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
7
minute read
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Last Updated 12 AUGUST 2022

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, or if you need a little extra cash in your account to pay unplanned expenses. It could also be useful if you need to make a purchase where credit cards aren’t accepted and you don’t have enough money in your current account and want to spread the repayments.

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

Although charges tend to be lower than for a standard credit card, there’s still a fee involved with every transfer. This is generally 1% to 5%, 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.

Remember that you’ll need to repay what you owe on the card – 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 will likely be charged a late payment fee. It may also affect your credit rating, and it can show up on your credit file for other lenders to see for up to six years. Missing a repayment could also violate the terms of any promotional interest deal you’re on. 

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

If you have a money transfer credit card, you can normally transfer money to your bank account using the following steps:

  1. Log in to your online banking portal or app
    If you don’t use online banking, you can also call your bank to speak to an adviser and they will talk you through the process.
  2. 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.
  3. Request the fund transfer you want to make. Your bank will normally indicate the maximum amount you can transfer, depending on your available credit.
  4. Provide details of the current account you want to transfer to.
  5. Your bank will confirm any transfer fees and the terms and conditions you’ll need to accept to complete the request.
  6. Your bank will need to approve the request. They may want to complete extra security checks to make sure it’s really you.
  7. Once your bank has approved the money transfer, the money will normally be in your account by the next working day. 

Although you can often do this with an ordinary credit card, depending on your credit card provider’s terms, it’s usually 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 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 but 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 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.

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.

It’s also important to check the terms and conditions of any promotional deal carefully. Note that the interest-free period may only apply to money transfers made during this period and not everyday spending made on the 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 and 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 remaining 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 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 you transfer, the higher your fee will be.
  • Interest rate – if you’re choosing a 0% interest deal, check how long it lasts 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. 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 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:

Overdrafts

An arranged overdraft 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 typically range from 15% to 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. And the reason many people use a money transfer credit card is to pay off their overdraft, so check carefully whether this is right for you.

Bear in mind that if you regularly go over your overdraft limit, it could impact your credit score. 

Loans

A personal loan. This lets you borrow a fixed amount of money over a fixed term, up to around £25,000.

Frequently asked questions

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

Yes, you can transfer money from your credit card into your current account and then use the debit card linked to that account to spend it as you wish. 

Bear in mind that purchases made with your debit card don’t have the same purchase protection as credit cards, although 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 will 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 in 2021, the average annual interest rates for credit cards were consistently over 20%. 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, if you transfer money from your credit card balance to your bank account and then use your debit card to buy something using that money, you won’t be protected by Section 75 of the Consumer Credit Act 1974. 

Under section 75, when you use your credit card for purchases of between £100-£30,000, you could get your money back if the item you bought is:

  • Faulty or damaged
  • Different to what was described
  • Not delivered as promised
  • From a trader or retailer that then goes bust. 

However, this isn’t guaranteed. Read our guide to credit card purchase protection.

Can I transfer money from my credit card to someone else’s bank account?

Many providers insist that you transfer money from your credit card to a current account in your name that has the same registered address as your credit card. If you need to send the money to a third party account, it’s a good idea to transfer the money to an account in your name first. Then you can forward the cash to a third-party account with the appropriate reference added.

What’s the best way to pay off my balance on a money transfer credit card?

Ideally, when you make the transfer, divide the total amount of the transfer and all the costs by 12 (or however long your free transfer period lasts) and pay back the same amount each month. Make sure you can afford the monthly payments before you make the transfer so the balance will be paid by the time the interest-free period ends. Don't just pay the minimum amount each month as you could be left owing money once the interest-free period has come to an end, paying a high interest rate on the balance.

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