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

Credit cards provide financial flexibility and convenience when shopping and paying bills, not to mention some stellar rewards programs associated with credit cards. But what if we need money immediately? Like transferring funds to tackle a medical emergency or settling an outstanding debt. This is where you may need understanding on how to transfer money from a credit card to your bank account.

Let’s look at the steps involved in the credit card to bank transfer process through online and offline methods and some things you must consider.

How to Transfer Money from Credit Card to Bank Account Online

Use an E-Wallet:

• First, download the mobile app or digital wallet of your choice.
• Go to the balance section of your wallet.
• Click on add money to wallet.
• Enter the amount. Make sure you select your credit card as the payment option.
• Review the transaction details, then confirm the transfer.
• You can use the money from the wallet or transfer it further to your bank account depending on the usage terms of the wallet

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

The other way to transfer money from your credit card is by using the cash advance feature through an ATM.

ATM Cash Withdrawal:

• Visit the nearest ATM
• Insert your credit card into an ATM when you visit one.
• First, choose "Cash Withdrawal" from the ATM menu. Then, input the desired transfer amount.
• Next, key in your credit card PIN and press enter to get cash.
• Finally, deposit that cash into your bank account.

Additional Read:- Get Cash in 30 Seconds

Key Considerations Before Initiating a Credit Card Transfer to Bank Account

Credit cards are not meant to be used for cash. However, if you must, please note that there are quite a few charges associated with using them for cash.

Fees and Interest Rates

It's necessary to look into the interest rates and transfer fees. Many credit card companies charge a fee for money transfers. The interest is typically charged starting from when the money transfers are made.

Sufficient Credit Limit

Before starting the transfer, ensure your credit card has enough available credit. Overdrawing your credit limit may incur additional charges and penalties.

Additional Read:- How to Increase Your Credit Card Limit?

Limit on Transfers

The amount you transfer may be subject to a limit set by your credit card issuer. For peace of mind and to avoid unpleasant surprises, know the limit beforehand.

Additional Read:- Do EMIs and Buy Now Pay Later affect your credit score?

Conclusion

Credit cards can be a saviour in times of financial emergencies. However, do your homework and consider the fees, interest rates, and transfer limits before using your credit card for cash.

Looking for urgent cash? Try OneCash today.

FAQs

Can we transfer money from a credit card?

You can transfer the money using mobile apps or ATM cash withdrawal. Before you proceed, you must review the fees and interest rates associated with the transfer.

What are the charges for transferring money from a credit card to a bank account?

The fees can vary depending on the credit card company and the transfer mode. They may charge a processing fee of 3% to 5% of the transferred amount. They can also charge interest on the transferred amount until it is repaid. Therefore, it is best to verify with your credit card company for precise information on fees for credit card to bank account transfers.