How to Transfer Money From Credit Card To Bank Account?

In today’s life, credit cards play an essential role when it comes to protecting our money. It saves the hustle of carrying bundles of cash everywhere we go. Many people keep credit cards for the fact that they can generate huge cash backs and reward points at times while making orders.

However, at times, different transactions do not accept credit cards, and that is when we need to transfer a specific amount of money from our credit card to our bank account. If you are wondering how to transfer money from credit card to bank account, we have got you covered. Keep reading to know and understand all about transferring money from a credit card to a bank account to save significant time in the long run.

How to Transfer Money from Credit Card to Bank Account Online?

If you are wondering how to transfer money from your credit card to your bank account in online methods, here are some ways that you can follow to do the same.

1. Net banking: It is the easiest way for you to transfer money to your bank account. You can transfer money directly by accessing your credit card’s online banking account.

2. Using a mobile wallet: This is extremely useful if you want to transfer your money from your credit cards to your bank account. Mobile wallet apps can be used to make direct transfers to your bank account.

3. Moneygram Global Money Transfer Services: This lets you transfer money from your credit card to your bank account. Follow these steps to complete the process:

• Collect the full name of the receiver along with the country he resides in. if you choose to transfer money from your credit card to your own bank account, you need your details like full number, name of your country, etc.
• Put these necessary details correctly in the proper places so that the verification process does not take long.
• After you get all the necessary details, choose the option ‘Account Deposit’ on your screen to transfer the entire amount.
• You will be asked to choose your method of payment where you have to choose the ‘Credit Card’ option since that is the source from where you are transferring the money.
• If you manage to do all these things properly, the money will be sent securely to your bank account or the receiver’s account that you intend to send your money to.

4. Using the Paytm app: It is a convenient, easy to use and super-feasible option when it comes to transferring money from your credit card.

5. Other e-wallet services and apps like Freecharge, Mobikwik, can come in handy if you are wondering how to transfer money from credit card to bank account using online methods.

• The first step to follow these methods would be to register successfully on the site/app you prefer.
• You can then transfer the money from your credit card to your wallet.
• Choose the ‘passbook’ option and next, choose the option ‘send money to bank’.
• After choosing the ‘transfer’ option, you will get a page that will require you to put all the necessary details required for the transaction, such as the receiver’s full name, IFSC Code, account number, and other details. Put your own details if you intend to transfer the money to your own bank account.
• Press the send button, enter your pin code, and the money will be transferred to your/ the receiver’s account.

These are some of the easiest online methods for you to try out if you want to transfer money from your credit card to a bank account. Offline methods can come across as a bit overwhelming to some people. Online methods suit best for their requirements.

How to Transfer Money from Credit Card to Bank Account Offline?

Online methods can intimidate some people. If you want to avoid online transactions and are wondering how to transfer money from your credit card to bank account using offline methods, here are the easiest ways to follow.

1. Using cheques is a feasible option when it comes to transferring money from your credit card to a bank account using offline methods. If you want to transfer money to your own bank, choose the option ‘cheque to self’ to proceed further. Put the necessary details of the receiver on your cheque. Deposit the cheque to your nearest bank and wait for some time for the transaction to happen. The charges required for this process can vary from one bank to the other.

2. ATM cards can be used in this situation as well. Use the ATM cash advance facility to withdraw cash from an ATM. Use your credit card and deposit that amount to your bank account. However, using this method can be a bit costlier than the previous method considering most banks generally charge 2.5% advance fees along with the total amount. 

This amount varies from one bank to the other. In general, this is the costlier yet very feasible step to follow if you are looking for offline methods.

3. One can also use PayDeck for transferring money from a credit card to a bank account using online methods. To follow this process, all you need to do is to put your PAN number for verification. The receiver does not need to be registered with PayDeck for the transaction to happen. However, you cannot transfer money to your own bank account if you choose to follow this method. Otherwise, it is one of the most feasible methods that you can go for.

4. You can also go for National Electronic Funds Transfer (NEFT) and Real-Time Gross Settlement (RTGS) offline methods. In order to follow these methods, go through the steps mentioned below:

• The first step would be to find your nearest RTGS/ NEFT enabled branch of your bank and visit it.
• Request for a transaction form and fill it out with necessary details such as full name, bank account number, and IFSC code.
• Submit the form to the bank officials and wait for some time while the officials transfer the said amount to your bank account.

For this method, a specific amount can be charged by the bank officials, which varies from one bank to the other.

These are some of the easiest methods that you can follow if you are looking for offline transaction methods to transfer money from your credit card to your bank account.

Key Points to Consider Before Transferring Money from Credit Card to Bank Account

Transferring money to your bank account can come across as an overwhelming and difficult process for anyone who has little to no experience in handling their finances. If you often wonder how to transfer money from credit card to bank account, you should also spend some time going through some key points that can affect your transaction process.

• Always concentrate while filling up transaction request forms with the necessary information like the receiver’s full name, bank account number, and IFS code. One wrong digit or letter leads to a failed transaction. Make sure you cross-check these details multiple times so that the transaction does not get affected by any mistake.
• Do a bit of research to make sure you know how much the transaction charges are that you are supposed to pay. For instance, the State Bank of India tends to charge an interest of 1.7%, while the HDFC bank charges an interest of up to 2%. Some banks like to charge up to 2.5% advance fees before conducting the procedure. Some wallets can also charge up to 3% before the transaction. Make sure you are prepared with the amount to speed up the process.
• It takes up to two to three business days for an offline transaction to happen. It can also take up to five days in some cases. There is no need to worry about the transaction. All you need to do is to sit and relax while the transaction happens. Visit your bank after seven days if the transaction still does not happen smoothly.
• Another major thing to remember is that the credit limit of your existing card reduces. For instance, if your credit limit is 1 lakh INR, and you make a transaction of 75,000 INR, your credit limit will eventually become 25,000.
• You have to pay the dues timely to avoid any possibility of an increased interest rate.

A lot of things have to be taken care of while transferring money to a bank account. Little things can affect your transaction in ways that you will not even notice. These are some of the major things that you should keep in mind if you decide to transfer money from your credit card to your bank account to avoid any complexities or complications that might come your way.

Conclusion

Credit cards have become a feasible option for us to keep our money under control. The fact that using cards helps us get rid of the burden of carrying cash wherever we go is an extremely important contribution of it to the world.

However, at different places, credit cards tend to get denied as a mode of transaction. For example, payment for car and housing loans, paying other card bills, and paying home loans in most cases do not allow credit cards to make transactions. This is where the need to transfer money to our bank account arises.

Considering the other complications of loans, or going for cash withdrawals, transferring money from a credit card to the bank account seems more doable. Research and analyse how to transfer money from a credit card to a bank account, understand all the options you have and then go for the easiest one that suits your demands to avoid any complications during the process.

FAQs

✅Will my credit limit go down after making a transaction?

Ans: Yes, your credit limit gets reduced after making transactions.

✅How long does it take for a transaction to happen successfully?

Ans: Generally, all transactions are completed within three days. However, it may take up to 5 days, depending on a few internal factors at times.

✅Is it profitable to transfer money to my bank account?

Ans: It depends on the interest you end up paying for the transaction. If the interest rate stays somewhere around 1.5%- 2%, it can be pretty profitable.

✅Are RTGS transactions irrecoverable?

Ans: In most cases, the transactions are irrecoverable.

✅Is balance transfer cheaper than taking loans?

Ans: Yes. A balance transfer is way cheaper compared to taking loans or borrowing money from investors. The process is easier as well. The interest rate varies from one bank to the other. Do a bit of research and get the best interest rate to transfer money in a cheaper way.