Unexpected circumstances can leave us in a bind, struggling for extra funds. If an emergency occurs or your paycheck doesn’t arrive fast enough to pay your bills, knowing how to transfer money from a credit card to a bank account or debit card can assist when you or your loved ones need it most.
There are several ways you can turn credit into cash, with some solutions taking effect immediately or in a few banking days. But how do you know which solution is right for you? And what other details should you know before you transfer money from a credit card? We discuss three options here.
How to transfer money from a credit card to a bank account or debit card
1. Cash advance
One of the easiest ways to transfer money from a credit card is through a cash advance, which acts similarly to a personal loan. With a cash advance, you can “borrow” money from your credit card and use the funds to make a purchase. Keep in mind that cash advances accrue interest right away, so make sure you can pay back the loan on time.
There are a few ways you can get a cash advance, including ATMs, in person, or via a convenience check. Most banks will allow you to take out a cash advance from an ATM, branch, or at a loan agency like CashnGo Loans so long as your credit card has a PIN. Some banks will also allow you to take out a cash advance in person and deposit the funds directly into your bank account. This is a convenient option if you have a local branch nearby.
Convenience cheques are another type of cash advance and are a good option for those looking to transfer money from a credit card to a bank account. Convenience checks function similarly to a traditional check, but rather than the money coming from your bank account, the money comes from your line of credit. Your credit card issuer can send you a convenience cheque that can then be deposited into your bank account and used to cover expenses.
2. Peer-to-peer (P2P) apps
P2P apps like the Western Union app allow you to send money to your receiver and pay with your credit card. In return, your receiver can send money to your bank account. Different P2P apps have different requirements for sending, as well as different fees, so we recommend using an app that you’re familiar with.
3. Money transfer services
You can use a money transfer service like Western Union to transfer money from a credit card. With Western Union, in particular, you can send money online, with the Western Union app, or in person at an agent location. Not all money transfer services are created equal so you will want to do your research before you send money to ensure there are no hidden fees.
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.
Most credit card lenders offer cardholders the ability to take out cash using an ATM. It’s called a cash advance, and it comes with some major downsides and hefty fees. Cardholders can use a credit card at nearly any ATM and withdraw cash as they would when using a debit card, but instead of drawing from a bank account, the cash withdrawal shows up as a charge on a credit card. Forbes Advisor recommends against using a credit card for a cash advance.
Find The Best Credit Cards For 2022
No single credit card is the best option for every family, every purchase or every budget. We've picked the best credit cards in a way designed to be the most helpful to the widest variety of readers.
Can You Use a Credit Card At an ATM?
Yes, a credit card may be used at an ATM to withdraw cash, but it’s not a recommended practice. Taking cash from an ATM using a credit card is called a cash advance and not only involves a cash advance transaction fee (often 3% to 5% of the transaction amount) but is also subject to a separate, often much higher cash advance APR.
Because cash advance transactions begin to accrue interest the same day a transaction is made, high fees are typically unavoidable when using a credit card to withdraw cash from an ATM.
What Is a Cash Advance?
A cash advance is a cash withdrawal from an ATM using a credit card. The cardholder is essentially purchasing cash from the credit card company as opposed to purchasing an item from a store. Money withdrawn from an ATM gets added to the account balance and will be reflected in monthly statements. One-time fees and high interest rates often accompany cash advances. The average APR for a cash advance ranges from 20% to 25%, which is generally higher than APRs for regular purchase transactions. For these reasons, cash advances should be used only as a last resort or in an emergency situation.
Things To Consider Before Taking a Cash Advance
With few exceptions, cardholders should pay off credit card balances every month to avoid paying interest. Always pay off cash advances as quickly as possible to avoid falling into debt.
High Interest Rates
Interest rates for cash advances are usually higher than interest rates for regular purchases. Most credit card companies do not offer a grace period for cash advances, meaning a cardholder is not given time to pay off the balance before interest starts to accrue. Instead, interest accrues on the day the cash advance withdrawal is made. The cardholder faces a huge risk for exponential debt accumulation if cash advance balances are not paid off quickly.
One-Time Cash Advance Fees
Every time a cardholder withdraws money from an ATM, the credit card company will usually charge a one-time fee of 3% to 5% or $8 to $10 (whichever is greater). The exact fee will be described in the card’s terms and conditions—so read those carefully before making a cash advance withdrawal (or, better yet, before applying for the card). Cash advance fees plus an ATM fee can quickly add up for the cardholder making this an expensive method to obtain cash.
Negative Effects on Credit Scores
Taking out even one cash advance could lead to a decrease in credit score if not paid off quickly. Just as with regular purchases, cash advances will lower a cardholder’s available credit. If the account balance isn’t paid and interest continues to accrue daily, a cardholder’s credit utilization rate can skyrocket as available credit drops. This can lead to a decrease in credit score. Lenders may also view cardholders as a credit risk if they ever apply for a new card or want to take out a loan for a car or mortgage and available credit is reduced. Note that landlords also may consider credit when deciding to rent a room, apartment or house.
How To Get a Cash Advance on a Credit Card
Withdrawing money from an ATM using a credit card is a simple process. It’s like withdrawing money from an ATM using a debit card with only a few slight differences.
- Check the latest account statement to see how much money is available to withdraw. This can vary based on the card’s spending limit or the card may have a different cash advance limit.
- Go to an ATM and insert the credit card.
- Enter the credit card PIN (call the number on the back of the card to find out the credit card PIN or to set one up).
- Select the appropriate options if offered: “cash withdrawal” or “cash advance.”
- If asked to select between “credit” or “debit,” select “credit.”
- Enter the amount to withdraw.
- Accept any fees like ATM transaction fees and cash advance fees.
- Complete the transaction and take out cash.
Alternatives to Cash Advances
Make sure to consider all the options before taking out a cash advance.
- Use a debit card instead of a credit card to take out cash from an ATM that’s in the bank’s network. This way the debit cardholder will avoid any fees for withdrawing cash.
- Payment apps like Venmo or Cash App are a good alternative to transferring money to friends or businesses. They accept credit card transfers for a small fee. This fee will usually be less expensive than the fees and interest associated with a cash advance.
- Consider applying for a personal loan if a large amount of cash is needed to pay off big expenses like rent or medical bills. Personal loans usually have much lower interest rates than cash advances and many credit card APRs (the average personal loan interest rate is 9.58% according to a 2021 Experian report).
- Borrow money from a friend or family member. While there’s usually a risk to ask friends or family for financial help, as long as the borrower can pay off the loan in a timely fashion, it will likely be easier and cheaper than taking out a cash advance.
Find The Best Credit Cards For 2022
No single credit card is the best option for every family, every purchase or every budget. We've picked the best credit cards in a way designed to be the most helpful to the widest variety of readers.
Bottom Line
Cash advances should be considered a last resort among the options for getting cash fast. A greater risk of falling into serious debt exists if the account balances aren’t paid off quickly. Interest rates for cash advances are higher than for regular purchases. Most credit card companies don’t offer a grace period, which means interest will begin to accrue on the day of the withdrawal. Before taking out a cash advance, try using a debit card, a payment app, a personal loan or even borrowing cash from a friend or family member if at all possible.
Frequently Asked Questions
How can I get cash from a credit card without charges?
Usually, the only way to use a credit card to withdraw cash without racking up much in interest fees nor any transaction charges on a cash advance is to find a card with no cash advance fees and to pay off a cash advance transaction on the same day it’s made. This may still incur a small interest fee, but it can be minimized by paying down your cash advance balance as quickly as possible.
How can I get cash off my credit card without a PIN?
There are few options beyond visiting an ATM when seeking cash from your credit card, but you do have some. Typically, withdrawing cash from a credit card without using a pre-established PIN at an ATM can be accomplished by visiting a branch of your card-issuing bank in person and requesting a cash advance from a teller. You may also be able to request a check or bank transfer from your issuer, but which options exist will likely be issuer-specific—call the number on the back of your card to ask about your options.
Can you get cash from a store credit card?
You can typically only get cash back from a store credit card if the card offers cash advances. Many closed-loop store cards do not offer cash advance options. Those co-branded store cards that do offer cash advances are more likely to be network-associated cards for making purchases or transacting with vendors other than the card’s co-branding store.