Introduction
In this guide, you’ll learn how to transfer money from a credit card to a bank account using simple methods. We’ll explain the steps involved, the fees you may pay, how long transfers take, and how to choose the most affordable option. You’ll also discover important precautions to help you avoid unnecessary charges and manage your credit responsibly.
Can You Transfer Money From a Credit Card to a Bank Account?
Yes, but not every credit card supports direct transfers.
Some card issuers offer a dedicated money-transfer facility. This allows eligible customers to move part of their available credit into a bank or current account.
Another option is a cash advance. You can withdraw cash using your credit card and deposit it into your bank account.
You may also be able to use a money-transfer service that accepts credit cards.
The available options depend on your card and location.
1. Use a Credit-Card Money Transfer
A dedicated money-transfer facility is usually the most direct option.
If your card issuer offers this feature, you can request a transfer from your credit card to an eligible bank account.
The process may be available through online banking, a mobile app, or customer service.
For example, HSBC UK explains that eligible customers can transfer money from their credit card to a current account. The provider also charges a transfer fee under the applicable terms.
Read HSBC UK’s guide to credit-card money transfers
Before making the transfer, check:
- Your available credit
- Your money-transfer limit
- The transfer fee
- The applicable interest rate
- The promotional period, if any
- The expected delivery time
Do not assume that your entire credit limit is available for transfers.
2. Take a Cash Advance
A cash advance allows you to withdraw money against your credit limit.
Depending on your card, you may be able to withdraw the money from an ATM.
You can then deposit the cash into your bank account.
The process is simple:
- Insert your credit card into an eligible ATM.
- Enter your PIN.
- Select the cash-withdrawal option.
- Enter the amount.
- Collect the cash.
- Deposit it into your bank account.
However, cash advances can be expensive.
Your card may charge a cash-advance fee. Interest may also start immediately. The cash-advance APR may differ from your normal purchase APR.
Check your card agreement before using this method.
3. Use a Money-Transfer Service
A money-transfer service may offer another option.
Some services allow eligible customers to use a credit card to fund a transfer. The money can then be sent to a qualifying bank account.
For example, Western Union allows eligible customers to fund certain transfers with a credit card.
See Western Union’s credit-card transfer guide
The basic process is:
- Choose the destination.
- Enter the transfer amount.
- Provide the recipient’s bank details.
- Select your credit card as the payment method, if available.
- Review the fees and exchange rate.
- Confirm the transaction.
You may need additional identification or verification.
Always check the recipient’s bank details before confirming the transfer.
4. Use an E-Wallet
Some digital wallets allow users to fund transactions with a credit card.
In certain markets, the wallet may also allow withdrawals or transfers to a bank account.
However, this option has important restrictions.
A wallet may:
- Reject credit-card funding
- Charge a funding fee
- Limit the amount you can add
- Restrict bank withdrawals
- Treat some transactions differently
- Block certain types of transfers
Standard Chartered describes an e-wallet approach for moving funds from a credit card.
Check the wallet’s current terms before using this method.
5. Withdraw Cash and Deposit It Into Your Bank
You can also use a cash advance and then deposit the money into your bank account.
The process looks like this:
Credit card → ATM → Cash → Bank account
This can work when your card does not offer a direct money-transfer facility.
However, it can involve several charges.
You may pay:
- A cash-advance fee
- An ATM fee
- Interest
- Other transaction charges
For this reason, compare the total cost before using this method.
How Much Does It Cost to Transfer Money From a Credit Card?
The cost depends on the method you use.
You may encounter several charges.
Transfer Fee
A card issuer or money-transfer service may charge a transfer fee.
The fee may be a percentage of the amount or a fixed charge.
For example, HSBC UK currently provides an example involving a 2.99% money-transfer fee. However, this is specific to the applicable HSBC product and should not be treated as a universal rate.
Cash-Advance Fee
A cash advance may have a separate fee.
Western Union notes that credit-card issuers may charge cash-advance fees when certain transactions are treated as cash advances.
Your card agreement determines the actual charge.
Interest
Interest can significantly increase the cost.
Some money-transfer products may offer promotional rates. Cash advances may have different rates.
Do not assume that your purchase APR applies to every type of credit-card transaction.
Foreign-Exchange Costs
International transfers can involve currency-conversion costs.
The exchange rate can affect how much the recipient receives.
Therefore, do not compare international transfers using the transfer fee alone.
Look at the total amount you pay and the amount the recipient receives.
Example: Transferring $1,000
Suppose you transfer $1,000 from your credit card.
If the transfer fee is 3%:
Transfer: $1,000
Transfer fee: $30
Initial balance: $1,030
Interest could increase the balance further.
The actual cost depends on the card’s terms and how quickly you repay the balance.
Use this formula to estimate the cost:
Total cost = transfer amount + fees + interest + other applicable charges
For international transfers, include any currency-conversion costs.
How Long Does a Credit-Card-to-Bank Transfer Take?
There is no single processing time.
Some transfers can arrive quickly. Others may take several business days.
The timing can depend on:
- The card issuer
- The transfer provider
- The destination country
- The receiving bank
- The payment method
- Security checks
- Weekends and bank holidays
- Currency conversion
HSBC says eligible money transfers should generally reach the current account by the next working day after approval. It also advises customers to allow up to three days.
Western Union states that delivery times can vary. Some transfers may arrive within minutes, while bank transfers can take several business days.
Avoid promising a specific delivery time unless the provider confirms it.
Does a Credit-Card Transfer Affect Your Credit Score?
The transfer itself is not necessarily a separate negative entry on your credit report.
However, your balance will usually increase.
For example, suppose your credit limit is $5,000.
You already owe $1,000.
You then transfer another $1,000.
Your balance could rise to $2,000.
That means you are using more of your available credit.
Missed payments can also hurt your credit profile.
A high balance can make future borrowing more difficult in some circumstances.
The key issue is whether you can repay the additional debt on time.
Money Transfer vs. Balance Transfer: How to Transfer Money From a Credit Card
These two terms are often confused.
They are not the same thing.
Money Transfer
A money transfer moves borrowed money from a credit card into a bank account.
Credit card → Bank account
Balance Transfer
A balance transfer moves existing credit-card debt from one credit card to another.
Credit card A → Credit card B
A balance transfer does not normally put cash into your bank account.
Understanding the difference can help you choose the correct credit-card product.
What to Check Before Making the Transfer
Before transferring money, check these seven things.
1. Available Credit
Confirm that you have enough available credit.
Your total credit limit may not equal your transfer or cash-advance limit.
2. Transfer Limit
Check the maximum amount you can transfer.
Some providers impose separate limits for money transfers and cash advances.
3. Fees
Find out exactly how much the transfer will cost.
Look for both percentage-based and fixed fees.
4. Interest Rate
Check the APR that applies to the transaction.
Do not assume that your normal purchase rate applies.
5. Processing Time
Find out when the money should arrive.
Allow extra time for weekends, holidays, and verification checks.
6. Receiving-Account Rules
Some providers restrict which accounts can receive the money.
Others may require the account to be in your name.
7. Total Repayment Cost
Calculate the full amount you may have to repay.
A $1,000 transfer could cost more than $1,000 after fees and interest.
What Is the Cheapest Way to Transfer Money From a Credit Card?
There is no universal cheapest method.
Your cost depends on your card and the transaction.
Compare:
- Direct money transfer
- Cash advance
- Money-transfer service
- Bank overdraft
- Personal loan
- Existing savings
Look beyond the advertised interest rate.
Include fees and the expected repayment period.
For an international transfer, also compare the exchange rate.
The cheapest-looking transfer fee may not produce the lowest overall cost.
When Should You Avoid a Credit-Card-to-Bank Transfer?
Be careful if you are using credit to cover regular living expenses.
A one-time transfer may solve a temporary cash shortage. Repeated transfers can increase your debt quickly.
Think carefully before transferring money if you:
- Already carry a large credit-card balance
- Are making only minimum payments
- Have a high-interest card
- Need repeated cash advances
- Are using one debt to pay another
- Are unsure how you will repay the money
If the problem is ongoing, review your budget and consider other borrowing options.
Frequently Asked Questions on How to Transfer Money From a Credit Card
Can I transfer money directly from a credit card to my bank account?
Yes, if your issuer supports the feature. You may also be able to use an eligible money-transfer service.
Can I transfer money to someone else’s bank account?
Sometimes.
The rules depend on the card issuer and transfer provider. Some services allow transfers to another person’s account. Others may restrict transfers to accounts belonging to the cardholder.
Is a money transfer the same as a cash advance?
No.
A dedicated money-transfer product can have different terms from a cash advance.
However, some credit-card-funded transactions may be classified as cash advances.
How fast will the money arrive?
It depends on the provider.
Some transactions can arrive within minutes. Bank transfers may take several business days.
Will I pay interest?
Possibly.
The applicable rate depends on the card and transaction type.
Check your card agreement before transferring the money.
Can I transfer money internationally?
Yes, where the provider supports international credit-card-funded transfers.
Availability depends on the destination, payment method, card issuer, and local regulations.
Can I use an e-wallet?
Some wallets support credit-card funding.
However, their rules vary. Check whether the wallet allows bank withdrawals and whether additional fees apply.
Conclusion on How to Transfer Money From a Credit Card
You can transfer money from a credit card to a bank account in several ways.
The main options include:
- A direct credit-card money transfer
- A cash advance
- A money-transfer service
- An eligible e-wallet
- A cash withdrawal followed by a bank deposit
The best option depends on your card, location, fees, interest rate, and repayment ability.
Before transferring the money, check the transfer limit, fees, APR, processing time, and total repayment cost.
Most importantly, remember that the money is borrowed.
A credit-card transfer can provide short-term access to cash. But fees and interest can make the transaction more expensive than expected.
