The basic way to transfer credit card money to your bank
You cannot move credit card funds to your bank account the way you move money between two bank accounts. A credit card is a line of credit — the card company lends you money when you swipe it, and you owe them that money back. Your bank account holds money you already own. The two are not connected in a way that lets you straightforward push funds from one to the other.
What you can do is take a cash advance — you borrow money directly from your credit card company and deposit it into your bank account. The money arrives in your bank within one to three business days, but you pay a fee (usually 3 to 5 percent of the amount) and interest starts accruing when ready, often at a higher rate than your regular purchase APR.
If you have a credit card balance you want to pay down, the simpler route is to pay the card directly from your bank account, rather than moving the credit card money itself. Most people who ask this question are actually trying to do that.
Key Takeaways
- A cash advance lets you borrow money from your credit card and deposit it to your bank, but costs 3 to 5 percent in fees plus when ready interest.
- If you want to pay down a credit card balance, transfer money from your bank to the credit card company instead — this costs nothing and stops interest from growing.
- Cash advances should be a last resort for genuine emergencies, not a regular way to move money between accounts.
- Some credit cards offer balance transfers to another card at a lower rate, which is different from a cash advance and may cost less over time.
How a cash advance actually works
To take a cash advance, you visit an ATM with your credit card and withdraw money as you would from a debit card. Some credit card companies also let you request a cash advance through their website or app, or by calling customer service — they send you a check or deposit the money directly to your bank account. The process takes one to three business days if you request it online or by phone.
The moment you withdraw or receive the cash, you owe the credit card company that amount plus a cash advance fee. This fee is a flat percentage of what you borrowed — typically 3 to 5 percent, though some cards charge as much as 10 percent. A $500 cash advance at 5 percent costs you $25 when ready. Interest also starts accruing the same day, with no grace period like you get on regular purchases. If your card's cash advance APR is 25 percent, you are paying roughly $3.13 per month on that $500 just in interest.
You repay a cash advance the same way you repay any credit card balance — by making a payment to your credit card company. The payment goes toward the cash advance first if you have both a cash advance balance and a purchase balance.
Why paying your credit card from your bank account is usually better
If you have a credit card balance and want to reduce it, the right move is to transfer money from your bank account to your credit card company — not the other way around. This costs nothing and stops interest from accumulating on that balance.
You can set up this payment through your credit card company's website or app, by phone, or sometimes through your bank's bill pay system. The payment reaches the credit card company within one to three business days. Once the payment posts, your balance drops and you owe less interest going forward.
This is the opposite direction from a cash advance, but it is the move that actually helps you reduce debt. If you are short on cash in your bank account and need money for an emergency, a cash advance might be necessary — but if you are trying to pay down what you owe on the card, moving money from your bank to the card is free and effective.
Balance transfers as an alternative to cash advances
A balance transfer is different from a cash advance. Instead of borrowing new money from your credit card, you move an existing balance from one credit card to another card that offers a lower interest rate. Many cards offer a 0 percent introductory APR on balance transfers for 6 to 21 months, which can save you hundreds in interest if you pay down the balance during that period.
Balance transfers do charge a fee — usually 3 to 5 percent of the amount transferred — but that fee is often lower than the interest you would pay at your current card's regular APR. If you have a $2,000 balance at 24 percent APR and transfer it to a card with 0 percent for 12 months, you pay a $60 to $100 transfer fee but save roughly $240 in interest over that year.
The catch is that balance transfers require you to be approved for a new credit card, and the new card's credit limit must be high enough to cover the balance you want to move. You also need to pay down the transferred balance before the introductory rate ends, or interest kicks in at the regular APR.
When a cash advance makes sense
A cash advance is expensive and should only be used when you have a genuine emergency and no other option. Examples include a car repair you need to drive to work, a medical bill, or an urgent home repair. Even then, it should be a temporary solution — you should plan to repay the cash advance as quickly as possible to minimize interest.
Do not use a cash advance to fund regular expenses, pay other debts, or move money between accounts as a habit. The fees and interest add up quickly, and you end up owing more than you borrowed. If you find yourself regularly needing cash advances, that is a sign your budget needs adjustment or you need to build an emergency fund.
Fees and interest rates you will encounter
Cash advance fees vary by card and by how you take the advance. ATM withdrawals sometimes charge a higher fee than online requests. Most cards charge between 3 and 5 percent, but some charge a flat fee (like $10) instead of a percentage, or a combination of both.
Interest rates on cash advances are almost always higher than the rate on regular purchases. While a purchase APR might be 18 percent, a cash advance APR might be 25 or 28 percent. This higher rate applies from day one — there is no grace period. Some cards also charge a separate fee just for requesting a cash advance, on top of the percentage fee.
Before you take a cash advance, call your credit card company or check your card's terms to find out the exact fee and APR. Knowing the cost upfront helps you decide whether it is worth it for your situation.
Frequently Asked Questions
Can I transfer money from my credit card to my bank account without paying a fee?
Not through a cash advance — that always costs a fee and interest. If you want to move money from your bank to your credit card to pay down a balance, that is free. If you are asking because you need cash urgently, a cash advance is the only direct way, but it is expensive.
What is the difference between a cash advance and a balance transfer?
A cash advance borrows new money from your credit card and puts it in your bank account. A balance transfer moves an existing balance from one credit card to another card with a lower interest rate. Balance transfers are usually cheaper over time if you are trying to pay down debt, but they require approval for a new card.
How long does a cash advance take to show up in my bank account?
If you withdraw cash at an ATM, you get it when ready. If you request a cash advance online or by phone, it typically takes one to three business days to reach your bank account. Call your credit card company to confirm the timeline for your specific card.
Will a cash advance hurt my credit score?
A cash advance itself does not hurt your score, but it increases your credit utilization — the percentage of your available credit you are using. High utilization can lower your score temporarily. Paying back the cash advance quickly brings your utilization down and helps your score recover.
What should I do if I cannot repay a cash advance?
Contact your credit card company as soon as you know you will miss a payment. Many companies offer hardship programs or payment plans. Missing payments damages your credit and triggers late fees and higher interest rates, so reaching out early is important.