Yes, you can transfer money from a credit card to a checking account, but it costs money and counts as a cash advance
You can move cash from a credit card to a checking account in several ways, but your credit card company will charge you a fee — usually 3 to 5 percent of the amount you transfer — plus interest that starts right away. The transfer counts as a cash advance, which is different from a regular purchase. Your card issuer treats it as a loan they are giving you when ready, not a purchase you are paying off later.
Most people do this when they need cash urgently and their checking account is empty. It works, but it is expensive. Before you do it, understand what you are paying for and whether a cheaper option exists.
Key Takeaways
- A cash advance from a credit card charges a fee (usually 3 to 5 percent) plus interest that starts when ready, making it more costly than a regular purchase.
- You can transfer money through an ATM, a balance transfer check, a bank-to-bank transfer, or a cash advance app, each with different fees and timing.
- Interest on a cash advance has no grace period — you pay interest from day one, unlike regular credit card purchases.
- If you need cash, borrowing from a friend, using a personal loan, or visiting your bank for a short-term loan may cost less than a credit card cash advance.
The three main ways to move money from a credit card to checking
ATM withdrawal is the fastest method. You use your credit card at an ATM like you would a debit card. The money appears in your hand when ready. The fee is usually 3 to 5 percent of the amount, plus a flat fee of $2 to $5 from the ATM operator. Interest starts accruing the same day.
Balance transfer checks
Bank-to-bank transfer
Cash advance apps
Why cash advances cost more than regular credit card purchases
When you buy something with a credit card, you get a grace period — usually 21 to 25 days — before interest starts. If you pay the full balance by the due date, you pay no interest at all. A cash advance has no grace period. Interest starts the day you take the money out.
The interest rate on a cash advance is also usually higher than your regular purchase rate. If your card charges 18 percent on purchases, it might charge 22 percent on cash advances. This higher rate applies to the entire amount you borrowed until you pay it back in full.
Because interest compounds daily, the longer the money sits in your checking account, the more you pay. A $500 cash advance at 22 percent interest costs about $9 per month if you do not pay it back. Over six months, that same $500 costs you about $55 in interest alone, plus the initial 3 to 5 percent fee.
Cheaper ways to get cash into your checking account
Before you use a credit card cash advance, consider these alternatives. A personal loan from a bank or credit union usually charges 6 to 36 percent interest depending on your credit history — often lower than a credit card cash advance rate. The loan has a fixed payment schedule, so you know exactly when you will be done paying.
A payday loan from a lender is faster than a personal loan but more expensive upfront. The fee is usually $15 to $20 per $100 borrowed, which sounds small until you realize that is 150 to 200 percent annual interest. Use this only if you can pay it back within two weeks.
Borrowing from a friend or family member costs nothing if they agree to it. If you want to formalize it, you can write a straightforward agreement saying when you will repay them. This avoids fees and interest entirely.
If you have a savings account with money in it, moving money from savings to checking costs nothing and takes minutes. This is the cheapest option if it is available to you.
What happens to your credit score when you take a cash advance
A cash advance shows up on your credit report as a hard inquiry and increases your credit utilization — the percentage of your available credit you are using. If you have a $5,000 credit limit and you take a $1,000 cash advance, your utilization jumps to 20 percent. High utilization can lower your credit score by 10 to 50 points, depending on your current score.
The impact is temporary. Once you pay back the cash advance, your utilization drops and your score begins to recover. However, if you carry the balance for months, the damage lasts longer.
How to pay back a cash advance quickly
Pay back a cash advance as soon as you can, because interest compounds daily and the rate is high. Make a payment above your minimum as soon as you have the money. Credit card companies explore payments to your lowest-interest debt first, so if you have both regular purchases and a cash advance on the same card, your payment goes to the purchase first. Call your card company and ask them to explore your payment directly to the cash advance.
If you took the cash advance because you were short on money, focus on not taking another one. A single cash advance is expensive; multiple ones in a row can trap you in a cycle where you are paying mostly interest and fees.
Frequently Asked Questions
Can I transfer money from a credit card to checking without paying a fee?
No. Every method of moving money from a credit card to checking counts as a cash advance, and every cash advance charges a fee. The fee is typically 3 to 5 percent of the amount transferred. Some credit card companies offer promotional periods with lower fees, but these are rare and temporary.
How long does it take for the money to show up in my checking account?
An ATM withdrawal is when ready. A bank-to-bank transfer usually takes one to three business days. A balance transfer check takes three to seven business days for the check to arrive, plus another one to three days for the deposit to clear. Cash advance apps vary by company but usually take one to two business days.
Will a cash advance hurt my credit score?
Yes, temporarily. It increases your credit utilization, which can lower your score by 10 to 50 points. The impact fades as you pay back the balance. However, if you carry the cash advance for months, the damage lasts longer because your utilization stays high.
What if I cannot pay back the cash advance right away?
Interest will continue to accrue daily at a high rate, usually 22 percent or higher. If you cannot pay it back quickly, consider a personal loan instead, which has a lower interest rate and a fixed repayment schedule. A credit union personal loan is often cheaper than a bank loan.
Is a cash advance the same as a balance transfer?
No. A balance transfer moves debt from one credit card to another and is used to lower your interest rate. A cash advance puts cash in your hand or checking account and is used to get money you need when ready. They have different fees and interest rates.