How to Transfer Money From a Credit Card to a Bank Account
Facing a financial pinch and wondering if you can tap into your credit card's available balance by transferring money directly to your bank account? While possible, this comes with important considerations that could impact your finances.
This guide covers everything you need to know about moving funds from your credit card to your bank account — including alternative options that might better suit your needs. We’ll also mention Credit24 and how our personal loans can help you.
Can I transfer money from credit card to bank account?
Yes, you can transfer money from your credit card to your bank account through what's commonly known as a cash advance. This allows you to withdraw a portion of your credit card's available limit as cash, which you can then deposit into your bank account.
A cash advance essentially converts your credit card's purchasing power into cash. While convenient in emergencies, cash advances usually come with:
- Immediate interest charges
- Additional cash advance fees
- Higher interest rates than normal purchases
This makes it one of the more expensive ways to access funds.
How to transfer money from a credit card to a bank account
There are several methods, each with different fees, processing times, and requirements.
In person
Visit your bank branch and:
- Bring your credit card and ID
- Request a cash advance
- Specify the withdrawal amount
- Provide your bank account details
- Complete required paperwork
The teller will process and deposit the funds
This method provides personal assistance but is limited to business hours.
Online banking
You can transfer money using your bank’s online portal. Simply:
- Log in to your online banking
- Go to “Transfers” or “Cash Advance”
- Select your credit card as the source
- Select your bank account as the destination
- Confirm fees and terms before submitting
Processing can be instant or take up to a few business days.
ATM transfer
You can use an ATM to:
- Choose Cash Advance
- Withdraw funds from your credit card
- Deposit the cash into your bank account via ATM
Note: ATM withdrawals may incur additional fees.
Money transfer apps & P2P services
Some apps allow transfers funded by credit card. Typically, you:
- Install the app
- Link your credit card and bank account
- Initiate a transfer using the credit card
Just keep in mind:
- Many apps charge extra fees for credit card transfers
- Some don’t allow credit card funding at all
Important considerations when sending money from a credit card to a bank account
Before transferring funds, consider these key risks and impacts.
Impact on credit score
Cash advances don’t directly hurt your credit score. However, they can indirectly impact it by:
- Increasing your credit utilisation ratio (the percentage of credit you're using)
- Increasing your balance due to immediate interest charges
- Potentially leading to missed payments due to higher repayments
To support a healthy credit score, aim to keep your utilisation below 30%.
Security measures
To keep your information safe:
● Use official banking channels
● Ensure websites show HTTPS + padlock
● Avoid public Wi-Fi for financial transactions
● Never share your PIN or banking login
● Enable two-factor authentication
● Monitor activity for unauthorised transactions
Processing times
Timing varies depending on method:
● In-person bank transfers — usually instant
● ATM deposits — same day
● Online transfers — instant to 1–3 business days
● Convenience cheques — 1–5 business days
● Apps — instant to several business days
Always check with your bank if funds are urgent.
Transfer limits
Common limits include:
● Cash advance limit (lower than total card limit)
● Daily ATM withdrawal caps ($300–$1,000)
● Online transfer limits
● Remaining available credit
● Cash advance fees deducted from amount
Check your credit card contract for exact limits.
Pros and cons of transferring money from a credit card to a bank account
Pros
● Immediate access to cash — useful in emergencies
● Flexible usage — unlike some credit products
● Available 24/7 through online banking and ATMs
● Helpful for genuine emergencies when no other options exist
Cons
● High fees & interest rates — often 21–24% + cash advance fee
● No interest-free period — interest starts immediately
● Higher credit utilisation — can lower credit score
● Risk of long-term debt due to high costs
● Lower available credit for card purchases afterward
Does transferring money from a credit card to a bank account hurt my credit score?
Not directly — credit reports don’t list cash advances separately.
But indirectly, yes:
- Your utilisation increases (often hurting your score)
- High interest charges can cause balances to balloon
- Missed payments from repayment strain can severely reduce your score
Payment history makes up 35% of your score — so on-time payments are crucial.
What alternatives do I have?
Personal loans
Personal loans often offer:
- Lower interest rates than cash advances
- Structured repayments
- Predictable costs
Credit24 offers personal loans with:
- Fast online applications
- Competitive rates
- Clear repayment schedules
- No hidden fees
Buy now pay later (BNPL)
BNPL services allow interest-free instalments for specific purchases. It’s useful for planned expenses but not for accessing general cash.
Balance transfer credit card
Some cards offer:
- 0% interest for 12–18 months on transferred balances
- A fee of about 3–5%
Some issuers even allow balance transfer cheques you can deposit into your account.
Financial hardship programs
Contact your credit card issuer if you’re struggling. They may offer:
● Reduced interest
● Fee waivers
● Adjusted payment schedules
● Payment pauses
Government assistance
Australian government programs can help with:
● Utilities
● Rent and housing
● Food and essential expenses
● Healthcare
● Emergency financial support
These options often require no repayment, making them safer than high-interest borrowing.
Payment arrangements
Before borrowing, call your providers. Many offer:
● Payment plans
● Deadline extensions
● Temporary fee waivers
● Reduced payments
Can I transfer money from a credit card to a debit card?
Yes — but this is essentially the same as transferring money to the bank account linked to your debit card.
If you’re trying to pay one credit card with another, that requires a balance transfer, not a debit transfer.
Balance transfers often include:
- 0% interest promotional periods
- 3–5% transfer fees
- 6–18 month repayment windows
Get a personal loan, receive your money now
When unexpected expenses pop up, Credit24 personal loans are a smart alternative to expensive credit card cash advances.
With Credit24:
- The application takes just minutes
- Approval is fast
- Funds can be received quickly by eligible customers
- Interest rates are fixed
- There are clear repayment schedules
- Loan terms range from 6 to 36 months
- Borrow between $500 and $10,000
