You can transfer money from a credit card to a bank account, but the method and cost depend on what you're trying to do
A credit card cash advance is the most direct way to move money from your credit card to your bank account. You go to an ATM, use your credit card's PIN, and withdraw cash—which you can then deposit into your bank account. The money appears in your bank account within one business day if you deposit it the same day, or two to three business days if you deposit it later.
The catch is cost. Cash advances charge a fee (usually 3 to 5 percent of the amount withdrawn) plus a higher interest rate than regular purchases—often 20 to 30 percent annually. A $500 cash advance might cost you $15 to $25 upfront, plus interest starting when ready. There is no grace period like there is with regular credit card purchases.
Other routes exist—balance transfers, money transfer services, peer-to-peer apps—but they work differently and suit different situations. Understanding which one fits your actual need saves you money and time.
Key Takeaways
- A cash advance at an ATM using your credit card PIN is the fastest way to get money into your bank account, but it costs 3 to 5 percent upfront plus interest that starts accruing when ready.
- Balance transfers move your credit card balance to another card or account, but they are designed to move debt, not to get cash into a bank account.
- Money transfer services like MoneyGram or Western Union let you send credit card funds to another person's bank account, but they charge 3 to 8 percent and are meant for sending money to someone else, not yourself.
- Peer-to-peer apps like PayPal or Venmo can move money from a credit card to a bank account linked to the same app, though fees and timing vary by app and transaction type.
- Your credit card issuer may offer a convenience check or direct bank transfer option—call the number on the back of your card to ask what routes are available to you.
Cash advances: the fastest route, and the most expensive
A cash advance lets you withdraw money directly from your credit line at an ATM. You insert your credit card, enter your PIN (which you may need to set up first if you have never done a cash advance), and withdraw the amount you need. The money is yours when ready, and you can deposit it into your bank account the same day.
The cost structure is what makes cash advances expensive. You pay an upfront fee—typically 3 to 5 percent of the amount withdrawn—charged to your credit card when ready. If you withdraw $500, you owe $515 to $525 right away. On top of that, interest accrues from the day you withdraw the money, at a rate higher than your regular purchase APR. Most cards charge 20 to 30 percent APR on cash advances, and there is no grace period. Interest starts the moment you take the money out.
Cash advances also count against your credit limit. If your limit is $2,000 and you take a $500 cash advance, you have $1,500 left to spend on purchases. The advance and its fees sit on your statement until you pay them off.
Balance transfers: moving debt, not getting cash
A balance transfer moves your credit card balance to another card or account, usually one with a lower interest rate or a promotional 0 percent APR period. This is not a way to get cash into your bank account. Instead, it moves debt from one place to another.
Some balance transfer offers include a check you can deposit into your bank account, or a direct transfer to a bank account you specify. If your card offers this, it works like this: you request the transfer, the card issuer sends the money to your bank account, and you owe that amount on your credit card at the balance transfer rate (often 0 percent for 6 to 21 months, then a regular APR). You pay a balance transfer fee, usually 3 to 5 percent, charged upfront.
The advantage over a cash advance is the interest rate—0 percent for a set period means no interest accrues if you pay off the balance before the promotional period ends. The disadvantage is that you are moving debt, not accessing spare cash. You owe the full amount you transferred, and if you do not pay it off before the promotional period ends, the interest rate jumps to the regular APR, which can be 15 to 25 percent.
Money transfer services: sending credit card funds to someone else's account
Money transfer services like MoneyGram, Western Union, and similar providers let you send money from your credit card to another person's bank account. They are designed for sending money to someone else, not for moving your own money between your own accounts.
The process is straightforward: you go to a MoneyGram or Western Union location (or use their website or app), provide the recipient's bank account details, pay with your credit card, and the money goes to their account. The service charges a fee—typically 3 to 8 percent of the amount sent, depending on the service and the amount—plus any fees your credit card issuer charges for a cash-like transaction.
If you are trying to move money to your own bank account, you would need to send it to yourself, which means providing your own bank account details to the service. This works, but it is an inefficient way to access your own money and costs more than a cash advance in many cases. It also takes longer—money typically arrives in one to three business days, not when ready.
Peer-to-peer apps: variable fees and timing
Apps like PayPal, Venmo, Square Cash, and similar services let you move money from a credit card to a bank account, but the process and cost depend on the app and the type of transaction.
Most peer-to-peer apps work like this: you link your credit card and your bank account to the app, then transfer money from the card to the app account, and from the app account to your bank account. Some apps charge a fee for credit card transfers (often 2 to 3 percent), while others do not charge a fee but take longer to process the transfer. PayPal, for example, charges 2.9 percent plus $0.30 when you transfer from a credit card to your PayPal balance, then charges nothing to move money from PayPal to your linked bank account—but the bank transfer takes one to three business days.
The advantage is lower fees than a cash advance if you use an app that does not charge for credit card transfers. The disadvantage is timing—most peer-to-peer transfers take one to three business days, not the same day. Also, some apps limit how much you can transfer per day or per month, and some do not let you transfer directly from a credit card to a bank account without going through the app's balance first.
Convenience checks and direct bank transfers from your card issuer
Some credit card issuers offer convenience checks—checks that draw directly from your credit line. You write a check for the amount you need, deposit it into your bank account, and the amount is charged to your credit card. Convenience checks work like cash advances: you pay an upfront fee (usually 3 to 5 percent) and interest starts accruing when ready at the cash advance rate.
A few card issuers also offer the option to request a direct transfer from your credit card to your bank account through their website or app. This is similar to a balance transfer but without moving debt to another card. You request the transfer, specify the amount and your bank account details, and the money goes to your account. Fees and interest rates vary by issuer, so call the number on the back of your card to ask what options are available to you and what each one costs.
Comparing the cost and timing of each method
| Method | Upfront Fee | Interest Rate | Timing | Best For |
|---|---|---|---|---|
| Cash advance (ATM) | 3–5% | 20–30% APR, starts when ready | Same day | When you need cash now and can pay it back quickly |
| Balance transfer with bank deposit | 3–5% | 0% for 6–21 months, then 15–25% APR | 3–7 business days | When you can pay off the balance before the promotional period ends |
| Money transfer service | 3–8% | None (but counts as cash-like transaction) | 1–3 business days | Sending money to someone else, not your own account |
| Peer-to-peer app | 0–3% | None | 1–3 business days | When you have time to wait and want to avoid interest |
| Convenience check | 3–5% | 20–30% APR, starts when ready | 3–5 business days (deposit time) | When you need a check format for a specific payment |
Why your credit card issuer treats this differently than a regular purchase
Credit card issuers charge higher fees and interest rates for cash advances and convenience checks because they see them as riskier than regular purchases. When you buy something with your credit card, the merchant has an incentive to deliver the goods or service—if they do not, you can dispute the charge. When you withdraw cash or get a check, there is no merchant and no product to dispute. The issuer has less recourse if something goes wrong.
Cash advances also bypass the fraud protections built into the credit card network. A regular purchase goes through Visa or Mastercard's system, which flags suspicious activity. A cash advance at an ATM does not, so the issuer charges more to cover the risk.
The lack of a grace period on cash advances is another cost factor. Regular credit card purchases have a grace period—usually 21 to 25 days—during which no interest accrues if you pay the full balance. Cash advances have no grace period because the issuer wants to start earning interest when ready on money that has no merchant protection.
Frequently Asked Questions
Does transferring money from a credit card to a bank account hurt my credit score?
A cash advance or balance transfer shows up on your credit report as a new transaction, but it does not directly hurt your score. What matters is your credit utilization ratio—the percentage of your available credit you are using. A $500 cash advance on a $2,000 limit raises your utilization from 0 percent to 25 percent, which can lower your score slightly. Paying it off quickly brings your utilization back down and recovers the score.
Can I use a credit card cash advance to pay off another credit card?
Yes, you can withdraw a cash advance and deposit it into your bank account, then use that money to pay another credit card. However, this is expensive—you pay the cash advance fee plus interest on the advance, plus you are moving money between your own accounts. It is usually cheaper to do a balance transfer directly from one card to another, which also comes with a promotional 0 percent APR period in many cases.
What happens if I cannot pay back the cash advance?
The cash advance balance sits on your credit card statement and accrues interest at the higher cash advance rate until you pay it off. If you do not pay it, the balance grows, your credit utilization increases, and your credit score drops. After 30 days of missed payments, the issuer reports the delinquency to the credit bureaus. After 180 days, the account may be charged off and sent to a collection agency.
Is there a limit to how much I can withdraw as a cash advance?
Yes. Most credit card issuers set a cash advance limit that is lower than your total credit limit—often 20 to 50 percent of your credit limit. If your credit limit is $2,000, your cash advance limit might be $400 to $1,000. You can find your cash advance limit in your card's terms and conditions or by calling the issuer.
Can I transfer money from a credit card to a bank account without paying a fee?
Not through a cash advance, balance transfer, or convenience check—all of those charge upfront fees. A peer-to-peer app like PayPal or Venmo may not charge a fee for credit card transfers, but the transfer takes one to three business days. Some apps also limit how much you can transfer for free per day or per month.