Credit cards are widely used for offline or online purchases. But there might be some instances when you have to take money out using your credit card. In times like this, you can transfer funds from your credit card to your bank account.
If you’re wondering how you can do it, read on!
How to transfer money from credit card to bank account?
There are several ways to transfer funds from your credit card to your bank account. Usually, you may have to download third-party or mobile banking apps to proceed with the transfer.
You can easily transfer credit card money to your account with a 0% money transfer fee option.
Step-by-step process when using the third-party mobile application:
- Sign-up and log in to the app
- Transfer money from your credit card to your e-wallet
- Click on send funds to your bank
- Tap on Money transfer.
- Fill in your bank account details for the transfer
- Re-check it and tap on Send
- This is how the amount is transferred to your bank account
In addition, you can try mobile or internet banking to transfer money.
Offline ways to send money from your Credit Card to your Bank Account
Here are some offline options to transfer funds from a credit card to a bank account:
- Cheques – You can transfer funds from your credit card online to your bank account through cheques. To use this method, make a “Cheque to Self” and enter the necessary information, finally depositing it to your nearest bank. The money gets moved to your bank account in 1-3 business days.
- ATM Transfer – Next, go to an ATM to transfer money. With the help of the ATM cash advance service, you can easily get cash from the ATM. Once you have the money, deposit it in your bank account.
- RTGS/NEFT – The other option is to transfer funds to a bank account through RTGS and NEFT. Visit your bank and get a transaction form. Mention the necessary information and submit it, the money will be transferred to your bank account.
How much money should you transfer from your credit card to your bank account?
This solely depends on your credit card company. Every Latest Jobs company offers a specific credit limit to a user. It is the maximum amount that you can withdraw or use from your credit card. There are possibly two credit limits for a user set by the credit card company:
- Money transfer limit: This is the limit for the highest amount you can transfer.
- Overall credit limit: This is the highest amount you can spend using your credit card.
Can I harm my credit score by sending money from my credit card to my bank account?
No, it will not impact your credit rating. But, it may negatively affect the credit rating when you don’t clear the debt incurred from transferring the money.
Advantages and disadvantages of transferring funds from your credit card
- It is a fast, efficient and simple option to get immediate cash, particularly with a direct transfer option using an ATM.
- There are several options to transfer money, online as well as offline.
- A cash advance will never affect your CIBIL rating.
- The cash advance cost is higher. Once you make the cash advance, the interest begins accruing.
- Along with the rate of interest, extra fees are charged for every transfer
- Your credit score is negatively affected when you don’t clear out your due credit card bills.
- You have a limit to transfer the amount with a cash advance.
Alternative methods for sending money from your credit card
– Request for a paycheck advance
While this option may not be available for all, your employer may give your paycheck earlier on your request. Ask for an advance from your manager to eliminate cash advances.
– Go for a personal loan.
With a good credit score, you can get a personal loan. These loans are usable in various situations and are generally available with a fixed rate of interest lesser than that you would have to pay in cash advance.
– Borrow funds from a friend
Indeed, it may be uncomfortable, but it is a cost-effective option. You can pick a repayment strategy with your friend to ensure you’ll return their money.
– Prefer savings accounts
Savings accounts are a saviour in this situation. Even if you’re Apply PPSC saving money for something and don’t wish to take out money from your account, eventually, in the long run, using your savings can be more efficient than going for a credit card transfer.
Though you can easily transfer money from a credit card to bank transfer, it is suggested to do that in emergencies only. While this option is readily available and straightforward, it is slightly costly and comes with interest fees. Consider all your options and choose this only if you’re in urgent need.