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Can You Transfer Money From a Credit Card to a Bank Account?

  • Transferring money from a credit card to a bank account is definitely possible, but there are always fees involved.
  • Some third-party companies (e.g. PayPal and Venmo) let you transfer cash from a credit card to a bank account, but the upfront fees they charge make doing so a costly endeavor.
  • Before you execute a money transfer from a credit card to a checking or savings account, remember that doing so can cause your credit utilization ratio to increase. Ultimately, this can cause damage to your credit score.

Transferring money can be a useful option in certain situations, but it’s important to understand the fees and interest rates involved. Read on to learn how to transfer money from a credit card to a bank account, as well as a list of alternative options that may help you get the money you need.

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Can I transfer money from a credit card to my bank?

It’s definitely possible to transfer money from a credit card to a bank, but that doesn’t mean doing so is a financially savvy move. For starters, there are always fees involved in using a credit card to access cash, and these fees are incredibly difficult to avoid.

You also have to consider the potential impact on your credit score, and you should know how you’ll pay the money back. After all, the high interest rates credit cards charge make them a poor source if you need to borrow money. In almost every possible scenario, you’ll be better off borrowing cash with another financial product such as a personal loan or a home equity loan.

Is it okay to transfer money from a credit card to a bank account?

If you have no other option and you need money immediately, transferring cash from your card account to your bank can help you get funding. However, there are some steps you’ll need to take ahead of time before you make this move.

For example, you should know that transferring cash from your card account will immediately add to your credit card balance. This means you’ll have an equal amount in credit card debt compared to the money you access.

Before you use your credit card to get cash out, you should also make sure you have the available credit to do so. If you don’t have enough available credit and you try to get cash from an ATM with your card account, the transaction will be denied.

As we already mentioned, you should also note that fees will apply when you use a credit card to fund a bank account. These fees will vary depending on the method you choose, however, and we go over them in more detail below.

Reasons to send money from a credit card

Despite the fees and debt involved, there are some scenarios where it makes sense to send money with a credit card.

A few example scenarios are as follows:

Reasons to avoid money transfers with a credit card

While there are some emergency situations where sending money with a card account can make sense, you should look for another way to fund yourself if you can.

Here are the most important reasons why:

Does transferring money from a credit card to a bank account hurt your credit score?

Charging debt on a credit card to access cash can negatively impact your credit score. This is due to the fact that your credit utilization ratio makes up 30% of your FICO score. Taking out cash from a credit card causes this utilization ratio to increase overnight, and having a ratio that’s too high can have disastrous results.

Most experts suggest keeping your credit utilization ratio below 30% of your available credit, which may be a bigger chore if you have a low credit limit. If your credit card’s limit is only $1.000, for example, you would need to keep your credit card balance at $300 or less to keep your utilization ratio in a good range.

Of course, you may have more wiggle room to get cash out on your credit card if you have a much higher credit limit. Either way, you should keep your utilization ratio in mind before you move forward with any of the methods we suggest below.

How to send money with a credit card

You can send money to your own bank account or another person’s account with any of the following methods:

ATM cash advance

You can use your credit card to get cash from an ATM in most cases, although you should know about the fees and other charges involved in doing so. You should also know you’re adding debt to your credit card. If you use your credit card to get $500 out of an ATM, for example, you’ll have $500 in credit card debt plus any amount in cash advance fees that apply. Generally speaking, upfront cash advance fees are for 5% of the amount you transfer, or $25 on a money transfer of $500.

You may also have to pay a cash advance APR on that debt, which means you’ll be stuck paying a higher interest rate than the variable APR your credit card charges on purchases. Finally, you’ll lose your grace period if you get a cash advance from an ATM, which means interest starts racking up on this new debt from day one.

Convenience checks

You can also use credit card convenience checks to transfer money from a card account to your checking account, and they make the process easy since you can simply write them out to yourself and deposit them in your bank account. You can also use credit card convenience checks to execute a balance transfer, or to transfer debt from one credit card to another.

Either way, you should know that these checks work the same as a cash advance from an ATM. In fact, they typically require the same cash advance fee and cash advance APR, and you may also lose your grace period.

Money transfer services

You may also be able to send cash with a credit card using a third-party company like Western Union or MoneyGram. These services let you fund your money transfer with plastic, but there are upfront fees involved.

With Western Union, for example, sending $1,000 to a bank account and funding it with a credit card would actually cost you $1,099.99. You can check Western Union fees for sending money with a credit card or debit card with their payment estimator tool.

Money apps

Several money apps let you send cash with a credit card to your own account or someone else’s. These apps all work similarly, but one may work better for your needs depending on your goals.

Wire money from your credit card

You may be able to wire money from a credit card, but you should know that doing so will be costly. According to Discover, a wire transfer with a credit card is typically treated like a cash advance. This means you’ll be charged a cash advance fee and a higher interest rate on the balance, and you’ll also lose your grace period.

From there, additional wire transfer fees can vary depending on your bank. There may also be additional fees charged on international transfers.

Redeem cash-back rewards

If you have a rewards credit card and you have some points saved up, it may be possible for you to turn them into cash in your checking account. This all depends on the specific cash-back credit card you have and the options you have for redeeming your rewards.

As an example the Wells Fargo Active Cash® Card lets you redeem rewards for statement credits to your account, transfers to an eligible Wells Fargo bank account, cash at a Wells Fargo ATM in $20 increments, or gift cards.

Alternative ways to transfer money to your bank account

If you need cash in your actual checking account and you’ve decided using your credit card is too risky or expensive, consider the alternative ways you get the money you need through a bank-to-bank transaction.

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FAQ: Transferring Money from a Credit Card to a Bank Account

How can I transfer money from a credit card to a bank account instantly?

You can execute an instant transfer from your credit card to a bank account using a money app like Venmo, PayPal, or CashApp. While these apps make it easy to send money online, there are fees involved in doing so.

How much does it cost to transfer money from a credit card to a bank account?

The cost for this type of money transfer will vary depending on the method you choose. For example, getting a cash advance from an ATM typically requires a 5% cash advance fee, whereas using a money app typically requires a 3% fee.

How can I transfer money from my credit card to my bank account for free?

There are no proven strategies to transfer cash from a credit card to a checking account interest-free or without any fees. Every method available to do this comes with some sort of charge, and avoiding these fees is impossible.

What is the best way to transfer money from a credit card to a bank account?

Using money transfer apps like Venmo, PayPal, or CashApp is the fastest and easiest way to send money to a bank account or on a person-to-person basis. Just remember that fees will apply, and it’s possible the transaction will be posted to your card account as a cash advance.

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

An instant transfer is possible if you use money transfer apps to move cash from your card to a bank account. However, wire transfers and other transfer methods can take anywhere from one to five business days.

Can you Zelle with a credit card?

You cannot send money with a credit card using Zelle. The same is true for other banking and e-wallet products, such as Google Wallet.

Holly D. Johnson
Holly D. Johnson Finance Expert

Holly D. Johnson is an award-winning personal finance writer who covers topics like insurance, investing, credit and family finance. As a leading voice in the travel and loyalty space, Johnson has traveled with her family to more than 50 countries over the last decade.

The author has also written extensively on the power of household budgeting, and she even co-authored a book on the topic. Zero Down Your Debt: Reclaim Your Income and Build a Life You’ll Love was originally published in 2017, and it teaches families how to use zero-sum budgeting to reach their financial goals. She is also the co-owner and founder of the family finance and travel website, ClubThrifty.com.

Johnson’s 10+ years of writing have focused on helping families make important financial decisions at each stage of their lives. The author also applies the financial principles she teaches to her own life, and she is currently on track to retire in her late 40’s with her partner. She currently lives in Central Indiana with her husband and children, and she is a regular contributor for Bankrate, CNN, Forbes, U.S. News and World Report Travel and many other notable publications.

* Opinions expressed here are those of the LA Times Compare Cards Team and have not been reviewed or approved by any advertiser or entities included within this content. See our editorial policy for more details.

All products or services are presented in this content without warranty. The information, including card details such as rates and fees, is accurate at the time of publish. Please visit each bank's website directly for the most current information.

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