Yes, but the method matters and costs vary
You can move money from a credit card to a bank account, but you are not moving "money" in the way a transfer between two bank accounts works. What you are actually doing is borrowing against your credit limit, and the card issuer charges you for it. The process takes a few days, the cost ranges from 3 to 5 percent of the amount, and the borrowed funds start accruing interest when ready — usually at a higher rate than your regular purchase APR.
The three main methods are a cash advance, a balance transfer, and a third-party service. Each one moves funds differently, costs differently, and shows up differently on your credit report. Understanding which one you are considering — and what it actually costs — matters before you initiate the transfer.
Key Takeaways
- A cash advance is the fastest method but the most expensive: you pay an upfront fee (usually 3 to 5 percent) plus interest that starts accruing when ready, often at 25 percent APR or higher.
- A balance transfer moves your credit card balance to another card with a lower or zero percent introductory rate, but does not put cash in your bank account — it only reduces what you owe on the new card.
- Third-party services like PayPal, Square Cash, or Venmo let you send money to yourself using your credit card, but they also charge a fee (typically 2 to 3 percent) and treat the transaction as a cash advance.
- The funds arrive in your bank account within one to three business days for most methods, but the interest clock starts the moment the transaction posts to your card.
Cash advances: the direct method and its cost
A cash advance is the most straightforward way to get cash from your credit card into your bank account. You visit an ATM or bank branch, use your credit card, and withdraw cash up to your available credit limit. That cash goes directly into your pocket, and you can deposit it into your bank account when ready. The entire process takes minutes.
The cost is when ready and substantial. Your card issuer charges an upfront fee — typically 3 to 5 percent of the amount withdrawn, with a minimum fee of $5 to $10. A $500 cash advance costs $15 to $25 just to take it out. On top of that, interest accrues from the day you withdraw the cash, not from your next statement date like a purchase does. The interest rate on cash advances is usually 2 to 5 percentage points higher than your regular APR. If your card charges 18 percent APR on purchases, cash advances might be 24 percent or higher.
The math: a $500 cash advance at 4 percent fee plus 24 percent APR costs you $20 upfront, then roughly $10 per month in interest if you carry the balance. After three months, you have paid $50 in fees and interest alone.
Balance transfers: moving debt, not cash
A balance transfer is not the same as moving money to your bank account. Instead, you transfer your credit card balance from one card to another — usually one with a promotional zero percent or low interest rate for a set period (typically 6 to 21 months). The transferred balance sits on the new card, and you pay it down over time.
This method is useful if you already carry a balance and want to stop paying interest while you pay it off. It is not useful if you need cash in your bank account. The funds never leave the credit card system. You also pay a balance transfer fee upfront — usually 3 to 5 percent of the amount transferred — though some cards waive this fee during promotional periods.
If you do need cash and you transfer a balance to a card with a higher credit limit, you could then take a cash advance against that new limit. But you are now paying two fees: the balance transfer fee on the original amount, plus the cash advance fee on the new withdrawal. This approach is expensive and rarely makes sense.
Third-party payment services and peer-to-peer transfers
Services like PayPal, Square Cash, Venmo, and Google Pay let you send money using your credit card. You can send the money to yourself (using your own bank account as the recipient), and it arrives in your bank account within one to three business days. The process is straightforward: link your credit card, enter the amount, and confirm.
The catch is that these services treat credit card transfers as cash advances, not regular transactions. You pay a fee — usually 2 to 3 percent — and interest starts accruing when ready. Some services charge a flat fee instead ($1 to $3), which is cheaper for small amounts but more expensive for large ones. A $100 transfer at 2.9 percent costs $2.90; a $1,000 transfer costs $29.
The advantage over a direct ATM cash advance is that you avoid the ATM withdrawal fee and you can do it from your phone without visiting a bank. The disadvantage is that you are still borrowing against your credit limit and paying interest on borrowed money. The funds are not free, and they are not a loan — they are a cash advance with a fee attached.
How long the transfer takes and when interest starts
Most cash advances and third-party transfers post to your bank account within one to three business days. A weekend or holiday can extend this to four or five days. The credit card issuer processes the transaction when ready, but your bank takes time to receive and post the funds.
Interest starts accruing the moment the transaction posts to your credit card, not when it arrives in your bank account. If you withdraw cash on a Monday, the interest clock starts Monday, even if the cash does not arrive in your bank account until Wednesday. You are paying interest for the full three days, even though you did not have access to the money yet.
This is different from a regular purchase, where interest only accrues if you carry a balance past your statement due date. Cash advances have no grace period. The interest meter runs from day one.
Comparing the three methods side by side
| Method | Upfront Fee | Interest Rate | Time to Bank Account | Best For |
|---|---|---|---|---|
| ATM Cash Advance | 3–5% ($5–$10 minimum) | 24–29% APR (typical) | Same day to next day | When you need cash when ready and have no other option |
| Third-Party Service (PayPal, Venmo, etc.) | 2–3% (or $1–$3 flat) | 24–29% APR (typical) | 1–3 business days | When you want to avoid an ATM and do not mind waiting a few days |
| Balance Transfer | 3–5% (sometimes waived) | 0% intro, then 18–25% APR | N/A (stays on credit card) | When you already carry a balance and want to reduce interest while paying it down |
What to consider before you transfer
Before you move money from a credit card to your bank account, ask yourself whether you actually need to borrow. If you are transferring to cover an emergency expense, you are taking on debt at a high interest rate. If you are transferring to pay off another debt, you are replacing one debt with another, usually at a higher cost. If you are transferring to have cash on hand, you are paying interest on money you have not spent yet.
The only scenario where this makes financial sense is if you have a specific, time-limited need for cash and no other way to get it — and you plan to pay back the borrowed amount within a month or two, before interest compounds. If you are carrying the balance longer than that, the fees and interest will exceed what you borrowed.
Check your card's terms for the exact fees and interest rates before you proceed. Rates and fees vary by card issuer, by card type, and sometimes by your credit history. A card that charges 3 percent for cash advances is cheaper than one that charges 5 percent, and a card with a 20 percent cash advance APR is cheaper than one at 28 percent. The difference adds up quickly on larger amounts.
Frequently Asked Questions
Does transferring from a credit card to my bank account hurt my credit score?
Yes, it can. A cash advance increases your credit utilization ratio (the amount of available credit you are using), which can lower your score by 10 to 50 points. The impact is temporary and recovers as you pay down the balance, but it happens when ready. A balance transfer also increases utilization on the new card, though it decreases it on the old card if you close the account.
Can I transfer money from a credit card to a savings account, or only a checking account?
You can transfer to either. The method is the same: the funds go to whichever bank account you specify. The card issuer does not distinguish between checking and savings accounts — they only care that you provide a valid account number and routing number.
What happens if I cannot pay back the cash advance?
The borrowed amount becomes part of your credit card balance and accrues interest each month. If you miss a payment, you face late fees, a higher interest rate, and damage to your credit score. The debt does not disappear — it grows. If you are struggling to pay, contact your card issuer about a hardship program or payment plan.
Is there a limit to how much I can transfer?
Yes. Your cash advance limit is usually lower than your total credit limit — often 20 to 50 percent of it. A card with a $5,000 limit might only allow $1,000 in cash advances. Check your card's terms or call the issuer to find out your specific limit.
Can I use a credit card to fund a bank transfer instead of a cash advance?
No. Banks do not accept credit cards as a funding source for transfers or deposits. You can only move money from a credit card by withdrawing it as cash or using a third-party service that treats the transaction as a cash advance. Direct transfers from credit card to bank account do not exist in the banking system.