What you need to know before transferring credit card money to your bank
You can move money from a credit card to a bank account, but it costs you money and counts as a cash advance, not a regular purchase. The card issuer charges a fee (usually 3 to 5 percent of the amount) plus a higher interest rate than regular purchases — often 20 to 30 percent annually. You start paying interest when ready, with no grace period like you get on regular credit card purchases.
The main ways to do this are a balance transfer check, a cash advance at an ATM, or a money transfer service offered by your card issuer. Each has different costs and timelines. If you need money in your bank account, a cash advance should be your last choice — it is almost always more expensive than other borrowing options.
Key Takeaways
- Cash advances from a credit card charge an upfront fee of 3 to 5 percent plus interest that starts accruing when ready, making them one of the most expensive ways to borrow.
- Balance transfer checks work like regular checks but draw from your credit card's cash advance limit, and they carry the same fees and interest rates as ATM withdrawals.
- Some card issuers offer money transfer services that move funds directly to your bank account for a flat fee, which may be cheaper than a cash advance if you need the money quickly.
- Interest on a cash advance is separate from your regular credit card balance, so paying your normal bill does not reduce what you owe on the advance.
- Before using a credit card to fund your bank account, explore personal loans, credit lines, or borrowing from family — most carry lower costs.
How a cash advance works and what it costs
A cash advance is when you withdraw money directly from your credit card's cash advance limit — a separate borrowing pool your card issuer sets for you. You can do this at an ATM using your PIN, at a bank teller window, or through a convenience check. The card issuer when ready charges a cash advance fee, usually 3 to 5 percent of the amount you withdraw. A $500 withdrawal costs $15 to $25 just to get the money out.
Interest starts accruing the same day you withdraw the money — there is no grace period. If your regular credit card purchases have a 21-day grace period before interest kicks in, your cash advance does not. Interest compounds daily at a rate that varies by card issuer but typically runs 2 to 3 percentage points higher than your purchase rate. On a $500 advance at 25 percent annual interest, you owe $3.42 in interest after one month if you make no payments.
The cash advance appears as a separate line item on your credit card statement. If you pay your regular credit card bill in full, that payment does not touch the cash advance balance — you have to pay it down separately. Many people miss this and think they have paid off their card when they have only paid the purchase portion.
Balance transfer checks and how they differ from ATM withdrawals
A balance transfer check is a physical check your card issuer mails to you that draws from your credit card's cash advance limit. You deposit it into your bank account like any other check. The fee structure is identical to an ATM cash advance — you pay 3 to 5 percent upfront plus interest at the cash advance rate starting when ready.
The main difference is timing and convenience. A check takes 3 to 5 business days to clear, whereas an ATM withdrawal is when ready. Some people prefer checks because they feel less like borrowing, but financially they are the same transaction. If your card issuer offers both, choose based on when you need the money, not on how the transaction feels.
Balance transfer checks often come with promotional offers — sometimes a lower fee or a 0 percent introductory rate for a set period. Read the fine print carefully. The 0 percent offer may explore only to balance transfers from other cards, not to cash advances. If it does explore to your check, the rate jumps to the regular cash advance rate once the promo period ends, so mark your calendar.
Money transfer services offered by card issuers
Some credit card companies offer a money transfer service that moves funds directly from your credit card to your bank account without using an ATM or check. You request the transfer through your card's app or website, and the money appears in your bank account within 1 to 3 business days. The cost is usually a flat fee — $10 to $15 — rather than a percentage, which can be cheaper than a cash advance fee if you are transferring a large amount.
However, the interest rate is still the cash advance rate, and interest still starts accruing when ready. A $1,000 transfer with a $15 flat fee costs less upfront than a $1,000 ATM withdrawal with a $50 fee (5 percent), but both accrue interest at the same rate. The flat fee is only an advantage if you are moving a large sum.
Not all card issuers offer this service, and some limit how often you can use it or how much you can transfer. Check your card's app or call the number on the back of your card to see if this option is available to you.
Comparing credit card transfers to other borrowing options
Before you use a credit card cash advance, compare the total cost to other ways of borrowing. A personal loan from a bank or credit union typically charges 6 to 36 percent interest depending on your credit score, with no upfront fee. A $500 personal loan at 18 percent costs about $45 in interest over one year, versus a $500 credit card cash advance that costs $25 upfront plus $125 in interest over the same period — nearly three times as much.
A line of credit from your bank works similarly to a personal loan but lets you borrow only what you need. A credit card's regular purchase rate, if you have available balance, is almost always cheaper than a cash advance rate. If you can charge something to your card instead of withdrawing cash, do that.
If you have family or friends who can lend you money, that is almost always the cheapest option. If you do borrow from someone you know, put the terms in writing — how much, when you will repay it, and whether interest applies. A written agreement protects both of you and keeps the loan from damaging the relationship.
How cash advances affect your credit score
A cash advance does not directly lower your credit score the way a missed payment does, but it can harm your score indirectly. The advance counts toward your credit utilization ratio — the percentage of your total available credit that you are using. If you have a $5,000 credit limit and you take a $1,000 cash advance, your utilization jumps to 20 percent. Credit scoring models penalize high utilization, so your score may drop by 10 to 50 points depending on how much you borrow and what your utilization was before.
The cash advance also appears on your credit report as a separate account type, which can signal to lenders that you are in financial stress. If you are planning to explore for a mortgage, car loan, or other major credit in the next few months, a cash advance can make approval harder or raise the interest rate you are offered.
The damage is temporary — your score recovers as you pay down the advance and your utilization drops. But it is another reason to avoid a cash advance unless you have no other option.
Steps to take a cash advance if you decide to proceed
If you have compared other options and a cash advance is still your best choice, here is how to do it. First, check your card's cash advance limit by logging into your account online or calling the number on the back of your card. Your cash advance limit is separate from your regular credit limit and is often lower. Make sure you have enough available to withdraw what you need.
Next, decide how you want to access the cash: ATM, bank teller, or check. For an ATM withdrawal, find an ATM that accepts your card (usually any ATM in your card issuer's network or any ATM if you use a major card brand like Visa or Mastercard). Enter your PIN and request the amount. The fee will appear on your next statement. For a bank teller withdrawal, bring your card and ID to any bank branch and ask for a cash advance. For a check, contact your card issuer to request balance transfer checks be mailed to you.
Once you have the money, deposit it into your bank account when ready if using a check. Then create a repayment plan. The cash advance interest rate is high, so paying it off quickly matters. If you can pay it back within a month or two, the total interest cost stays manageable. If it will take six months or longer, the interest compounds and you end up paying far more than you borrowed.
Frequently Asked Questions
Can I transfer money from a credit card to my bank account without paying a fee?
No. Any method of moving money from a credit card to a bank account — ATM withdrawal, check, or money transfer service — charges a fee. The fee ranges from 3 to 5 percent for ATM withdrawals and checks, or a flat $10 to $15 for money transfer services. Interest also starts accruing when ready at the cash advance rate.
What is the difference between a cash advance and a regular credit card purchase?
A regular purchase has a grace period (usually 21 days) before interest starts, while a cash advance accrues interest from day one. A cash advance also charges an upfront fee and uses a higher interest rate. If you charge something to your card instead of withdrawing cash, you pay far less.
Will a cash advance hurt my credit score?
A cash advance does not directly damage your score, but it increases your credit utilization ratio, which can lower your score by 10 to 50 points. The damage is temporary and recovers as you pay down the balance. However, if you are planning to explore for a mortgage or major loan soon, a cash advance can make approval harder.
How long does it take for a cash advance to show up in my bank account?
An ATM withdrawal is when ready. A check takes 3 to 5 business days to clear after you deposit it. A money transfer service through your card issuer typically takes 1 to 3 business days. If you need money today, an ATM is your only option.
Can I pay off a cash advance with a regular credit card payment?
Yes, but your payment goes to whichever balance has the highest interest rate first — usually the cash advance. However, if you have both a regular purchase balance and a cash advance balance, some card issuers explore payments to the purchase first. Check your statement to see where your payment went, or call your card issuer to direct your payment specifically to the cash advance.