How To Transfer Money From Credit Card To Bank
CS
Summary:
There are several ways to transfer funds from a credit card to a bank account. However, they are typically expensive fees and high interest rates attached. Therefore, it’s generally recommended to only transfer money from a credit card when it’s an emergency and no other options are available.
Can you transfer money from a credit card to a bank account? The simple answer is yes, you can do this, and there are a few different ways you can. However, it’s not usually recommended. While this option is available and easy, it’s also expensive. Hefty fees and interest rates come with transferring funds from your credit card. Because of this and a few other reasons, you should consider other methods first.
Regardless, you should know how to transfer money from your credit card in case an emergency comes up. Let’s take a deeper look at some of the best ways to transfer money from your credit card to a bank account.
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How to transfer money from credit card to bank account
It’s actually easy to transfer money from a credit card to a bank account, and there are a few different ways you can do so. The easiest way is by using a cash advance, but you can also make a direct transfer through your online account. Here’s a rundown of how these methods work:
Cash advances
A credit card cash advance is basically a short-term loan offered by your credit card issuer. The cash you withdraw comes from your line of credit. Cardholders can retrieve a cash advance by using an ATM or check or by visiting a bank branch.
- ATM — Before you try to transfer money from your credit card using an ATM, be sure you know your PIN first. If you’re not sure what your PIN is, contact your credit card issuer by calling the number on the back of your credit card. Once you know your PIN, you can use it at an ATM to take out a cash advance. You can then deposit that cash into an account by using a deposit-accepting ATM or going to a bank. Keep in mind that an ATM will likely charge you both cash advance fees and ATM withdrawal fees.
- Balance transfer checks — This method will take a bit of time, but it is another option to consider if you don’t have easy access to an ATM. Certain credit card companies will mail you a check with the withdrawal amount written on it. You can then deposit that check into your own bank account.
- Bank branch — You can also get a cash advance by visiting your local bank in person. Simply ask them to withdraw cash from your credit card account. You can then deposit the cash into another bank account, such as a checking account or savings account.
Pro Tip
While cash advances are useful, they can also be costly. You’ll likely be charged a cash advance fee if you go this route. These fees are usually between 3% and 5% of the total amount requested. This can get expensive fast, so keep this in mind before withdrawing cash with a cash advance.
Direct online money transfer
A fast and easy way to transfer funds is through your bank’s website or mobile app. A few financial institutions offer this option. Simply log in to your account on the website or mobile app and find the option for direct transfers. You’ll likely need the information of the bank account to which you want to transfer money before you start the transferring process.
Will transferring money from my credit card affect my credit score?
The actual method of transferring funds from your credit card will not affect your credit score. But if you fail to pay off the debt you incur from transferring those funds, then your credit score will be negatively affected.
Pros and cons of transferring money from a credit card
So now you know how you can transfer money from your credit card. But should you? While this option is a quick and easy way to get cash, there are some disadvantages that could affect you in the long run. It’s generally recommended that you only transfer money from your credit account in cases of an emergency. Otherwise, it likely is not worth it.
Here’s an in-depth breakdown of the pros and cons to help you get a better idea of why you should or should not transfer money from a credit account:
Pros
- It’s a fast and easy way to get cash as soon as you need it, especially with a direct transfer, from an ATM, or by visiting a bank in person.
- There are many ways you can transfer money, and you can even do it online. This is especially useful in times of emergency or when you can’t get to a bank.
- A cash advance in and of itself will not hurt your credit score. You just have to make sure to pay off the debt on time.
Cons
- The cost of cash advances is quite high. Interest starts accruing immediately after a cash advance is made.
- In addition to interest rates, additional fees are added on for each cash advance or balance transfer that occurs.
- You can accumulate more debt through cash advances. If you fail to pay off that debt, your credit score could be impacted.
- There is a limit to the amount of money you can take out with a cash advance. A cash advance limit is generally only a few hundred dollars, so if it’s a pricy emergency, you may have to go another route.
Alternative solutions to transferring money from a credit card
As discussed above, it’s generally recommended to only transfer money from a credit card when it’s an emergency and no other methods are available. Before you take out a cash advance, try one of the following options:
Ask for an advance on your paycheck
While this isn’t an option for all workplaces, your company may be able to get you your paycheck sooner if you ask. Consider asking your boss for an advance on your income to help you avoid taking out a cash advance.
Take out a personal loan
If you have good credit, consider taking out a personal loan. Personal loans can be used for a variety of circumstances and generally have a fixed interest rate that’s lower than the one you would get with a cash advance.
Borrow money from a friend or family member
Sure, it can be uncomfortable to ask a friend or family member for money. But this is a very cost-effective route to consider. You can even agree on a repayment plan with them to ensure that they’ll get their money back.
Dip into your savings account
Your savings account is there for a reason. Maybe you’re saving up for something specific, and you don’t want to withdraw from your account just yet. But in the long run, dipping into your savings could be a much more cost-effective solution than taking out a cash advance.
FAQ
Can I transfer money from my credit card to my debit card?
Yes. The easiest way to do this is by initiating a transfer online or in person at your bank.
How can I transfer money from my credit card to my bank account for free?
You will incur a fee for transferring money from your credit card to your bank account no matter what method you use.
Can I transfer money from a credit card online?
Yes, most credit card issuers offer the option to transfer funds from your credit card online. This can usually be done on either their website or their mobile app.
Can I pay someone with a credit card?
There are several ways you can pay someone using your credit card. Money transfer services, such as PayPal and Venmo, are available to the public. You can also take cash out using your credit card, but this isn’t usually recommended.
Can I withdraw money from my credit card?
If you know your PIN, you can withdraw money from your credit card. This is called a cash advance. This method incurs a lot of fees and should only be used in case of an emergency.
Key Takeaways
- While you can transfer money from your credit card to your bank account, it’s recommended that you only do so in an emergency.
- You can transfer money from your credit card using a cash advance or direct online money transfer.
- As soon as you take out a cash advance, you will be charged a fee and start accruing interest.
- Failing to pay off the debt you incur from transferring money will negatively affect your credit score.
If you’re struggling with credit card debt, you’re not alone. As of 2022, the total amount of credit card balances in the U.S. has surpassed $840 billion, and the average American household has over $5,000 in credit card debt. If you’re feeling overwhelmed, check out SuperMoney’s guides on managing credit card debt, and use our comparison tools to find the debt help you need.
CS
Camilla has a background in journalism and business communications. She specializes in writing complex information in understandable ways. She has written on a variety of topics including money, science, personal finance, politics, and more. Her work has been published in the HuffPost, KSL.com, Deseret News, and more.
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