You cannot transfer money directly from a credit card to a bank account the way you would between two bank accounts
A credit card is a borrowing tool, not a savings account. When you move money from a credit card to a bank account, you are borrowing against your credit limit and then depositing that borrowed money into your bank. The credit card company treats this as a cash advance or balance transfer, not a simple transfer. You will pay interest on the money immediately (usually starting the same day), and the credit card company will charge a fee upfront—typically 3 to 5 percent of the amount moved.
If you need cash from your credit card, a direct ATM withdrawal is faster and sometimes cheaper than a bank transfer. If you need to move money to pay a bill or another person, paying directly from your credit card (if the merchant accepts it) avoids the extra step and the cash advance fee. Moving credit card money to a bank account only makes sense in specific situations: you need the cash in hand, you have no other way to access it, or you are consolidating debt and the interest rate on the credit card is lower than your other debts.
Key Takeaways
- Credit card companies charge a cash advance fee (usually 3 to 5 percent) and start charging interest immediately when you move money to a bank account.
- The interest rate on a cash advance is typically higher than the rate on purchases, and interest accrues from day one with no grace period.
- A direct ATM withdrawal costs less than a bank transfer if you only need cash, and paying the merchant directly with your card avoids both fees.
- The three main methods are balance transfer checks, ATM withdrawals, and third-party transfer services, each with different fees and timelines.
Balance transfer checks: the slowest but most straightforward method
Some credit card companies send you checks tied to your credit line. You write a check to yourself or to your bank, deposit it into your bank account, and the credit card company charges your card. The check arrives in the mail (usually 5 to 10 business days after you request it) and takes another 1 to 3 business days to clear once deposited.
The fee is typically 3 to 5 percent of the check amount, charged upfront. Interest begins accruing immediately at the cash advance rate, which is often 2 to 5 percentage points higher than your purchase rate. If your credit card company has not sent you checks, you can call the customer service number on the back of your card and request them. Not all cards offer this service.
ATM withdrawals: the fastest way to get cash in hand
You can withdraw cash directly from an ATM using your credit card. The money goes into your wallet, not your bank account, but you can then deposit it at your bank. This avoids the balance transfer check delay and works with any credit card that has a PIN.
The fee is typically 2 to 3 percent of the withdrawal amount, plus any ATM operator fee (usually $2 to $5). Interest starts accruing the same day at the cash advance rate. The cash is in your hand within minutes, and you can deposit it at your bank immediately. This method is cheapest if you only need a small amount and can deposit it the same day.
Third-party transfer services: the most expensive option
Some fintech apps and payment platforms (such as PayPal, Square Cash, or Venmo) allow you to link a credit card and transfer money to a bank account. These services treat the transaction as a cash advance on your credit card, not a standard transfer, so the same fees and interest rates apply.
The platform may charge an additional processing fee on top of the credit card company's cash advance fee, making this the most expensive route. The transfer typically takes 1 to 3 business days to reach your bank account. Use this method only if you have no other way to access the money and the platform's fee is lower than your credit card company's cash advance fee.
What happens to your credit score and credit limit
A cash advance counts as a hard inquiry and a new account activity on your credit report. It will lower your credit score slightly in the short term, usually by 5 to 10 points. The inquiry fades after a few months, but the balance stays on your report until you pay it off.
The cash advance also uses up part of your available credit. If you have a $5,000 credit limit and withdraw $1,000 as a cash advance, your available credit drops to $4,000 until you pay back the $1,000. This can hurt your credit utilization ratio (the percentage of your credit limit you are using), which makes up about 30 percent of your credit score calculation.
How to avoid cash advance fees and interest
The simplest way to avoid these costs is to not move credit card money to a bank account at all. If you need cash, use a debit card or withdraw from your bank account directly. If you need to pay a bill, pay it with your credit card if the merchant accepts it—no fee, no interest.
If you are trying to consolidate debt, a balance transfer card (which moves debt from one credit card to another, not to a bank account) often has a lower interest rate and a longer grace period than a cash advance. If you are trying to access emergency cash, a personal loan or a line of credit from your bank will have lower interest rates and no upfront fee.
Frequently Asked Questions
Can I transfer money from a credit card to a bank account without paying a fee?
No. Any movement of money from a credit card to a bank account is treated as a cash advance, which always includes a fee (typically 3 to 5 percent) and interest starting immediately. The only way to avoid the fee is to not make the transfer.
How long does it take for the money to show up in my bank account?
It depends on the method. ATM withdrawals are instant, but you have to deposit the cash yourself (1 to 3 business days). Balance transfer checks take 5 to 10 days to arrive, then 1 to 3 days to clear. Third-party services typically take 1 to 3 business days.
What is the difference between a cash advance and a balance transfer?
A cash advance moves money from your credit card to a bank account or ATM. A balance transfer moves debt from one credit card to another. Balance transfers often have lower interest rates and longer grace periods, but they do not put cash in your bank account.
Will a cash advance hurt my credit score?
Yes, slightly. It counts as a hard inquiry and increases your credit utilization, which can lower your score by 5 to 10 points in the short term. The damage fades as you pay off the balance and the inquiry ages.
Is there a limit to how much I can withdraw as a cash advance?
Yes. Most credit card companies set a cash advance limit that is lower than your total credit limit—often 20 to 50 percent of your available credit. Check your card's terms or call customer service to find out your specific limit.