Yes, but it costs money and the money is a loan, not a transfer
You can move cash from a credit card to a bank account, but the credit card company treats it as a new loan with its own interest rate and fees—not as a straightforward transfer. The most common method is a cash advance, which lets you withdraw cash at an ATM or get it from a bank teller using your credit card. The moment you do this, interest starts accruing at a rate that is usually higher than your regular purchase APR, and you pay an upfront fee (typically 3 to 5 percent of the amount withdrawn).
A second method is a balance transfer check, where the card issuer sends you a check drawn against your credit line. You deposit it in your bank account like any other check. This also carries a fee and interest, though sometimes at a promotional rate for the first few months. A third method is a peer-to-peer transfer service or money transfer app that lets you move funds from your card to your bank account, but these also charge fees and treat the transaction as a cash advance.
The key difference from a debit card or regular bank transfer: the money is borrowed at credit card rates, not moved from your own account. You will owe it back with interest unless you pay the balance in full before the grace period ends—and most cash advances have no grace period at all.
Key Takeaways
- Cash advances charge an upfront fee of 3 to 5 percent plus a higher interest rate than regular purchases, with interest starting when ready.
- Balance transfer checks work similarly but may offer a promotional interest rate for the first few months if you read the terms carefully.
- The money is a loan against your credit line, not a transfer from your own funds, so you must repay it.
- If you need cash urgently, a personal loan or line of credit from your bank usually costs less than a credit card cash advance.
How cash advances work and what they cost
When you take a cash advance, the credit card company charges you a cash advance fee upfront—usually 3, 4, or 5 percent of the amount you withdraw, with a minimum fee of $5 to $10. So if you withdraw $500, you might pay $15 to $25 just to get the cash. That fee is added to your credit card balance when ready.
The interest rate on a cash advance is separate from your purchase APR and is almost always higher. While a typical purchase APR might be 18 to 25 percent, a cash advance APR can be 25 to 30 percent or more. Unlike purchases, there is no grace period—interest starts accruing the day you withdraw the cash, not at the end of a billing cycle. This means even a short-term cash advance costs significantly more than borrowing the same amount through other means.
You can take a cash advance at an ATM using your PIN, at a bank teller window, or through a convenience check. The amount you can withdraw is limited by your credit limit and sometimes by a separate cash advance limit that is lower than your total credit line.
Balance transfer checks and promotional rates
Some credit card issuers send balance transfer checks to cardholders, usually unsolicited. These checks are drawn against your credit line, so when you deposit one in your bank account, you are borrowing from the card issuer. The fee is typically 3 to 5 percent, the same as a cash advance.
The difference is that balance transfer checks sometimes come with a promotional interest rate—0 percent APR for 6 to 12 months, for example—while cash advances do not. Read the fine print carefully: the promotional rate applies only to the balance transfer check itself, not to other balances or purchases on the card. If you miss a payment during the promotional period, the rate usually jumps to the standard APR when ready. After the promotional period ends, any remaining balance reverts to the regular APR.
Balance transfer checks are worth considering only if you can repay the borrowed amount before the promotional rate expires and you understand the exact terms. Many people assume the 0 percent rate applies to their whole card, which it does not.
Money transfer apps and third-party services
Apps like PayPal, Square Cash, and Venmo allow you to link a credit card and transfer money to a bank account, but they treat credit card transfers as cash advances. You pay a fee (usually 2 to 3 percent) and the money is borrowed at your card's cash advance rate, not transferred from your own funds. Some apps charge a flat fee instead of a percentage.
These services are convenient if you need the money quickly and do not mind the cost, but they are not cheaper than a direct cash advance from your card issuer. The advantage is that the process is faster and you do not have to visit an ATM or bank branch. The disadvantage is the same: you are borrowing money at credit card rates.
When a personal loan or line of credit is cheaper
If you need cash regularly or in larger amounts, a personal loan or line of credit from your bank or credit union is almost always cheaper than a credit card cash advance. Personal loans typically have APRs of 6 to 36 percent depending on your credit score, which is lower than most cash advance rates. There is no upfront fee, and interest does not start until you actually borrow the money.
A line of credit works similarly: you are approved for a maximum amount, you draw what you need, and you pay interest only on what you use. Both options require an process and a credit check, so they take longer than a cash advance, but if you know you will need cash over time, the savings are substantial.
If you have a good relationship with your bank, ask about a personal line of credit before you resort to a credit card cash advance. The rate will almost certainly be lower, and you will not be charged an upfront fee.
Why you should avoid cash advances unless absolutely necessary
A cash advance is expensive because it combines three costs: an upfront fee, a higher interest rate, and no grace period. If you borrow $1,000 at a 28 percent cash advance APR with a 4 percent fee, you pay $40 upfront plus $23 in interest in the first month alone. Over six months, the total cost is roughly $110 to $120 in interest and fees.
The same $1,000 borrowed through a personal loan at 15 percent APR would cost about $37 in interest over six months. The difference is not small, and it grows the longer you carry the balance. Credit card companies make cash advances available because they are profitable, not because they are a good deal for you.
If you are considering a cash advance because you are short on cash, that is a sign to look at your budget or explore other options first. If you need the money for an emergency, a personal loan, a payment plan with a creditor, or a short-term loan from a credit union are all cheaper routes.
How to repay a cash advance quickly
If you do take a cash advance, repay it as fast as possible because the interest rate is high and there is no grace period. Make a plan to pay it back within one or two months if you can, before the interest compounds.
When you make a payment on your credit card, the issuer applies it first to the lowest-interest balance (usually purchases), then to higher-interest balances (cash advances). This means if you have both purchases and a cash advance on the same card, your payment goes to the purchase first, and the cash advance keeps accruing interest. To pay down the cash advance faster, contact your issuer and ask them to explore your payment directly to the cash advance balance, or pay more than the minimum so the extra goes toward the higher-interest debt.
Some issuers will do this; others will not. Either way, the fastest path is to pay the entire balance as soon as you can and avoid taking another cash advance.
Frequently Asked Questions
Can I transfer a credit card balance to my bank account?
Not directly. A balance transfer moves money from one credit card to another, not to a bank account. If you want to move credit card debt to your bank account, you would need to take a cash advance or use a balance transfer check, both of which are new loans with fees and interest.
What is the difference between a cash advance and a balance transfer?
A cash advance is money you withdraw in cash or deposit as a check; a balance transfer moves debt from one credit card to another. Both are loans with fees, but balance transfers sometimes offer a promotional interest rate while cash advances do not. Neither is a transfer of your own money.
Will a cash advance hurt my credit score?
A cash advance itself does not appear on your credit report, but it increases your credit utilization (the percentage of your credit limit you are using), which can lower your score slightly. Missed payments on the cash advance will hurt your score significantly.
Can I use a credit card cash advance to pay off another debt?
Technically yes, but it is usually a bad idea because you are borrowing at a high rate to pay off another debt. If the other debt has a lower interest rate, you are making your situation worse. If it has a higher rate, a personal loan would be cheaper than a cash advance.
What happens if I do not repay a cash advance?
The balance stays on your credit card and accrues interest at the cash advance rate. If you miss payments, late fees are added and your credit score drops. The issuer can eventually close your account and send the debt to a collection agency.