to 21 months) and a one-time transfer fee, usually 3 to 5 percent of the amount moved.
A cash advance gives you actual money — either withdrawn from an ATM or transferred to your bank account. The card issuer treats this as a loan against your credit limit. Cash advances charge a higher ongoing interest rate than purchases (often 20 to 30 percent), begin accruing interest the day you take the advance with no grace period, and include an upfront fee of 3 to 5 percent. If you take a $1,000 cash advance at a 5 percent fee, you owe $1,050 before interest even starts.
If your goal is to move debt from one card to another, request a balance transfer from the new card issuer. If you need actual cash to pay bills or expenses, a cash advance is the only option — but it is expensive, and a personal loan or line of credit from a bank usually costs less.
Three ways to move money between credit cards
ATM withdrawal: You can withdraw cash from an ATM using your credit card, just like a debit card. The issuer treats this as a cash advance. You pay the upfront fee when ready, and interest starts accruing right away. Most cards also charge an ATM fee on top of the cash advance fee — often $2 to $5 per transaction. This is the most expensive option.
Bank transfer using your card: Some card issuers allow you to request a cash advance transfer directly to your bank account. You contact the card company, provide your bank details, and they deposit the money. This also counts as a cash advance with the same fees and interest rate as an ATM withdrawal, but without the ATM fee. The transfer usually takes 1 to 3 business days.
Balance transfer: If the other card already has a balance, you can request a balance transfer from your new card issuer. You provide your old card number, and the new issuer pays off that balance. This is not a cash advance — it is a debt transfer. The promotional rate applies only to the transferred balance, not to new purchases you make on the card. Balance transfers typically take 5 to 14 business days to complete.
What fees and interest rates to expect
Cash advances and balance transfers both charge fees, but the rates differ. A cash advance fee is usually 3 to 5 percent of the amount withdrawn, charged when ready. The interest rate on a cash advance is typically 20 to 30 percent annually, with no grace period — interest starts the day you take the advance.
A balance transfer fee is also 3 to 5 percent, but the interest rate is promotional — often 0 percent for 6 to 21 months, depending on the card and your creditworthiness. After the promotional period ends, the regular purchase rate applies to any remaining balance. Some cards charge a higher rate on balance transfers after the promotion ends (sometimes 2 to 3 percentage points above the regular purchase rate).
To compare costs: a $2,000 cash advance at 5 percent fee and 25 percent interest costs $100 upfront plus $41.67 in interest for the first month alone. A $2,000 balance transfer at 5 percent fee and 0 percent for 12 months costs $100 upfront and $0 in interest for a year, as long as you do not make new purchases on the card.
Why you should avoid cash advances when possible
Cash advances are expensive because they combine three costs: an upfront fee, a higher interest rate, and no grace period. A regular credit card purchase gives you 21 to 25 days before interest starts (the grace period). A cash advance starts charging interest when ready. This means even if you pay it back in full the next week, you still owe interest for those days.
Credit card issuers also explore your payment to different balances in a specific order. If you have both a purchase balance and a cash advance balance, your payment goes to the purchase first (the lower-interest debt), leaving the cash advance to accrue interest longer. This is called the payment hierarchy, and it makes cash advances even more expensive over time.
If you need money, explore these options first: a personal loan from a bank or credit union (often 8 to 15 percent interest), a line of credit, a payment plan with the person or business you owe money to, or borrowing from family. All of these are usually cheaper than a credit card cash advance.
How to request a balance transfer instead
If you have an existing balance on another card and want to move it, contact the new card issuer and ask about balance transfer options. You will need your old card number and the balance amount. The new issuer will handle the payment directly to your old card company — you do not send money yourself.
Balance transfers work best if you have a card offer with a 0 percent promotional rate. Many cards offer this rate for new cardholders or as a promotional offer. Check your card's terms or call the issuer to ask what rate applies to balance transfers. The promotional period typically lasts 6 to 21 months, after which the regular purchase rate applies.
During the promotional period, make a plan to pay down the transferred balance. If you still owe money when the promotion ends, you will start paying the regular interest rate on the remaining balance. Divide the balance by the number of months in the promotion to see how much you need to pay each month to clear it before interest kicks in.
What happens to your credit when you transfer between cards
Requesting a balance transfer or cash advance triggers a hard inquiry on your credit report, which can lower your score by a few points temporarily. The inquiry stays on your report for about two years but affects your score for only a few months.
Once the transfer is complete, your credit utilization changes. If you move a $5,000 balance from Card A to Card B, Card A's balance drops (improving your utilization on that card) but Card B's balance rises (worsening your utilization on that card). Your overall utilization across all cards may stay the same or change depending on your total credit limits.
Paying down a transferred balance helps your score over time, because it lowers your utilization. Making on-time payments on the new card also builds your payment history. The key is not to run up new balances on the old card after transferring — that defeats the purpose and costs you more in interest.
Frequently Asked Questions
Can I transfer money from a credit card to another credit card just to get cash?
Yes, but it is expensive. A cash advance from an ATM or bank transfer costs 3 to 5 percent upfront plus 20 to 30 percent interest with no grace period. A personal loan, line of credit, or even a payday loan from a licensed lender is usually cheaper. Only use a credit card cash advance if you have no other option and need the money urgently.
Is a balance transfer the same as paying off a credit card?
No. A balance transfer moves your debt from one card to another — you still owe the money. You are not paying it off; you are moving it to a card with a lower interest rate (usually 0 percent for a promotional period). You still have to pay it back, ideally before the promotion ends and interest starts.
What if I cannot pay back a cash advance before interest starts?
Interest starts when ready, so you will owe it no matter what. The longer you carry the balance, the more interest accumulates. If you can only afford small payments, focus on paying down the cash advance first (not new purchases) to minimize interest charges. Consider a personal loan to pay off the cash advance and consolidate into one lower-interest payment.
Do balance transfers hurt my credit score?
A balance transfer request triggers a hard inquiry, which may lower your score by a few points for a few months. Once the transfer completes, your score may improve if it lowers your overall credit utilization, or worsen if it raises utilization on the new card. Paying down the balance helps your score recover over time.
Can I do a balance transfer if I do not have an existing balance on the new card?
Yes. You can request a balance transfer from any card you own to any other card you own, as long as the receiving card offers balance transfers. The new card does not need an existing balance. However, balance transfers only make sense if you are moving an existing balance from another card — if you just want cash, that is a cash advance, which is more expensive.