The main ways to move money from a credit card to a bank account
You can move money from a credit card to a bank account in three ways: a cash advance at an ATM or bank, a balance transfer to a linked bank account (if your card issuer offers it), or a third-party money transfer service like PayPal or Square Cash. Each method costs money and works differently, so the right choice depends on how much you need, how fast you need it, and which fees you can afford.
Cash advances and balance transfers both come from your credit card company directly. Money transfer services let you send funds through an app or website, but they treat the transaction as a cash advance on your card, which means the same fees apply. None of these methods are free — you will pay either a percentage of the amount or a flat fee, plus interest that starts accruing immediately.
Key Takeaways
- Cash advances charge a fee (usually 3 to 5 percent) plus a higher interest rate than regular purchases, and interest starts the day you withdraw.
- Balance transfers to a bank account are only available from certain card issuers and typically charge 3 to 5 percent, though some offer 0 percent for a limited time.
- Third-party money transfer apps treat the transaction as a cash advance, so you pay the same fees and interest as you would at an ATM.
- The fastest method is a cash advance at your bank's ATM or branch, which posts to your account within minutes to a few hours.
- All three methods charge interest from day one — there is no grace period like there is for regular credit card purchases.
Cash advances: the most direct route
A cash advance is the simplest way to get money from your credit card into your bank account. You withdraw cash at an ATM using your credit card and PIN, or you go to a bank branch and ask the teller for a cash advance. The money appears in your account within minutes if you use your own bank's ATM, or within one to three business days if you use an out-of-network ATM or a different bank's branch.
The cost is immediate and steep. Most card issuers charge a cash advance fee of 3 to 5 percent of the amount you withdraw — so a $500 advance costs $15 to $25 just to get the money out. On top of that, your card issuer charges a higher interest rate on cash advances than on regular purchases. While a purchase might carry 15 to 20 percent APR, a cash advance often runs 20 to 30 percent APR. Interest starts accruing the day you withdraw, with no grace period.
You also have a daily withdrawal limit set by your card issuer, which is often lower than your credit limit. Call the number on the back of your card to find out what your cash advance limit is before you go to the ATM.
Balance transfers to your bank account
Some credit card issuers let you transfer a balance directly to a linked bank account. This is different from a balance transfer between credit cards — it moves money from your card into your checking or savings account. Not all card companies offer this feature, so you will need to check your card's terms or call customer service to see if it is available to you.
The fee structure is similar to a cash advance: expect 3 to 5 percent of the transfer amount, though some issuers occasionally run promotions offering 0 percent for a limited time (usually three to six months). Interest still accrues after the promotional period ends. The transfer usually takes one to three business days to show up in your bank account, depending on your bank and the card issuer.
The main advantage over a cash advance is that you do not have to visit an ATM or bank branch, and some issuers charge slightly lower fees or offer better promotional rates. The main disadvantage is that this feature is not widely available — you can only use it if your card issuer supports it.
Money transfer apps and services
Apps like PayPal, Square Cash, Venmo, and similar services let you send money to a bank account using a credit card. You link your credit card to the app, enter the amount and the bank account details, and the service transfers the money. The transfer usually takes one to three business days.
Behind the scenes, these services treat your credit card transaction as a cash advance, which means you pay cash advance fees and interest rates — not the lower rates you would pay for a regular purchase. Some services charge their own fee on top of that. For example, PayPal charges 2 percent to transfer money to a bank account using a credit card, plus your card issuer's cash advance fee and interest. That can add up to 5 to 8 percent or more depending on your card.
The advantage is convenience — you can do it from your phone without visiting a bank. The disadvantage is that the total cost is often higher than a direct cash advance, because you are paying both the app's fee and your card issuer's fee. Read the app's fee schedule carefully before you transfer.
Comparing the three methods side by side
| Method | Fee | Interest rate | Time to account | Where to do it |
|---|---|---|---|---|
| Cash advance at ATM | 3–5% of amount | 20–30% APR | Minutes to 3 days | ATM or bank branch |
| Balance transfer to bank | 3–5% of amount (sometimes 0% promo) | 20–30% APR (after promo) | 1–3 business days | Card issuer's website or app |
| Money transfer app | 2–5% app fee + 3–5% card issuer fee | 20–30% APR | 1–3 business days | App on phone or computer |
What happens to your credit score
All three methods count as a cash advance on your credit report, not a regular purchase. This affects your credit score in two ways. First, your credit utilization goes up — if you have a $5,000 credit limit and you take a $1,000 cash advance, your utilization jumps to 20 percent. High utilization can lower your score temporarily. Second, cash advances are flagged differently than purchases in your credit history, and some scoring models treat them as riskier, which can also lower your score.
The impact is usually temporary — your score recovers as you pay down the balance and your utilization drops. But if you are planning to apply for a loan or mortgage soon, a large cash advance right before your application can hurt your chances of approval or your interest rate.
How to pay back the money you transferred
Once the money is in your bank account, it is yours to use, but the debt is still on your credit card. You owe the full amount you transferred, plus the fee you paid, plus interest that keeps accruing every day until you pay it off. Interest accrues daily at your card's cash advance rate, which is higher than the rate on regular purchases.
Make a payment to your credit card as soon as you can. Even a small payment reduces the balance and the interest you owe going forward. If you can pay the full amount within a month, the total interest will be manageable. If you carry the balance for several months, the interest can exceed the original fee you paid.
Some card issuers let you set up automatic payments to your credit card from your bank account, which can help you stay on track. Check your card's website or app to see if this option is available.
When to use each method
Use a cash advance at an ATM if you need the money in your account within hours and you do not mind paying 3 to 5 percent upfront. This is the fastest option and works even if your card issuer does not offer balance transfers.
Use a balance transfer to your bank account if your card issuer offers it and you have time to wait one to three business days. This method is often cheaper than a money transfer app because you only pay one fee instead of two. If your issuer is running a 0 percent promotional offer, this is the cheapest option available.
Use a money transfer app only if you need the convenience of doing it from your phone and you are willing to pay extra fees. The total cost is usually higher than the other two methods, so it makes sense only if speed or ease is worth the extra money to you.
Frequently Asked Questions
Can I transfer money from a credit card to a bank account without paying a fee?
No. All three methods charge a fee — either from your card issuer, the money transfer service, or both. The lowest-cost option is usually a balance transfer directly from your card issuer if they offer a 0 percent promotional period. Even then, you will pay interest after the promotion ends unless you pay off the balance.
How much can I transfer?
Your card issuer sets a cash advance limit, which is often lower than your credit limit. Call the number on the back of your card to find out your limit. If you want to transfer more than your limit, you can make multiple transfers over time, but each one incurs a separate fee.
Does the money go directly to my bank account or do I have to pick it up?
It depends on the method. A cash advance at an ATM gives you physical cash that you then deposit yourself. A balance transfer or money transfer app sends the funds directly to your linked bank account without you handling cash.
What if I cannot pay back the money right away?
Interest will keep accruing at your card's cash advance rate (usually 20 to 30 percent APR) until you pay it off. The longer you carry the balance, the more interest you owe. If you are struggling to pay, contact your card issuer to ask about hardship programs or lower interest rates.
Is there a better way to move money from a credit card to a bank account?
If you have access to a personal loan, that is usually cheaper than any credit card cash advance — personal loans typically charge 6 to 36 percent APR depending on your credit. If you need the money for an emergency, a personal loan or a line of credit from your bank may be worth exploring before you use a cash advance.