How to Transfer Money from Credit Card to Bank Account

We've all been there. One of those days when your car breaks down suddenly, a pipe bursts or payday gets delayed while the rent is due. When life throws these financial curveballs, you need funds in your bank account immediately.

While credit cards are great for purchases, what about when you need actual money in your bank account? That's where knowing how to transfer money from credit card to bank account becomes not just helpful, but inevitable. In this blog, we’ll highlight ways you can make a credit card to bank account transfer quickly and easily.

What is a credit card to bank account transfer?

Simply put, a credit card to bank account transfer allows you to transfer money from your credit card's available limit directly into your bank account. Unlike regular transactions, your card issuer treats this more like a cash advance, which often comes with higher interest rates and usually a fee. But when you're in a bind and need liquidity? This can be a real lifesaver.

Reasons to transfer money from credit card to bank account

• Medical treatments, urgent repairs, or sudden expenses may require quick access to funds
• Paying bills like rent, electricity, water, or gas when your bank balance is low
• Paying insurance premiums or mortgage
• If you need liquid cash when an unforeseen attractive investment arises
• While travelling abroad, especially in places where card payments may be limited
• During periods like job changes, house renovations, or personal financial strain

How to transfer money from credit card to bank account

1. Internet banking

   • Go to your bank’s website
   • Log in to your account and head to the credit card section
   • Select the option ‘Transfer to Bank Account’ or similar prompts
   • Enter the amount you want to transfer
   • Confirm the transaction

2. E-wallets

   • Install any E-wallet app on your mobile phone and log in
   • Head over to the ‘Balance’ section, followed by the ‘Add Money’ option (look for similar options, if these are not available verbatim)
   • Choose the payment method to be credit card and add funds to your wallet
   • Once the amount is added to the wallet, send it to your bank account

3. ATM cash advance

   • Visit your nearest ATM and use your credit card to withdraw cash
   • Deposit the cash you retrieved in your bank account at your bank’s branch

4. Credit card cheques

   • Prepare a cheque, keeping the name of the payee as ‘self’
   • Fill in other necessary information
   • Deposit the cheque at your bank branch

5. Over a phone call

   • Call your bank’s customer care number
   • Request a fund transfer from your credit card
   • Verify the amount you want to transfer
   • Provide the bank account number and other details that they ask for
   • Follow the prompts to complete the transaction

Things to consider before you hit ‘Transfer’

• The translation immediately starts attracting interest, and unlike regular purchases, which have a grace period
• Expect flat fees or some percentage of charges (often 2-5% of the transfer amount)
• The transfer uses up your available credit, possibly limiting future purchases
• Uninhibited utilisation of these transfers could affect your credit score negatively

Pros and cons of credit card to bank account transfer option

1. Pros

   • Quick access when you need cash urgently
   • Can be completed online in minutes
   • Saves you in emergency situations

2. Cons

   • Higher interest rates than standard purchases
   • Additional transaction fees
   • Potential debt trap if not managed carefully

Knowing how to transfer money from credit card to bank account can be your financial backup plan. By choosing the right method and having a solid repayment strategy, you can use it effectively rather than falling into a debt cycle. Always consider alternatives if time permits and make your decision keeping both your immediate needs and long-term financial health in mind. After all, the best financial actions are informed ones, even when you're in a hurry.

FAQs regarding credit card to bank transfers

1. How to transfer money from credit card without fees?

   Complete fee-free transfers are rare, but you can look for promotional offers or special cashback deals that might offset the costs.

2. Can I use UPI to transfer money from credit card to bank account?

   Direct UPI transfers from credit cards aren't widely supported yet, but some e-wallets allow you to route transfers through UPI after funding with your credit card.

3. Are these transfers legal and safe?

   When you make such transfers through official channels and apps, there is no question of misuse. However, you must avoid sketchy third-party services.

4. Which app works best for transferring credit card funds to a bank account?

   Paytm, PhonePe, and MobiKwik are popular options, but it's essential to check the current fees before proceeding.

5. Can transferring money from a credit card to my bank account affect my credit score?

   Yes, transferring money from your credit card to a bank account can indirectly affect your credit score. While the transfer won’t appear as a separate item on your credit report, it can affect your credit utilisation and may lead to missed payments if not managed carefully.

Also Read: What is Credit Card Balance Transfer and How Does it Work?