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:
- Log in to your bank’s Net Banking website
- Visit your credit card section within the website
- Now choose the transfer option that seems the most preferable for you
- Next, you can proceed to enter the amount that you wish to transfer to your bank account.
- Enter the rest of the details and information as asked in the form.
- 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:
- Call the credit card company, and provide the necessary details as demanded by the representatives
- Now, inform them that you wish to have a funds transfer
- 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:
- On the receiver’s name section, write the name as ‘self’
- Now include the rest of the information that you would ideally write on a cheque.
- 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.
- It is not the actual purpose of the credit card. It is meant to only make direct payments. Only use this facility in emergencies.
- 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.
- 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!
FAQs
Cash advances and balance transfer checks are two ways to transfer money from a credit card to a bank account but should only be used as a last resort. Of the two, a balance transfer check, especially if it carries an 0% APR promo rate, is a much better option.
Is it good to transfer money from credit card to bank account? ›
While this makes transactions easier, it's important to note that some payments, such as car loans and home loans, may not be accepted through credit cards. However, funds can be transferred from a credit card to a savings account. However, high fees may apply.
Can you move money from credit card to bank account? ›
If you do need to transfer funds into your bank account, one option is to use a credit card with a money transfer facility. This 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.
How to transfer money from credit card to bank account immediately? ›
- Step 1: Visit the Bank's Website or Open the Mobile Banking App. ...
- Step 2: Log in by entering your login credentials such as your username and password, to access your bank account. ...
- Step 3: Once logged in, navigate to the section dedicated to credit card services. ...
- Step 4: Select 'Funds Transfer'.
Which app is best for transfer money from credit card to bank account? ›
MobiKwik app is the safest of all the platforms to transfer your money from credit card to bank account with bare minimum charges.Do a quick online money transfer with MobiKwik, just download the app or log in to the website and follow the given steps.
How to take out money from a credit card? ›
Go to an ATM and insert the credit card. Enter the credit card PIN (call the number on the back of the card to find out the credit card PIN or to set one up). Select the appropriate options if offered: “cash withdrawal” or “cash advance.” If asked to select between “credit” or “debit,” select “credit.”
Does a credit card transfer hurt your credit? ›
In some cases, a balance transfer can positively impact your credit scores and help you pay less interest on your debts in the long run. However, repeatedly opening new credit cards and transferring balances to them can damage your credit scores in the long run.
Does transferring money from credit card affect credit score? ›
How do balance transfers affect your credit score? Even though balance transfers can help you tackle debt – thereby improving your credit score – they can hurt your credit score, too. If you apply for several different cards with low or 0% introductory interest rates, this can affect your credit score.
Is it safe to withdraw money from credit card? ›
Taking a cash advance may not impact your credit score, but the high charges associated with cash withdrawals drive up monthly payments. Failure to pay the minimum due amount can affect your credit score adversely. Be sure to make your payments on time! Most banks offer rewards to Credit Card holders.
How to convert credit card into cash? ›
How to use a credit card at an ATM to withdraw money
- Insert your credit card into an ATM.
- Enter your credit card PIN.
- Select the “cash withdrawal” or “cash advance” option.
- Select the “credit” option, if necessary (you may be asked to choose between checking, debit or credit)
- Enter the amount of cash you'd like to withdraw.
No, you can't withdraw cash on a credit card without paying fees. But there are a few ways you can minimise how much you pay. We recommend you: Look into money transfer cards, which let you transfer money from your credit card to your current account.
Can I withdraw cash from my credit card? ›
This is called a cash advance, and it comes with some major downsides and hefty fees. Cardholders can use a credit card at nearly any ATM and withdraw cash as they would when using a debit card, but instead of drawing from a bank account, the cash withdrawal shows up as a charge on a credit card.
How can I transfer money from credit card to debit card instantly? ›
How can I transfer money from a credit card to a bank account instantly? You can execute an instant transfer from your credit card to a bank account using a money app like Venmo, PayPal, or CashApp. While these apps make it easy to send money online, there are fees involved in doing so.
How long does it take to transfer money from credit card to checking? ›
A balance transfer takes about five to seven days after your request before you'll see it appear in the account you're transferring the balance to. But a word of warning: Some credit card issuers can take 14 or even 21 days to complete a balance transfer.
How can I send money to someone instantly with a credit card? ›
Sending money with a credit card can be convenient, but it typically comes with fees and higher-than-usual interest rates that can add up for big transactions. Apps like Cash App, PayPal and Venmo allow you to send money through their platforms with a credit card, while Apple Cash, Google Pay and Zelle don't.
Is it bad to transfer money from a credit card to a debit card? ›
No, transferring money from your credit card to debit card comes with interest charges. The APR for a cash advance is typically higher than the standard APR on the card. Plus, you won't get a grace period, so interest will begin accruing immediately.
How to turn a credit card into cash? ›
How to get cash from a credit card
- Insert your credit card or use a cardless ATM option to access your account.
- Enter your credit card PIN. ...
- Select the cash advance or withdrawal option when prompted and follow the instructions on the ATM screen.
- Enter the amount of cash you plan to withdraw.
How to send money from credit card to cash app? ›
Once your credit card is linked to your Cash App account, you can transfer money from it to your Cash App balance by following these steps:
- Tap the "Money" tab in the Cash App app.
- Tap "Add Cash".
- Enter the amount of money you want to transfer from your credit card.
- Select your credit card as the payment method.