Credit cards serve as the most convenient method when it comes to making a purchase. It is a loan to the users where they are not required to pay the complete bill at once. They can choose to pay in monthly instalments (EMIs).
It is also a great alternative to cash payments when users are uncomfortable carrying large amounts. Credit cards also allow cardholders to transfer the amount in their bank accounts in specific scenarios where credit card payments are not accepted, such as:
- Paying home loans
- Paying car loans
- Clearing the bill of another credit card (not to be confused with balance transfer)
Credit cardholders need to note that transferring money from a credit card to a bank account can incur high fees. Thus, it must be considered as an emergency option.
Ways to Easily Transfer Funds Online from Credit Card to Bank Account
Here’s how you can transfer money from your credit card to bank account:
- Internet banking
Internet banking is one of the most convenient ways to transfer money from a credit card to a bank account. To use this method, ensure your credit card is linked to your bank account’s net banking option. Once logged in, initiate the transfer from your credit card account to the desired bank account. It’s a quick process, generally taking a few seconds, but remember that some banks may charge a small money transfer fee for this service.
E-Wallets offer a simple and efficient way to transfer money from a credit card to a bank account. Start by adding funds from your credit card to your digital wallet. Once the balance is updated in your e-wallet, transfer the desired amount to your chosen bank account. Note that there might be limitations on the transfer amount, and similar to internet banking, e-wallet transfers incur a fund transfer fee.
If online transfers aren’t available, consider writing a cheque to yourself from your credit card bank account to the required bank account. This method is helpful when your credit card issuer doesn’t permit online fund transfers. Writing the cheque is easy and follows the same process as any other transaction.
- Creditor helpline
When you need guidance or have specific questions about transferring money from your credit card to your bank account, consider contacting the credit card company’s helpline. They can provide insights into the process, associated fees, and the overall transfer procedure.
Whether you opt for the convenience of internet banking, the digital solution of e-wallets, the conventional method of cheques, or require assistance from the creditor helpline, ensure you’re aware of any fees involved and explore the potential value of credit card points redemption. By understanding these options, you can efficiently manage your finances and maximise your credit card’s features.
Transferring funds from a credit card to a savings or current account is relatively cheaper than other options, such as personal loans or cash withdrawals. Credit cardholders should consider the availability of apps and the amount needed. However, regulatory issues should also be taken into account.