You can transfer money from a credit card to a bank account, but it costs money and counts as a cash advance
Moving money from a credit card to a checking or savings account is possible through several methods, but each one treats the transaction as a cash advance rather than a regular purchase. This matters because cash advances carry higher interest rates than regular credit card charges — often 3 to 5 percentage points higher — and start accruing interest when ready with no grace period. You also pay an upfront fee, usually 3 to 5 percent of the amount transferred.
The three main routes are a balance transfer check, an ATM withdrawal, or a third-party money transfer service. Which one makes sense depends on how much you need, how quickly, and whether you can pay it back before interest compounds.
Key Takeaways
- Cash advances from credit cards charge higher interest rates and upfront fees, making them expensive compared to other borrowing methods.
- Balance transfer checks arrive by mail and take 5 to 10 business days, but let you move larger amounts without visiting an ATM.
- ATM withdrawals are when ready but limited to $500 to $1,000 per day depending on your card issuer and account settings.
- Third-party services like PayPal or Square Cash can move money faster but add another layer of fees and may not work with all credit cards.
- Interest on a cash advance starts the day you withdraw it, so paying it back quickly is the only way to avoid steep charges.
Balance transfer checks: the slowest but highest-limit option
Many credit card issuers send balance transfer checks to cardholders, usually as part of promotional offers. You write a check against your credit card account and deposit it into your bank account like any other check. The money appears in your bank account within 5 to 10 business days, depending on your bank's processing time.
Balance transfer checks typically allow you to move $1,000 to $10,000 or more, depending on your credit limit and the card issuer's terms. However, the fee is the same as a regular cash advance — 3 to 5 percent — and interest starts accruing when ready. Some issuers offer promotional periods where the interest rate is lower for the first 6 to 12 months, but you need to read the fine print on the check itself or your account terms to know whether that applies.
Request balance transfer checks by calling your credit card company or logging into your online account. Not all cards offer them, and some issuers have stopped sending them entirely.
ATM withdrawals: when ready but with daily limits
You can withdraw cash directly from an ATM using your credit card, which moves money to your bank account if you then deposit the cash. ATM withdrawals happen when ready, so there is no waiting period.
The catch is the daily limit. Most credit card issuers cap cash advances at $500 to $1,000 per day, though some allow higher amounts if you call and request an increase beforehand. You also pay the cash advance fee upfront — typically $3 to $10 per transaction or 3 to 5 percent of the amount, whichever is higher — plus any ATM operator fee if you use an out-of-network machine.
If you need $2,000, you would need to make multiple withdrawals over several days, paying the fee each time. This method works best for small amounts under $500.
Third-party money transfer services: faster but with extra fees
Services like PayPal, Square Cash, Venmo, and Google Pay can receive money from a credit card and send it to a bank account, though the process varies by service and not all credit cards are accepted.
With PayPal, you can link your credit card, transfer money to your PayPal balance, and then withdraw to your bank account. The transfer to PayPal is when ready, but the withdrawal to your bank takes 1 to 3 business days. PayPal charges a 2.9 percent fee plus $0.30 for credit card transfers, on top of the cash advance fee your credit card issuer charges. Square Cash and similar services may not accept credit cards at all for incoming transfers — they typically require a bank account or debit card as the source.
These services are useful if you already use them for other payments, but they add a second layer of fees on top of your credit card's cash advance charge, making them more expensive than a direct ATM withdrawal or balance transfer check.
What the total cost looks like
A $1,000 cash advance breaks down like this: your credit card charges a $30 to $50 upfront fee (3 to 5 percent). If you pay it back within 30 days, you owe roughly $15 to $25 in interest at a typical 18 to 25 percent annual rate. If you carry the balance for 90 days, interest alone reaches $45 to $65. Over a year, you pay $180 to $250 in interest alone, plus the original fee.
By comparison, a personal loan from a bank or credit union for the same amount typically costs 6 to 12 percent annually, or $60 to $120 per year. A payday loan costs more upfront but is meant to be repaid in two weeks. A credit card cash advance is one of the most expensive ways to borrow money, so it should only be used when you have no other option and can pay it back within weeks.
Why your credit card issuer treats this differently
Credit card companies distinguish between purchases and cash advances because cash advances carry higher default risk. When you buy something with a credit card, the merchant has already delivered the goods or service, so the card issuer has some recourse if you do not pay. With a cash advance, you have the money in hand with no underlying transaction, so the issuer has only your promise to repay.
This is also why cash advances do not earn rewards points or cash back, even if your card offers them on purchases. The issuer is already charging you more in interest and fees, so they do not add rewards on top.
Alternatives that cost less
Before using a credit card cash advance, consider these cheaper options. A personal loan from a bank, credit union, or online lender typically charges 6 to 36 percent annual interest with no upfront fee. A line of credit from your bank works similarly and may be cheaper if you have an existing relationship. A 0 percent balance transfer card lets you move debt from one card to another interest-free for 6 to 21 months, though this only works if you are transferring existing credit card debt, not moving money to a bank account.
If you need money urgently, ask your employer about paycheck advances, which are usually free. If you have a 401(k), you may be able to borrow against it at a low rate. If you own a home, a home equity line of credit (HELOC) or home equity loan typically charges 4 to 8 percent.
Frequently Asked Questions
Does a cash advance show up on my credit report?
The cash advance itself does not appear as a separate line item on your credit report, but it increases your credit card balance, which raises your credit utilization ratio. This can lower your credit score temporarily. The transaction does appear in your credit card statement and your card issuer's records.
Can I use a credit card cash advance to pay off another credit card?
Technically yes, but it is expensive. You pay the cash advance fee and interest rate on the money you withdraw, then pay interest again on the card you deposit it into. A balance transfer between two of your own cards, or a personal loan, costs less.
What happens if I cannot pay back the cash advance?
The balance stays on your credit card and accrues interest at the cash advance rate. If you miss payments, your credit score drops and the card issuer may increase your interest rate or close your account. After 180 days of non-payment, the issuer typically charges off the debt and may sell it to a collection agency.
Is there a way to transfer money without paying a fee?
Not through your credit card directly. However, if you have a debit card linked to the same bank account, you can withdraw cash from an ATM for free (at your bank's ATM) and deposit it into savings. If you need to move money between your own accounts at different banks, most banks offer free transfers through their online portal or ACH transfers.
How long does a balance transfer check take to clear?
The check itself clears within 5 to 10 business days, depending on your bank's processing time. Some banks clear checks faster if you deposit them through mobile deposit rather than at a branch. The money is available for withdrawal once the check clears, though your bank may place a temporary hold on large deposits.