Credit cards come in handy when you need money for emergencies. But, it is not recommended to use a credit card for all the expenses. For instance, monthly rent, big-ticket purchases that will wipe out credit, paying taxes, and medical bills are some of the expenses experts say never to charge on a credit card. In that case, you can always transfer money from your credit card to your bank account. So, how to transfer money from credit card to bank account?
Ways To Transfer Funds From Credit Cards To Bank Account
Credit cards are used to pay for goods and services, and it is one of the most important methods to access some funds to meet emergencies or immediate financial requirements. There are various ways to transfer money from your credit card to your bank account. You can transfer directly to the bank through net banking, money transfer credit card, or phone call. Else, you can indirectly transfer money using an e-wallet that is linked to your bank account.
Direct Transfer To Bank Account
You can transfer funds from your credit card to your bank account directly using the following:
You can transfer cash directly by accessing your credit card’s online banking account. The charges for making a transfer from a credit card to a bank account differs across banks. The steps to transfer money through net banking are as follows:
- Go to your bank’s website
- Log in to your credit card account
- Select the transfer option
- Enter the amount you wish to transfer
- Enter the necessary details mentioned in the form
- Follow the guidelines in the form of prompts to complete the transactions.
Over the phone:
if you require the money immediately but do not have online access, then you can always do it over the phone. The charges for transferring money to a bank account from your credit card through a phone call will not differ from the amount charged through net banking
You will have to verify the daily and monthly transfer limit with the bank to get the latest information. If you are transferring funds to an account with the same bank from which you have your credit card, the transfer is almost immediate. If you want to transfer to another bank’s account, then the money might take two or three business days.
Indirect Transfer To Bank Account
Indirect bank transfers can be done through e-wallets, such as Paytm and Payzapp. They enable quick and safe transfer of money. They are linked to your bank account and require a KYC to be completed.
Transferring Through Mobile Apps
There are various mobile apps through which money transfer has become simple and fast. You can download these apps. They work on both Android and iOs devices. You can register in these apps through your smartphone, desktop, tab or laptop and can do balance transfer online.
Transferring Money Through The MoneyGram App
- This app can be used to send money to the accounts of 400 banks globally.
- It can be used to send money across the world.
The steps involved are as follows:
- Select the receiver and the country the bank account is in.
- Give the complete name of the receiver
- If you want to send it to your own account, then give your full name and relevant details about your account.
- Select the ‘Account Deposit’ option on the screen and key in the amount you need to transfer.
- When you select the method of payment, choose the option, ‘Credit Card’. If the transaction is concerned with more than one currency, then the exchange rate and fees involved will be shown on the screen.
- There will be certain information required about yourself, which you will have to provide for verification.
- Give the information about the receiver’s bank account, name, and other necessary details.
- The money will be transferred safely to the bank account.
Transferring Money Through The Western Union
Using this App, you can transfer money to the bank directly. The steps for transferring using this app are as follows:
- Subscribe with Western Union. The registration is free of cost.
- Login to your profile.
- Select the country, the amount to be transferred, and the method of delivery (in this case to the bank account).
- Enter the bank account details of the receiver.
- Pay using your credit card
- You will receive a confirmation through email along with the tracking number. This number is called the money transfer control number (MTCN).
- The money will be transferred to the recipient's account.
Other Transfer Options
If you are not able to make transfers from your credit card to your bank account, then there are some other options.
Cheques: there is a method called ‘cheque to self’ where you can write a cheque to yourself. The money is taken from your credit card and is transferred to your bank account.
ATM cash advance: ATM cash advance enables you to withdraw money from an ATM using your credit card and deposit that amount to your bank account.
Precautions To Be Taken While Transferring Money From Credit Card to Bank Account
Using a credit card to transfer credit to your bank account is not what a credit card should actually be used for. Using a credit card to transfer money to a bank account is a way to avoid being charged for drawing out cash using your credit card. Banks have to report consumers who spend more than 2 Lakhs annually on their credit cards.
So, when free credit is generated, it may bring the person under the purview of the income tax department and authorities, thus keeping a check on unauthorized practices. Also, a fine will be charged if you default on your credit card dues after your statement is generated. The fine may be a monthly one of up to 3 to 4% of the outstanding amount. This will cost a lot more for the transferred money compared to getting a similar fund in a legitimate way.
Although credit cards are widely used and easy to use as well, they are denied in certain places. For instance, paying for car and housing loans, paying other card bills, and paying home loans in most instances do not allow credit cards to make transactions.
This is where the need to transfer money to our bank account. Although there are some charges and restrictions involved in transferring money from credit cards to bank accounts, it is better than taking a personal loan or incurring high charges through the withdrawal of cash from your credit card account.
FAQS of How To Transfer Money From Credit Card To Bank Account:
1:Can we transfer money from a credit card to someone’s bank account?
You can transfer money from credit card to bank account using methods such as signing a cheque, RTGS, NEFT, or ATM.
2:Can we transfer money from a credit card to pay someone else?
You can transfer money from anyone's credit card and pay someone else.
3:Is balance transfer less expensive than taking loans?
Yes. A balance transfer is a lot cheaper than taking loans or procuring money from investors. The process is easier also. The interest rate varies across banks. You should do a bit of research and find out the best interest rate to transfer money in an inexpensive way.