Yes, you can transfer money from a credit card, but it costs money and counts as a cash advance
You can move money from a credit card to a bank account through a cash advance, a balance transfer check, or a peer-to-peer payment app. None of these are free. A cash advance charges an upfront fee (usually 3 to 5 percent of the amount) plus a higher interest rate than regular purchases — often 20 to 30 percent. A balance transfer check works the same way. A peer-to-peer app like Venmo or PayPal avoids the cash advance label but still charges a fee if you fund it with a credit card rather than a debit card or bank account.
The reason these methods cost money is that they bypass the credit card's normal purchase protection. When you swipe a card at a store, the merchant pays a processing fee to the card network. When you pull cash or move money to your own account, there is no merchant — so the card issuer charges you instead. The interest clock starts when ready, with no grace period like you get on purchases.
If you need cash or need to move money to pay a bill, a debit card or bank transfer is almost always cheaper. Use a credit card transfer only if you have a specific reason — usually to move a balance to a lower-rate card — and you understand the cost before you do it.
Key Takeaways
- A cash advance from an ATM or bank teller charges a fee of 3 to 5 percent plus interest starting when ready, with no grace period.
- Balance transfer checks work like cash advances: they carry the same fees and interest rates, even though they look like regular checks.
- Peer-to-peer apps charge a percentage fee if you fund them with a credit card, though the fee is often lower than a cash advance fee.
- The interest rate on a cash advance is separate from your purchase rate and is usually higher, sometimes 5 to 10 percentage points above your regular APR.
- If you need cash for an emergency, a personal loan or credit union loan usually costs less than a credit card cash advance.
How a cash advance works and what it costs
A cash advance is the most direct way to pull money from a credit card. You can get one at an ATM using your card's PIN, at a bank teller's window, or sometimes through a convenience store or casino. The card issuer when ready charges you a fee — typically 3 to 5 percent of the amount withdrawn — plus interest at a rate that varies by card but is usually higher than your purchase APR.
The interest starts accruing the same day you withdraw the money. Unlike a purchase, which may have a 21-day grace period before interest kicks in, a cash advance has no grace period. If you withdraw $500 at 25 percent APR, you owe interest on that $500 starting when ready, even if you pay it back the next day. Over a month, that adds up quickly.
Your credit card statement will show the cash advance separately from your regular purchases, with its own balance and interest rate. If you make a payment, the card issuer typically applies it to your lowest-interest balance first — usually your regular purchases — so your cash advance balance may sit and accrue interest while you pay down cheaper debt.
Balance transfer checks and how they differ from regular checks
Some card issuers send you checks in the mail that you can write against your credit line. These look and feel like regular checks, but they are not. Writing one is a cash advance, not a purchase. The fee and interest rate are the same as if you had withdrawn cash from an ATM.
The advantage of a balance transfer check is that you can mail it or deposit it into another account without visiting an ATM. The disadvantage is that many people do not realize it is a cash advance and are surprised by the fee and interest when the statement arrives. Read any fine print that comes with the checks before you use them.
Do not confuse a balance transfer check with a balance transfer offer. A balance transfer offer lets you move debt from one card to another at a lower rate, usually 0 percent for a set period. A balance transfer check is a cash advance in disguise and does not may have access to for that promotional rate.
Using peer-to-peer apps to move money from your credit card
Apps like Venmo, PayPal, Square Cash, and others let you send money to another person's account. If you send money to yourself — to your own bank account — you are moving money from your credit card to your bank, which is what you want. The catch is the fee structure.
If you fund the transfer with a debit card or bank account, there is no fee or a very small one. If you fund it with a credit card, the app charges a percentage fee, usually 1.5 to 3 percent. That is lower than a cash advance fee, but it is still a cost. More importantly, the app may report the transaction to your card issuer as a cash advance anyway, which means you pay the cash advance interest rate even though the fee was lower.
Check your card issuer's rules before using an app. Some issuers treat peer-to-peer transfers as purchases (no cash advance fee), while others treat them as cash advances. The app itself may not know which category your issuer uses, so you may not find out until the statement arrives.
When a balance transfer to another credit card makes sense
A balance transfer is different from the methods above. Instead of moving money to your bank account, you move a balance from one credit card to another. This is useful if you have high-interest debt on one card and another card offers a 0 percent introductory rate.
A balance transfer still charges a fee — usually 3 to 5 percent — but you avoid the ongoing cash advance interest rate. If you transfer $5,000 at a 3 percent fee, you pay $150 upfront, but then you owe $5,150 at 0 percent for 6 to 21 months (depending on the offer). After the promotional period ends, any remaining balance reverts to the card's regular APR.
Balance transfers make sense only if you have a plan to pay down the balance during the 0 percent period. If you transfer the debt and then make only minimum payments, you will owe interest on the full amount once the promotional rate expires, and you will have paid the transfer fee for nothing.
Cheaper alternatives to a credit card cash advance
If you need cash or need to move money quickly, a credit card cash advance is rarely the cheapest option. A personal loan from a bank or credit union usually charges 6 to 36 percent APR depending on your credit, which is often lower than a credit card's cash advance rate. The loan also has no upfront fee and a fixed payment schedule, so you know exactly what you owe.
A credit union loan is often cheaper than a bank loan if you are a member. Some credit unions offer emergency loans at rates as low as 12 percent, with approval in one business day. If you do not have a credit union membership, you can often join based on where you work, where you live, or your school or military service.
If you need a small amount of cash — under $500 — a payday loan or title loan may seem fast, but these charge rates of 300 to 400 percent APR and trap many borrowers in a cycle of rolling debt. Avoid them unless you have no other option and can pay back the full amount within two weeks.
How a cash advance affects your credit score
A cash advance does not directly hurt your credit score the way a late payment does. However, it increases your credit utilization — the percentage of your 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. High utilization can lower your score by a few points, especially if you already have other balances on the card.
The bigger risk is that a cash advance makes it harder to pay down your balance. Because the interest rate is high and the interest accrues when ready, the balance grows faster than it would on a regular purchase. If you cannot pay it off quickly, you end up carrying a high balance for months, which keeps your utilization high and your score depressed.
Frequently Asked Questions
Can I transfer money from a credit card to a debit card?
Not directly. You can withdraw cash from a credit card at an ATM and then deposit it into a debit card's account, but that is a cash advance with all the associated fees and interest. A simpler route is to use a peer-to-peer app and fund it with your debit card instead of your credit card — that way you avoid the credit card fees entirely.
What is the difference between a cash advance and a balance transfer?
A cash advance moves money from your credit card to your bank account or to an ATM. A balance transfer moves debt from one credit card to another. Both charge fees, but a balance transfer to a 0 percent promotional card can save you money on interest if you pay down the balance during the promotional period.
Do I have to pay the cash advance fee if I pay it back right away?
Yes. The fee is charged when you withdraw the money, not when you pay it back. If you withdraw $500 and pay it back the next day, you still owe the 3 to 5 percent fee plus one day of interest. The only way to avoid the fee is to not take the cash advance in the first place.
Will a cash advance show up on my credit report?
A cash advance itself does not appear on your credit report as a separate item. However, it increases your credit utilization, which can lower your score. If you fail to pay it back and it goes to collections, that will show up on your report.
Can I use a credit card cash advance to pay another credit card bill?
Technically yes, but it is expensive. You would pay a cash advance fee on the money you withdraw, then pay it toward another card's balance. You are paying a fee to move money between your own accounts, which is wasteful. Instead, set up an automatic payment from your bank account to the card you want to pay down.