How to transfer money from your credit card to bank account

If you need to add cash to your bank account to pay off a short-term debt, you might want to consider using a credit card. We look at ways to transfer money from a credit card into your bank account.

If you need to add cash to your bank account to pay off a short-term debt, you might want to consider using a credit card. We look at ways to transfer money from a credit card into your bank account.

Rob Silvey
Finances expert
minute read
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Posted 14 JANUARY 2021

Can I transfer money from a credit card into a bank account?

It’s possible to transfer money into a bank account using a credit card – but some ways of doing this are cheaper than others.

One of the easiest options is to get a money transfer credit card. This allows you to transfer money from your card directly into your bank account.

What is a money transfer credit card?

A money transfer credit card lets you pay cash directly into your current account. It can be useful for paying off short-term debt, such as a small overdraft.

While some money transfer cards charge interest, many come with an interest-free deal on the outstanding balance for a set period.

Although charges tend to be lower than for a standard credit card, there is still a fee involved with every transfer. This is generally 1% to 4%, depending on the credit card provider. For example, if you transfer £2,000 to your bank account and the transfer fee is 3%, you’ll pay £60 for the transfer. So, the balance on your credit card would be £2,060.

Also remember that you’ll need to repay what you owe on the card – at least the minimum payment each month.

When you apply for a card, the amount of credit you’re offered will depend on your personal circumstances, your credit record and whether you meet the lending criteria of the provider.

How to transfer money from a credit card to a bank account

When you get a credit card, you’ll be given a set limit that you can spend. This is called your available credit. You’ll need to ask your credit card provider to move the money from your available credit into your nominated bank account.

Although you can do this with an ordinary credit card, it’s cheaper to use a money transfer card as charges are typically lower.

Once the money is in your bank account, you can use it however you want – for example, to pay off an overdraft or other debt.

Can I transfer money from a credit card to a debit card?

As your debit card is linked to your current account, you can transfer money with your credit card then use your debit card to spend it as you wish.

Can I withdraw cash from a credit card?

Another way to transfer money from a credit card to a bank account is to use your card to withdraw cash from an ATM, then deposit it in your bank.

This is called a cash advance. However, it’s an expensive way of getting money and is best avoided, if possible. Withdrawing money using a credit card usually incurs a high fee. You’ll also be charged daily interest from the moment you take out the money until you pay off the balance – even if you have a 0% interest deal.

Can I transfer money from my credit card without paying interest?

Many credit card providers offer money transfer cards with a 0% interest-free period. This means you’ll be given a set period when you won’t be charged interest on your repayments. But you will be charged a transfer fee.

Generally, the longer the interest-free period, the higher the transfer fee is likely to be. For example, if you have a 0% deal for 12 months, you may be charged a 3% transfer fee. If the interest-free deal is for 18 months, the fee could be around 4%.

Just remember that once the interest-free period ends, you’ll be charged interest on the remaining balance you owe. This could be as much as 20%, so it’s always advisable to pay off the balance in full before the 0% deal finishes.

How much money can I transfer from my credit card to my bank account?

The amount you can transfer depends on the available credit limit given to you by your credit card provider.

If you have a money transfer credit card, you’ll likely be given an overall credit limit and a separate limit for the amount you can transfer to your bank account. This will usually be a percentage of your overall credit limit.

The credit limit you’re given depends on a number of factors, including your credit history, how much you earn, your repayment history and how much debt you have in relation to your income.

What should I look out for when transferring money from a credit card to my bank account?

If you’re using a money transfer card to transfer money to a bank account, there’s a few things to consider. You’ll want to check the:

  • Transfer fee – it’s usually a percentage of the transfer amount, so the more your transfer the higher your fee will be.
  • Interest rate – if you’re choosing a 0% interest deal, check how long it lasts for and how much the interest rate will be once the interest-free period ends.
  • First transfer time – some 0% cards require you to complete your first transfer within 60 days. If you don’t, you could lose the 0% deal.
  • Transfer amounts – you’ll need to be sure you can afford to pay back the amount you transfer.
  • Alternatives – before you take the plunge, do the sums and compare the cost to using other options, such as a loan or an overdraft.

Am I eligible for a money transfer credit card?

Money transfer credit cards are usually only available to customers with a good credit rating. Lenders will want to be sure that you can afford your repayments.

Use our credit card eligibility checker to see if you’re eligible for a money transfer credit card before applying. It’s a ‘soft search’ so won’t affect your credit rating in any way.

Compare the Market Limited acts as a credit broker, not a lender. To apply you must be a UK resident and aged 18 or over. Credit is subject to status and eligibility.

What are the alternatives to money transfer credit cards?

There are other ways to raise cash without using a credit card:

  • An arranged overdraft. This could be a short-term option if you need emergency funds. Some banks offer an interest-free overdraft up to a certain amount.

    Whether an overdraft would be cheaper than a money transfer credit card depends on the overdraft limit and the interest rates you could be charged. These days, overdraft rates are typically around 40%. You may also find the amount of interest-free overdraft isn’t as much as the credit limit you’d get with a credit card.

    Bear in mind that if you regularly go over your overdraft limit, it could impact your credit score.
  • A personal loan. This lets you borrow a fixed amount of money over a fixed term, up to around £25,000.

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