Right Way to Transfer Money From a Credit Card to Bank Account

Credit card is one of the most used means of transactions. Where most of the payments in today’s era can be made through credit cards, certain payments are made towards home loans, car loans, etc., where credit card does not work. A credit card has numerous advantages, including the flexibility to transfer money from a credit card to a bank account. The fees involved in the transfer can be perceived as high. The credit card to bank transfer must be used as a last resort or for emergencies as the cost is high.

This is a reader’s guide on how to transfer money from a credit card to a bank account.

Methods to Transfer Money From Credit Card to Bank Account

Transferring money from a credit card to a bank account is acceptable despite the limitations involved in an emergency. But, making too many of these transactions could get you into problems. These transfers are generally less expensive than taking out a personal loan or withdrawing money using a credit card, which both carry hefty interest rates. Therefore, you can transfer money from a credit card to a bank account depending on your access to mobile applications and the amount to be moved. The following methods can be used to conduct the activity of credit card to bank account transfer.

Internet Banking

• Log in to your bank account using your ID and password on the bank’s official website.
• Navigate to the portal’s credit card section
• Opt for the ‘transfer’ option
• Enter the amount you desire to transfer in the next screen and fill the required details.
• Your credit card-to-bank transfer will be successful

Direct Banking

To immediately make a credit card to bank account transfer, you can use an online banking app. But keep in mind that banks frequently have various daily transfer limits. So, confirming with your specific bank is best to get comprehensive information.

Delays could occur when you do a credit card-to-bank transfer. The transaction can be immediate if the credit card and bank accounts are with the same bank. It may take longer than 2-3 days if they are from different banks. The amount, country, currency, bank policies, time of day, and business hours impact direct transfers to bank accounts.

Mobile App

Many smartphone apps have made money transactions quick and easy. Installing these apps on your smartphone will allow you to make the required fund transactions. Both iOS and Android smartphones can run these apps. With your smartphone, desktop, tablet, or laptop, you can transfer money from your credit card to your bank account and register for the same apps online.

Offline Money Transfer from Credit Card to Bank Account

Several options are available for a credit card holder to transfer money from a credit card to a bank account. The cardholder may opt for any of the following options.

Cheque

One can make a credit card to bank transfer money through cheques from their bank account. One must draft a cheque for self and enter the information required, like the amount. The cheque must be submitted to the bank branch closest to you, after which the entered amount will be transferred within a few working days.1

ATM Card

One must visit the nearest ATM and use the card to withdraw the required amount. The next step is to visit the bank branch and deposit the cash in your wish account. This will allow the credit card to bank transfer.

NEFT/RTGS

You can also make an NEFT or RTGS to transfer the money from your credit card to your bank account. The form must be submitted to the nearest bank and filled in correctly. The bank will take a few hours or days to transfer money from the credit card to the bank account.

Impact on Credit Score on Transferring Money from Credit Card to Bank Account

Remember that getting a payday advance can hurt your credit if you need money immediately. Your credit usage ratio is between your current credit card debt and the entire credit limit.

Divide your credit limit by the amount you owe on all your cards to calculate your credit utilisation ratio. Utilizing a sizable portion of your available credit could raise suspicions in the eyes of lenders and creditors. Because of this, maintaining a ratio below 30% is preferable. A high ratio may negatively impact your credit score.

Can I transfer some money from my credit card to my bank account?

Despite the restrictions, sending money from a credit card to a bank account is acceptable in emergencies. Making too many of these transactions could cause you issues. These transfers typically cost less than getting a personal loan and possibly even withdrawing money with a credit card, both of which have high-interest rates. Hence, based on your access to mobile applications and the amount to be moved, you may transfer money from your credit card to your bank account as needed.

Frequently Asked Questions