Transfer Money from Credit Card to Bank Account

Transferring money from credit card to bank account comes with a range of advantages and disadvantages. It is considered a cash advance and, therefore, includes certain fees and interest charges. While some banks permit such transfers via their net banking platforms, it’s essential to be aware of the associated costs.

Most importantly, frequently transferring money from a credit card to a bank account can impact your credit history. Hence, it is generally advised to look for other alternatives for fund transfer.

Read on to understand the various aspects of money transfers from credit card to bank account!

Ways to Transfer Money From Credit Card to Bank Account

You can send money from your credit card to your bank account, both online and offline.

Here are the online methods for money transfers:

Transfer Money From Credit Card Using Netbanking

Below are the steps to transfer money from your credit card to your bank account via netbanking:

1. Visit your bank’s official netbanking portal.
2. Log in to your credit card account.
3. Select the transfer option.
4. Enter the amount to be transferred.
5. Fill out the application form with the necessary details.
6. Follow the instructions to complete the application process.

Transfer Money From Credit Card Using E-Wallets

You can do a fund transfer from credit to bank account via various e-wallet apps such as MobiKwik, Freecharge, Paytm, etc.

Here are the steps to follow:

1. Register in your desired e-wallet.
2. Open the app and go to the ‘Passport’ section.
3. Select the ‘Send money to bank’ option.
4. Click on ‘Transfer’ from the menu.
5. Enter details such as amount, beneficiary’s account number, and IFSC number.
6. Click on ‘Send.’

Here are the offline methods for money transfers:

Transfer Money From Credit Card to Bank Account with Phone Call

This is said to be one of the easiest ways for money transfer as it does not require an internet connection and helps access cash quickly.

Below are the steps to transfer funds from credit card to bank account via a quick phone call:

1. Give a call to the respective credit card company.
2. Make a request for a fund transfer.
3. Verify the amount to be transferred.
4. Provide the bank account details.
5. Complete the transfer as per the instructions.

Money Transfers by ATM Cash

Fund transfer from your credit card to your bank account via ATM is also another simple offline option you can rely on.

Here are the steps involved:

1. Withdraw the required amount from the ATM using your credit card.
2. Deposit the cash to your bank account at the nearest bank branch.

Transfer Money From Credit Card Using Cheque

Here are the steps to follow to transfer funds from your credit card to your bank account via the cheque option.

1. Write a cheque by mentioning the payee as ‘Self.’
2. Fill out the details.
3. Deposit the cheque to your local bank branch.

Charges & Fees for Credit Card to Bank Transfers

The cash advance or fund transfer from a credit card to bank account comes with certain fees and charges.

• Cash Advance Fee: Credit Card issuers might charge a processing fee for the transfer, which is 1% to 5% of the transferred amount.
• ATM or Bank Fees: Additional fees may be charged by the bank in addition to the cash advance.
• Interest Rates: Cash advances include high interest rates, which are typically charged immediately.

Note that the interest rates and charges are subject to change.

Key Factors For Transferring Credit Card Cash to Bank

Several factors must be considered before opting for a money transfer from a credit card to a bank account. These are:

• Increased use of credit card fund transfers can result in tax complications.
• Credit card companies may charge fees and high interest rates starting from the date of transfer.
• Fund transfer from a credit card to a bank account is most useful in emergency scenarios as credit cards help in direct transfers.
• Ensure to maintain a good credit history, as frequent transfers can result in poor consequences.
• Ensure the credit card has sufficient credit to prevent unwanted fees or penalties.
• Check for transfer limits set by the card issuer to eliminate any potential issues.

Pros & Cons of Transferring Money from Credit Card to Bank

Alternative Options to Get Cash

Since money transfer from a credit card to a bank account incurs charges, here are some of the alternatives you can rely on to access cash:

• Personal Loans have fixed interest rates and repayment terms, which makes them suitable for larger expenses.
• Salary Advance Schemes allow employees to access a portion of their salary early, which can be a cost-effective alternative to high-interest loans.
• Personal Savings serve as a risk-free option to access cash quickly without facing additional charges.