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 cash from a credit card into a checking or savings account. The bank or card issuer calls this a cash advance. Unlike a regular purchase, a cash advance starts charging interest when ready — there is no grace period — and you pay a fee upfront, usually 3 to 5 percent of the amount you transfer. If you transfer $500, you might pay $15 to $25 just to do it, plus interest from day one.

The main reason to do this is emergency access to cash when you have no other option. The main reason not to is the cost. A personal loan, a line of credit, or a balance transfer card (if you have time to explore) will almost always be cheaper. Before you transfer, compare what the cash advance will actually cost you against other ways to get the money.

Key Takeaways

  • A cash advance charges a fee (usually 3 to 5 percent) and interest from the day you transfer, with no grace period like a regular purchase has.
  • You can transfer money through an ATM, your card issuer's app or website, or by asking your bank to pull the money as a cash advance.
  • The interest rate on a cash advance is often higher than the rate on regular purchases from the same card.
  • Paying back a cash advance is slower than paying back a regular purchase because payments go to the purchase balance first.
  • A personal loan or line of credit will usually cost less than a cash advance if you have time to set one up.

Three ways to transfer money from your credit card to your bank account

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

ATM withdrawal. Insert your credit card into an ATM and withdraw cash as you would with a debit card. The money goes directly into your pocket, and you then deposit it into your bank account. This is the slowest method because you have to physically move the cash, but it works with almost any card and ATM.

Card issuer's app or website. Log into your credit card account online or through the mobile app. Look for a section called "Cash Advance," "Get Cash," or "Transfer Balance." You enter your bank account details and the amount you want to transfer. The money usually lands in your bank account within one to three business days. Discover, Chase, American Express, and Capital One all offer this option, though the exact steps vary by issuer.

Ask your bank to initiate the transfer. Call your bank and tell them you want to take a cash advance on your credit card. Give them your credit card number and the amount. Your bank pulls the money from your credit card and deposits it into your account. This method is less common but works if your card issuer does not offer online cash advances.

What the cash advance actually costs you

A cash advance has three costs: the upfront fee, the interest rate, and the time it takes to pay off.

The cash advance fee is charged the moment you transfer the money. Most cards charge 3 to 5 percent of the amount transferred. Some charge a flat fee (like $10) if that is higher. A $1,000 cash advance at 5 percent costs $50 in fees alone. This fee is added to your credit card balance when ready.

The interest rate on a cash advance is usually 2 to 5 percentage points higher than the rate on regular purchases. If your card charges 18 percent APR on purchases, the cash advance rate might be 23 percent. Interest starts accruing the day you transfer — there is no grace period. If you carry the balance for a month, you owe roughly one-twelfth of the annual rate on top of the fee.

The payoff timeline matters because of how credit card payments work. When you make a payment, the card issuer applies it to the lowest-interest balance first, which is usually your regular purchases. Your cash advance sits there accruing interest while you pay down the purchase balance. If you have both a purchase and a cash advance on the same card, the cash advance takes longer to clear.

How to access a cash advance through your card issuer's website or app

The exact steps depend on which card you have, but the process is similar across most issuers.

Step 1: Log in to your account. Go to your card issuer's website or open their mobile app. Enter your username and password. If you do not have an online account set up yet, you will need to create one first — this usually takes 5 to 10 minutes and requires your card number, Social Security number, and date of birth.

Step 2: Find the cash advance or transfer option. Look for a menu item called "Transfers," "Cash Advance," "Get Cash," or "Move Money." It is usually in the main navigation or under "Account Services." If you cannot find it, use the search function or call customer service — not all cards offer online cash advances.

Step 3: Enter your bank account details. You will need your bank's routing number and your account number. You can find both on a check, in your bank's app, or by calling your bank. Double-check these numbers — if you enter them wrong, the money goes to the wrong account and you have to contact both your card issuer and your bank to fix it.

Step 4: Enter the amount and confirm. Type in how much you want to transfer. The issuer will show you the fee and the total amount that will be added to your balance. Review this carefully. Confirm the transfer.

Step 5: Wait for the money. Most transfers land in your bank account within one to three business days. You will get a confirmation number on screen and usually an email receipt. Keep this number in case you need to track the transfer.

Cheaper alternatives to a cash advance

Before you pay the cash advance fee and interest, explore these options.

Personal loan. A personal loan from a bank, credit union, or online lender usually charges 6 to 36 percent APR depending on your credit score. There is no upfront fee on most personal loans, and interest does not start until you receive the money. If you need $1,000 and can wait three to five business days for approval, a personal loan will cost less than a cash advance. You can compare rates from multiple lenders online without hurting your credit score.

Line of credit. A personal line of credit works like a credit card but usually charges lower interest. You only pay interest on the amount you actually draw. If you have an existing line of credit with your bank or credit union, you can often access it when ready through their app or ATM.

Balance transfer card. If you have time to explore (usually two to three weeks for approval), a balance transfer card offers 0 percent APR for 6 to 21 months on transferred balances. You still pay a transfer fee (usually 3 to 5 percent), but you pay no interest during the promotional period. This only makes sense if you can pay off the balance before the promotional rate ends.

Payday loan or title loan. These are faster than a personal loan but much more expensive — interest rates often exceed 300 percent APR. Use these only if you need money in hours and have no other option.

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

A cash advance affects your credit in two ways: the hard inquiry and the credit utilization.

When you request a cash advance, your card issuer may run a hard inquiry on your credit report. This can lower your score by a few points temporarily. The inquiry stays on your report for about a year but stops affecting your score after a few months.

More importantly, a cash advance counts toward 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. High utilization (above 30 percent) can lower your score. The impact is temporary: once you pay off the cash advance, your utilization drops and your score recovers.

Frequently Asked Questions

Can I transfer money from a credit card to a bank account without paying a fee?

No. Every cash advance charges a fee, usually 3 to 5 percent of the amount transferred. Some cards charge a flat fee instead. There is no way to avoid this fee — it is built into how cash advances work. The only way to avoid the fee is to not take a cash advance.

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

Most transfers take one to three business days. Weekends and holidays do not count as business days. Some card issuers offer faster transfers for an additional fee, but this is rare. ATM withdrawals are when ready, but you have to physically deposit the cash yourself.

What if I cannot pay back the cash advance?

The balance stays on your credit card and continues to accrue interest at the cash advance rate. If you miss payments, your credit score drops and the card issuer may close your account or sue you. Contact your card issuer when ready if you think you will have trouble paying — they may offer a hardship program or payment plan.

Is the interest rate on a cash advance the same as on regular purchases?

No. Cash advances almost always have a higher interest rate than regular purchases on the same card. The difference is usually 2 to 5 percentage points. Check your card's terms or call customer service to find out the exact rate before you transfer.

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

Technically yes, but it is usually a bad idea. You would pay the cash advance fee, then pay interest on the transferred balance. A balance transfer card or personal loan is almost always cheaper. If you are trying to consolidate debt, talk to a credit counselor or financial advisor about the best option for your situation.