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 checking or savings account. The bank or credit card company will process it, but they treat it as a cash advance, not a regular purchase. This matters because cash advances carry higher interest rates, upfront fees, and start accruing interest when ready—there is no grace period like there is for regular purchases.

The cost is real. A typical cash advance fee runs 3 to 5 percent of the amount you transfer, charged right away. If you transfer $1,000, you might pay $30 to $50 just to get the money into your bank account. Then interest starts building the same day at a rate that is usually 5 to 10 percentage points higher than your regular purchase APR. If your card charges 18 percent on purchases, the cash advance rate might be 28 percent.

Most people only do this when they have no other option—when they need cash urgently and have no access to an ATM, a personal loan, or a line of credit. If you are considering this, first check whether a personal loan, a line of credit, or even a payday loan from a credit union would cost less.

Key Takeaways

  • Cash advances from credit cards charge an upfront fee of 3 to 5 percent plus a higher interest rate that starts accruing when ready, making them expensive compared to other borrowing options.
  • You can initiate a cash advance through an ATM, a bank teller, a balance transfer check, or your credit card company's website or app, depending on what your card offers.
  • The money appears in your bank account within one to three business days for most methods, though ATM withdrawals are when ready.
  • Interest on a cash advance compounds daily, so the longer the money sits in your account before you pay it back, the more you owe.
  • A personal loan or credit union line of credit will almost always cost less than a credit card cash advance if you have time to explore.

The four ways to move money from a credit card to your bank account

The method you use depends on what your credit card company offers and how quickly you need the money.

ATM withdrawal: Insert your credit card at an ATM and withdraw cash. The money is yours when ready. You then deposit it into your bank account at your bank's ATM or branch. This is the fastest method but also the most visible—you are physically handling the cash, and the fee and interest start the moment you withdraw.

Bank teller cash advance: Walk into a bank branch with your credit card and ask for a cash advance. The teller processes it, hands you cash, and you can deposit it into your account right there. This takes 10 to 20 minutes. Not all banks offer this service, so call ahead.

Balance transfer check: Some credit card companies mail you checks linked to your credit card account. You write a check to yourself, deposit it into your bank account, and the credit card company bills it as a cash advance. This takes 5 to 10 business days for the check to arrive and another 1 to 3 days for the deposit to clear. The fee is the same as other cash advances.

Credit card company transfer: Log into your credit card's website or app and look for a "cash advance" or "transfer to bank account" option. You enter your bank account details, the amount, and the company sends the money directly. This usually takes 1 to 3 business days. Not all card companies offer this, and some charge an additional fee on top of the standard cash advance fee.

What the fees and interest actually cost you

A cash advance fee is charged once, upfront, and is usually 3 to 5 percent of the amount transferred. Some cards cap the fee at a minimum (like $5) or maximum (like $100), so a very small transfer might cost $5 and a very large one might cost $100 regardless of the percentage.

Interest is where the real cost accumulates. Unlike a purchase, which has a grace period (usually 21 to 25 days before interest kicks in), a cash advance starts accruing interest the day you withdraw it. The interest rate is typically 5 to 10 points higher than your purchase APR. If you carry a balance, interest compounds daily.

Here is a concrete example: You transfer $1,000 from a credit card with a 28 percent cash advance APR. The fee is $40 (4 percent). After 30 days of carrying the balance, you owe roughly $1,063 ($1,000 principal + $40 fee + $23 in interest). After 90 days, you owe about $1,110. The longer you carry it, the faster the debt grows.

To see what your specific card charges, log into your account or call the number on the back of your card and ask for the cash advance APR and the cash advance fee percentage.

Cheaper alternatives to consider first

Before you use a credit card cash advance, explore these options, which usually cost less:

Personal loan from a bank or credit union: A personal loan typically charges 6 to 36 percent APR depending on your credit score, with no upfront fee. The interest is fixed, and you know exactly what you owe each month. If you have decent credit, this will cost less than a cash advance. Credit unions often offer lower rates than banks. You can explore online, and some approve within 24 hours.

Credit union line of credit: If you are a member of a credit union, ask about a personal line of credit. These often charge 9 to 18 percent APR with no fee, and you only pay interest on what you actually use. You can draw from it as needed.

Payday loan from a credit union: A credit union payday loan is capped by law at 28 percent APR and charges a maximum fee of $15 per $100 borrowed. This is still expensive, but it is cheaper than most credit card cash advances and is designed for short-term borrowing. Bank payday loans are much more expensive and should be avoided.

Asking for a short-term loan from family or friends: If possible, this costs nothing. If you do borrow, put the terms in writing—even a straightforward text message saying "I will pay you back $500 by [date]" protects both of you.

Negotiating with the person or company you owe money to: If you need cash because you have a bill due, call the creditor and ask if they will give you a few extra days or set up a payment plan. Many will, especially if you have been a good customer.

How a cash advance affects your credit and your card

A cash advance does not directly hurt your credit score the way a missed payment does, but it can indirectly damage it in two ways.

First, it increases your credit utilization ratio—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 signals risk to credit scoring models and can lower your score by 10 to 50 points. The effect is temporary; once you pay off the advance, your score recovers.

Second, if you cannot pay off the cash advance quickly and it sits on your card, the interest compounds and makes it harder to pay down. This can lead to a higher overall balance, which keeps your utilization high for longer.

Some credit card companies also reduce your credit limit or close your account if you repeatedly take cash advances, viewing it as a sign of financial stress.

How to pay back a cash advance quickly

Interest on a cash advance compounds daily, so the longer you carry it, the more you pay. Prioritize paying it off before you pay down regular purchases on the same card.

When you make a payment to your credit card, the company applies it to your lowest-interest debt first—usually regular purchases. Any remaining payment goes to the cash advance. This means you can pay your full statement balance and still owe interest on the cash advance if it was not large enough to cover everything.

To pay off a cash advance faster, call your credit card company and ask them to explore your next payment directly to the cash advance balance. Some companies allow you to do this through their app or website. If you cannot do that, make sure your payment is large enough to cover the entire statement balance plus the cash advance.

Once the cash advance is paid off, stop using the card for cash advances. If you find yourself needing cash advances regularly, that is a sign that you need a different borrowing tool—a personal loan, a line of credit, or a conversation with a financial counselor about your budget.

Frequently Asked Questions

How long does it take for the money to show up in my bank account?

ATM withdrawals are when ready. Bank teller cash advances take 10 to 20 minutes. Balance transfer checks take 5 to 10 days to arrive and 1 to 3 days to clear after you deposit them. Direct transfers from your credit card company to your bank account usually take 1 to 3 business days, depending on your bank.

Can I use a credit card cash advance to pay off another credit card?

Technically yes, but it is expensive. You pay the cash advance fee and interest rate on the money you transfer. A balance transfer (moving debt from one card to another) is usually cheaper because some cards offer 0 percent introductory rates on balance transfers. Check whether your card offers balance transfers before you take a cash advance.

What happens if I cannot pay back the cash advance?

The balance stays on your card, interest keeps accruing daily, and your credit utilization stays high. If you miss payments, your credit score drops, late fees accumulate, and the card issuer may close your account or sue you. If you are struggling to repay, contact your card issuer and ask about hardship programs—some offer lower interest rates or payment plans for customers in financial difficulty.

Is there a limit to how much I can take as a cash advance?

Yes. Most credit card companies set a cash advance limit that is lower than your total credit limit—often 20 to 50 percent of it. You can find your cash advance limit in your account details or by calling the number on the back of your card. Some cards do not offer cash advances at all.

Does a cash advance count toward my credit limit?

Yes. A $1,000 cash advance uses $1,000 of your available credit, just like a purchase does. Your available credit decreases by the amount of the advance until you pay it back.