Transfer Money from Credit Card to Bank Account (2024)

Credit cards are quite incredible when you think about it. They offer you the flexibility of purchasing a service or a product in advance, and the bank pays it for you. You can pay the amount back within the stipulated time provided by the bank and all is good. However, did you know you could also use your credit card to transfer money into your bank account? Wondering about how to transfer money from credit card to bank account easily? To know more, keep reading our blog as we will take you through the steps.

How to transfer money from credit card to bank account online

Before we go into analysing if we can transfer money from a card, it is important to understand why one may need to take this step in the first place. At certain times, a credit card doesn’t let you make payments for services such as life insurance payments, mortgages, and others. Therefore, you end up being stuck. Thankfully, by transferring your funds from the credit card to the bank account, you can go forward with these transactions quite easily.

How to transfer money from a credit card when banks allow it

There are multiple ways to get a direct transfer straight from the credit card to your bank account. You can use multiple net banking facilities, money transfer apps, phone call or even an e-wallet which has been linked to your bank account. Now, let us look into these individual processes in a little more detail.

Direct transfer from credit card to a bank account

You can use an online banking app or a smartphone to directly transfer the funds from your credit card to your bank account. However, you should remember that the daily transfer limit of funds can often vary from one bank to another. Therefore, it is better that you check with your respective bank to get complete information regarding the same.

Time delays can also factor in while you transfer money from a credit card to a bank account. If the credit card account and the bank account belonging to the same bank, then the transaction can be instantaneous. However, if they belong to different banks, it may take a bit more time than usual, around 2-3 days.

How to transfer money from a credit card using Net Banking

Here are the Net Banking steps to transfer your credit card money into the bank account:

1. Log in to your bank’s Net Banking website
2. Visit your credit card section within the website
3. Now choose the transfer option that seems the most preferable for you
4. Next, you can proceed to enter the amount that you wish to transfer to your bank account.
5. Enter the rest of the details and information as asked in the form.
6. In addition, make sure to follow the rest of the prompts until the transaction is completed.

Transfer money from credit card to bank account with a phone call

Did you know you could also transfer your funds by making a simple phone call? If not, here are the steps for you:

1. Call the credit card company, and provide the necessary details as demanded by the representatives
2. Now, inform them that you wish to have a funds transfer
3. Confirm the amount that you wish to send across

Other than these methods, you can also write a cheque to yourself. Here are the steps for the same method:

1. On the receiver’s name section, write the name as ‘self’
2. Now include the rest of the information that you would ideally write on a cheque.
3. Finally, deposit the cheque at your nearest bank branch.

Why we should not use credit cards to add money to bank accounts

However, transferring money from a credit card to a bank account is not an ideal solution. Here is why.

1. It is not the actual purpose of the credit card. It is meant to only make direct payments. Only use this facility in emergencies.
2. If you spend more than ₹2 lakhs on your credit card each year, banks may reach out to the Income Tax departments. If you make frequent transfers from the credit card to the bank account, you might enjoy unwarranted attention from the IT dept.
3. In case, you fail to pay the credit card dues, you will have to pay hefty fines as well.

Therefore, use your credit card only to make direct payments and you will be safe. Use this method only when there is a dire need or in case of emergencies. Else, you should avoid it.

Use Airtel Thanks to transfer money to your loved ones

If you want an app to send money from your bank account to your loved ones, then theAirtel Thanks appis the way to go for you. It makes online payments incredibly easy, and instantaneous. It is also quite an incredible recharge app, with multiple offers, discounts, and other services available on it. You can even make utility bill payments, FASTag recharges and do a lot more with it. Download it right away!