Find out how to transfer money from a credit card to a bank account conveniently.
A Credit Card is a banking instrument that allows you to pay for various expenses without debiting money from your savings account directly. It is essentially like a personal loan that you can repay each month. The creditor does not charge interest if you repay your credit card debt on time. Today, creditors also allow you to borrow money on your credit card and transfer money from your credit card to your bank account. This facility proves incredibly resourceful in an emergency. Here is all you need to know about transferring money from a credit card to a bank account.
To transfer money from your credit card to a bank account, you can employ several methods. The most common methods include the following:
You can transfer money from a credit card to a bank account through your credit card account with a bank. To utilise this facility, you need to enable the net banking option to initiate the transfer. Once you log in to your net banking account, you can transfer the desired amount to your other bank account. The process is quick and takes a few seconds. You may have to pay a small money transfer fee for initiating the transfer through net banking. The charge generally varies based on the bank through which you initiate the transaction and the transaction amount.
Did you know that you can transfer money from a credit card to a bank account using E-Wallet services? The process is straightforward – First, you must add money from your credit card to your digital wallet. Once your e-wallet reflects the transferred balance, you can transfer it to your desired bank account. There are limitations on the amount of money you can transfer through your e-wallet. However, you may have to pay a fund transfer fee, just as you have to with internet banking transfers.
Yet another way to transfer money from a credit card to a bank account is to write a cheque to yourself from your credit card bank account to the bank account where you require funds. This fund transfer method is advantageous when your credit card bank does not allow online fund transfers. You can write the cheque for a credit card to bank account transfers the same way as any other cheque.
Creditors also allow you to transfer money from a credit card to a bank account through their helpline. You can call your creditor bank to initiate the transfer and place a fund transfer request. The bank representative will assist you with the transfer process. Once again, you may have to pay some charges for the services provided.
Transferring money from your credit card to a bank account is a simple process. Knowing these methods can help you in times of need when you need access to funds urgently. It helps to have active internet and mobile banking accounts or download digital wallets to expedite the fund transfer process.
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*Disclaimer: This article is for information only. We recommend you get in touch with your income tax advisor or CA for expert advice.