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.
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 are more sensible than others, and if you get it wrong you face high charges.
Using a credit card to raise extra cash means taking on more debt, so you should think very carefully before doing this. If you need to transfer funds into your bank account, one option is to use a credit card with a money transfer facility, known as a money transfer card.
What is a money transfer credit card?
A money transfer credit card lets you transfer money directly into your current account. Very few providers offer this type of card anymore, but some will let you transfer money with an ordinary credit card.
While some money transfer cards charge interest, a handful come with an interest-free period or a lower introductory interest rate on the outstanding balance for a set time.
Whether your card is interest-free or not, a one-off transfer fee will be charged with every transfer. This is generally around 4% of the amount transferred, but it can vary depending on the credit card deal. If you transfer £2,000 to your bank account and the transfer fee is 4%, you’ll pay £80 for the transfer – so the balance on your credit card would be £2,080.
When you apply for a card, the amount of credit you’re offered will depend on your personal circumstances, including your credit record and whether you meet the lending criteria of the provider.
Note – a money transfer card is different from a 0% balance transfer card, where the balance on one card is switched to a new card.
Is a money transfer card a good idea?
An interest-free money transfer card can be useful for:
- Paying off short-term debt, such as a small overdraft
- Putting a little extra cash into your account to cover unplanned expenses
- Borrowing for something essential where credit cards aren’t accepted, such as for a tradesperson.
While a money transfer card can be useful if you need cash quickly, it should be used with caution. It’s generally not a good idea to use one too often, as you may struggle to repay your debt.
Remember that you’ll need to repay what you owe on the card and make at least the minimum payment each month. If you fail to make the monthly minimum repayment, it will be classed as a missed or late payment, and you’ll likely be charged a late payment fee. It may also affect your credit rating. This will show up on your credit file for other lenders to see for up to six years. Missing a repayment could cause you to lose your promotional 0% interest or low-rate deal, too.
If you’re experiencing serious money issues, it’s worth speaking to a debt advice charity such as StepChange or National Debtline before taking on more debt. They might be able to offer alternative solutions.
How to transfer money from a credit card to a bank account
If you have a money transfer credit card, you can normally transfer cash to your bank account using the following steps:
- Log in to your online banking portal, app or credit card account.
If you don’t use online banking, you can also usually call your bank and an adviser will talk you through the process. - Select the credit card you want to transfer from and look for an option to request a money transfer. If you’re having trouble finding it, most online banking portals have a help section, often with a chat function, that can point you in the right direction.
- Enter the amount of money you want to transfer to your bank. Your card provider will normally state the maximum amount you can transfer, depending on your available credit.
- Give details of the bank account you want to transfer to (you’ll usually need the six-digit sort code and eight-digit account number).
- Your provider will confirm any transfer fees, plus the terms and conditions you’ll need to accept to complete the request.
- Your provider will need to approve the request. They might want to complete extra security checks to make sure it’s really you.
- Once your provider has approved the money transfer, the money will normally be in your account by the next working day.
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 my credit card without paying interest?
A few credit card providers offer money transfers with a 0% interest-free period. This means you’ll be given a set period when you won’t be charged interest on your balance. But you’ll still be charged a one-off money transfer fee.
Generally, the longer the interest-free period, the higher the transfer fee tends to be.
Just remember that once the interest-free period ends, you’ll be charged interest on any remaining balance you owe. So it’s always advisable to try to pay off the balance in full before the 0% deal finishes.
It’s also important to check the terms and conditions of any promotional deal carefully. Note that the 0% interest rate may only apply to money transfers and not everyday purchases or ATM withdrawals made with the same card.
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. You’ll then have a separate limit for the amount you can transfer to your bank account. Typically, you’ll be allowed to transfer up to 90-95% of your overall credit limit – but this percentage may vary depending on your lender’s terms, your credit limit, and your existing balance.
Most credit card providers will also stipulate a minimum limit that can be transferred – typically £100.
The credit limit you’re given depends on several things, including:
- Your credit history
- How much you earn
- Your repayment history
- How much debt you already 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 to borrow cash to move to a bank account, there are a few things to think about. You’ll want to check the:
- Transfer fee – it’s usually a percentage of the transfer amount, so the more you transfer, the higher your fee will be.
- Interest rate – if you’re choosing a 0% or low-interest deal, check how long it lasts and how much the interest rate will be once the introductory period ends. Ideally you should budget to pay the entire balance off before the promotional rate comes to an end to avoid paying a much higher rate of interest.
- First transfer time – some 0% cards require you to complete your first transfer within 60 days of opening the account. 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. Make sure you can afford to pay back any money you transfer.
Am I eligible for a money transfer credit card?
Money transfer credit cards are usually only available to those with a good credit rating. Lenders will want to be sure that you can afford your repayments.
Use our credit card eligibility checker before applying to see whether you’re likely to be accepted for a card with a money transfer facility. The checker performs a ‘soft search’ so it 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.
Can I just withdraw cash from a credit card? (You can but it’s risky)
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 the cash in your bank.
This is called a cash advance but it can be a very expensive way of getting money.
Withdrawing money using a credit card usually incurs a high withdrawal fee. This is generally around 2-3% of the sum you take out of the ATM. You’ll typically 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. Some ATMs may also charge you an additional fee.
What are the alternatives to money transfer credit cards?
There are other ways to raise cash without using a credit card:
Overdrafts
An arranged overdraft could be a short-term option if you need emergency funds. They can be very expensive so should be treated with extreme caution but some banks offer an interest-free overdraft up to a certain amount. These days, overdraft rates typically go to 40% EAR outside any interest-free amount.
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.
If you do decide to use your overdraft, don’t go above the agreed limit as this could harm your credit score.
Loans
A personal loan lets you borrow a fixed amount of money – typically up to £25,000 – over a fixed term. This could be an option if you need a larger amount of money for a new car or major home improvements, for example.
For sums below £5,000, a personal loan might be more expensive than a money transfer. Always compare the total cost of borrowing before making any decisions.
Frequently asked questions
Can I transfer money from a credit card to a debit card?
A debit card is just the plastic you’d use that’s associated with your current account, so yes, you can transfer money from your credit card into your current account as detailed in this guide.
Then you can spend it as you wish, either by withdrawing the cash, transferring it or using your debit card.
Bear in mind that purchases made with your debit card don’t have the same purchase protection as those made with credit cards, though you may be able to dispute payments with your debit card provider through a process commonly referred to as chargeback.
What happens when the interest-free deal on my credit card ends?
Once the 0% interest period ends, you’ll start paying interest on any remaining balance on your credit card.
The amount you’ll pay in interest depends on the rate agreed with your provider when you took out your credit card but it can be expensive. That’s why it’s a good idea to aim to pay off any credit you borrow before the interest-free period on your credit card deal ends.
Are transfers from my credit card to my bank protected by Section 75?
No, you’re not covered by Section 75 if you buy something on a debit card with money transferred from your credit card to your bank account.
Section 75 of the Consumer Credit Act protects you on credit card purchases of between £100 and £30,000. It means you could get your money back if something you’ve bought with a credit card is:
- Faulty or damaged
- Different from what was described
- Not delivered as promised
- From a trader or retailer that then goes bust.
But this isn’t guaranteed. Read our guide to credit card purchase protection to find out more.
Can I transfer money from my credit card to someone else’s bank account?
Most providers will only let you transfer money from your credit card to a UK current account in your name that has the same registered address as your credit card. This is to protect against fraud and coercion.
What’s the best way to pay off my balance on a money transfer credit card?
It’s usually best to split the payments evenly across the interest-free (or low-interest) period to avoid being hit by a higher rate of interest on remaining debt after that point, as long as what you’ll pay is more than your minimum payment each month.
If you want to spread the repayments evenly:
- Divide the total amount of the transfer plus any fees or interest charges by however many months your promotional interest rate lasts for.
- Set up a direct debit to pay the same amount each month.
Looking for a credit card?
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The Editorial Team - Compare the Market
Experts in personal finance, insurance and utilities
Compare the Market’s Editorial Team is made up of industry experts with decades of experience in personal finance, insurance and utilities. Each of our authors has an area of expertise, where they can share their extensive experience to help you get a better deal, by finding the right product and saving money.
This article is written by a Compare the Market expert, backed by data and enhanced by AI. Find out how we ensure accuracy and quality in our Editorial Guidelines.