Yes, but it costs money and counts as a cash advance, not a purchase

You can move money from a credit card to a bank account, but your card issuer will charge you a fee — usually 3 to 5 percent of the amount — and will treat it as a cash advance rather than a regular purchase. This matters because cash advances typically have a higher interest rate than purchases, often 5 to 10 percentage points higher, and interest starts accruing immediately with no grace period. The money lands in your bank account within one to three business days, but the cost of getting it there is real and immediate.

The most common methods are a balance transfer check (if your issuer sends them), a cash advance at an ATM using your card's PIN, or a third-party app or service that moves the money for you. Each has different fees and timing. If you need cash urgently, an ATM withdrawal is fastest. If you want to move a larger amount, a balance transfer check or app-based service may be cheaper per dollar, though the upfront fee is still substantial.

Key Takeaways

  • Cash advances from credit cards charge a fee of 3 to 5 percent upfront, plus a higher interest rate than regular purchases, with no grace period on interest.
  • ATM withdrawals are the fastest method but charge the highest fees and interest rates; balance transfer checks are slower but may cost less per dollar for large amounts.
  • Third-party apps and services can move money to your bank account but add another layer of fees and should be researched carefully before use.
  • The money appears in your bank account within one to three business days, but you owe the full amount plus fees and interest to your credit card company immediately.
  • If you need cash, borrowing from a bank, credit union, or friend is almost always cheaper than a credit card cash advance.

How cash advances work and what they cost

A cash advance is a short-term loan from your credit card issuer. When you take one, you are borrowing money at the card's cash advance rate, not the purchase rate. Most issuers charge a flat fee (often $5 to $10) or a percentage fee (3 to 5 percent), whichever is higher. On a $500 advance, a 5 percent fee means you owe $525 before you even pay interest.

Interest on cash advances starts the day you take the money — there is no grace period like there is for purchases. If your card's cash advance rate is 24 percent and you take out $500, you will owe roughly $10 in interest after one month if you make no payment. That rate compounds daily, so the longer the money sits in your account, the more you owe.

Your credit card statement will show the cash advance separately from purchases, and your minimum payment may not cover the advance at all — it might only cover interest. This means you can pay your minimum and still owe the full amount plus growing interest.

ATM withdrawals: fastest but most expensive

Using your credit card at an ATM is the quickest way to get cash into your bank account. You insert your card, enter your PIN, and withdraw money. The cash appears in your hand immediately, and you can deposit it into your bank account right away. The whole process takes minutes.

The cost is steep. Most issuers charge both an ATM operator fee (usually $2 to $3) and a cash advance fee (3 to 5 percent). A $500 withdrawal might cost you $28 to $30 in fees alone, before interest. Some credit unions and banks offer lower ATM fees for their own customers, but using a competitor's ATM almost always costs more.

ATM withdrawals also have the lowest daily withdrawal limits — often $300 to $500 per day — so moving a large amount requires multiple trips and multiple fees.

Balance transfer checks and convenience checks

Some credit card issuers send balance transfer checks or convenience checks to cardholders. You write a check to yourself or your bank, deposit it, and the money is treated as a cash advance. The fee is usually 3 to 5 percent, the same as an ATM withdrawal, but there is no ATM operator fee on top.

The advantage is that you can write a check for any amount up to your available credit, so you are not limited by daily ATM withdrawal caps. The disadvantage is that you have to wait for the check to arrive in the mail, then deposit it, then wait for it to clear — usually three to five business days total. If your issuer does not send you checks, you can call and ask whether they offer them, but not all do.

Read the fine print on any check your issuer sends. Some checks have a lower cash advance fee than others, and some have an introductory rate period. If you do not use the check, do not sign it or deposit it — simply having it in your possession does not trigger any fees.

Third-party apps and money transfer services

Apps like PayPal, Square Cash, and Venmo allow you to link a credit card and transfer money to a bank account, but most charge a fee for credit card transfers — usually 2 to 3 percent. The money still counts as a cash advance on your credit card statement, so you still pay the card's cash advance fee on top of the app's fee. A $500 transfer might cost you $35 to $40 in combined fees.

Some apps advertise "no fee" transfers, but read the terms carefully. The fee may apply only to debit card transfers, or it may be waived only for the first transfer. Once you link your credit card, the app may default to charging a fee on subsequent transfers.

The speed varies. Some apps move money within hours; others take one to three business days. Check the app's terms before you link your card, and verify that the service is legitimate — scams exist that pose as money transfer apps.

Cheaper alternatives to credit card cash advances

Before you take a cash advance, consider other options. A personal loan from a bank or credit union usually has a lower interest rate than a credit card cash advance and no upfront fee. Even if you have fair credit, a credit union personal loan might cost 12 to 18 percent interest, compared to 24 to 30 percent for a cash advance. Over six months, the difference is substantial.

A line of credit from your bank, if you have one, is often cheaper than a cash advance. A payday loan is usually more expensive, but it is faster if you need money today. Borrowing from a friend or family member, if that is an option, costs nothing and avoids debt entirely.

If you are in a financial emergency, contact a nonprofit credit counselor through the National Foundation for Credit Counseling (NFCC). They offer free or low-cost advice on managing debt and may help you find resources you did not know existed.

How cash advances affect your credit score

A cash advance does not directly hurt your credit score the way a missed payment does, but it can indirectly lower your score. When you take a cash advance, your credit utilization — the percentage of your available credit you are using — goes up. If you had $5,000 available credit and took a $500 cash advance, your utilization jumped from 0 to 10 percent. High utilization signals risk to credit scoring models, and your score may drop a few points.

The bigger risk is that the cash advance makes it harder to pay off your balance. If you cannot pay the full amount quickly, interest compounds and you end up carrying a balance for months. Carrying a balance lowers your score more than the advance itself does.

If you do take a cash advance, pay it off as fast as you can. Every dollar you pay toward the advance reduces your utilization and stops the interest from growing.

Frequently Asked Questions

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

Yes, the process is the same whether the account is checking or savings. The money lands in whichever account you specify, and it still counts as a cash advance on your credit card. Fees and interest rates are identical.

What if I do not have a PIN for my credit card?

You can request one from your issuer by phone or online. It usually arrives by mail within one to two weeks. Until then, you can use a balance transfer check or app-based service instead of an ATM withdrawal.

Will the money show up in my bank account right away?

ATM withdrawals appear immediately because you are holding cash. Checks and app transfers take one to three business days to clear, depending on your bank and the issuer. Weekend and holiday delays are common.

Can I reverse a cash advance if I change my mind?

No. Once the money leaves your credit card account, it is a loan you owe. You can deposit it back into the card account, but you will still owe the fee and any interest that accrued. The fee is not refundable.

Is there a limit to how much I can transfer?

Yes. Your cash advance limit is usually lower than your total credit limit — often 20 to 50 percent of it. Your issuer sets this limit and you can call to ask what yours is. ATM withdrawals also have daily limits, usually $300 to $500 per day.