The short answer: you can, but it costs money and it's not what credit cards are designed for

You can move money from a credit card to a bank account, but the process is not straightforward and comes with fees. Credit cards are built to let you borrow money and pay it back — not to pull cash out. When you do move money from a credit card to a bank account, you are essentially taking a cash advance, which charges you interest when ready and often includes an upfront fee.

The three main ways to do this are a cash advance at an ATM, a balance transfer check, or a money transfer service. Each one costs differently and works differently. Understanding which one you are considering — and why — matters before you move forward.

Key Takeaways

  • A cash advance from an ATM or bank teller charges an upfront fee (usually 3 to 5 percent of the amount) plus interest that starts accruing when ready, with no grace period.
  • Balance transfer checks work the same way as cash advances and carry the same fees and interest, despite being called a "check."
  • Money transfer services like PayPal, Square Cash, or Venmo let you send money to someone else's bank account, but do not directly move your credit card balance to your own account.
  • If you need cash, a personal loan or a line of credit from your bank usually costs less than a credit card cash advance.
  • Paying down your credit card balance with money from your bank account is the reverse of what you are asking, but it is often the cheaper option if you have savings available.

Cash advances: the most direct route and the most expensive

A cash advance lets you withdraw money directly from your credit card at an ATM or bank branch. You walk in, insert your card, enter your PIN, and take out cash. The money goes into your hand or your bank account when ready. This is the fastest way to get the cash, but it is also the most expensive.

When you take a cash advance, your credit card company charges you a fee upfront — typically 3 to 5 percent of the amount you withdraw. On a $500 advance, that is $15 to $25 right away. At the same time, interest starts accruing on that $500 at your card's cash advance rate, which is usually higher than your regular purchase rate. Unlike a purchase, there is no grace period. Interest begins the day you withdraw the money.

Your credit card statement will show the cash advance as a separate line item from your regular purchases. You will need to pay it back just like any other balance on the card. If you only make the minimum payment, the interest will compound month after month.

Balance transfer checks: same cost, different form

Some credit card companies send you checks in the mail that you can deposit into your bank account. These are called balance transfer checks or convenience checks. They look like regular checks, but they are not. When you deposit one, you are taking a cash advance, not writing a check against your own account.

Balance transfer checks carry the same fees and interest rates as ATM cash advances. You will pay an upfront fee (usually 3 to 5 percent) and interest that starts when ready. The only difference is the form — you deposit a check instead of withdrawing cash at a machine. If your credit card company has sent you these checks, the terms are printed on the back or in the accompanying letter.

Do not confuse a balance transfer check with a balance transfer offer. A balance transfer offer lets you move a balance from one credit card to another at a lower rate for a set period. A balance transfer check moves money to your bank account and is treated as a cash advance.

Money transfer services: for sending to someone else, not yourself

Apps like PayPal, Square Cash, Venmo, and others let you send money from a credit card to another person's bank account. This is not the same as moving your own credit card balance to your own bank account. When you send money this way, you are paying that person, and the credit card company treats it as a purchase or cash advance depending on the service.

Some money transfer services charge a fee when you fund a transfer with a credit card — often 2 to 3 percent. Others treat credit card transfers as cash advances and charge accordingly. Check the service's terms before you use it. Even if the fee is lower than a direct cash advance, you are still not solving the underlying problem: you are moving debt around, not paying it down.

Why this costs so much: how credit cards make money on cash advances

Credit card companies charge high fees and interest on cash advances because they are taking on more risk. When you make a purchase, the merchant guarantees the transaction. When you take a cash advance, there is no merchant — just you and the card company. The company also knows that people who take cash advances are often in financial stress and more likely to miss payments.

The interest rate on a cash advance is usually 2 to 3 percentage points higher than your regular purchase rate. If your card charges 18 percent on purchases, the cash advance rate might be 21 or 22 percent. That higher rate applies from day one, with no grace period. On a $1,000 advance at 21 percent, you are paying about $17.50 per month in interest alone if you do not pay it down.

Cheaper alternatives if you need cash

Before you take a cash advance, consider whether you have other options. If you have a savings account with money in it, moving that money to your checking account costs nothing. If you need to borrow, a personal loan from your bank or credit union usually charges less interest than a credit card cash advance. Personal loans also have a fixed repayment schedule, so you know exactly when you will be done paying.

A line of credit from your bank works similarly to a personal loan but lets you borrow only what you need, when you need it. Some banks offer overdraft protection, which lets you overdraw your checking account up to a set limit — this is not ideal, but it is usually cheaper than a cash advance.

If you are carrying a credit card balance and need cash, the real question is whether you can afford to borrow at all right now. A cash advance adds to your debt without solving the underlying problem. If you are in a tight spot, talking to a nonprofit credit counselor (through the National Foundation for Credit Counseling or a local community action agency) is free and can help you see your full picture.

What happens to your credit score when you take a cash advance

A cash advance affects your credit in two ways. First, it increases your credit utilization — the percentage of your available credit that you are using. If you have a $5,000 credit limit and take a $1,000 cash advance, your utilization jumps to 20 percent. Higher utilization lowers your credit score. Second, the cash advance shows up on your credit report as a separate account type, which some scoring models view less favorably than regular purchases.

The impact is usually temporary. Once you pay off the cash advance, your utilization drops and the effect fades. But if you carry the balance for months, the damage to your score can last longer. Late payments on a cash advance hurt your score the same way late payments on anything else do.

Frequently Asked Questions

Can I transfer my credit card balance to my bank account without paying a fee?

No. Any method of moving money from a credit card to your own bank account is treated as a cash advance and includes a fee. The fee is usually 3 to 5 percent of the amount. Some services advertise lower fees, but read the fine print — they may be charging interest instead, or the fee applies only to transfers between people, not to your own account.

What if I use a money transfer app and send the money to a friend, then have them send it back to me?

This is possible but not recommended. You would still pay the credit card fee on the outgoing transfer, and your friend might pay a fee on the return transfer. You would also be asking your friend to hold your money temporarily, which creates awkwardness and risk. It is cheaper and simpler to take a direct cash advance if you need the money.

Is a balance transfer different from a cash advance?

Yes, but only if you are moving money between credit cards. A balance transfer moves your debt from one card to another, usually at a lower rate for a promotional period. A balance transfer check or cash advance moves money to your bank account and is treated as a cash advance with full fees and interest. Do not confuse the two.

How long does a cash advance stay on my credit card statement?

A cash advance appears as a separate line item on your statement the month you take it. It stays on your statement until you pay it off. If you only make minimum payments, it can stay there for years, accruing interest the whole time. Paying it off as quickly as possible is the best way to minimize the cost.

Can I take a cash advance if my credit card is maxed out?

No. A cash advance counts against your available credit, just like a purchase does. If you have no available credit left, you cannot take a cash advance. You would need to pay down your balance first or request a credit limit increase from your card company.