How can you transfer money from a credit card to a bank account?

A credit card is commonly used to make payments for goods and services, such as dining out, buying a movie ticket or a flight ticket. And it also serves as a means to access funds in case of need. You can transfer money from a credit card to your bank account. But it comes with a cost. Here is a comprehensive guide on transferring funds from a credit card to a bank account.

Transferring money from your credit card to bank account using e-wallet

You can use e-wallets such as Freecharge, MobiKwik, etc. to transfer funds from your credit card account to your bank account. Given below are the steps you will have to follow to initiate the process:

 

Step 1: Begin by registering with your preferred e-wallet service.

Step 2: Launch the e-wallet app and navigate to the ‘passbook’ section.

Step 3: Within the ‘Passbook’ section, locate and select the option labelled ‘send money to bank’.

Step 4: From the available options, choose the ‘transfer’ function.

Step 5: Enter the desired amount you wish to transfer, along with the beneficiary’s account number and IFSC details.

Fund transfer from credit card to savings account via net banking 

Step 1: Visit the respective bank’s official website.

Step 2: Log in to your credit card account via net banking. 

Step 3: Select the transfer money option. 

Step 4: Enter the transfer amount you wish to send.

Step 5: Mention all the required details as indicated 

Step 6: Follow the further instructions to complete the transaction.

Transfer money via phone call

If you need the cash immediately, and do not have access to the internet, you can transfer money with a phone call.

Step 1: Call your credit card company

Step 2: Request for a fund transfer

Step 3: Confirm the amount you want to transfer to the bank account

Step 4: Provide the bank account number and other details required

Step 5: Follow the prompts to complete the transaction

You can use the ‘cheque to self’ option to transfer funds from your credit card to your bank account

Step 1: Mention the name of the payee as ‘self’ on the cheque

Step 2: Write other necessary information as you normally would while writing a cheque

Step 3: Deposit it at your bank branch

Through ATM
 

Step 1: Use the ATM cash advance function for withdrawing money from an ATM using your credit card.

Step 2: Transfer the selected funds to your bank account by depositing at one of your bank’s branches.

Although transferring cash from a credit card to a bank account offers immediate access to funds, it’s essential to understand that cash advances are typically discouraged due to the high costs involved, which often outweigh the benefits. 

Speaking to Business Standard, Adhil Shetty, CEO, Bankbazaar.com said “Before you make use of this option you must do due diligence. First, check the terms and conditions of your credit card regarding cash advances. This will help you understand the fees, interest rates, and any applicable limits for cash advances. If your bank offers online banking services, you can use it to process the request. This option is typically given in the credit card section of your online banking interface.”

“Remember that a cash advance is essentially borrowing money from your credit card issuer. You’ll need to repay this amount along with applicable fees and interest according to the terms of your credit card agreement. Be mindful of your credit card usage and try to avoid excessive reliance on cash advances, as they typically come with higher fees and interest rates compared to regular transactions,” Shetty said.