You can transfer money from a credit card to a bank account, but it costs money and counts as a cash advance
Yes, you can move money from a credit card to a checking or savings account. The card issuer will send the funds to your bank within one to three business days. But this is not the same as a regular purchase — it is treated as a cash advance, which means you pay a fee upfront (usually 3 to 5 percent of the amount) and a higher interest rate than you would on regular card purchases, often 20 to 30 percent.
The main ways to do this are a balance transfer check, a cash advance at an ATM, a peer-to-peer payment app, or a direct transfer through your card issuer's app or website. Each method has different costs and timing. Most people should avoid this unless they have a specific reason — like needing cash for an emergency and having no other way to get it — because the fees and interest add up quickly.
Key Takeaways
- A cash advance from a credit card costs 3 to 5 percent in fees plus a higher interest rate than regular purchases, starting when ready with no grace period.
- Balance transfer checks, ATM withdrawals, and app-based transfers all count as cash advances and carry the same fee structure, though some cards offer them at different rates.
- The money reaches your bank account in one to three business days, but interest begins accruing the same day you withdraw it.
- If you need cash for an emergency, a personal loan or a line of credit usually costs less than a credit card cash advance.
Balance transfer checks: the most common method
Many credit card issuers send balance transfer checks to cardholders automatically or on request. You write a check to yourself, deposit it in your bank account, and the card issuer charges your credit card. The check arrives in the mail, so this method takes longer than others — usually five to ten business days from when you mail the check to when the funds clear in your account.
The fee is the same as a regular cash advance: 3 to 5 percent of the amount you withdraw. Some cards advertise a lower fee for balance transfers (sometimes 0 percent for a limited time), but that rate applies only to transfers between credit cards, not to checks. Call your card issuer to confirm the fee before you use a check.
This method works if you have time to wait for the mail and do not mind the fee. It is slower than other options but requires no special app or ATM visit.
ATM cash advances: fastest but most expensive
You can withdraw cash directly from an ATM using your credit card, just as you would with a debit card. The money is available when ready, but the fee is steep: 3 to 5 percent plus a possible ATM operator fee (usually $2 to $3). Interest starts accruing the same day, with no grace period.
Once you have the cash, you can deposit it into your bank account at your own bank's ATM or branch. This method is the fastest way to get money into your account — the cash is in your hand within minutes — but it is also the most expensive because you pay both the card's cash advance fee and potentially an ATM fee.
ATM cash advances make sense only in true emergencies when you need cash when ready and have no other option. For any planned transfer, the slower methods cost less.
App-based transfers and direct transfers
Some credit card issuers allow you to request a cash advance directly through their mobile app or website. You enter your bank account details, choose the amount, and the issuer deposits it into your account within one to three business days. The fee is the same as other cash advances — 3 to 5 percent — but you avoid the ATM fee and the wait for a check to arrive.
A few card issuers also offer direct transfers at a lower fee or with promotional rates (such as 0 percent for the first three months), though these are less common. Check your card's app or call the issuer to see what options are available on your specific card.
Peer-to-peer payment apps like Venmo, PayPal, or Cash App do not directly transfer credit card funds to a bank account. However, you can use them as a workaround: transfer money from your credit card to the app (which the app treats as a purchase, not a cash advance, so no cash advance fee), then transfer from the app to your bank account. This avoids the cash advance fee but may incur a small transfer fee from the app itself.
Why cash advances cost so much
Credit card issuers charge high fees and interest rates for cash advances because they see them as riskier than regular purchases. When you buy something with a credit card, the merchant guarantees the transaction and the issuer can dispute it if something goes wrong. With a cash advance, the issuer has no such protection — you have the cash and can spend it however you want.
Interest on a cash advance begins accruing when ready, with no grace period. On a regular purchase, you typically have 21 to 25 days before interest kicks in. This means that even if you pay off the cash advance within a week, you will still owe interest for that full week. The combination of the upfront fee, the higher interest rate, and the lack of a grace period makes cash advances one of the most expensive ways to borrow money.
Cheaper alternatives to a credit card cash advance
If you need cash or need to move money to your bank account, consider these options first:
- A personal loan from a bank or online lender typically charges 6 to 36 percent interest, which is lower than a credit card cash advance rate. The upfront fee is usually 1 to 6 percent. If you have decent credit, a personal loan costs significantly less than a cash advance.
- A line of credit from your bank works like a credit card but with a lower interest rate if you have an existing relationship with the bank. You draw what you need and pay interest only on the amount you use.
- A payday loan is expensive (often 400 percent APR or higher) and should be a last resort, but it is faster than a personal loan if you need money within hours.
- Borrowing from family or friends costs nothing if they agree, though it can strain relationships. Put any agreement in writing.
- Selling something you own — used items, electronics, or collectibles — gets cash into your account without borrowing at all.
What happens if you do not pay back the cash advance
If you withdraw a cash advance but do not pay it back, the interest and fees compound quickly. A $500 cash advance at 25 percent interest with a 4 percent fee costs $20 upfront and then $10.42 per month in interest alone. After six months of no payments, you owe $562.50 in interest and fees on top of the original $500.
The debt also affects your credit score. The cash advance counts toward your credit utilization ratio (how much of your available credit you are using), which can lower your score if it pushes you above 30 percent utilization. Late payments are reported to credit bureaus and stay on your report for seven years.
Frequently Asked Questions
Does transferring money from a credit card to a bank account hurt my credit score?
A single cash advance does not directly hurt your credit score, but it can indirectly. If the advance pushes your credit utilization above 30 percent, your score may drop slightly. Missed payments or carrying a large balance will damage your score more significantly.
Can I use a credit card cash advance to pay off another credit card?
Technically yes, but it is expensive. You would pay the 3 to 5 percent cash advance fee, then use the cash to pay the other card. A balance transfer (moving the balance directly from one card to another) is cheaper because it usually has a lower fee and may come with a promotional 0 percent interest rate.
How long does it take for the money to show up in my bank account?
It depends on the method. An ATM withdrawal is when ready. A direct transfer through your card's app or website takes one to three business days. A balance transfer check takes five to ten business days from when you mail it. Weekends and holidays can add extra time.
What is the difference between a cash advance and a balance transfer?
A balance transfer moves money from one credit card to another credit card. A cash advance moves money from a credit card to your bank account or as physical cash. Balance transfers usually have lower fees and promotional rates. Cash advances have higher fees and interest rates.
Can I get a cash advance if I have bad credit?
Yes. Your credit score does not determine whether you can take a cash advance — only whether you have an open credit card account with available credit. However, cards issued to people with bad credit often have lower credit limits, so the amount you can withdraw may be small.