How to transfer money from my credit card

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.

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.

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 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 the Airtel Thanks app is 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 payments, FASTag recharges and do a lot more with it. Download it right away!

Since credit cards are normally used for purchases, you might not know how to send money from a credit card to a bank account. Although this isn't a common way to use a credit card, it is an option if you need to transfer money to yourself or someone else.

You have a few methods to choose from, but most of them will include additional transaction fees. Once you know more about them, you can pick the one that works best for your situation.

How to send money from a credit card to a bank account

Here are the most common ways to send money from a credit card to a bank account:

• Get a cash advance
• Wire money from your credit card
• Use a payments app
• Redeem cash back

If you want to send money to your own bank account, you can do so through a cash advance or a money wire -- or by redeeming cash back (if you have it available). Payments apps are an option if you want to send money to someone else's bank account.

You'll find more information on each method below.

Get a cash advance

A cash advance is a feature that's designed for getting cash from a credit card. While it's usually the easiest option, it's also expensive.

There are a few ways to get a cash advance from your credit card:

• Request convenience checks from your card issuer. These are tied to your credit card account and work like any other paper check. Write the check for the amount you want and deposit it to your bank account.
• Use it like a debit card. Withdraw cash from an ATM using your credit card, and then deposit it into your bank account.
• Have your bank deposit a cash advance directly into your account. This might be an option if you have a credit card with the same bank where you have a bank account.

Keep in mind that your card's cash advance limit likely isn't the same as its credit limit (the maximum amount you can spend on purchases). Most credit cards put a lower limit on cash advances. For example, if your card's credit limit is $5,000, its cash advance limit may be $2,000.

The convenience of a cash advance comes at a price. Card issuers usually charge a 5% cash advance fee. They also start charging credit card interest on cash advances immediately. You don't get a grace period like you do with purchases.

Wire money from your credit card

Many money transfer services, such as Western Union and MoneyGram, allow you to send money directly to a bank account and pay by credit card. Here's how to transfer funds this way:

1. Visit the money transfer service's website
2. Choose the amount you want to send
3. Enter the recipient's (or your own) bank account information
4. Enter your credit card as the payment method and submit the transfer

This is another convenient, yet costly method. Credit card companies almost always consider it a cash advance when you pay for a wire transfer with your credit card. That means there are cash advance fees and immediate interest charges. The money wire service will also have its own transaction fees.

Use a payments app

If you're looking for a way to send money from your credit card to someone else's bank account, there are several payments apps that let you do just that. A few of the most popular ones are:

• Venmo
• PayPal
• Cash App

One thing all these apps have in common is that they're easy to use. Here's a quick breakdown of how to send money after you download a payments app:

1. Add your credit card as a payment method
2. Choose the option to send money
3. Look up the recipient through their name, phone number, or email address
4. Pick an amount to send and confirm the transaction

There is a fee for credit card payments, so it typically costs more than paying by debit card. The usual credit card fee is 3%. Your recipient will also need to have an account with the app so you can send them money.

Your credit card issuer may consider this type of payment a cash advance. Or, the payment could be considered a purchase, in which case there are no additional fees from your card issuer. It depends on both the card issuer and the payment app. The only way to be sure is to contact your card issuer first to ask.

Redeem cash back

Cash back credit cards earn a percentage back on purchases you make. For example, with a cash back card that offers 2% on purchases, you'd get $2 back on every $100 you spend. The card issuer typically adds cash back to your rewards balance.

If you have a cash back credit card and you're wondering how to get that money in your bank account, it's a straightforward process. Log in to your credit card account and go to the rewards page, or call your card issuer at the number on the back of your card.

The ways you can redeem cash back depend on the card issuer. Most give you the following options:

• Use cash back for a statement credit on your credit card bill
• Get a check in the mail for your cash back
• Make a direct deposit into your bank account for your cash back

Of all the ways to send money from credit cards to bank accounts, cash back is the only one worth using on a regular basis. So, if you want a card you can use to boost your bank account, apply for a cash back card.

The other options all tack on additional fees, and if you can't pay off the money you borrowed, you'll end up in credit card debt. It's good to know how they work in case you ever need to get cash from your credit card. They're just better off avoided when possible because of the costs involved.

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