What you can do and what it will cost you

Yes, you can move money from a credit card to a bank account, but it is not the same as withdrawing cash. The most common method is a cash advance, which lets you borrow against your credit limit and deposit the money into your checking or savings account. However, cash advances charge fees and interest rates that are usually much higher than regular credit card purchases, so this is expensive money to borrow.

There are also other methods — balance transfer checks, peer-to-peer payment apps, and direct transfers through some banks — but each one has different costs and rules. Understanding which method costs the least and fits your situation will save you money.

Key Takeaways

  • A cash advance is the direct way to move credit card money to your bank account, but it charges a fee (usually 3 to 5 percent of the amount) plus a higher interest rate than purchases.
  • Interest on a cash advance starts accruing when ready, with no grace period, so the longer the money sits in your account, the more you pay.
  • Balance transfer checks work similarly to cash advances and carry the same fees and interest rates.
  • Some payment apps like PayPal or Venmo let you move money to your bank, but they are designed for person-to-person transfers, not for accessing credit card funds.
  • Before using any method, compare the total cost — the fee plus the interest you will pay — against why you need the money in the first place.

How a cash advance works

A cash advance is a short-term loan against your credit card's available balance. You request the advance through an ATM, your bank, or your credit card company's website or app, and the money goes directly into your bank account. The process usually takes one to three business days.

Your credit card company charges you a cash advance fee upfront — typically 3 to 5 percent of the amount you withdraw, though some cards charge a flat dollar amount instead. So if you take a $500 cash advance with a 4 percent fee, you owe $20 when ready, plus the $500 principal. That fee is added to your credit card balance.

Unlike a purchase, a cash advance does not get a grace period. Interest starts accruing the day you take the advance, usually at a higher rate than your purchase APR. If your purchase APR is 18 percent, your cash advance APR might be 25 percent or higher. This means the money is expensive to borrow, and the longer you carry the balance, the more interest you pay.

Balance transfer checks and other methods

Some credit card companies send you checks that draw against your credit line. These work like cash advances — you deposit the check into your bank account, and the amount is added to your credit card balance with the same fees and interest rates as a cash advance. The fee is usually 3 to 5 percent, and interest starts when ready.

Payment apps like PayPal, Venmo, or Square Cash can move money to your bank account, but they are not designed to tap your credit card's available balance. If you link your credit card to one of these apps and send money to yourself, the app may treat it as a cash advance anyway and charge the same fees. Check your app's terms before trying this.

Some banks offer a feature called a credit card advance or credit line advance that works differently — you borrow directly from a line of credit rather than your credit card's balance. These sometimes have lower fees and interest rates than a true cash advance, so ask your bank whether this option is available to you.

When a cash advance makes sense

A cash advance is expensive, so it only makes sense in specific situations. If you need money for an emergency and have no other way to get it, a cash advance might be your only option — but even then, you should understand the full cost before you proceed.

Calculate the total cost by multiplying the amount you borrow by the interest rate, then dividing by 12 to get the monthly cost. If you borrow $1,000 at 25 percent APR, you pay about $21 per month in interest alone. Add the upfront fee, and your true cost is much higher. If you can pay back the advance within a few weeks, the interest cost stays low. If you carry it for months, the interest will exceed the fee.

Compare this cost against the alternatives. If you can borrow from a friend, take out a personal loan from a bank, or use a payday lender (which is also expensive but sometimes cheaper than a cash advance), calculate those costs too. The cheapest option is usually the one you should use.

How to take a cash advance

You have several ways to request a cash advance, depending on your credit card company. The fastest method is usually an ATM — insert your card, select "cash advance" or "withdraw cash," and enter the amount. The ATM will dispense the money when ready, though some ATMs have daily limits that may be lower than your available credit.

You can also call your credit card company's customer service number (on the back of your card) and request a cash advance. They will ask how much you need and where you want the money sent. If you want it in your bank account rather than as a check, ask them to arrange a direct transfer.

Many credit card companies also offer cash advances through their website or mobile app. Log in, look for a "cash advance" or "get cash" option, and follow the prompts. The money usually arrives in your bank account within one to three business days.

Fees and interest you will pay

The total cost of a cash advance includes three parts: the upfront fee, the interest that accrues while you carry the balance, and any ATM fees if you use an ATM outside your bank's network.

The upfront fee is charged once, when you take the advance. It ranges from 3 to 5 percent of the amount, though some cards charge a flat fee like $10 or $15. This fee is added to your credit card balance when ready.

Interest accrues daily from the moment you take the advance, at your cash advance APR. This rate is usually higher than your purchase APR and varies by card and by your creditworthiness. There is no grace period, so even if you pay the balance in full the next day, you will owe one day's worth of interest.

If you use an ATM that is not part of your bank's network, you may also pay an ATM fee — usually $2 to $3 — charged by the ATM operator. Your credit card company may charge an additional fee on top of that.

Alternatives to a cash advance

Before taking a cash advance, explore other ways to get money. A personal loan from a bank or credit union usually has a lower interest rate and a fixed repayment schedule, so you know exactly how much you will pay. The downside is that approval takes longer — usually a few days to a week.

A line of credit from your bank works similarly to a personal loan but lets you borrow only what you need, when you need it. Interest rates are usually lower than a cash advance, and you pay interest only on the amount you actually borrow.

If you have a savings account with money in it, withdrawing from savings costs nothing and avoids debt entirely. If you do not have savings, borrowing from a friend or family member (with a written agreement about repayment) is usually free or very cheap.

A payday loan is another option, though it is also expensive. Payday lenders charge a flat fee (usually $15 to $20 per $100 borrowed) and require repayment within two weeks. This can be cheaper than a cash advance if you repay quickly, but it is a trap if you cannot pay back the full amount on time.

Frequently Asked Questions

Does taking a cash advance hurt my credit score?

A cash advance itself does not directly hurt your score, but it increases your credit utilization — the percentage of your available credit you are using. High utilization can lower your score temporarily. Additionally, if you carry the balance and miss payments, that will damage your score more significantly.

Can I take a cash advance from a credit card I just opened?

Most credit card companies allow cash advances when ready after you open the account, but some have a waiting period of a few days or weeks. Check your card's terms or call customer service to confirm. Your available credit limit for cash advances may also be lower than your overall credit limit.

What happens if I cannot pay back the cash advance?

The balance stays on your credit card and accrues interest every month. If you miss payments, your credit score will drop, and the card company may charge late fees. Eventually, the company may close your account or send the debt to a collection agency. Contact your card company when ready if you cannot pay — they may offer a hardship plan.

Is there a limit to how much I can withdraw as a cash advance?

Yes. Your cash advance limit is usually lower than your overall credit limit — often 20 to 50 percent of your available credit, depending on your card. Additionally, ATMs have daily withdrawal limits, which may be $300 to $500 per day. Check your card's terms or call customer service to find out your specific limit.

Can I use a credit card cash advance to pay another credit card bill?

Technically yes, but it is a bad idea. You would be paying one credit card's balance with another credit card's cash advance, which means you are borrowing at the higher cash advance interest rate to pay off a balance that might have a lower purchase rate. You would also pay the cash advance fee on top. It is almost always cheaper to make a regular payment from your bank account.