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 card issuer calls this a cash advance. The moment you do it, the transaction starts charging you interest — usually at a higher rate than your regular purchase APR — and you may pay an upfront fee of 3% to 5% of the amount transferred. There is no grace period like there is with purchases. Interest begins accruing when ready.

The main ways to do this are a balance transfer check, an ATM withdrawal, a bank transfer through your card's app or website, or a third-party money transfer service. Each method has different fees and speed. Before you transfer, understand that this is not the same as moving money you already paid the card company — you are borrowing new money against your credit limit.

Key Takeaways

  • Cash advances charge interest from day one with no grace period, and the APR is usually 3% to 5% higher than your purchase rate.
  • An upfront fee of 3% to 5% of the transfer amount is charged by most card issuers at the time of the transaction.
  • Balance transfer checks, ATM withdrawals, app transfers, and third-party services are the four main methods, each with different costs and timing.
  • The total cost of moving $1,000 can easily reach $50 to $100 in fees plus interest, so this should only be done if you have a clear plan to pay it back quickly.

Balance transfer checks: the slowest but sometimes cheapest option

Many credit card issuers send you blank checks tied to your account. You write one to yourself or your bank, deposit it like a regular check, and the amount is treated as a cash advance. The check arrives in the mail, so this takes several days to a week. Once deposited, the funds appear in your bank account within 1 to 3 business days depending on your bank.

The fee is usually 3% to 5% of the check amount. Some cards occasionally offer 0% balance transfer checks for a limited time (often 6 to 12 months), but this promotion applies only to the transfer itself, not to any remaining balance after the promotional period ends. Read the fine print on any check offer you receive — the terms are printed on the back or in the accompanying letter.

If you have not received checks and want to use this method, call the customer service number on the back of your card and ask whether balance transfer checks are available on your account. Not all cards offer them.

ATM withdrawals: the fastest but most expensive way

You can withdraw cash from an ATM using your credit card, just as you would with a debit card. The money goes directly into your wallet, and you then deposit it at your bank. This takes minutes, but it is the most expensive option. Most card issuers charge a flat fee of $2 to $10 per transaction plus the 3% to 5% cash advance fee, and interest starts accruing when ready at the higher cash advance rate.

Use this method only if you need the money within hours and have no other option. The combined fees and interest can add up to 8% to 10% of the amount withdrawn before you even make a payment.

App or website transfers: the middle ground

Many card issuers now let you transfer money directly from your credit card to a linked bank account through their mobile app or website. Log into your account, find the "transfer" or "cash advance" section, enter your bank account details and the amount, and the money moves within 1 to 3 business days. This is faster than a check and simpler than an ATM visit.

The fee structure is the same as a balance transfer check: usually 3% to 5% upfront, plus interest from day one at the cash advance rate. Some issuers cap the fee at a flat amount (for example, $10 maximum), so a small transfer might cost less than 3% of the amount. Check your card's terms or call customer service to confirm the exact fee before you transfer.

Third-party money transfer services

Apps like PayPal, Square Cash, Venmo, and others let you link a credit card and send money to a bank account. However, most of these services treat credit card transfers as cash advances and charge the same fees your card issuer would charge — 3% to 5% plus interest. Some services charge their own fee on top of the card issuer's fee, making the total cost even higher.

Before using a third-party service, check whether it charges a separate fee beyond what your card issuer charges. In most cases, going directly through your card issuer's app or website is cheaper and faster.

What happens to your credit score and credit limit

A cash advance counts as a new debt on your credit report. It increases your overall credit utilization — the percentage of your available credit you are using — which can lower your credit score by a few points in the short term. The impact is usually temporary and recovers once you pay down the balance.

The cash advance also reduces your available credit. If you have a $5,000 limit and transfer $1,000, your available credit drops to $4,000. You cannot use that $1,000 for purchases until you pay it back.

When a cash advance makes sense

A cash advance is worth considering only in specific situations. If you have a 0% promotional offer on balance transfer checks and you can pay back the full amount before the promotional period ends, the only cost is the upfront fee — which might be worth it if you are moving a large amount. If you are facing an overdraft fee or a late payment fee that would cost more than the cash advance fee, the transfer might be the cheaper option.

In almost all other cases, a cash advance is expensive. If you need money urgently, look first at whether you have a personal loan option, a line of credit, or a lower-interest credit card you can use instead. If you are considering a cash advance to pay off debt on another card, a balance transfer card with a 0% introductory rate is usually much cheaper.

Frequently Asked Questions

Does a cash advance show up differently on my credit report than a regular purchase?

Yes. Your credit report lists cash advances separately from purchases, and they are reported to the credit bureaus as a different type of transaction. Lenders can see that you took a cash advance, which some view as a sign of financial stress. The impact on your credit score comes mainly from the increased utilization, not from the label itself.

Can I transfer money from a credit card to a savings account, or only a checking account?

You can transfer to either. The process is the same — you provide your bank account number, and the issuer deposits the funds. Make sure you enter the correct account number so the money goes where you intend. If you enter a savings account number by mistake, the funds will go there instead of your checking account.

What if I cannot pay back the cash advance right away?

Interest will accrue daily at your cash advance APR until the balance is paid off. Unlike a purchase, there is no grace period, so interest starts on day one. If you cannot pay it back quickly, the total cost will grow significantly. Consider whether you can adjust your budget to pay it back within a few months, or explore other borrowing options with lower interest rates.

Is there a limit to how much I can transfer?

Yes. Most card issuers set a cash advance limit that is lower than your overall credit limit — often 20% to 50% of your total limit. You can find your cash advance limit in your account details online or by calling customer service. Some issuers let you request a higher limit, but approval is not may provide.

Can I do a cash advance from one credit card to pay off another credit card?

Technically yes, but it is expensive. You would pay the cash advance fee on the first card, then pay interest on both cards until they are paid off. A balance transfer card with a 0% introductory APR is a much better option if you are trying to consolidate credit card debt, because you avoid the cash advance fee and the high interest rate.