You can move money from a credit card to a bank account, but it costs money and counts as a cash advance
Yes, you can transfer money from a credit card to a checking or savings account. The most common methods are a cash advance at an ATM or bank, a balance transfer check mailed by your card issuer, or a peer-to-peer payment app that lets you send money to someone else's account. None of these are free. Cash advances and balance transfer checks charge upfront fees (usually 3 to 5 percent of the amount) plus a higher interest rate than regular purchases. Apps like Venmo or PayPal may charge a fee if you use a credit card instead of a debit card. The money lands in your bank account within one to three business days, depending on the method.
Before you move money this way, understand that you are borrowing against your credit limit at a cost. If you need cash because you are short on money, moving it from a credit card to a bank account does not solve the problem—it just moves the debt and adds a fee. If you need the money for a specific reason (paying a bill, covering an emergency), there may be a cheaper way to do it.
Key Takeaways
- Cash advances at ATMs and banks charge a fee of 3 to 5 percent plus interest that starts accruing immediately, with no grace period.
- Balance transfer checks work the same way as cash advances and carry the same fees and interest rates.
- Peer-to-peer apps like Venmo or PayPal charge a fee only if you use a credit card; using a debit card or bank transfer is free.
- The money typically arrives in your bank account within one to three business days.
- Moving money from a credit card to a bank account does not reduce your debt—it just relocates it and adds a cost.
Cash advances at ATMs and bank branches
A cash advance is the most direct way to pull money from a credit card. You go to an ATM or walk into a bank branch, use your credit card, and withdraw cash. The money goes into your hand immediately, and you can deposit it into your bank account at any ATM or branch. This takes one business day if you deposit before the bank's cutoff time (usually 2 p.m. on weekdays).
The cost is steep. Your card issuer charges an upfront fee—typically 3 to 5 percent of the amount withdrawn, with a minimum fee of $5 to $10. On a $500 withdrawal, that is $15 to $25 just to get the cash. Interest starts accruing the same day, at a rate higher than your regular purchase APR (often 25 to 30 percent). Unlike purchases, there is no grace period; interest compounds daily until you pay it back. If you withdraw $500 and pay it back in 30 days, you will owe roughly $40 to $50 in interest plus the upfront fee.
Some ATMs charge an additional surcharge on top of your card issuer's fee, especially if you use an out-of-network machine. Check with your bank or card issuer about which ATMs are free to use.
Balance transfer checks from your card issuer
Many credit card companies mail balance transfer checks to cardholders. You write a check against your credit card account and deposit it into your bank account like any other check. The money clears within one to three business days. This method feels less like borrowing because you are using a check, but it is functionally identical to a cash advance.
The fees and interest are the same: 3 to 5 percent upfront, plus interest at the cash advance rate starting immediately. Some card issuers offer promotional rates on balance transfer checks (0 percent for 6 to 12 months), but read the fine print—the promotional rate may apply only to balance transfers between cards, not to checks. If you receive checks in the mail, call your card issuer or log into your account to confirm whether a promotional rate applies before you use them.
Balance transfer checks are useful only if your card issuer is offering a 0 percent promotional period and you have a plan to pay back the money before the rate jumps. Otherwise, the fee and interest make them more expensive than a regular cash advance.
Peer-to-peer payment apps
Apps like Venmo, PayPal, Square Cash, and Google Pay let you send money to another person's bank account. If you send money to a friend or family member, they can then send it back to you, or you can ask them to transfer it to your bank account directly. This is a workaround, not a direct transfer, and it only works if you have someone you trust to help.
The fee depends on how you fund the transfer. If you use a debit card or link your bank account directly, most apps charge nothing. If you use a credit card, the app charges 1 to 3 percent (Venmo charges 3 percent for credit cards, PayPal charges 2.9 percent plus $0.30). The money lands in the recipient's account within one to three business days, depending on the app and the recipient's bank.
This method is cheaper than a cash advance if you use a debit card or bank account, but it requires a middleman and carries the risk that the other person does not send the money back. Use this only if you have a trusted person willing to help and a clear agreement about repayment.
Why you should avoid moving money from a credit card to your bank account
Moving money from a credit card to a bank account is expensive and does not solve an underlying money problem. If you are doing this because you need cash for an emergency, you are adding a fee and interest to an already tight situation. If you are doing this to pay a bill, you are paying a fee to move money that you could have used to pay the bill directly.
Credit cards are designed for purchases, not cash. The fees and interest rates for cash advances reflect this—they are meant to discourage you from treating your credit card like an ATM. If you find yourself regularly moving money from a credit card to your bank account, that is a sign that your income does not cover your expenses, and moving money around will not fix that.
If you need cash for a genuine emergency and have no other options, a cash advance is faster than a personal loan or payday loan. But if you have time, a personal loan from a bank or credit union usually has a lower interest rate and no upfront fee. If you are short on money for regular bills, contact your creditors or service providers—many offer hardship programs or payment plans that cost less than a cash advance.
How long it takes for the money to arrive
Cash deposited at an ATM or bank branch appears in your account within one business day if you deposit before the bank's cutoff time. Deposits made after hours or on weekends are processed the next business day. If you withdraw cash and deposit it at a different bank, the receiving bank may hold the deposit for one to two additional business days.
Balance transfer checks clear within one to three business days, depending on your bank's processing time. Peer-to-peer apps typically transfer money within one to three business days as well, though some apps offer faster transfers for an additional fee.
If you need the money the same day, a cash advance at an ATM is your only option. All other methods require at least one business day.
Alternatives to moving money from a credit card
Before you use a cash advance, consider these cheaper options. If you need to pay a bill, use your credit card directly instead of withdrawing cash—you will avoid the cash advance fee and interest. If you need cash for an emergency, ask your employer about an advance on your paycheck, or contact your bank about a short-term personal loan. Credit unions often offer small personal loans at lower rates than credit card cash advances.
If you are behind on bills, contact your creditors and ask about hardship programs. Many utility companies, phone providers, and lenders offer payment plans or temporary rate reductions. If you are facing eviction or foreclosure, contact your local housing authority or a nonprofit credit counselor—many offer free guidance on negotiating with creditors.
If you are regularly short on money, a cash advance is a temporary fix that makes the problem worse. A credit counselor can help you build a budget and find longer-term solutions. The National Foundation for Credit Counseling (NFCC) offers free or low-cost counseling through nonprofit agencies in most areas.
Frequently Asked Questions
Does a cash advance hurt my credit score?
A cash advance itself does not hurt your score, but it increases your credit utilization (the amount of your credit limit you are using), which can lower your score temporarily. Paying it back quickly will restore your score. However, if you cannot pay it back and the balance grows, your utilization stays high and your score stays lower.
Can I use a credit card cash advance to pay another credit card?
Technically yes, but it is expensive. You pay the cash advance fee and interest on the first card, then you are paying off the second card with borrowed money. This only makes sense if the second card has a much higher interest rate and you have a plan to pay back the cash advance quickly.
What if I do not have a bank account?
You can deposit cash at any bank or credit union branch, even if you do not have an account there. Some banks charge a fee for this service ($5 to $10). If you do not have a bank account, consider opening one before you need a cash advance—most banks offer free checking accounts with no minimum balance.
Is there a limit to how much I can withdraw as a cash advance?
Yes. Your card issuer sets a cash advance limit, which is usually lower than your credit limit (often 20 to 50 percent of your total limit). Check your card's terms or call the issuer to find out your cash advance limit before you go to an ATM.
Can I reverse a cash advance if I change my mind?
No. Once you withdraw cash, the transaction is complete. You can pay back the balance, but you cannot undo the cash advance or recover the fee. Pay back the balance as quickly as possible to minimize interest charges.