Yes, but it costs money and counts as a cash advance
You can move money from a credit card to a bank account, but your card issuer will treat it as a cash advance, not a regular purchase. This matters because cash advances carry higher interest rates than regular card purchases—often 3 to 5 percentage points higher—and start accruing interest immediately with no grace period. You will also pay an upfront fee, usually 3 to 5 percent of the amount transferred.
The total cost makes this an expensive way to move money. If you transfer $1,000 at a 4 percent fee plus a 25 percent APR, you pay $40 upfront and then $20.83 per month in interest if you carry a balance. Most people should explore other options first.
Key Takeaways
- Credit card cash advances charge an upfront fee (usually 3 to 5 percent) plus a higher interest rate than regular purchases, with no grace period.
- You can access cash advances through ATMs, bank tellers, or balance transfer checks, depending on what your card issuer offers.
- The money lands in your bank account within one to three business days if you use a balance transfer check or bank-to-bank transfer.
- If you need money urgently, a personal loan or credit line often costs less than a cash advance.
Three ways to move money from your credit card
The method you use depends on what your card issuer allows and how quickly you need the money.
ATM withdrawal: The fastest option. You insert your card at an ATM and withdraw cash, which you then deposit into your bank account. The money is yours immediately, but you pay the cash advance fee right away and interest starts accruing the same day. Most cards limit how much you can withdraw per day—often $500 to $1,000.
Balance transfer check: Your card issuer mails you a check drawn against your credit line. You deposit it into your bank account like any other check. Delivery takes 5 to 10 business days, and the check clears in 1 to 3 business days after deposit. You pay the cash advance fee when you deposit the check, and interest starts accruing immediately.
Bank-to-bank transfer: Some card issuers allow you to request a transfer directly from your credit card to your linked bank account through their app or website. This is the least common option and availability varies by issuer. If available, the money typically arrives in 1 to 3 business days. You still pay the cash advance fee and interest.
What the fees and interest actually cost
A $1,000 cash advance with a 4 percent fee costs $40 upfront. If you pay it back in full within 30 days, that is your only cost. If you carry a balance, the interest adds up fast.
At a 25 percent APR (common for cash advances), you owe $20.83 in interest after one month if you have not paid down the balance. After six months of minimum payments, you may have paid $150 to $200 in interest alone. The longer you carry the balance, the more you pay.
Compare this to a personal loan at 12 to 18 percent APR with no upfront fee, or a 0 percent promotional credit card offer (if you may have access to). Both are usually cheaper than a cash advance.
How long it takes for the money to arrive
Timing depends on the method. ATM withdrawals are instant—you walk away with cash. Balance transfer checks take 5 to 10 days to arrive by mail, then 1 to 3 business days to clear after you deposit them. Bank-to-bank transfers typically post within 1 to 3 business days.
If you need money today, an ATM is your only option. If you can wait a week or two, a balance transfer check or bank transfer may be available. Check your card's terms or call the issuer to see which methods they support.
Why your credit score may drop
A cash advance shows up on your credit report as a new balance on your credit card account. This can lower your credit score in two ways: it increases your overall credit utilization (the amount of available credit you are using), and the card issuer may report it as a separate inquiry or account activity.
The impact is usually temporary. Once you pay down the balance, your utilization drops and your score recovers. But if you are planning to apply for a mortgage or car loan soon, a cash advance in the weeks before your application can hurt your approval odds or raise your interest rate.
When a cash advance makes sense
A cash advance is rarely the best option, but it may be worth considering if you have exhausted other routes. You might use one if you need cash urgently and cannot access a personal loan, do not may have access to for a 0 percent balance transfer offer, and have no other credit available. Even then, plan to pay it back as quickly as possible to minimize interest.
If you are considering a cash advance because you are short on money for bills or essentials, look first at whether a payment plan, hardship program, or local assistance fund is available. Many utilities, medical providers, and government programs offer payment arrangements that cost nothing.
Cheaper alternatives to a cash advance
A personal loan from a bank or credit union usually charges 10 to 18 percent APR with no upfront fee and a fixed repayment schedule. The total cost is often lower than a cash advance, especially if you carry the balance for more than a few months.
A 0 percent balance transfer card lets you move debt from one card to another with no interest for 6 to 21 months (depending on the offer). You pay a balance transfer fee of 3 to 5 percent upfront, but if you pay off the balance before the promotional period ends, you save on interest. This works only if you have good credit and can may have access to for the offer.
A line of credit from your bank or credit union, if you have one, usually charges a lower rate than a cash advance and lets you draw money as needed. Some credit cards also offer a cash-like feature called a credit line advance, which functions similarly but may have different terms than a traditional cash advance.
Frequently Asked Questions
Can I use a credit card cash advance to pay off another debt?
Yes, you can withdraw the cash and use it to pay any bill or debt. However, you are paying a cash advance fee plus a high interest rate to do it. A balance transfer (moving the debt directly from one card to another) or a personal loan usually costs less.
Does a cash advance affect my credit limit?
Yes. The cash advance amount counts against your available credit, just like a purchase does. If you have a $5,000 limit and take a $1,000 cash advance, you have $4,000 left to use. Once you pay back the cash advance, your available credit returns.
What happens if I only make the minimum payment on a cash advance?
You will pay interest every month until the balance is gone. At a 25 percent APR, a $1,000 cash advance costs roughly $20 to $25 per month in interest alone if you only make minimum payments. It can take years to pay off.
Can I get a cash advance from a credit card I just opened?
Most card issuers allow cash advances immediately, but some new cards have restrictions. Check your card's terms or contact the issuer. Even if you can take a cash advance right away, the fee and interest rate apply from day one.
Is there a limit to how much I can withdraw as a cash advance?
Yes. Most card issuers set a cash advance limit that is lower than your credit limit—often 20 to 50 percent of your total available credit. Your card's terms or your online account will show your specific cash advance limit.