Yes, but it costs money and counts as a cash advance
You can transfer 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 means you will pay a fee upfront (usually 3 to 5 percent of the amount), a higher interest rate than your regular APR, and interest starts accruing immediately—there is no grace period like there is for purchases. If you need money in your bank account, this is one of the most expensive ways to get it.
The main methods are a balance transfer check, a cash advance at an ATM, a wire transfer through your bank, or a third-party app that moves the money for you. Each has different fees, timing, and limits. Your card issuer sets a cash advance limit, which is often lower than your credit limit, so you may not be able to transfer as much as you think.
Key Takeaways
- Cash advances from a credit card carry a fee (3 to 5 percent typically), a higher interest rate, and immediate interest accrual with no grace period.
- Balance transfer checks are mailed to you and work like regular checks, but still count as cash advances with the same fees and rates.
- ATM cash advances are the fastest but have the lowest limits and the highest per-transaction fees.
- Your card issuer sets a separate cash advance limit, which is usually much lower than your credit limit.
- If you need money urgently, a personal loan, a line of credit, or a short-term advance from your employer will almost always cost less.
Balance transfer checks: mailed to you, but still a cash advance
Many credit card issuers send balance transfer checks to cardholders. You write one to yourself or to a payee, deposit it in your bank account, and the amount is charged to your credit card as a cash advance. The fee and interest rate are the same as any other cash advance—the check is just the delivery method.
Timing depends on your mail. The check arrives in 5 to 10 business days, you deposit it, and your bank clears it in 1 to 3 business days. Total: roughly one to two weeks. The fee is charged immediately when you cash or deposit the check, so you will see it on your next statement.
Check your card's terms or call the issuer to see if they send these checks and what the cash advance fee is. Not all cards offer them.
ATM cash advances: fastest but lowest limits
You can withdraw cash from an ATM using your credit card, then deposit that cash in your bank account. This is the fastest method—you have the money in minutes—but it has the tightest restrictions. Most issuers set a cash advance limit of $500 to $1,000, and some charge a per-transaction fee on top of the percentage fee. You may also pay an out-of-network ATM fee from the ATM operator.
The total cost adds up quickly. If your card charges a 5 percent cash advance fee and the ATM charges $3, withdrawing $500 costs you $28 in fees alone, plus interest starting that day. This method makes sense only if you need a small amount of cash immediately and have no other option.
Wire transfers and apps: slower but sometimes cheaper
Some credit card issuers allow you to request a wire transfer directly to your bank account through their website or app. This bypasses the check or ATM step, but it still counts as a cash advance with the same fee and interest rate. Wire transfers typically take 1 to 3 business days.
Third-party apps like Venmo, PayPal, or Square Cash can also move money from your credit card to your bank, but they treat it as a cash advance too, and they may charge their own fee on top of your card issuer's fee. Read the fine print before you use them—some apps charge 1 to 3 percent just for the transfer.
The advantage of these methods is that you avoid the mail delay and ATM limits. The disadvantage is that you still pay the cash advance fee and interest rate, so the total cost is not much lower than other methods.
What the fees and interest actually cost
A cash advance fee of 3 to 5 percent is charged once, upfront. A $1,000 transfer costs $30 to $50 in fees alone. Interest starts accruing immediately at a rate that is usually 2 to 5 percentage points higher than your regular APR—so if your purchase APR is 18 percent, your cash advance APR might be 23 percent.
If you carry the balance for a month, that $1,000 costs you roughly $30 to $50 in fees plus $19 in interest (at 23 percent APR). If you carry it for three months, the interest alone is around $57. There is no grace period, so interest starts on day one.
Compare this to a personal loan at 12 to 18 percent APR with no upfront fee, or a line of credit from your bank at a lower rate. Both are usually cheaper than a credit card cash advance, even if the APR looks similar, because you avoid the upfront fee and the interest clock starts later.
Your cash advance limit is separate from your credit limit
Your credit card issuer sets a cash advance limit that is independent of your credit limit. You might have a $5,000 credit limit but only a $500 cash advance limit. This limit is set based on your account history, credit score, and the issuer's risk assessment.
You can call your card issuer and ask what your cash advance limit is. Some issuers allow you to request an increase, but there is no may provide they will grant it. If you try to transfer more than your limit, the transfer will be declined or only partially approved.
Cheaper alternatives to a credit card cash advance
Before you transfer money from your credit card, consider these options:
- Personal loan: Banks and credit unions offer personal loans at 8 to 18 percent APR with no upfront fee. You borrow a lump sum and repay it over a fixed term. The total cost is usually lower than a cash advance.
- Line of credit: A personal line of credit works like a credit card but with a lower interest rate and no cash advance fee. You draw what you need and pay interest only on what you use.
- Paycheck advance: Some employers offer paycheck advances or short-term loans to employees. These are often free or very cheap.
- Peer-to-peer lending: Platforms like LendingClub or Prosper connect borrowers with individual lenders. Rates vary, but they are often lower than credit card cash advances.
- Negotiate with creditors: If you owe money and need to move funds to pay a bill, contact the creditor and ask about a payment plan or extension. Many will work with you rather than see a late payment.
Frequently Asked Questions
Does a credit card cash advance hurt my credit score?
A cash advance itself does not directly hurt your score, but it increases your credit utilization (the amount of credit you are using), which can lower your score slightly. If you do not pay it off quickly, the interest charges and ongoing balance will have a bigger impact over time.
Can I transfer money from one credit card to another credit card?
Yes, but it is treated as a cash advance with the same fees and interest rate. A balance transfer (moving a balance from one card to another) is different—it is a promotional tool some issuers use to attract customers, and it may have a lower or zero fee for a limited time. Check your card's terms to see if balance transfers are available.
What happens if I cannot pay back the cash advance?
The balance stays on your credit card and accrues interest. If you miss payments, your issuer will report it to the credit bureaus, your credit score will drop, and you may face late fees and a higher interest rate. The issuer can also sue you or send your account to a collection agency.
Is there a daily limit on how much I can withdraw as a cash advance?
Yes. Most issuers set both a per-transaction limit (usually $500 to $1,000 at an ATM) and a daily limit (often $1,000 to $2,500). These limits are separate from your overall cash advance limit. Check your card's terms or call the issuer to find out what yours are.
Can I use a credit card cash advance to pay off another credit card?
Technically yes, but it is a bad idea. You are paying a cash advance fee and interest rate to move money from one card to another, which costs more than just paying down the original card with regular payments or a balance transfer offer.