In today’s time, credit card acts as a lifeguard when you are need of money. But credit cards can not be used to make the payments of mortgages, stocks, money orders, for which you need to transfer money in your savings or current bank account. We must thank the technology that we have such an option wherein we can transfer money from credit card to bank account. Before knowing the process of how to send the money it is important for you to know that such transfers involve some potential costs.
- The transfers are charged higher interest rate which is charged either at cash advance rate or the rate charged is usually higher than the normal rate.
- There are no interest-free days in case money transfer from the credit card to bank transfer, you will be charged interest. On a normal credit purchase, there are interest-free days where you make the balance payment without paying interest.
- You will be charged 3 percent of the total amount transferred to the bank.
- If an account holder has transfer amount internationally (if allowed) then he/she will be charged for international transaction fee with other charges and fees.
There are several banks such as State Bank Of India, ICICI, HSBC, Axis Bank, Kotak Mahindra and Standard Chartered which have to facility to transfer money from credit card to a bank account.
How to transfer funds from my credit card to my bank account?
There are many ways through which you transfer the money from credit card to a bank account. One is through e-wallets, and using Western Union or Money Gram, using net banking.
When you transfer money bank to bank, certain charges are levied on you, which might even take a few days. To transfer the money more conveniently there are payments available like Paytm, Payzapp which are virtually instant. Each of the operators has their own set of guideline, which tells the amount limit, fees to be paid and time period.
How to send through Paytm
- Register with Paytm
- Transfer fund from credit card to the wallet by selecting the credit card from which you wish to transfer
- Open the Paytm App and go to ‘Passbook’
- Select the option: ‘Send money to Bank’
- Select ‘Transfer’ option
- Enter information regarding the amount, account number, and IFSC
- Click on ‘Send’ button and money will be transferred to your account
Using Money Gram or Western Union
This method is beneficial if you wish to send money overseas, it will take 1-2 days and it is free.
How to send using Western Union
- Firstly, register with Western Union, which is free of cost.
- Now, login to your profile.
- Select country, the amount to be transferred
- Select the Bank Account as a method of delivery
- Receivers bank account information will be added.
- Use your credit card to make payment.
- An affirmation will come through email alongside the following number, otherwise called Money Transfer Control Number (MTCN).
- The money will be transferred to the recipient account
Using Net Banking
One of the most reliable ways to transfer money is using your credit card’s bank account website.
- Open your bank’s site
- Sign in to your credit card account details
- Select the exchange choice
- Enter the sum you need to move
- Enter the necessary subtleties referenced in the structure
- Follow the prompts to finish exchanges
Things to Keep In Mind
It is said that every advantage comes with a disadvantage, which is true here as well. While you are availing benefits of this feature you should keep in mind the following points:-
- Your credit limit will automatically get reduced on your existing card.
- If you balance the transfer make sure to pay off your dues with nominal interest rate period otherwise you will have to pay a higher interest rate.
- It is advisable not to swipe your card for any purchase until the balance reaches account holder, as it might lower credit rating.
Despite the fact that there are sure limitations and expenses engaged with subsidizing move from Visa to the reserve funds or current record, still, it is less expensive than selecting an individual advance or going for money withdrawal from a bank to bank that causes high-financing costs and charges. But also make sure not avail this facility so much so it impacts your credit score or reduces your credit limit. Try to pay off all your dues within the grace period.