How to transfer money from a credit card

While credit cards are accepted methods of payment at most merchants, you may need to have some cash on hand in a pinch. Whether it’s due to an emergency, an unforeseen expense, or a transaction that doesn't accept credit cards, you may consider transferring money from your credit card to a different destination, such as your bank account or to family overseas.

Learn more about credit card money transfers, their associated fees, and other potential implications.

Ways to transfer money from a credit card

There are many different ways you can transfer money using a credit card. Some of the most common methods include:

• Money transfer providers
• Peer-to-peer (P2P) payments
• Cash advances

Money transfer providers

One way to transfer money with a credit card is by using a money transfer provider. If your intended recipient isn't physically with you but lives in a location where the provider has a branch, you can send them money from a specific credit card set up in advance.

This process can be conducted either online, in an app, or in person at a provider near you. If you choose to go to a brick-and-mortar location, make sure to bring proper documentation with you to verify your identity, including a valid government ID.

P2P payments

You can also use a peer-to-peer (P2P) payment app to transfer money from your credit card to a bank account. Once you sign up for an account on the app and verify your identity, you can link your credit card as well as your debit card and personal banking account.

You can then transfer funds to either another user on the same platform or directly into your personal banking account. Depending on the provider you use, the transaction can be almost instantaneous or take several business days to complete. In certain instances, you may have to pay an additional fee if you don’t want to wait.

Cash advances

Most credit cards have a cash advance feature. This allows you to either withdraw available funds from an ATM or transfer money online from your credit card to your checking account.

If you choose to take out physical cash, you can proceed to deposit it into your bank account through an ATM or at your nearest physical branch.

This option is best used as a last resort, as it can often come with extra fees and a high interest rate that kicks in as soon as you withdraw the funds.

Unlike other types of transactions, there's often no grace period in which you can pay back the money without incurring interest charges.

Things to consider when transferring money from a credit card

There are several options to choose from when you need to transfer money using a credit card. However, it's important to also consider the potential negative implications of any change to your credit card balance.

For example, it may damage your credit score if you end up accidentally overdrawing on your outstanding balance. You may also unintentionally end up in further debt.

If you want to maintain your creditworthiness, and perhaps boost your score in the long run, it's important to pay your credit card bill on time and ideally in full.

Potential fees

At times, you may incur charges to transfer money from your credit card to your bank account. For instance, overdrawing on your account could potentially result in late fees if you don't have the money to pay off your entire balance on time.

There may also be cash advance and balance transfer fees to pay, as well as extra charges for international transfers if you're sending money abroad.