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 most common methods are a balance transfer check, a cash advance at an ATM, a money transfer service offered by your card issuer, or a third-party app that specializes in moving credit card funds. However, none of these are free. Every method charges a fee, and most treat the transfer as a cash advance rather than a regular purchase — which means you pay a higher interest rate immediately, with no grace period.

Before you transfer, understand what you are paying for. A typical cash advance fee runs 3 to 5 percent of the amount transferred. Interest on that cash advance usually starts accruing the day the transfer posts, at a rate 5 to 10 percentage points higher than your regular purchase APR. If you need the money for an emergency, the cost may be worth it. If you are trying to move money to pay off debt or cover a regular expense, the fees often make this an expensive solution.

Key Takeaways

  • Cash advances from credit cards charge a fee (usually 3 to 5 percent) plus a higher interest rate that starts immediately with no grace period.
  • Balance transfer checks, ATM withdrawals, and card issuer money transfer services all work, but each has different fees and terms.
  • The interest rate on a cash advance is typically 5 to 10 percentage points higher than your regular purchase rate and begins accruing right away.
  • If you need to move money regularly, a personal loan or line of credit from a bank usually costs less than repeated credit card cash advances.

Balance transfer checks: the lowest-fee option if you have them

Some credit card issuers send balance transfer checks with your statement or make them available through your online account. These checks let you write a check against your credit card balance and deposit it into your bank account. The fee is usually 3 percent of the check amount, and that fee is added to your credit card balance.

The advantage is that balance transfer checks sometimes come with a promotional 0 percent APR period — often 6 to 12 months — if your card offers balance transfer promotions. Read the fine print carefully: the 0 percent rate applies only to the transferred balance, not to new purchases, and it expires on a specific date. After the promotional period ends, any remaining balance reverts to your regular APR.

Not all cards offer balance transfer checks. Call your card issuer or log into your account to see if they are available to you. If they are, they are usually the cheapest way to move money from your card to your bank.

Cash advances at an ATM or bank teller

You can withdraw cash directly from an ATM using your credit card, or go to a bank teller and ask for a cash advance. The fee is typically 3 to 5 percent of the amount withdrawn, with a minimum fee of $5 to $10. Interest starts accruing immediately at your cash advance rate, which is usually 21 to 29 percent APR depending on your card and creditworthiness.

This method is fast — you have the cash in minutes — but it is also the most expensive for anything beyond a small emergency. If you withdraw $500, you might pay $15 to $25 in fees alone, plus interest that compounds daily. After one month, the interest alone could add another $8 to $12 to what you owe.

ATM cash advances also have a lower daily limit than your regular credit card limit. Many issuers cap cash advances at $500 to $1,000 per day, or at 20 to 50 percent of your total credit limit — whichever is lower.

Money transfer services offered by your card issuer

Many large card issuers — Visa, Mastercard, American Express, Discover — offer their own money transfer services. These let you transfer funds from your credit card to a linked bank account through your online account or mobile app. The process usually takes 1 to 3 business days.

The fee is typically 3 to 5 percent, and the transfer is treated as a cash advance. Interest accrues immediately at your cash advance rate. Some issuers offer a promotional period with reduced or zero interest on transfers made within a certain window, so check your account or call customer service to see what is currently available.

This method is convenient if you already have the app set up, but it is not cheaper than a balance transfer check if your card offers one. Use it when balance transfer checks are not available or when you need the money faster than a mailed check would arrive.

Third-party apps and peer-to-peer payment services

Apps like PayPal, Square Cash, and Venmo allow you to link a credit card and transfer money to a bank account, but they treat credit card transfers as cash advances with fees. PayPal charges 2 percent for credit card transfers to a bank account (with a $0.25 minimum). Square Cash and Venmo charge similar rates or higher.

These services are useful if you already use them for other payments, but they are not a workaround for credit card fees. The fee structure is the same as a direct cash advance, and you still pay interest at the cash advance rate. The main difference is that the transfer may take 1 to 3 business days instead of being instant.

What happens to your credit score when you transfer money

A cash advance or balance transfer shows up on your credit report as a separate transaction from a regular purchase. It does not hurt your score by itself, but it does increase your credit utilization — the percentage of your available credit you are using. If you transfer $1,000 on a card with a $5,000 limit, your utilization jumps to 20 percent just from that transfer.

High utilization can lower your score by 10 to 50 points, depending on your current score and how much of your total available credit you are using across all cards. The impact is temporary: once you pay down the balance, your utilization drops and your score recovers.

A hard inquiry is not triggered by a cash advance or balance transfer, so you do not have to worry about that. The damage, if any, comes only from the increased utilization.

Cheaper alternatives to credit card transfers

If you need money regularly or in larger amounts, a personal loan from a bank or credit union is almost always cheaper than repeated credit card cash advances. Personal loans charge 6 to 36 percent APR depending on your credit, with no additional fees beyond interest. A $5,000 personal loan at 15 percent APR costs roughly $375 in interest over one year. The same amount as a credit card cash advance at 25 percent APR plus a 5 percent fee costs $1,250 in the first year alone.

A home equity line of credit (HELOC) or home equity loan is even cheaper if you own a home, with rates often in the 7 to 12 percent range. A personal line of credit from your bank — different from a personal loan — also tends to be cheaper than a credit card cash advance and gives you flexibility to borrow only what you need.

If you are in a tight spot and need cash fast, a cash advance may be your only option. But if this is something you find yourself doing repeatedly, switching to a personal loan or line of credit will save you hundreds of dollars per year.

Frequently Asked Questions

How long does it take to transfer money from a credit card to a bank account?

Balance transfer checks take 3 to 7 business days to arrive and clear. ATM cash advances are instant. Money transfer services through your card issuer typically take 1 to 3 business days. Third-party apps like PayPal usually take 1 to 3 business days as well. The exact timeline depends on your bank and the method you choose.

Can I transfer money from a credit card to someone else's bank account?

Not directly. You cannot write a check or transfer funds from your credit card to another person's account. You would have to withdraw cash or transfer to your own account first, then send the money separately. Some apps like Venmo let you pay another person using a credit card, but that person receives the money in their Venmo account, not their bank account, and you still pay a fee.

What is the difference between a cash advance and a balance transfer?

A balance transfer moves an existing balance from one credit card to another (or to your bank account via a check). A cash advance is new money you borrow against your credit card. Balance transfers sometimes come with promotional 0 percent rates. Cash advances always charge interest immediately at a higher rate. Both charge fees, but balance transfer fees are sometimes waived during promotions.

Will transferring money from my credit card hurt my credit score?

The transfer itself does not hurt your score, but it increases your credit utilization, which can lower your score by 10 to 50 points temporarily. Once you pay down the balance, your utilization drops and your score recovers. The impact is short-term and reversible.

Is there a way to transfer money from a credit card for free?

No. Every method of moving money from a credit card to a bank account charges a fee — typically 3 to 5 percent. Some balance transfer checks come with a promotional 0 percent interest rate, but the fee still applies. If you need to move money without paying a fee, use a debit card or transfer from a bank account instead.