You can move money from a credit card to a bank account, but it costs money and counts as a cash advance
Transferring money from a credit card to a bank account is possible, but it is not the same as spending on the card. Your card issuer treats it as a cash advance — a short-term loan against your credit limit. You will pay an upfront fee (usually 3 to 5 percent of the amount), a higher interest rate than regular purchases, and interest starts accruing when ready with no grace period. Most people do this only when they need cash urgently and have no other option.
The main methods are ATM withdrawals, balance transfers to a linked bank account, and cash advance checks. Each has different costs and timelines. Before you proceed, confirm with your card issuer whether they charge a fee and what the cash advance interest rate is — this information is in your cardholder agreement or on your card's website.
Key Takeaways
- Cash advances from credit cards charge an upfront fee of 3 to 5 percent plus a higher interest rate than purchases, with interest starting when ready.
- ATM withdrawals are the fastest method but often have daily limits and the highest per-transaction fees.
- Balance transfers to a linked bank account take 1 to 3 business days and may have lower fees than ATM withdrawals.
- Interest on a cash advance begins accruing the day you withdraw it, not at the end of a billing cycle like a purchase.
- You should only use this method if you need cash urgently and cannot use a debit card, personal loan, or paycheck advance instead.
Withdrawing cash at an ATM
The fastest way to get cash from your credit card is to use an ATM. Insert your card, enter your PIN, select "cash advance" or "withdrawal," and choose the amount. The money appears in the ATM when ready. Most cards allow you to withdraw up to a set daily limit — often $500 to $1,000, though this varies by issuer and your account history.
ATM cash advances typically cost more than other methods. You will pay a cash advance fee (3 to 5 percent of the amount withdrawn) plus an ATM operator fee if you use a machine outside your card issuer's network. If you withdraw $300, you might pay $9 to $15 in fees alone. Check your card's terms to see whether your issuer charges a flat fee or a percentage, and whether out-of-network ATMs cost extra.
Interest on the withdrawn amount starts the same day. If your card's cash advance rate is 24 percent and you withdraw $300, you will owe roughly $6 in interest after one month if you do not pay it back.
Requesting a balance transfer to your bank account
Some card issuers allow you to transfer money directly from your credit card to a linked bank account. This is sometimes called a "balance transfer to bank" or "cash transfer." You request it through your card's online portal or by calling customer service. The money typically arrives in 1 to 3 business days.
Balance transfers to a bank account usually cost less per transaction than ATM withdrawals because you avoid ATM operator fees. You still pay the cash advance fee (3 to 5 percent) and the higher interest rate, but the process is simpler and faster for larger amounts. Some issuers set a maximum transfer amount per day or per month, so ask before you request.
Interest begins accruing on the transferred amount when ready, just as it does with an ATM withdrawal. If you transfer $500 at a 24 percent cash advance rate, you will owe roughly $10 in interest after one month.
Using cash advance checks
Many credit card issuers send cash advance checks with your statements or mail them on request. You write a check to yourself or to a payee, deposit it into your bank account, and the amount is charged to your credit card as a cash advance. This method works if you need to pay a bill or person directly without carrying physical cash.
Cash advance checks carry the same fees and interest rates as ATM withdrawals and balance transfers. Some issuers charge a slightly lower fee for checks than for ATM withdrawals, but not always — confirm the fee before you use one. The check must clear through the banking system, so the money may take 2 to 5 business days to appear in your account, depending on your bank.
Interest starts accruing the day you deposit the check, not the day it clears. If you write a check on Monday and deposit it Tuesday, interest begins Tuesday even if the check does not clear until Thursday.
Understanding cash advance fees and interest rates
Cash advances are expensive because they carry two separate costs: a one-time fee and a higher interest rate. The fee is usually 3 to 5 percent of the amount, charged when ready when you withdraw or transfer the money. A $500 cash advance costs $15 to $25 in fees alone.
The interest rate on cash advances is higher than the rate on regular purchases. If your card's purchase APR is 18 percent, the cash advance APR might be 24 or 27 percent. This rate applies from day one — there is no grace period like there is for purchases. If you carry the balance for a month, you will owe interest on top of the fee.
Your card issuer must disclose both the cash advance fee and the cash advance APR in your cardholder agreement and on your monthly statement. You can also find this information on your card's website under "Rates and Fees" or by calling customer service.
Paying back a cash advance quickly
Because cash advances accrue interest when ready and at a high rate, you should pay them back as soon as possible. Any payment you make goes toward your highest-rate debt first, so a cash advance payment reduces the cash advance balance before it reduces a purchase balance.
If you withdrew $500 at a 24 percent cash advance rate and paid it back within one week, you would owe roughly $2 in interest plus the $15 to $25 upfront fee — a total of $17 to $27. If you carried the balance for three months, you would owe roughly $30 in interest plus the fee, for a total of $45 to $55. The longer you carry it, the more you pay.
Set up a payment as soon as the money hits your account if you can. Even a few days of delay adds interest. If you cannot pay it back within a week or two, a cash advance is probably not the right choice — consider a personal loan, paycheck advance, or asking for a short-term loan from a friend or family member instead.
When a cash advance makes sense and when it does not
A cash advance is useful only in specific situations: you need cash urgently, you have no other way to get it, and you can pay it back within days or a week. Examples include an unexpected car repair that requires cash payment, a medical bill that must be paid when ready, or an emergency travel expense.
A cash advance does not make sense if you need to carry the balance for weeks or months. The fees and interest will cost you far more than other borrowing options. A personal loan from a bank or credit union, a paycheck advance from your employer, or a payment plan with the creditor will almost always be cheaper. If you are considering a cash advance to pay another credit card or to cover regular living expenses, that is a sign you need a different kind of help — consider speaking with a nonprofit credit counselor.
Frequently Asked Questions
Can I use a cash advance to pay another credit card?
Technically yes, but it is expensive and usually a bad idea. You will pay the cash advance fee and high interest rate on top of the interest you already owe on the other card. If you are trying to move debt between cards, a balance transfer card (which offers a lower rate for a set period) is cheaper. If you are struggling with multiple cards, a credit counselor can help you make a plan.
Does a cash advance hurt my credit score?
A cash advance itself does not directly hurt your score, but it increases your credit utilization — the percentage of your available credit you are using. If you have a $5,000 limit and withdraw $1,000, your utilization jumps to 20 percent. High utilization can lower your score temporarily. Paying it back quickly brings your utilization back down.
What is the difference between a cash advance and a balance transfer?
A balance transfer moves debt from one card to another (usually at a lower rate for a promotional period). A cash advance converts credit into cash. Balance transfers are for moving existing debt; cash advances are for getting cash. Both charge fees and interest, but balance transfers often have better rates if you may have access to.
Can I withdraw cash from a credit card without a PIN?
At an ATM, you need a PIN. Over the counter at a bank branch, you can sometimes withdraw cash by showing your card and ID, though not all banks allow this. Balance transfers and cash advance checks do not require a PIN. Ask your card issuer what methods are available on your account.
How long does a cash advance stay on my credit report?
A cash advance itself does not appear on your credit report as a separate item. The balance appears as part of your credit card balance. Once you pay it off, it stops affecting your credit utilization. If you miss payments, the missed payment appears on your report and can stay for up to seven years.