You cannot transfer a credit card balance directly into a bank account the way you might move money between two bank accounts
A credit card and a bank account are different kinds of financial tools. Your bank account holds money you own. Your credit card is a line of credit — the card company lends you money when you swipe, and you pay them back later. Because of that difference, you cannot straightforward move the balance from one to the other.
What you can do is use your credit card to get cash, then deposit that cash into your bank account. But this comes with costs and fees that make it an expensive way to move money. There are also a few other paths depending on what you are actually trying to do — whether you want to pay down the card, move a balance to a different card, or get cash in hand.
Key Takeaways
- A cash advance from your credit card puts money in your bank account but charges a fee (usually 3 to 5 percent) plus a higher interest rate than regular purchases.
- Balance transfers move your debt to a different credit card, not to a bank account, and also charge a fee.
- If you want to pay off your credit card balance using money from your bank account, you pay the card company directly — you do not move the balance anywhere.
- Some credit cards let you transfer money to a linked bank account, but this counts as a cash advance and carries the same fees and interest rates.
Getting cash from your credit card through a cash advance
A cash advance is when you use your credit card to withdraw cash from an ATM or ask a bank teller for cash. The money goes into your hand or your bank account, but the credit card company charges you for this service.
The cost has two parts. First, there is an upfront cash advance fee — usually between 3 and 5 percent of the amount you withdraw. If you take out $500, you might pay $15 to $25 just to get the cash. Second, the interest rate on a cash advance is almost always higher than the rate on regular credit card purchases. While a purchase might charge 18 percent interest, a cash advance might charge 25 percent or more. Interest starts accruing when ready — there is no grace period like there is for purchases.
Because of these costs, a cash advance is an expensive way to move money. It makes sense only if you have no other option and need the cash urgently.
Balance transfers: moving debt to a different card
A balance transfer moves what you owe from one credit card to another credit card, usually one with a lower interest rate. This does not put money in your bank account — it moves your debt instead.
Balance transfers also charge a fee, typically 3 to 5 percent of the amount transferred. However, many cards offer a period (often 6 to 12 months) where the interest rate on the transferred balance is 0 percent. If you can pay down the balance during that period, a balance transfer can save you money compared to paying interest on your original card.
Balance transfers are useful if you are trying to reduce what you owe on a high-interest card. They are not useful if you need cash in your bank account.
Paying your credit card bill from your bank account
If what you actually want to do is pay off your credit card using money in your bank account, you do not need to transfer anything. You straightforward make a payment from your bank account to your credit card company.
You can do this through your credit card's website or app, by phone, by mail, or sometimes in person at a branch. The credit card company will tell you where to send the payment and what information they need. Most payments process within one to three business days. There is no fee for paying your credit card bill.
This is the normal, free way to pay down a credit card balance. If you have money in your bank account and want to reduce what you owe on your card, this is the path to take.
Credit cards that offer bank transfers
Some credit card companies let you transfer money directly from your credit card to a linked bank account through their app or website. On the surface, this looks like what you want — money moving from the card to the bank. But technically, this is still a cash advance, and it carries the same fees and interest rates.
You will pay the cash advance fee upfront and start accruing interest when ready. The money arrives in your bank account, but the cost of getting it there is the same as if you had withdrawn cash from an ATM. Check your card's terms to see whether this feature is available and what the fee is before you use it.
When you might actually need a cash advance
Cash advances are expensive, so they make sense only in specific situations. If you need cash because a business will not take your card (some small vendors, farmers markets, or informal services), a cash advance might be your only option. If you are in a true emergency and have no other way to get cash, the fee might be worth it.
But if you are trying to pay a bill, transfer money to savings, or move money between your own accounts, there are almost always cheaper ways. A debit card, a bank transfer, or a direct payment from your bank account will cost you nothing.
Frequently Asked Questions
Can I transfer my credit card balance to my bank account for free?
No. Any method that moves money from your credit card to your bank account — whether it is a cash advance, a direct transfer through the app, or a withdrawal from an ATM — charges a fee and interest. The only free option is paying your credit card bill from your bank account, which reduces what you owe but does not put cash in the bank.
What is the difference between a cash advance and a regular purchase?
A regular purchase is something you buy with your card and pay back later. A cash advance is borrowing cash directly from your credit card. Cash advances charge a higher interest rate, start accruing interest when ready with no grace period, and include an upfront fee. Regular purchases usually have a grace period before interest kicks in.
If I transfer money from my credit card to my bank account, does that pay off my credit card?
No. The money in your bank account is separate from what you owe on your credit card. If you take a cash advance, you now owe that amount plus a fee and interest to your credit card company. To actually pay off the card, you send money from your bank account directly to the credit card company as a payment.
Are there any credit cards that let you transfer to a bank account without fees?
No. Any transfer of money from a credit card to a bank account is treated as a cash advance by the card company, and all cash advances charge fees and interest. If a card advertises "fee-free transfers," read the fine print — there will be an interest rate or a fee somewhere in the terms.