You can transfer money from a credit card to a bank account, but it costs money and counts as a cash advance
Yes, you can move money from your credit card into your checking or savings account. The process is called a cash advance, and your credit card company will treat it differently from a regular purchase. Instead of the interest-free grace period you get on most credit card buys, a cash advance starts charging interest when ready — usually at a higher rate than your regular purchase APR. You will also pay an upfront fee, typically 3 to 5 percent of the amount you transfer.
The main ways to do this are a balance transfer check (if your card issuer offers one), an ATM withdrawal using your credit card, or a direct transfer through your card's app or website. Each method has different fees and interest rates, so understanding which one you are considering matters before you move forward.
Key Takeaways
- Cash advances from credit cards charge interest from day one, with no grace period like regular purchases have.
- You will pay an upfront fee of 3 to 5 percent of the amount transferred, plus a higher interest rate than your purchase APR.
- Balance transfer checks, ATM withdrawals, and app-based transfers are the three main methods, each with different costs.
- A cash advance shows up on your credit report and can lower your credit score because it increases your credit utilization.
- If you need money urgently, a personal loan or line of credit usually costs less than a credit card cash advance.
How cash advances work and why they cost more
When you take a cash advance on your credit card, your card issuer is lending you money against your available credit, just like they do with a purchase. The difference is in how they charge you for it. A regular purchase gets a grace period — usually 21 to 25 days — where no interest accrues if you pay the full balance by the due date. A cash advance has no grace period. Interest starts the moment the money leaves your account.
The interest rate on a cash advance is also higher than your regular purchase APR. If your card charges 18 percent APR on purchases, the cash advance APR might be 22 or 25 percent. On top of that, you pay a one-time fee upfront, calculated as a percentage of the amount you transfer. Most cards charge between 3 and 5 percent, though some charge a flat fee like $10 instead. A $500 cash advance with a 4 percent fee costs you $20 before any interest accrues.
Because of these costs, a cash advance is expensive for anything other than a genuine emergency. If you need $500 and carry the balance for three months, you could pay $30 to $40 in interest alone, plus the upfront fee. That is roughly 12 to 16 percent of the amount you borrowed.
Three ways to move money from your credit card to your bank account
Balance transfer checks are physical checks your card issuer mails to you. You write one to yourself or to a payee, deposit it into your bank account, and the charge appears on your credit card statement as a cash advance. Not all cards offer these, and some issuers have stopped sending them. If your card does offer them, you can usually request them through your online account or by calling the number on the back of your card. The fee and interest rate are the same as other cash advances.
ATM withdrawals are the most straightforward method. You use your credit card at any ATM that accepts it, enter your PIN, and withdraw cash. The money goes directly into your hand, and you can deposit it into your bank account afterward. ATMs charge their own fee (usually $2 to $3) on top of your card's cash advance fee. This method is useful if you need cash when ready, but it is also the easiest to use impulsively.
App or website transfers are offered by some card issuers. You log into your credit card's app or website, select a linked bank account, and request a transfer. The money usually arrives within one to three business days. This method has the same cash advance fee and interest rate as the others, but it avoids the ATM fee and the need to physically handle cash. Check your card's app to see if this option is available.
How a cash advance affects your credit score
Taking a cash advance shows up on your credit report as a new account inquiry and a change in your credit utilization. Credit utilization is the percentage of your total available credit that you are currently 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 treat high utilization as a sign of financial stress, so your score can drop by 10 to 50 points depending on how much you borrow and what your utilization was before.
The impact is temporary if you pay off the cash advance quickly. Once the balance is zero, your utilization drops back down and your score begins to recover. But if you carry the balance for months, the damage to your score persists as long as the balance is there.
A cash advance also does not help your credit history the way a regular credit card purchase does. Both show up on your report, but lenders see a cash advance as riskier behavior — it suggests you are borrowing against credit rather than using it to buy things. This can make you look less creditworthy to future lenders.
When a cash advance makes sense and when it does not
A cash advance is worth considering only in specific situations. If you have a genuine emergency — a car repair you need today, a medical bill you cannot delay — and you have no other way to pay, a cash advance is faster than waiting for a personal loan to be approved. If you can pay it back within a month or two, the total interest cost stays relatively low.
A cash advance does not make sense if you are using it to pay off other debt, cover regular expenses, or fund a purchase you could make with a debit card. In those cases, you are paying 3 to 5 percent upfront plus high interest for money you are borrowing against credit you already have. A personal loan, a line of credit, or even a 0 percent balance transfer card (if you have good credit) will cost you less.
If you are considering a cash advance because you do not have enough money in your bank account, that is a sign to pause and think about whether you can delay the purchase, cut something else from your budget, or find a cheaper way to borrow. Taking a cash advance when you are already stretched thin usually makes the situation worse, not better.
Cheaper alternatives to a credit card cash advance
A personal loan from a bank or credit union typically charges 6 to 36 percent APR depending on your credit score, with no upfront fee. If you have decent credit, a personal loan will cost you less than a cash advance. The money arrives in your bank account in one to five business days, and you repay it in fixed monthly installments. You know exactly what you owe from the start.
A line of credit works like a credit card but usually charges lower interest rates. You borrow what you need, pay interest only on what you use, and repay it on a schedule. Credit unions often offer these at lower rates than banks.
A 0 percent balance transfer card is useful if you are trying to move debt from one card to another. You transfer the balance to a new card that offers 0 percent APR for a promotional period (usually 6 to 21 months), then pay down the balance interest-free during that time. You do pay a balance transfer fee upfront, typically 3 to 5 percent, but if you can pay off the balance before the promotional period ends, you save money on interest.
If you have a 401(k) or similar retirement account, some plans allow you to borrow against your own money at a low interest rate. This is not ideal because it reduces your retirement savings, but it is cheaper than a cash advance and you are paying interest to yourself, not to a lender.
Steps to take before you transfer money from your credit card
Before you request a cash advance, check your card's current APR and cash advance fee. This information is in your cardholder agreement or on your statement. Calculate what the total cost will be if you carry the balance for the length of time you expect. A $1,000 cash advance with a 4 percent fee ($40) plus three months of interest at 25 percent APR costs roughly $102 total. If that cost is acceptable for your situation, move forward. If not, explore the alternatives above.
Next, confirm that your bank account is linked to your credit card if you are planning an app or website transfer. If you are using an ATM, make sure you have your PIN. If you are using a balance transfer check, request it from your card issuer and allow time for it to arrive in the mail.
Finally, make a plan to pay back the cash advance as quickly as possible. The longer the balance sits, the more interest you pay. If you cannot pay it back within a few months, reconsider whether a cash advance is the right choice.
Frequently Asked Questions
Does a cash advance hurt my credit score?
Yes, temporarily. Your credit utilization increases when ready, which can lower your score by 10 to 50 points. The impact fades as you pay down the balance. A cash advance also shows up as a separate inquiry on your report, which some scoring models view as riskier than a regular purchase.
Can I transfer money from a credit card to a savings account instead of checking?
Yes. The method is the same — balance transfer check, ATM withdrawal, or app transfer — and the money can go into any bank account you own. The fees and interest rates are identical regardless of which account receives the money.
What is the difference between a cash advance and a balance transfer?
A balance transfer moves debt from one credit card to another, usually with a promotional 0 percent APR period. A cash advance converts credit into cash deposited in your bank account, with interest starting when ready. Balance transfers are for moving existing debt; cash advances are for getting cash.
If I take a cash advance, can I pay it back with a debit card?
Yes. Once the money is in your bank account, you can use it however you want. When you are ready to pay back the credit card, you can send a payment from your bank account using any method your card issuer accepts — online, by phone, or by mail.
Why would anyone use a cash advance if it costs so much?
Speed and desperation. A cash advance is available when ready if you have a credit card in hand. A personal loan takes days to approve. If you have a genuine emergency and no other option, the high cost is worth it. But for planned expenses or non-emergencies, a cheaper loan is almost always available if you have time to explore.