The short answer: yes, but it costs money and works differently than you might expect
You can move money from a credit card to a bank account, but the credit card company treats it as a cash advance, not a regular transaction. A cash advance is when you take actual cash or transfer funds from your credit card, and it comes with its own fees and interest rate — usually higher than the rate on regular purchases. Most credit card companies charge a cash advance fee (often 3 to 5 percent of the amount) plus interest that starts accruing when ready, with no grace period like you get on purchases.
The process itself is straightforward: you can use an ATM, visit a bank branch, or use a transfer service. But because of the costs involved, this should be a last resort, not a regular way to move money around.
Key Takeaways
- Cash advances from credit cards charge a separate fee (usually 3 to 5 percent) plus a higher interest rate than regular purchases, with interest starting when ready.
- You can withdraw cash at an ATM or bank branch, then deposit it into your bank account, but this is slower and riskier than a direct transfer.
- Some credit card companies offer balance transfer checks or direct bank transfers, which work like cash advances but may have different terms.
- If you need money in your bank account, a personal loan or line of credit from your bank will almost always cost less than a credit card cash advance.
How cash advances work and what they cost
When you take a cash advance on a credit card, the credit card company charges you a fee right away — typically 3 to 5 percent of the amount you withdraw. So if you take out $500, you might pay $15 to $25 just to get the money. On top of that, interest starts accruing the same day, at a rate that is usually 2 to 3 percentage points higher than your regular purchase rate.
Unlike a purchase, there is no grace period. If your regular APR (annual percentage rate) is 18 percent, your cash advance APR might be 21 or 22 percent, and you start paying interest when ready. This means a $500 cash advance can cost you $10 to $15 in interest alone within the first month, before you even pay down the principal.
The credit card company also treats the cash advance as a separate balance from your regular purchases. If you make a payment, the payment goes toward whichever balance has the highest interest rate first — usually the cash advance. This can make it harder to pay off the advance quickly if you also carry a purchase balance.
Three ways to move money from your credit card to your bank account
ATM withdrawal and deposit: The simplest method is to withdraw cash at an ATM using your credit card, then deposit that cash into your bank account at an ATM or branch. This takes a few days for the deposit to clear, and you are exposed to the risk of losing or damaging the cash in between. You will still pay the cash advance fee and interest.
Balance transfer check: Some credit card companies send you checks that draw directly from your credit card balance. You write the check to yourself or your bank, deposit it, and the amount appears in your bank account within a few business days. This is treated as a cash advance with the same fees and interest rates. The advantage is that you do not have to visit an ATM or carry cash.
Direct bank transfer: A few credit card companies allow you to initiate a transfer directly from your credit card to your bank account through their website or app. This is the fastest method — the money usually arrives within one business day. It is still a cash advance with the same fees and interest, but you avoid the steps of visiting an ATM or depositing a check.
When a cash advance makes sense (and when it does not)
A cash advance should only be your choice if you have an urgent need for cash and no other option available. For example, if your car breaks down and you need $800 for repairs today, and you have no savings and cannot borrow from family, a cash advance might be the fastest way to get the money. Even then, you should plan to pay it back as quickly as possible.
A cash advance does not make sense if you are trying to move money between your own accounts, pay a bill, or cover everyday expenses. In those situations, the fees and interest will cost you far more than the convenience is worth. If you regularly find yourself needing to transfer money from a credit card to your bank account, that is a sign that your credit card balance is too high or your emergency fund is too low.
Cheaper alternatives to a credit card cash advance
If you need money in your bank account, explore these options first. A personal loan from your bank or a credit union typically charges 6 to 12 percent interest with no upfront fee, making it much cheaper than a cash advance. A line of credit works similarly — you borrow what you need and pay interest only on what you use. Both take a few days to set up, but if you are not in an emergency, they are worth the wait.
If you have a savings account at the same bank, you can often transfer money between accounts when ready for free. If you have a friend or family member who can lend you money, that is always the cheapest option. Some employers offer paycheck advances or emergency loans to employees. If you are facing a specific hardship — medical bills, job loss, eviction — look into local information programs before turning to a credit card.
What happens to your credit score when you take a cash advance
A cash advance does not directly hurt your credit score the way a missed payment does, but it can harm your score indirectly. When you take a cash advance, your credit utilization — the percentage of your available credit that you are using — goes up. If you had $5,000 in available credit and you take a $1,000 cash advance, your utilization jumps from 0 to 20 percent. Credit scoring models penalize high utilization, so your score may drop by a few points.
The bigger risk is that a cash advance makes it harder to pay down your balance, which keeps your utilization high for longer. If you carry the cash advance balance for months, your score will suffer more than if you paid it off quickly. The interest charges also make it more likely that you will miss a payment, which would seriously damage your score.
How to avoid needing a cash advance in the future
The best way to avoid cash advances is to build an emergency fund — even a small one. If you have $500 to $1,000 set aside in a savings account, you will have a buffer for unexpected expenses without turning to a credit card. Start by saving whatever you can each month, even if it is just $25 or $50.
You should also keep your credit card balance low. If your balance is already high, focus on paying it down before you use the card for new purchases. A lower balance means lower interest charges and more available credit if you do face an emergency. If you find yourself regularly needing cash advances, that is a sign that your expenses are higher than your income, and you may need to look at your budget or seek help from a financial counselor.
Frequently Asked Questions
Does taking a cash advance hurt my credit score?
Not when ready, but it can harm your score over time. A cash advance increases your credit utilization, which may lower your score by a few points. If you carry the balance for months, the ongoing high utilization and interest charges will hurt your score more. Paying off the advance quickly minimizes the damage.
Can I use a credit card cash advance to pay off another credit card?
Yes, you can withdraw cash and deposit it into your bank account, then use that money to pay another card. However, this is expensive because you pay the cash advance fee and interest on the first card while also paying interest on the second card. A balance transfer (moving the balance directly from one card to another) is usually cheaper if both cards offer it.
What is the difference between a cash advance and a balance transfer?
A cash advance gives you actual money (cash or a bank transfer) and charges a fee plus high interest. A balance transfer moves debt from one credit card to another and may offer a low or zero percent introductory rate. Balance transfers are meant for moving existing debt; cash advances are for getting cash. Both should be used sparingly.
How long does it take for a credit card cash advance to show up in my bank account?
An ATM withdrawal is when ready. A balance transfer check takes 3 to 5 business days to clear after you deposit it. A direct bank transfer through your credit card company's app or website usually arrives within 1 business day. The exact timing depends on your bank and the credit card company.
Will my credit card company deny my cash advance request?
Yes, they can. If your account is new, your credit limit is low, or you have missed payments, the company may decline a cash advance. Some cards also limit how much you can withdraw as a cash advance — often 20 to 50 percent of your credit limit. Check your card's terms or call the company to find out your cash advance limit before you try to withdraw.