How to transfer money from a credit card to a bank account

You can move money from a credit card to a bank account in three main ways: a cash advance at an ATM or bank branch, a balance transfer check, or a third-party money transfer service. Each method costs differently and works differently, so the right choice depends on how much you need, how fast you need it, and what your card issuer offers.

The most direct route is a cash advance. You go to an ATM or bank branch with your credit card and PIN, withdraw cash, and deposit it into your bank account. The money arrives in your account the same day or next business day. The catch: cash advances charge a fee (usually 3 to 5 percent of the amount) plus a higher interest rate than regular purchases, often 20 to 25 percent, starting immediately with no grace period.

A balance transfer check works if your card issuer offers them. They mail you a check drawn against your credit card account. You deposit it into your bank account like any other check. Fees and interest rates are typically lower than cash advances, but the check takes 5 to 10 business days to clear, and you still pay interest on the balance.

Money transfer services like PayPal, Square Cash, or Venmo let you link your credit card and bank account, then move money between them. Fees vary by service and whether you use a debit card or credit card. Some charge a flat fee per transfer; others charge a percentage. Speed ranges from instant to 3 to 5 business days depending on the service.

Key Takeaways

  • Cash advances charge 3 to 5 percent fees plus interest rates of 20 to 25 percent, with interest accruing immediately.
  • Balance transfer checks take 5 to 10 business days to clear but usually cost less than cash advances.
  • Money transfer services charge varying fees and may process transfers instantly or within several business days.
  • None of these methods are free, and all add interest or fees to the amount you transfer.
  • If you need the money for a purchase, paying the merchant directly with your credit card avoids transfer fees entirely.

Cash advances: fastest but most expensive

A cash advance lets you withdraw cash using your credit card at an ATM or bank branch. You need your card and your PIN. The money appears in your bank account the same day if you deposit it before your bank's cutoff time, or the next business day.

The cost is steep. Your card issuer charges an upfront fee—typically 3 to 5 percent of the amount withdrawn—taken immediately. If you withdraw $500, you might pay $15 to $25 just to get the cash. On top of that, the interest rate on cash advances is usually much higher than your regular purchase rate, often 20 to 25 percent or more. Unlike purchases, there is no grace period: interest starts accruing the day you withdraw the cash.

Use a cash advance only if you need money urgently and have no other option. The cost adds up fast. A $500 cash advance with a 5 percent fee and 24 percent interest costs you $25 upfront plus roughly $10 in interest per month if you carry the balance.

Balance transfer checks: slower but cheaper

Some credit card issuers offer balance transfer checks—physical checks that draw against your credit card account. You request them from your issuer, they arrive in the mail in 5 to 10 business days, and you deposit them into your bank account like a regular check. The check clears in another 5 to 10 business days, so total time is roughly two to three weeks.

Fees and interest rates are usually lower than cash advances. Many issuers charge 0 to 3 percent, and some offer a promotional period with 0 percent interest for 6 to 12 months. Read the offer carefully: the 0 percent rate applies only if you meet the terms, and it expires on a specific date.

The downside is speed. If you need money this week, a balance transfer check will not work. Also, you still owe interest after the promotional period ends, and you are borrowing against your credit card, which affects your credit utilization and can lower your credit score.

Money transfer services: variable speed and cost

Apps and services like PayPal, Square Cash, Venmo, and others let you link your credit card and bank account, then transfer money between them. The process is usually quick—you open the app, select the amount, and confirm. Some services transfer money instantly; others take 1 to 3 business days or longer.

Fees vary widely. Some services charge a flat fee per transfer (often $1 to $3). Others charge a percentage of the amount (usually 1 to 3 percent). A few offer free transfers if you use a debit card but charge a fee for credit cards. Check the service's fee schedule before you transfer, because the cost can add up if you move money regularly.

These services are useful if you already use them for other payments and want a middle ground between the speed of a cash advance and the cost of a balance transfer check. They are not free, but they are often cheaper than cash advances and faster than checks.

Why you should avoid transferring money if possible

Every method of moving money from a credit card to a bank account costs money and adds interest. If you can avoid the transfer, you should. If you need to pay a bill or buy something, charge it directly to your credit card instead of transferring cash first. You get the same purchase protection and grace period without the transfer fee.

If you are transferring money because you need cash for an emergency, consider whether a personal loan, a line of credit, or a payment plan with the person or business you owe money to might be cheaper. A personal loan from a bank or credit union often has a lower interest rate than a credit card cash advance, even though it takes longer to set up.

If you are transferring money to pay off debt on another card or account, a balance transfer card with a 0 percent promotional period might be cheaper than any of these methods, though you will pay a one-time balance transfer fee (usually 3 to 5 percent).

What happens to your credit score

Transferring money from a credit card affects your credit score in two ways. First, it increases your credit utilization—the percentage of your available credit you are using. If you have a $5,000 limit and transfer $2,000, your utilization jumps to 40 percent. High utilization lowers your score. The effect is temporary: your score recovers as you pay down the balance.

Second, the transfer itself may trigger a hard inquiry if the service or issuer checks your credit. A hard inquiry can lower your score by a few points. Again, the effect is temporary and fades after a few months.

The bigger risk is carrying a balance. If you transfer money and do not pay it back quickly, you will pay interest every month, and your score will stay lower as long as your utilization stays high. Pay off the balance as fast as you can to minimize the damage.

Frequently Asked Questions

Can I transfer money from a credit card to a bank account for free?

No. Every method—cash advances, balance transfer checks, and money transfer services—charges a fee, interest, or both. Cash advances are the most expensive. Balance transfer checks and money transfer services are cheaper but still cost money. If you need to move money, budget for the cost.

How long does a credit card to bank account transfer take?

Cash advances appear in your account the same day or next business day. Balance transfer checks take 5 to 10 days to arrive, then another 5 to 10 days to clear, for a total of 2 to 3 weeks. Money transfer services range from instant to 3 to 5 business days depending on the service. Check your service's terms for exact timing.

Will transferring money hurt my credit score?

Yes, temporarily. The transfer increases your credit utilization, which lowers your score. A hard inquiry may also lower it slightly. Both effects fade as you pay down the balance and the inquiry ages. The longer you carry the balance, the longer your score stays lower.

Is a cash advance the same as a regular purchase?

No. Cash advances charge higher interest rates (usually 20 to 25 percent versus 15 to 20 percent for purchases), charge an upfront fee, and start accruing interest immediately with no grace period. Purchases have a grace period of 20 to 30 days before interest starts. Never use a cash advance unless you have no other option.

What if I need money but do not want to pay a transfer fee?

Consider alternatives: charge the purchase directly to your credit card, ask for a payment plan, take out a personal loan from a bank or credit union, or borrow from family or friends. All of these avoid the transfer fee. If you must transfer money, a balance transfer check with a promotional 0 percent rate is usually cheaper than a cash advance.