{"id":5770,"date":"2024-10-08T18:03:22","date_gmt":"2024-10-08T18:03:22","guid":{"rendered":"https:\/\/www.nerdwallet.com\/au\/?page_id=5770"},"modified":"2024-10-09T00:03:51","modified_gmt":"2024-10-09T00:03:51","slug":"transfer-money-to-bank-account","status":"publish","type":"page","link":"https:\/\/www.nerdwallet.com\/au\/credit-cards\/transfer-money-to-bank-account","title":{"rendered":"Can I Transfer Money From A Credit Card To A Bank Account?\u00a0"},"content":{"rendered":"\n

Yes, you can transfer money from your credit card to your bank account, but it\u2019s costly and not recommended. This process is called a \u2018cash advance\u2019<\/a> and typically comes with high fees and interest rates<\/a> that start accumulating immediately. It\u2019s one of the more expensive ways to borrow money.\u00a0<\/p>\n\n\n\n

Before relying on this option to access emergency funds, here\u2019s what you should consider.<\/p>\n\n\n\n

How a cash advance transfers money<\/h2>\n\n\n\n

Withdrawing money from your credit card<\/a> is called a cash advance. You can do this through an ATM withdrawal or by transferring funds online to your bank account. Either way, fees<\/a> and interest start piling up immediately.\u00a0<\/p>\n\n\n\n

Usually, every time you do this, you\u2019re charged a cash advance fee, such as 3% or $3 per transaction, whichever is greater.\u00a0<\/p>\n\n\n\n

The amount you move to your bank account also incurs interest from the day you make the transfer rather than when your statement is due or after any interest-free days<\/a> that commonly apply to regular purchases. That means you need to repay the funds you withdraw immediately to avoid interest charges from spiraling out of control.<\/p>\n\n\n\n

Cash advance vs balance transfer <\/h3>\n\n\n\n

Don\u2019t confuse a cash advance with a balance transfer<\/a>. <\/p>\n\n\n\n

A balance transfer moves debt from one card to another, typically to secure a lower interest rate and consolidate payments. Promotional balance transfers<\/a>, such as 0% for 12 months, generally do this most effectively. These offers aim to reduce the interest you pay while giving you time to pay down your transferred balance. <\/p>\n\n\n\n

A cash advance, on the other hand, is a costly, short-term solution. While this allows you to use your credit card as a cash source \u2014\u00a0effectively borrowing money directly from your card \u2014\u00a0you’ll pay heavily for this convenience.<\/p>\n\n\n\n

\u00bb MORE: <\/strong>When is a credit card right for an emergency?<\/a><\/p>\n\n\n\n

Types of cards that allow transfers <\/h2>\n\n\n\n

Most financial institutions, including the Big Four, allow you to transfer money from a credit card to a bank account. There\u2019s no specific credit card type<\/a> designed for cash withdrawals or transfers \u2014 but cards with a lower cash advance interest rate and fees may be slightly more affordable and, therefore, preferable.<\/p>\n\n\n\n

Cash advance interest rates can range from 8.99% to 25.99%, depending on the card. But most sit at 21.99%, typically higher than the purchase interest rate. And, just another remind that interest is charged daily<\/a> for cash advances\u00a0\u2014 from the moment you make the transaction to however long it takes to repay it \u2014 which is why they can create debt snowballs.\u00a0<\/p>\n\n\n\n

Common restrictions to know <\/h3>\n\n\n\n

Check the specifications of your bank and how they treat cash advances. Depending on your credit card, the daily cash limit <\/a>and your current debt, there could be limitations.<\/p>\n\n\n\n

In some cases, banks may even block cash advances entirely, as is the case with cards like CommBank Neo, NAB StraightUP and Westpac Lite.\u00a0<\/p>\n\n\n\n

Alternatively, your bank may provide options to allow you to set your own card controls so you can restrict your daily cash limit or block access to cash advances altogether.<\/p>\n\n\n\n

How to transfer funds from a credit card to a bank account\u00a0<\/h2>\n\n\n\n

Transferring in person:<\/h3>\n\n\n\n

The easiest way to transfer money from your credit card to your bank account is to withdraw cash from an ATM and deposit it into your account.<\/p>\n\n\n\n

However, ATMs often charge fees for withdrawals, which are in addition to any cash advance fees imposed by your credit card issuer<\/a> \u2014\u00a0not to mention any interest charges or other fees.<\/p>\n\n\n\n

Let\u2019s say you withdraw $500 from an ATM that charges $2 per transaction. Plus, your card\u2019s cash advance fee is 3% with a 21.99% interest rate. You\u2019d be paying $17 for the privilege of removing the money from the ATM, and the debt would grow to roughly $545 in 90 days. <\/p>\n\n\n\n

In short, moving cash from your credit card to your bank can be extremely costly.\u00a0<\/p>\n\n\n\n

Transferring via mobile or online banking: <\/h3>\n\n\n\n
    \n
  1. Sign into your online banking (app or desktop). <\/li>\n\n\n\n
  2. Navigate to the Transfer section, if available.<\/li>\n\n\n\n
  3. Complete any applicable forms, and provide the bank details you wish the cash to be sent to. <\/li>\n\n\n\n
  4. Complete the transfer. <\/li>\n<\/ol>\n\n\n\n

    Online transfers can take a few days to complete.  <\/p>\n\n\n\n

    Transferring on the phone: <\/h3>\n\n\n\n
      \n
    1. Call your credit card issuer and inform them you\u2019d like to process a cash advance. <\/li>\n\n\n\n
    2. Confirm the amount, the credit card and bank account. <\/li>\n\n\n\n
    3. Follow the representative\u2019s prompts. <\/li>\n<\/ol>\n\n\n\n

      Allow a few days to receive the funds.\u00a0<\/p>\n\n\n\n

      What to consider before you make a transfer<\/h2>\n\n\n\n

      If you absolutely need to transfer funds from your card to your bank account, consider the risks by asking yourself the following questions before pulling the trigger:\u00a0<\/p>\n\n\n\n