How To Transfer Money From Credit Card To Bank Account ?

A credit card is a convenient payment tool that allows users to make purchases without cash upfront. While this makes transactions easier, it's important to note that some payments, such as car loans and home loans, may not be accepted through credit cards. 

However, funds can be transferred from a credit card to a savings account. However, high fees may apply. With that said, here is everything on how to transfer money from a credit card to a bank account.

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

There are multiple ways to transfer funds from a credit card to a bank account. Here are the methods: 

Net Banking 

Here are the steps to transfer money directly from your credit card to your bank account through your net banking account:

• Step 1: Visit your bank's website.
• Step 2: Log in to your credit card account.
• Step 3: Select the transfer option.
• Step 4: Enter the desired transfer amount.
• Step 5: Fill in the necessary information as indicated in the form.
• Step 6: Follow the prompts to complete the transaction.

e-wallet 

Here are the steps to transfer funds from your credit card account to your bank account using e-wallets like Paytm, Freecharge, MobiKwik, etc:

• Step 1: Register using the e-wallet of your preference.
• Step 2: Open the e-wallet application and go to the 'Passbook' section.
• Step 3: Select 'Send money to bank' from the available options.
• Step 4: Choose the ‘Transfer’ function in the menu shown.
• Step 5: Enter the required amount, the beneficiary's account number, and IFSC details.
• Step 6: Click the 'Send' button to initiate funds transfer to your bank account.

Western Union 

Here are the step-by-step instructions for transferring funds from a credit card to a bank account using Western Union:

• Step 1: Get started by registering for free with Western Union.
• Step 2: Select the destination country, enter the transfer amount and choose the delivery method (in this case, transfer to a bank account).
• Step 3: Enter the recipient's bank account details.
• Step 4: Use your credit card to initiate the transaction.
• Step 5: You will receive a confirmation and a tracking number, also known as a Money Transfer Control Number (MTCN), via email.
• Step 6: The transfer of funds to the recipient's bank account will take place.

Please note that direct bank transfer depends on factors such as amount, destination country, currency, bank regulations, time of day and business hours.

Western Union usually completes the transfer of funds from your credit card to your account within 1 to 5 business days.

MoneyGram 

To transfer funds from your credit card to a bank account using MoneyGram, follow these steps:

• Step 1: Select the recipient and the country where the bank account is located, including the recipient's full name. If you are transferring to your own account, please include all required account information, including your full name.
• Step 2: On the screen, select ‘Deposit to account’ and enter the transfer amount.
• Step 3: Select 'Credit Card' as payment method to proceed with payment. The screen will show the exchange rate and any associated costs if the transaction involves multiple currencies.
• Step 4: Provide specific information about yourself as the sender to verify the transaction.
• Step 5: Enter the recipient's name, bank account details and other necessary information.
• Step 6: Check all the details to ensure accuracy and once everything is fine, the funds will be successfully transferred to your bank account.

There are some offline ways to transfer money from credit card to bank account. They are as discussed below: 

Phone Call 

If you require instant cash and lack internet access, a quick transfer is just a phone call away. This is one of the direct ways to send money from a credit card to a bank account.  Fees for transferring funds from a credit card to a bank account over the phone will reflect the fees charged through Internet Banking. Follow the steps below:

• Step 1: Place a call to your credit card company. 
• Step 2: Request a funds transfer.
• Step 3: Verify the amount you want to transfer to your bank account.
• Step 4: Provide the necessary bank account details and other required information.
• Step 5: Follow further instructions to complete the transaction.

ATM Cash Advance 

You can also use an ATM for the fund transfer. However, you should be aware of the associated charges: 

• Step 1: Use the ATM cash advance function by 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.

Cheque 

You can use the ‘cheque to self’ option to transfer funds from your credit card to your bank account. Follow the given steps: 

• Step 1: Specify the payee as 'self' when writing the cheque.
• Step 2: Complete the cheque with the required information, following the usual procedure.
• Step 3: Deposit the cheque at your local bank branch. The funds will be transferred from your credit card to your bank account. 

Reasons to Transfer from Credit Card to Bank Account

In certain situations, credit cards may not be accepted for certain transactions, such as life insurance or mortgage payments. To overcome these limitations, transferring funds from your credit card to your bank account enables seamless processing of such transactions. 

While transferring cash from a credit card to a bank account provides quick access to money, it's important to note that cash advances are generally not recommended because of the associated costs that outweigh the benefits. 

However, this method offers convenient access to cash in scenarios such as shopping at cash-only retailers or using an ATM without a debit card.

Key Considerations Before Initiating A Credit Card Transfer to a Bank Account

Here are some key things that you should consider before transferring funds from your credit card to your account: 

• Credit card purpose: Use credit cards primarily for direct payments; consider transferring money to a bank account only in urgent cases.
• Income tax considerations: Excessive use of a credit card may be reviewed by the Income Tax Department; frequent moves can attract unwanted attention.
• Credit card fees: Timely repayment is key to maintaining a positive credit history; not paying credit card fees can have adverse effects.
• Fees and interest rates: Check transfer fees and interest rates; many credit card companies charge fees for money transfers, with interest accruing from the date of the transfer.
• Sufficient credit limit: Before transferring, make sure your credit card has enough available credit to avoid additional fees and penalties.
• Transfer limit: Be aware of any transfer limits set by your credit card issuer to avoid surprises and give you peace of mind.

Now that you know how to transfer money from a credit card to a bank account, you can easily get it done. However, you should consider the pointers mentioned above before making any hasty decision.