Nowadays, credit cards have become an important part of our lives. But sometimes there are situations when we need money in our bank account, but we cannot use our credit card directly. For example, if we want to pay rent, pay loan installments, or pay some bills, where credit cards are not accepted. In such cases, transferring money from credit card to bank account can be a good option. But while doing this, it is important to keep a few things in mind, because it involves the issue of fees and interest rates. So, let’s understand how to do this in simple terms!
Should we transfer money from credit card?
Sometimes we need money urgently – be it for a medical emergency, to pay bills, or for household expenses. At such times, if you do not have money in your bank account and there is a limit on your credit card, you can transfer this money to your bank account. But remember, this is like taking a loan, and it may incur high interest and fees. Therefore, do this only when necessary and try to pay off this loan as soon as possible.
Ways to transfer money from credit card to bank account
There are many ways to transfer money from credit card to bank account. Let me tell you some of the easy ways that you can use.
Transfer through net banking
Many banks offer you the facility to transfer money directly from credit card to bank account. For this, follow the steps below:
Step 1: Go to your bank’s website or open the mobile banking app.
Step 2: Log in with your login details.
Step 3: Go to the credit card section and select the option ‘Transfer’ or ‘Cash Advance’.
Step 4: Enter the amount you want to transfer.
Step 5: Enter the account number and IFSC code of the bank account to which you want to transfer the money.
Step 6: Check all the details carefully and confirm the transfer. Sometimes you may be asked for an OTP, enter it.
Step 7: After the transfer, you will get a confirmation message. The money will be credited to your account in 1-2 days.
Credit Card to Bank Account transfer app: Transfer via e-wallet
Paytm, PhonePe, MobiKwik etc. E-wallet is an easy and fast way. Follow the steps below:
Step 1: Download your favorite e-wallet app (e.g. Paytm or MobiKwik).
Step 2: Login to the app or create a new account.
Step 3: Add your credit card to the app and add money from it (e.g. use the ‘Add Money’ option).
Step 4: Now select the ‘Transfer to Bank’ option.
Step 5: Enter your bank account number, IFSC code and amount.
Step 6: Confirm the transfer. The money will be credited to your bank account in a few minutes.
Transfer by phone
If you don’t have internet, you can also do this over the phone:
Step 1: Call your credit card company’s customer care number.
Step 2: Tell them that you want to transfer money to a bank account.
Step 3: Tell them the amount you want to transfer.
Step 4: Provide your bank account number and other details.
Step 5: Follow their instructions and complete the transfer.
Cash advance via ATM
This is an offline option, but it may incur higher fees:
Step 1: Take your credit card to the nearest ATM.
Step 2: Insert the card and select the ‘Cash advance’ option.
Step 3: Insert the amount you want and withdraw the money.
Step 4: Deposit this money into your bank account, either through the ATM itself or by going to the bank.
Remember: This may incur a cash advance fee and high interest, so use this option as a last resort.
What to watch out for when transferring?
- Check fees and interest rates: Transferring money from a credit card is considered a cash advance. It may incur a fee of 2.5% to 5% and the interest rate is also high (usually 20-25% per annum). Moreover, this interest starts immediately, meaning there is no grace period.
- Transfer only the amount you need: Transfer as much money as you really need. Transferring a large amount will increase your interest burden.
- Pay early: The sooner you repay this money, the less interest you will have to pay.
- Security: Use only trusted apps or the bank’s official website. Do not share your CVV, PIN or OTP with anyone.
- Check the credit limit: Before transferring, check how much limit is available on your credit card. Because the transfer will reduce your limit.
What are the alternatives?
If you find transferring money from a credit card expensive, here are some alternatives:
- Personal loan: Take a personal loan from a bank. The interest rate is lower than that of a credit card.
- Borrow money from friends or family: If possible, borrow some money from someone close to you.
- Salary advance: If your workplace offers a salary advance option, use it.
Think a little further
Transferring money from a credit card to a bank account is convenient, but don’t forget that it is an expensive loan. So, use this option only in emergencies and try to repay the money as soon as possible. Otherwise, you may have to face financial difficulties due to high interest rates. If you have any more questions, be sure to ask me. I will explain it to you in simple terms!
You can visit the SBI Bank website for more details: SBI WhatsApp Banking
FAQ:
1. Can I transfer money from credit card to bank account?
Yes, you can transfer money from a credit card to your bank account using net banking, e-wallets, ATM, or phone, but it involves fees and interest.
2. What are the steps to transfer money from credit card?
Log into your bank’s app, select ‘Transfer’ or ‘Cash Advance,’ enter the amount and bank details, and confirm with OTP for a smooth transfer.
3. How much does it cost to transfer money from credit card?
It may cost 2.5%-5% as a fee plus 20-25% annual interest, with no grace period, so check with your bank before transferring.
4. Is it safe to transfer money from credit card to bank?
Yes, if done via official bank apps or ATMs, but avoid sharing OTP or CVV to prevent fraud.
5. What are the risks of transferring money from credit card?
High interest rates and fees can increase your debt if not repaid quickly, so use this option only in emergencies.