How to Move Money From a Credit Card to Your Bank Account

You can transfer money from a credit card to a bank account, but it costs money and counts as a cash advance

Moving funds from a credit card to a checking or savings account is possible, but your credit card company treats it as a cash advance rather than 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 charging interest when ready with no grace period. You also pay an upfront fee, usually 3 to 5 percent of the amount transferred.

The most common reason to do this is to cover an urgent bank account shortage, but the cost makes it an expensive solution. If you need cash, withdrawing from an ATM using your credit card works the same way and costs the same. If you need to move money between your own accounts, use a transfer between your bank and another bank instead — that is free and takes one to three business days.

Key Takeaways

• Credit card cash advances charge a fee (usually 3 to 5 percent) plus a higher interest rate than regular purchases, with interest starting when ready.
• The three main methods are a balance transfer check, an ATM withdrawal, or a direct transfer through your card's app or website.
• Balance transfer checks and direct transfers take one to three business days; ATM withdrawals are when ready but may have daily limits.
• Your credit card company reports cash advances to credit bureaus, which can lower your credit score if the balance stays high.
• Transferring money between your own bank accounts is free and takes the same time, making it a better choice if you have access to both accounts.

Three ways to move money from a credit card to a bank account

Your credit card company offers at least one of these methods, and most offer all three. Check your card's app or website, or call the customer service number on the back of your card to see which ones are available to you.

Balance transfer checks are physical checks your card company mails to you. You write one to yourself, deposit it in your bank account, and the charge appears on your credit card statement. This takes 5 to 10 business days for the check to arrive, then another 1 to 3 days for your bank to clear it. You pay the cash advance fee upfront.

ATM withdrawal is the fastest method. You insert your credit card into any ATM, enter your PIN, and withdraw cash. You can then deposit the cash at your bank or use it directly. ATM withdrawals are when ready, but most credit card companies limit how much you can withdraw per day — often $500 to $1,000. You pay the cash advance fee plus any ATM operator fee if you use an out-of-network machine.

Direct transfer through your card's app or website lets you link your bank account and move money electronically. You log into your credit card account, select the transfer option, enter your bank account details, and choose the amount. This takes 1 to 3 business days and charges the cash advance fee. Not all card companies offer this, so check first.

What fees and interest you will pay

A cash advance costs you money in two ways: an upfront fee and higher interest.

The cash advance fee is charged when you make the transfer. It is usually 3 to 5 percent of the amount transferred, with a minimum fee of $5 to $10. If you transfer $500, expect to pay $15 to $25 in fees. If you transfer $2,000, expect $60 to $100. Your card company adds this fee to your credit card balance.

The interest rate on a cash advance is higher than your regular purchase rate. If your card charges 18 percent APR on purchases, the cash advance rate might be 23 percent. Interest starts accruing the day you make the transfer — there is no grace period like there is for purchases. If you carry a balance, the interest compounds daily.

To see the exact fee and rate for your card, log into your account online or call the number on the back of your card. The terms are in your cardholder agreement, which you can also request in writing.

How a cash advance affects your credit score

A cash advance shows up on your credit report as a separate transaction from regular purchases. Credit bureaus see it as higher-risk borrowing, so it can lower your credit score more than a regular purchase would.

The damage depends on how long you carry the balance. A single cash advance that you pay off within a month has minimal impact. A cash advance that stays on your card for several months, especially if it pushes your total balance close to your credit limit, can drop your score by 10 to 50 points depending on your current score and credit history.

Your credit utilization ratio — the percentage of your total credit limit you are using — matters more than the cash advance itself. If your card has a $5,000 limit and you transfer $2,000, you are now using 40 percent of your limit. Lenders see high utilization as a sign of financial stress, which is why it hurts your score.

When a transfer between your own bank accounts is a better choice

If you have money in another bank account — a savings account at a different bank, a money market account, or a checking account at another institution — transferring from that account to your main checking account is free and takes the same time as a credit card transfer.

To set this up, log into your main bank's app or website and look for "Transfer Money" or "Link Account." You will enter the other bank's routing number and your account number there, then authorize the transfer. Most banks process this in 1 to 3 business days. Some banks offer next-day transfers for a small fee, but many offer it free.

This avoids the cash advance fee and the higher interest rate entirely. If you have any other source of funds available to you, use that first before turning to a credit card cash advance.

What happens if you cannot pay back the cash advance

If you transfer $1,000 and cannot pay it back, the balance stays on your credit card and interest keeps accruing. After 30 days of non-payment, your card company reports it to credit bureaus as a late payment. After 60 days, the damage to your credit score is significant. After 120 days, the account may be sent to a collection agency.

Your credit card company may also lower your credit limit, raise your interest rate on all purchases, or close the account. If the account goes to collections, you may face calls from debt collectors and potential legal action to recover the debt.

If you are struggling to pay back a cash advance, contact your card company before you miss a payment. Some companies offer hardship programs that lower your interest rate or let you pause payments temporarily. These programs do not erase the debt, but they can make it more manageable while you get back on your feet.

Frequently Asked Questions

Can I transfer money from a credit card to a savings account?

Yes, the process is the same whether you transfer to a checking or savings account. You provide your savings account number and routing number, and the funds arrive in 1 to 3 business days. The fee and interest rate are identical to a transfer to checking.

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

A cash advance moves money to your bank account or gives you cash. A balance transfer moves debt from one credit card to another card, usually to take advantage of a lower interest rate. They are different products with different fees and terms.

Do I have to use a credit card cash advance, or are there other options?

If you need cash urgently, a personal loan from a bank or credit union is often cheaper than a cash advance because the interest rate is lower and there is no upfront fee. A payday loan is faster but much more expensive. Asking family or friends, negotiating with creditors, or finding a local information program are also options depending on your situation.

How long does a balance transfer check take to arrive?

Most balance transfer checks arrive within 5 to 10 business days of the card company mailing them. Once you deposit the check, your bank takes another 1 to 3 business days to clear it. Plan for 7 to 13 business days total from request to funds in your account.

Will a cash advance hurt my credit score when ready?

The cash advance itself does not hurt your score when ready, but a high balance does. If the transfer pushes your credit utilization above 30 percent, your score may drop within a few days. The damage is temporary if you pay the balance down quickly, but it stays on your credit report for up to seven years.