You can move money from a credit card to a bank account, but it costs money and comes with risks
Yes, you can send money from a credit card to a bank account. The most common way is a cash advance, where you withdraw cash from an ATM or get it from a bank teller using your credit card, then deposit it into your bank account. You can also use a balance transfer check if your card issuer sends you one, or use a third-party service that moves money between accounts. The catch: all of these methods charge fees, and cash advances charge interest when ready — there is no grace period like there is with regular purchases.
Before you do this, understand why it costs so much. Credit card companies treat money moved to your bank account differently from a purchase. They see it as a loan they are giving you right away, not a transaction you might pay off interest-free. That is why the fees and interest rates are steep.
Key Takeaways
- Cash advances charge an upfront fee (usually 3 to 5 percent of the amount) plus a higher interest rate than regular purchases, starting when ready with no grace period.
- Balance transfer checks work the same way as cash advances — they charge fees and interest right away, even though they look like regular checks.
- Third-party money transfer services charge their own fees on top of any fees your credit card company charges.
- If you need money in your bank account, a personal loan or a line of credit from your bank usually costs less than moving money from a credit card.
How cash advances work and what they cost
A cash advance is the most straightforward way to move credit card money to your bank account. You go to an ATM with your credit card and withdraw cash, or you walk into a bank branch and ask the teller for a cash advance. You then deposit that cash into your bank account. The money is yours to use when ready.
The cost has two parts. First, your card issuer charges a cash advance fee — usually 3 to 5 percent of the amount you withdraw, though some cards charge a flat fee instead. If you withdraw $500, you might pay $15 to $25 just to get the cash. Second, the interest rate on a cash advance is higher than the rate on regular purchases — often 5 to 10 percentage points higher. Unlike a purchase, interest starts accruing the day you withdraw the cash. There is no grace period.
Some ATMs also charge their own fee if the card is from a different bank. That fee goes to the ATM owner, not your credit card company, but it still comes out of your pocket.
Balance transfer checks and why they are not a shortcut
Some credit card companies send their customers balance transfer checks — checks that draw from your credit card account instead of a bank account. You can write one to yourself, deposit it into your bank account, and the money appears there within a few business days. It feels like using a regular check, but it is not.
Balance transfer checks charge the same fees and interest as cash advances. You pay an upfront fee (usually 3 to 5 percent) and a higher interest rate starting when ready. The only difference is the method — you are using a check instead of an ATM. If your card issuer sent you balance transfer checks, read the terms carefully. Some cards offer a lower interest rate on balance transfers than on cash advances, but the fee is usually the same.
Do not use a balance transfer check thinking it is cheaper than a cash advance. Compare the fee and interest rate on your specific card before you decide which method costs less.
Third-party services and money transfer apps
Some apps and online services let you move money from a credit card to a bank account in a few taps. Services like PayPal, Square Cash, and Venmo can accept credit card payments, and you can then transfer the money to your bank account. However, these services charge their own fees on top of any fees your credit card company charges.
When you use one of these services, your credit card company may treat the transaction as a cash advance rather than a regular purchase, which means you pay cash advance fees and interest. Even if they do not, the service itself charges a fee — often 2 to 3 percent of the amount. You end up paying multiple layers of fees for the same money.
Read the terms of any service before you use it. Some treat credit card payments as purchases (cheaper) and some treat them as cash advances (more expensive). The fee structure varies widely.
Cheaper ways to get money into your bank account
If you need cash in your bank account, moving it from a credit card is usually the most expensive option. A personal loan from your bank or a credit union typically charges less interest and has a clear repayment schedule. A line of credit works similarly — you borrow what you need and pay interest only on what you use.
If you have a paycheck coming, a payday loan or paycheck advance from your employer or bank may be faster and cheaper than a cash advance, though these come with their own risks if you cannot repay on time. Some employers offer paycheck advances with no fee at all.
If you are short on money because of an emergency, look for community information programs, food banks, or utility information before you borrow. Many communities have programs that help with specific costs like rent, utilities, or medical bills, and they do not charge interest.
What happens if you cannot pay back a cash advance
If you withdraw a cash advance but cannot pay it back, the interest and fees keep growing. Your credit card company will report the unpaid balance to credit bureaus, which lowers your credit score. If the balance stays unpaid long enough, the card issuer may close your account or send the debt to a collection agency.
Unlike a regular purchase, you cannot dispute a cash advance or ask for a refund. Once the money is in your account, the transaction is final. If you are thinking about a cash advance because you are struggling with money, talk to a financial counselor or your bank first. They may know about programs or options you have not considered.
Frequently Asked Questions
Can I do a cash advance online or through my credit card app?
Some card issuers let you request a cash advance through their app or website, and the money goes directly to your bank account instead of an ATM. The fees and interest are the same as an in-person cash advance. Check your card's app or call the number on the back of your card to see if this option is available.
Does a cash advance hurt my credit score?
A cash advance itself does not hurt your score, but it increases your credit utilization — the amount of your available credit you are using. High utilization can lower your score slightly. If you do not pay it back on time, the missed payment will hurt your score more significantly.
What is the difference between a cash advance and a balance transfer?
A cash advance moves money from your credit card to your bank account. A balance transfer moves debt from one credit card to another. They are different transactions with different fees and purposes.
Is there a limit to how much I can withdraw as a cash advance?
Yes. Your card issuer sets a cash advance limit, which is usually lower than your overall credit limit. Check your card statement or call your issuer to find out what your limit is.
Can I use a credit card to pay another credit card?
Technically yes, but credit card companies charge a cash advance fee for it, just like they do for moving money to a bank account. It is one of the most expensive ways to move money between cards.