Yes, you can transfer money from a credit card to a bank account, but it costs money and counts as a cash advance
You can move money from a credit card to a checking or savings account through a few methods, but none of them are free. The most common route is a cash advance, which your credit card issuer treats differently from a regular purchase — it charges a fee upfront (usually 3 to 5 percent of the amount) and starts charging interest when ready, with no grace period. A $500 cash advance might cost $15 to $25 just to take out, plus interest that begins accruing the same day.
The other options — balance transfer checks, third-party transfer services, or peer-to-peer payment apps — all have their own costs and limits. Before you move money this way, it helps to understand what each method actually costs and when it makes sense to use it.
Key Takeaways
- Cash advances charge a fee of 3 to 5 percent upfront and start accruing interest when ready with no grace period, making them expensive for short-term borrowing.
- Balance transfer checks work like cash advances but may have a lower fee if your card offers them; check your cardholder agreement to see if yours does.
- ATM withdrawals and peer-to-peer apps like Venmo or PayPal do not directly transfer credit card funds — you would need a debit card or bank account linked to those services.
- The interest rate on a cash advance is often higher than your regular purchase APR and varies by card issuer and your creditworthiness.
- If you need money urgently, a personal loan or line of credit from a bank may cost less than a credit card cash advance.
How a cash advance works and what it costs
A cash advance is the most direct way to get cash from your credit card. You visit an ATM, a bank branch, or a check-cashing service and withdraw money using your credit card PIN. The card issuer when ready charges a cash advance fee — typically 3 to 5 percent of the amount withdrawn — and that fee is added to your balance right away. So if you withdraw $1,000, you might pay $30 to $50 just to take the money out.
Unlike a purchase, which has a grace period (usually 21 to 25 days before interest starts), a cash advance begins accruing interest the moment you withdraw it. The interest rate is also usually higher than your regular purchase APR — often 2 to 3 percentage points higher. If your card charges 18 percent APR on purchases, the cash advance rate might be 21 or 22 percent. That means the longer you carry the balance, the more you pay.
To move the money to your bank account, you would withdraw cash at an ATM and then deposit it yourself, or withdraw at a bank branch and ask them to deposit it directly. Either way, the fee and interest charges are already in motion.
Balance transfer checks as an alternative to ATM withdrawals
Some credit card issuers send balance transfer checks to cardholders. These are blank checks drawn on your credit card account. You write one to yourself or your bank, deposit it, and the amount is charged to your credit card. The fee is usually lower than a cash advance fee — sometimes 1 to 3 percent — but interest still starts accruing when ready with no grace period.
Not all cards offer balance transfer checks. You can find out by checking your cardholder agreement, looking at your online account, or calling the card issuer's customer service number on the back of your card. If your card does offer them, they typically arrive in the mail unsolicited, but you can also request them.
Balance transfer checks are useful if your card offers them at a lower fee than a cash advance, but the interest cost is still steep. The main advantage is that you avoid the ATM withdrawal step and can deposit the check directly into your bank account.
Why peer-to-peer apps and digital wallets do not directly transfer credit card funds
Apps like Venmo, PayPal, Square Cash, and Zelle let you send money to other people or to your own bank account, but they do not directly pull from your credit card. Instead, they require you to link a debit card or bank account. If you link your credit card, most of these apps will not let you transfer the balance to your bank account — they only allow you to spend it with merchants or send it to other users, and they charge a fee for credit card transactions (usually 1.5 to 3 percent).
The exception is if you use a service like PayPal or Square Cash to send money to yourself or a trusted contact, then have that person send it back to your bank account. But this is clunky, defeats the purpose, and still leaves you with a credit card balance to pay off.
Comparing the cost of a cash advance to other borrowing options
Before you take a cash advance, compare it to other ways to borrow money. A personal loan from a bank or credit union typically charges 6 to 36 percent APR depending on your credit score, and the fee is built into the interest rate — there is no separate upfront charge. A line of credit works similarly. Both allow you to borrow a larger amount and repay it over months or years, which spreads the cost out.
A cash advance makes sense only if you need a small amount of cash for a short time and you can pay it back within a few weeks. If you need $500 for two weeks, a $15 to $25 fee plus two weeks of interest might be cheaper than a personal loan. But if you need $2,000 for three months, a personal loan will almost certainly cost less.
| Borrowing Method | Upfront Fee | Interest Rate | Grace Period | Best For |
|---|---|---|---|---|
| Credit card cash advance | 3–5% | Usually 2–3% higher than purchase APR | None — interest starts when ready | Small amounts needed for a few weeks |
| Balance transfer check | 1–3% | Usually 2–3% higher than purchase APR | None — interest starts when ready | If your card offers it at a lower fee than cash advance |
| Personal loan | None (fee built into rate) | 6–36% depending on credit | None — interest accrues from day one | Larger amounts or longer repayment periods |
| Credit line | Usually none | Variable, typically 8–21% | None — interest accrues from day one | Flexible borrowing over time |
How a cash advance affects your credit score and debt
A cash advance shows up on your credit report as a balance on your credit card, just like a purchase does. It counts toward your credit utilization ratio — the amount of available credit you are using. If your card has a $5,000 limit and you take a $1,000 cash advance, your utilization jumps to 20 percent. High utilization can lower your credit score, especially if you carry the balance for months.
The cash advance also counts as debt. If you are trying to borrow for a mortgage, car loan, or other major purchase, a large cash advance balance can hurt your debt-to-income ratio and make lenders less willing to work with you. Pay off the cash advance as quickly as you can to minimize this effect.
Steps to take a cash advance if you decide to proceed
If you have decided a cash advance is the right choice, here is how to do it. First, find your credit card PIN. If you do not have one, call the card issuer's customer service number on the back of your card and request one — it usually arrives by mail in a few days, though some issuers can give it to you over the phone. You will need this PIN to withdraw cash at an ATM.
Next, visit an ATM that accepts your card's network (Visa, Mastercard, American Express, or Discover). Insert your card, enter your PIN, select "cash advance" or "withdrawal," and enter the amount. The ATM will show you the fee before you confirm. Once you confirm, the cash is dispensed and the transaction is complete. You can then deposit the cash at your bank, or use it directly.
Alternatively, you can visit a bank branch or check-cashing service and ask for a cash advance. Bring your credit card and ID. The teller will process the transaction, charge the fee, and give you cash. This method is slower but may feel more find if you are withdrawing a large amount.
Frequently Asked Questions
Does transferring money from a credit card to a bank account hurt my credit?
Yes, it can. A cash advance increases your credit utilization and shows as a balance on your credit report. If you carry it for months, it will lower your score. The impact is temporary — your score recovers as you pay down the balance — but it is real. Paying off the cash advance quickly minimizes the damage.
What is the difference between a cash advance and a regular purchase?
A regular purchase has a grace period (usually 21 to 25 days) before interest starts. A cash advance charges a fee upfront and starts accruing interest when ready. The interest rate on a cash advance is also usually 2 to 3 percentage points higher than your purchase APR. This makes cash advances much more expensive for borrowing.
Can I use a credit card to pay my bank account directly?
No. Your bank will not accept a credit card as payment to your own account. You can only move money from a credit card by taking a cash advance, using a balance transfer check, or withdrawing cash and depositing it yourself. All of these methods charge fees and interest.
Is there a limit to how much I can withdraw as a cash advance?
Yes. Most card issuers set a cash advance limit that is lower than your total credit limit — often 20 to 50 percent of your available credit. You can find your cash advance limit in your cardholder agreement or by calling customer service. Some ATMs also have daily withdrawal limits that are separate from your card's limit.
What should I do if I need money urgently but do not want to pay cash advance fees?
Consider a personal loan from a bank or credit union, a paycheck advance from your employer, or borrowing from family or friends. A personal loan typically costs less than a cash advance if you need the money for more than a few weeks. A paycheck advance is free if your employer offers it. Borrowing from family avoids fees entirely, though it comes with its own complications.