You can transfer money from a credit card to a bank account, but it costs money and counts as a cash advance
Yes, you can move money from a credit card into a bank account. The card issuer treats it as a cash advance — not a purchase — which means you pay a fee upfront (usually 3 to 5 percent of the amount) plus a higher interest rate than you would on regular purchases. The money lands in your bank account within one to three business days. Most people do this only when they have no other way to cover an when ready expense, because the cost adds up quickly.
A $500 transfer might cost you $15 to $25 in fees alone, and then interest starts accruing when ready at a rate that is often 5 to 10 percentage points higher than your purchase APR. If your card charges 18 percent APR on purchases, the cash advance rate might be 28 percent. That means a $500 transfer could cost you $140 in interest over a year if you do not pay it off quickly.
Key Takeaways
- Cash advances from credit cards charge a fee (typically 3 to 5 percent) plus a higher interest rate than purchases, starting when ready with no grace period.
- The money reaches your bank account in one to three business days, depending on your bank and the card issuer.
- You can initiate a cash advance through your card issuer's app or website, at an ATM, or by visiting a branch in person.
- Interest on a cash advance begins accruing the day you take it, unlike purchases which often have a grace period of 20 to 25 days.
- If you need money urgently, a personal loan or a line of credit typically costs less than a credit card cash advance.
How a cash advance actually works
When you request a cash advance, your card issuer moves money into your bank account and charges your credit card balance for that amount plus the fee. The fee is usually a flat percentage — commonly 3 to 5 percent — though some cards charge a minimum fee (like $5 or $10) if the percentage would be smaller. You owe this fee when ready, whether you pay off the advance or not.
Interest starts accruing on the same day you take the advance. Unlike a purchase, which typically has a grace period of 20 to 25 days before interest kicks in, a cash advance has no grace period. If you take out $500 on Monday and pay it back on Friday, you still owe interest for those five days. This is why the total cost climbs fast if you carry the balance for weeks or months.
Three ways to move money from your credit card to your bank account
Through your card issuer's app or website: Log into your account, look for a "cash advance" or "balance transfer" option (the terminology varies by issuer), and enter your bank account details. You will see the fee and interest rate before you confirm. The money typically arrives in one to three business days. This is the fastest and most transparent route.
At an ATM: Use your credit card like a debit card at any ATM that accepts your card brand. You will withdraw cash, which you can then deposit into your bank account. The ATM will charge a fee (usually $2 to $5 from the ATM operator) on top of your card issuer's cash advance fee. This route is slower because you have to physically deposit the cash, and you see fewer details about the total cost upfront.
At a bank branch: Walk into a bank that accepts your card brand and ask for a cash advance. A teller will process it, you will receive cash, and you can deposit it when ready or take it elsewhere. This method is useful if you need the money the same day, but it also carries both the card issuer's fee and sometimes a branch fee.
What the total cost looks like in real numbers
Assume you take a $1,000 cash advance on a card with a 4 percent cash advance fee and a 25 percent APR. The fee is $40, due when ready. If you pay back the $1,040 in full within 30 days, you owe roughly $20 in interest (depending on the exact day you repay). Total cost: about $60.
If you carry the $1,040 balance for six months, you owe approximately $130 in interest. Total cost: about $170. If you carry it for a year, the interest alone reaches roughly $260. This is why a cash advance is meant to be a short-term solution, not a way to borrow money for weeks or months.
Compare this to a personal loan: a $1,000 personal loan at 15 percent APR over 12 months costs roughly $80 in interest, with no upfront fee. A credit card cash advance is almost always more expensive than the alternatives if you need the money for more than a few days.
Why your card issuer limits how much you can take
Most credit cards set a cash advance limit that is lower than your overall credit limit. If your card has a $5,000 credit limit, your cash advance limit might be $1,500 or $2,000. The issuer sets this limit based on your credit history and account activity. You can usually find your cash advance limit in your account details online or by calling the customer service number on the back of your card.
Some cards do not allow cash advances at all, particularly secured cards or cards designed for people rebuilding credit. If you try to take a cash advance on a card that does not permit it, the transaction will be declined.
Cheaper alternatives if you need cash quickly
A personal loan from a bank or credit union typically charges 8 to 20 percent APR with no upfront fee, making it cheaper than a cash advance for any amount you carry for more than a few days. The money takes one to three business days to arrive, similar to a cash advance.
A line of credit from your bank works like a credit card but usually charges lower interest rates. You draw what you need and pay interest only on the amount you use. If your bank offers this, it is worth comparing to a cash advance.
A balance transfer to a different credit card is not the same as a cash advance. A balance transfer moves debt from one card to another and may have an introductory 0 percent APR period. This only helps if you have another card available and you are trying to move existing debt, not access new cash.
What happens if you cannot pay back the cash advance
The cash advance balance sits on your credit card like any other balance. If you do not pay it, interest continues to accrue, your minimum payment increases, and your credit utilization ratio climbs (which can lower your credit score). If you miss payments, the issuer will report the delinquency to credit bureaus after 30 days, and your interest rate may increase further.
Unlike a personal loan, there is no collateral the issuer can seize. But the debt will remain on your credit report for seven years if it goes unpaid, and the issuer can pursue collection action or sue you in court. If you are struggling to repay, contact your card issuer to discuss a hardship plan — some issuers will lower your interest rate or waive fees if you explain your situation.
Frequently Asked Questions
Does a cash advance show up differently on my credit report than a regular purchase?
No, the cash advance balance appears on your credit report as part of your overall credit card debt. However, the cash advance fee and higher interest rate are tracked separately in your account, and you can see them in your statement. The credit bureaus do not distinguish between cash advances and purchases when calculating your credit score.
Can I use a cash advance to pay off another credit card?
Technically yes, but it is expensive. You would pay the cash advance fee, take out the cash, deposit it, and then use it to pay the other card. You are paying a fee to move money between your own accounts, which makes no financial sense. A balance transfer (moving debt directly from one card to another) is the right tool for that situation, and it usually costs less.
What if my bank rejects the deposit from a cash advance?
This is rare, but if it happens, contact your card issuer when ready. The money is yours — the issuer has already charged your card and taken the fee. The issuer can reissue the funds or investigate why the deposit failed. Most issues are resolved within one business day.
Does taking a cash advance hurt my credit score?
Yes, in two ways. First, it increases your credit utilization ratio (the amount of available credit you are using), which can lower your score by a few points. Second, the cash advance inquiry may trigger a hard pull on your credit report, which also has a small negative impact. The effect is temporary if you pay off the balance quickly.
Can I take a cash advance from a rewards credit card?
Yes, but you do not earn rewards on the cash advance. The fee and interest explore the same way as any other card. If you are considering a cash advance partly to earn rewards, the math does not work — the fee and interest cost far more than any rewards you would earn.