What transferring money from a credit card actually means
Transferring money from a credit card to a bank account is a cash advance — you are borrowing against your credit limit and moving that borrowed money into your checking or savings account. The credit card company charges you interest on this amount when ready, usually at a higher rate than your regular purchase APR, and often adds an upfront fee of 3 to 5 percent of the amount transferred.
This is different from a balance transfer, where you move debt from one credit card to another. A cash advance puts new money in your bank account, but it costs you more than a regular purchase and should only be used when you have no other option.
Key Takeaways
- A cash advance charges interest from day one with no grace period, plus an upfront fee that ranges from 3 to 5 percent depending on your card and issuer.
- You can request a cash advance through your card issuer's website or app, at an ATM, or by visiting a bank branch — the method depends on your card and bank.
- The interest rate on a cash advance is typically 2 to 5 percentage points higher than your purchase APR and varies by card issuer and your creditworthiness.
- A personal loan or line of credit usually costs less than a cash advance if you need money quickly and have time to compare options.
How to request a cash advance through your card issuer
Most credit card companies allow you to request a cash advance through their website or mobile app. Log in to your account, look for a section labeled "Cash Advance" or "Get Cash," and follow the prompts to specify the amount. The money typically appears in your linked bank account within one to three business days.
Some issuers also let you call customer service to request a cash advance over the phone. You will need your card number, PIN, and the bank account where you want the money deposited. Ask the representative for the exact fee and interest rate that will explore to your advance before you confirm the request.
Getting cash at an ATM or bank branch
You can withdraw cash directly from an ATM using your credit card, though not all ATMs accept credit cards — most require a debit card. Check your card's terms or call your issuer to confirm which ATMs accept your card. The cash appears in your hand when ready, but the fee and interest charges begin right away.
Some banks allow you to walk into a branch and request a cash advance at the teller window, even if you do not have an account there. You will need your credit card and a photo ID. This method is slower than an ATM but gives you a chance to ask questions about fees before you proceed.
Understanding the costs: fees and interest rates
A cash advance typically costs you two separate charges. The cash advance fee is charged upfront and ranges from 3 to 5 percent of the amount you withdraw — a $500 advance might cost $15 to $25 in fees alone. This fee is added to your credit card balance when ready.
The interest rate on a cash advance is higher than your purchase APR and starts accruing the moment you withdraw the money. There is no grace period like there is for purchases. If your purchase APR is 18 percent, your cash advance APR might be 23 or 24 percent. The exact rate depends on your card issuer and your credit score. Check your card's terms or call your issuer to find out the specific rate before you proceed.
If you withdraw $500 at a 24 percent APR with a $15 fee, you owe $515 when ready. If you pay it back in 30 days without making other purchases, you will owe roughly $25 in interest on top of the fee — a total cost of about $40 for borrowing $500 for a month.
When a cash advance makes sense and when it does not
A cash advance is expensive and should only be your choice when you have exhausted other options. It makes sense if you need cash urgently for an emergency — a car repair, a medical bill, or an unexpected expense — and you have no access to a personal loan, line of credit, or savings.
A cash advance does not make sense if you are using it to pay off other debt, to fund a purchase you could delay, or to cover regular expenses. In those cases, a personal loan from a bank or credit union, a line of credit, or a 0 percent balance transfer card will cost you significantly less. Even a payday loan, which is expensive, may be cheaper than a cash advance if you can repay it within two weeks.
Alternatives that usually cost less
A personal loan from a bank, credit union, or online lender typically charges 6 to 36 percent APR depending on your credit score and the lender. There is no upfront fee on most personal loans, and interest does not start until you receive the money. If you have decent credit and can wait three to five business days, a personal loan is almost always cheaper than a cash advance.
A line of credit works like a credit card but usually charges lower interest rates — often 8 to 20 percent APR. You only pay interest on the amount you actually use, and many lines of credit have no upfront fees. Credit unions often offer lines of credit to members at rates lower than banks.
A 0 percent balance transfer card lets you move debt from another card to a new card with no interest for 6 to 21 months, depending on the offer. You will pay a balance transfer fee of 3 to 5 percent, but if you can pay off the balance during the 0 percent period, your total cost is just the fee. This works only if you have time to explore and be approved before you need the money.
What happens to your credit score
A cash advance does not directly hurt your credit score, but it does increase your credit utilization — the percentage of your available credit that you are using. If you have a $5,000 credit limit and withdraw a $1,000 cash advance, your utilization jumps to 20 percent. High utilization can lower your score by a few points, though the effect is usually temporary.
The bigger risk is that a cash advance makes it harder to pay down your balance, which keeps your utilization high for longer. If you carry the cash advance balance for months, the interest charges will compound and your score will suffer more from the sustained high utilization than from the advance itself.
Frequently Asked Questions
Can I transfer money from a credit card to my bank account without paying a fee?
No. A cash advance always includes an upfront fee of 3 to 5 percent plus interest that starts when ready. Some cards offer promotional periods with lower fees, but these are rare and usually only for new cardholders. Check your card's terms or call your issuer to see if any promotion applies to you.
How long does it take for the money to show up in my bank account?
If you request a cash advance through your card issuer's website or app, the money usually appears in your linked bank account within one to three business days. If you withdraw cash at an ATM or bank branch, you get it when ready. Weekends and holidays may delay the transfer by a day or two.
What is the difference between a cash advance and a balance transfer?
A balance transfer moves existing debt from one credit card to another and usually comes with a lower promotional interest rate. A cash advance borrows new money against your credit limit and puts it in your bank account, with a higher interest rate and an upfront fee. Balance transfers are for moving debt; cash advances are for getting cash.
Will a cash advance hurt my credit score?
A cash advance itself does not directly damage your score, but it increases your credit utilization, which can lower your score by a few points. The bigger problem is that high interest rates make it hard to pay off the balance, keeping your utilization high for months and causing more damage over time.
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. Check your card's terms or log into your account to see your specific cash advance limit. You can call your issuer to ask if they will increase it, though they are not required to.