How to Transfer Money Using a Credit Card

What a credit card money transfer is and how it works

A credit card money transfer is when you move money from your credit card account into a bank account — usually your own checking or savings account. The credit card company sends the funds to your bank, and the money appears in your account within a few business days. You then owe that amount to the credit card company as a balance on your card, just like a purchase would.

The process itself is straightforward: you initiate the transfer through your card issuer's website, mobile app, or by phone, specify the amount and the bank account to receive it, and confirm. But the cost is not. Credit card companies charge a transfer fee — typically 3 to 5 percent of the amount transferred — and the money usually carries a higher interest rate than regular purchases from day one, with no grace period.

People use credit card money transfers when they need cash quickly and have no other option, or when they are moving money to pay down debt on another card. It is an expensive way to borrow, so understanding the exact cost before you transfer matters.

Key Takeaways

• Credit card money transfers charge a fee of 3 to 5 percent upfront, plus interest that begins accruing when ready with no grace period.
• The interest rate on transferred money is usually higher than the rate on purchases made with the same card.
• You can transfer money through your card issuer's website, app, or by calling customer service, and the funds reach your bank account in 1 to 3 business days.
• Money transfers are different from cash advances — both are expensive, but cash advances are obtained at ATMs or from tellers and may have slightly different fees.
• Before transferring, check your card's terms for the exact fee percentage, interest rate, and whether any promotional rates explore to transfers.

How to start a money transfer through your card issuer

Log into your credit card account online or open the card issuer's mobile app. Look for a section labeled "Transfers," "Move Money," "Balance Transfers," or "Cash Transfers" — the exact name varies by bank. Some issuers put this under "Services" or "Account Tools."

Select the option to transfer money to your bank account. You will need to provide the routing number and account number of the bank account where you want the money to land. If you do not have these numbers, log into your bank's website or app, or call your bank's customer service line — both will provide them when ready.

Enter the amount you want to transfer. The card issuer will show you the fee amount in dollars before you confirm — for example, a $1,000 transfer at a 3 percent fee costs $30. Review this number carefully. Then confirm the transfer. Most card issuers process the request the same day or next business day, and the money reaches your bank account within 1 to 3 business days.

Fees and interest rates you will pay

The transfer fee is charged once, at the time you make the transfer. It ranges from 3 to 5 percent of the amount transferred, depending on your card and your card issuer. Some cards charge a flat fee instead — for example, $10 or $15 per transfer — though this is less common. The fee is added to your credit card balance when ready.

The interest rate on transferred money is separate from the fee. Interest begins accruing the day the transfer posts to your account. There is no grace period, unlike purchases. The rate is usually 1 to 3 percentage points higher than the rate on regular purchases. If your card's standard purchase rate is 18 percent, the transfer rate might be 21 percent.

Check your card's terms document or call the issuer to confirm the exact fee and interest rate before you transfer. Some cards offer a promotional rate on transfers for a limited time — for example, 0 percent interest for 6 months — but these are less common than promotional rates on purchases, and they still charge the upfront transfer fee.

Money transfers versus cash advances

A cash advance is when you withdraw cash directly from your credit card at an ATM or from a bank teller. A money transfer is when you move funds from your credit card into a bank account. Both are expensive, but they work differently and may have different costs on your specific card.

Cash advances typically charge a fee of 3 to 5 percent, the same range as money transfers, but some cards charge a flat fee instead. Interest on cash advances also begins when ready with no grace period. The interest rate is often the same as the transfer rate or slightly higher. Cash advances are useful when you need physical cash; money transfers are useful when you need funds in a bank account.

Check your card's terms to see whether transfers and cash advances have the same fee and rate, or whether one is cheaper than the other. On some cards they are identical; on others they differ.

When a money transfer makes sense and when it does not

A money transfer makes sense if you need cash in a bank account urgently and have no other source — for example, to cover an unexpected bill when your paycheck is delayed. It also makes sense if you are moving money from a high-interest credit card to pay down a lower-interest card, provided the fee and interest cost less than what you would pay by leaving the money on the original card.

A money transfer does not make sense if you have access to a personal loan, a line of credit, or a cash advance from your employer, all of which typically cost less. It also does not make sense if you are straightforward moving money around to avoid paying a bill on time — the fee and interest will make the debt larger, not smaller.

Before you transfer, calculate the total cost: the upfront fee plus the interest you will pay before the balance is gone. If you plan to pay off the transferred amount in one month, the interest cost is small. If it will take six months or longer, the interest adds up quickly and may exceed the cost of a personal loan.

How long the transfer takes and what to expect

Most card issuers process a money transfer request the same business day you submit it, or the next business day. The funds then travel to your bank through the automated clearing house (ACH) system, which typically takes 1 to 3 business days. In total, you can usually count on the money reaching your account within 3 to 5 business days from the time you initiate the transfer.

Some card issuers offer expedited transfers for an additional fee — for example, next-day delivery for $15 or $20. Check whether your issuer offers this option if you need the money faster than the standard timeline.

Once the transfer posts to your bank account, it is yours to use. The credit card company has no control over how you spend it. But the amount you transferred is now a balance on your credit card, and you owe interest on it until you pay it off.

Frequently Asked Questions

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

No. Credit card money transfers go only to a bank account in your own name. If you need to send money to someone else, use a different method like a wire transfer, ACH transfer, or a peer-to-peer payment app. These have lower fees and faster processing.

What happens if I do not pay back the transferred amount?

The balance stays on your credit card and accrues interest each month. If you miss payments, the card issuer will report the missed payment to credit bureaus, which will lower your credit score. After 180 days of missed payments, the issuer may charge off the account and sell the debt to a collection agency.

Can I transfer money from a credit card I just opened?

Most card issuers allow transfers when ready after you open the account, but some have a waiting period of 30 to 90 days. Check your card's terms or call customer service to confirm. Some cards also limit the amount you can transfer in the first few months.

Is there a limit to how much I can transfer?

Yes. Your credit limit is the maximum you can transfer. If your limit is $5,000, you cannot transfer more than $5,000. Some issuers also set a separate cap on transfers — for example, a maximum of $2,500 per transfer or $10,000 per year — regardless of your credit limit. Check your terms or call to confirm your specific limits.

Do I have to use the money right away, or can I leave it in my bank account?

You can leave it in your bank account as long as you want. Interest on the transferred amount accrues whether you spend it or not, so the longer you hold it without paying off the credit card balance, the more interest you will owe. If you do not need the money when ready, do not transfer it.