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, but your card issuer will charge you a fee and a higher interest rate than you pay on regular purchases. The transfer is treated as a cash advance, not a purchase, which means interest starts accruing when ready — there is no grace period. Most people do this only when they need cash urgently and have no other option, because the cost adds up quickly.
The three main ways to transfer money are: using an ATM with your credit card, requesting a check from your card issuer, or using a balance transfer service offered by your bank. Each method has different fees and timelines, and each one triggers the cash advance rate on your credit card.
Key Takeaways
- Cash advances from credit cards charge a fee (usually 3 to 5 percent of the amount) plus a higher interest rate than purchases, with interest starting when ready.
- ATM withdrawals are the fastest way to get cash but charge the highest fees and are limited by your daily withdrawal limit.
- Checks issued by your card issuer take several business days to arrive and clear but may have a lower fee than ATM withdrawals.
- Balance transfer checks and third-party services exist but carry their own fees and should only be used if you understand the total cost.
- The cash advance rate and fees make this option expensive; using a personal loan, credit line, or overdraft protection is usually cheaper.
ATM withdrawals: fastest but most expensive
Using your credit card at an ATM to withdraw cash is the quickest way to transfer money, but it is also the most costly. You will pay a cash advance fee (typically 3 to 5 percent of the amount withdrawn) plus an ATM operator fee if you use a machine outside your card issuer's network. Interest on the cash advance begins accruing the same day, at a rate that is usually 5 to 10 percentage points higher than your purchase rate.
Your card issuer also sets a daily cash advance limit, which is often lower than your credit limit. For example, if your credit limit is $5,000, your cash advance limit might be $500 per day. Check your card's terms or call the number on the back of your card to find out your limit before you go to the ATM.
The math on cost is important: if you withdraw $500 at a 5 percent fee, you owe $25 when ready, plus interest on the full $525 at a rate of, say, 24 percent annually. If you pay it back in one month, you will owe roughly $35 in total fees and interest. That is 7 percent of what you borrowed.
Checks from your card issuer: slower but sometimes cheaper
Many credit card companies will mail you checks that draw directly from your credit line. You write the check to yourself or to a third party, deposit it in your bank account, and the amount is treated as a cash advance on your card. This method takes 5 to 10 business days for the check to arrive and another 1 to 3 days for your bank to clear it.
The fee for a cash advance check is often lower than an ATM fee — sometimes 2 to 3 percent instead of 5 percent — but the interest rate is the same as an ATM cash advance. Interest begins accruing from the day you deposit the check, not the day you write it. If your card issuer offers these checks, you will see them arrive in the mail periodically, or you can call and request them.
This option makes sense only if you can wait a week or more and the lower fee is worth the delay. If you need cash today, the ATM is your only choice, but if you can plan ahead, a check may save you money.
Balance transfer checks and third-party services
Some card issuers offer balance transfer checks that work like cash advance checks but may have a promotional rate for a limited time — for example, 0 percent interest for 6 months. Read the fine print carefully: the promotional rate usually applies only to balance transfers between credit cards, not to cash advances, so a check drawn on your own card may not may have access to. The fee is still charged upfront.
Third-party services and apps that claim to transfer credit card money to your bank account are rare and usually expensive. They typically charge a percentage fee on top of the cash advance fee your card issuer charges, making the total cost very high. Avoid these unless you have exhausted every other option and understand exactly what you will pay.
Why the cash advance rate is so much higher
Credit card companies charge a higher interest rate on cash advances because they consider them riskier than purchases. When you buy something with a credit card, the merchant guarantees the transaction and the card issuer can dispute it if something goes wrong. When you withdraw cash, there is no merchant and no dispute protection, so the card issuer has less recourse if you do not pay.
The cash advance rate is set in your card's terms and conditions. It is usually between 20 and 30 percent annually, compared to 15 to 25 percent for purchases. This difference means that even a small cash advance becomes expensive very quickly if you do not pay it off within a month or two.
Cheaper alternatives to a credit card cash advance
Before you use a credit card cash advance, consider these lower-cost options. A personal loan from a bank or credit union typically charges 6 to 36 percent interest, depending on your credit score, which is often much lower than a cash advance rate. A home equity line of credit (HELOC) or home equity loan charges even less if you own a home. A credit line from your bank may allow you to write checks or transfer money at a lower rate than a cash advance.
If you have overdraft protection on your checking account, you can overdraw your account and pay overdraft fees, which are usually $25 to $35 per transaction — cheaper than a cash advance fee on a large amount. Asking a friend or family member for a short-term loan costs nothing if you repay it promptly.
If you are considering a cash advance because you are short on cash regularly, that is a sign to look at your budget or talk to a financial counselor. A one-time cash advance is manageable, but repeated cash advances indicate a deeper problem that a loan will not solve.
How a cash advance affects your credit score
A cash advance does not directly hurt your credit score, but it can indirectly damage it in two ways. First, the cash advance increases your credit utilization ratio — the amount of your available credit that you are using. If you have a $5,000 credit limit and take a $1,000 cash advance, your utilization jumps to 20 percent, which can lower your score slightly. Second, if you carry the cash advance balance and make only minimum payments, your score will drop because you are carrying a high balance at a high interest rate.
The cash advance will show up on your credit card statement and credit report as a separate line item from your regular purchases. It does not appear as a different type of account, but lenders can see that you took a cash advance, which some view as a sign of financial stress.
Frequently Asked Questions
Can I transfer money from a credit card to another person's bank account?
Not directly. You can write a cash advance check to someone else's name, but you cannot electronically transfer credit card funds to another person's account. If you need to send money to someone, use a money transfer service like Venmo or PayPal, or ask your bank about wire transfer options. These may have fees, but they are usually lower than a cash advance.
What happens if I do not pay back a cash advance?
The unpaid balance will accrue interest at your cash advance rate and will be reported to the credit bureaus as a late payment if you miss your due date. Your credit score will drop, and the card issuer may raise your interest rate on all balances or close your account. If the debt goes unpaid for long enough, the card issuer may pursue collection action.
Is there a grace period on cash advances like there is on purchases?
No. Interest on a cash advance starts accruing when ready, even if you pay your full statement balance by the due date. This is one of the biggest differences between a cash advance and a regular purchase, and it makes cash advances much more expensive if you carry a balance.
Can I use a credit card cash advance to pay off another credit card?
Technically yes, but it is a bad idea. You would be taking a cash advance (with a high fee and high interest rate) to pay off a purchase balance (which may have a lower interest rate). You would end up paying more in fees and interest than if you straightforward paid the original card. A balance transfer between cards is a better option if you need to move debt.
Will my credit card issuer let me take a cash advance if I am close to my credit limit?
Your cash advance limit is separate from your credit limit. Even if you have used most of your credit limit on purchases, you may still be able to take a cash advance up to your cash advance limit. However, the total of your purchases plus your cash advance cannot exceed your credit limit. Call your card issuer to find out your available cash advance amount.