You can transfer money from a credit card to a debit card, but it costs money and counts as a cash advance
Moving money from a credit card to a debit card is possible, but it is not the same as a regular purchase. Your credit card company treats it 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 purchases. The interest starts accruing when ready — there is no grace period like there is for regular credit card charges.
The most common way to do this is through an ATM withdrawal using your credit card, which deposits cash into your bank account. You can then use your debit card to spend that cash. Other methods include balance transfers to a bank account (offered by some card issuers) or peer-to-peer payment apps, though each has its own costs and limitations.
Before you move forward, understand that this is an expensive way to access money. If you need cash, it is almost always cheaper to use your debit card at an ATM or ask for cash back at a store.
Key Takeaways
- Credit card cash advances charge a fee (typically 3 to 5 percent) plus a higher interest rate that starts when ready, with no grace period.
- The most direct method is withdrawing cash at an ATM with your credit card, then depositing it into your debit card account.
- Some credit card issuers offer balance transfers to a linked bank account, though these also charge fees and may have limits.
- Peer-to-peer payment apps like Venmo or PayPal can move money, but you still pay a fee if you want the funds when ready in your bank account.
- Using your debit card at an ATM or getting cash back at a store is almost always cheaper than a credit card cash advance.
Withdrawing cash at an ATM with your credit card
This is the most straightforward method. Insert your credit card into any ATM that displays your card's logo (Visa, Mastercard, American Express, or Discover). Enter your credit card PIN — not your debit card PIN — and select the cash withdrawal option. Withdraw the amount you need, up to your card's daily limit, which varies by issuer but is often $500 to $1,000.
The cash goes directly into your hand. You then deposit it into your bank account using your debit card's bank, either at a branch, through an ATM, or via mobile deposit if your bank offers it. Your debit card account now holds the money, and you can spend it normally.
The cost: Your credit card issuer charges a cash advance fee (usually 3 to 5 percent of the amount withdrawn) plus a higher interest rate — often 2 to 3 percentage points above your regular purchase rate. If you withdraw $500 and your fee is 4 percent, you owe $20 when ready, plus interest on the full $500 starting right away.
Balance transfers from your credit card to a bank account
Some credit card issuers allow you to transfer your credit card balance directly to a linked checking or savings account. This is different from a cash advance because the money lands in your bank account without you handling physical cash. Call your credit card company's customer service number on the back of your card and ask whether they offer balance transfers to a bank account.
If they do, you will need to provide your bank account number and routing number. The transfer typically takes 1 to 3 business days. Once the money arrives in your bank account, you can use your debit card to spend it.
The cost is similar to a cash advance: a transfer fee (usually 3 to 5 percent) and interest that starts accruing when ready. Some issuers cap the amount you can transfer in a single transaction or per month, so ask about limits before you proceed.
Using peer-to-peer payment apps
Apps like Venmo, PayPal, Square Cash, and Zelle let you send money from a credit card to another person or to your own bank account. You link your credit card to the app, initiate a transfer to your bank account, and the money arrives within 1 to 3 business days.
The catch: Most of these apps charge a fee if you want the money to arrive when ready (usually 1 to 3 percent), and some charge a smaller fee even for standard transfers. If you use a credit card instead of a debit card or bank account, the fee is often higher because the app treats it as a cash advance on their end. You may also face the same cash advance fee from your credit card issuer.
This method is most useful if you are already using one of these apps for other reasons, but it is not cheaper than a direct ATM withdrawal or bank transfer.
What happens to your credit score
A cash advance or balance transfer does not directly hurt your credit score, but it can indirectly. The transfer increases your credit utilization — the percentage of your available credit you are using — which can lower your score slightly. If you carry the balance and pay interest, the higher balance also means you are paying more interest overall, which costs you money but does not directly affect your score.
The bigger risk is missing a payment. If you cannot pay back the cash advance quickly, the interest adds up fast. Missing even one payment will damage your score and trigger late fees.
When a credit card to debit card transfer makes sense
This transfer is rarely the right choice, but there are narrow situations where it might be worth considering. If you have an emergency and your debit card account is empty, and you cannot access an ATM with your debit card, a credit card cash advance might be faster than other options. If you are already carrying a credit card balance and your issuer offers a 0 percent balance transfer promotion to a bank account, that could reduce your cost — though read the terms carefully, because the 0 percent rate usually applies only to transferred balances, not new cash advances.
In almost every other case, you are better off using your debit card directly, borrowing from a friend or family member, or looking into a short-term personal loan from a bank or credit union, which typically charges less interest than a credit card cash advance.
Cheaper alternatives to moving money between cards
Before you pay a cash advance fee, explore these options. If you need cash, use your debit card at an ATM with no fee, or ask for cash back at a grocery store or pharmacy. If you need to pay someone, use a peer-to-peer app that accepts debit cards or bank transfers instead of credit cards. If you need a short-term loan, a credit union or bank personal loan often charges 6 to 12 percent interest, which is lower than a credit card cash advance rate.
If you are in a tight spot financially, contact your credit card issuer to ask about hardship programs or lower interest rates. Many issuers have options for customers facing temporary difficulty, and these are free to explore.
Frequently Asked Questions
Does transferring money from a credit card to a debit card hurt my credit?
Not directly, but it can indirectly. The transfer increases your credit utilization ratio, which may lower your score slightly. The bigger risk is carrying the balance and paying high interest, which costs money but does not affect your score. Missing a payment, however, will damage your score significantly.
How long does it take to transfer money from a credit card to a debit card?
An ATM cash withdrawal is when ready. A balance transfer to a bank account or a peer-to-peer app transfer typically takes 1 to 3 business days. Some apps offer when ready transfers for an extra fee.
Can I transfer money from a credit card to someone else's debit card?
Not directly. You can withdraw cash and give it to them, or use a peer-to-peer app to send money to their account if they have one set up. Both methods cost money and may trigger cash advance fees on your credit card.
What is the difference between a cash advance and a regular credit card purchase?
A cash advance charges a fee upfront and a higher interest rate with no grace period. Interest starts accruing when ready. A regular purchase has no upfront fee and usually has a 21 to 25 day grace period before interest kicks in, as long as you pay the full balance on time.
Is there a limit to how much I can transfer from my credit card?
Yes. Most issuers set a daily ATM withdrawal limit (often $500 to $1,000) and a monthly cash advance limit (sometimes a percentage of your credit limit). Call your card issuer to find out your specific limits.