Credit cards have become essential in our lives today. They are used for most transactions today. Irrespective of where you are, you can always rely on a credit card. The fact that they generate high cashback, give great rewards, and are theft safe is just a cherry on the top.
However useful they might be, they cannot always be used for all transactions. Transactions like mortgage payments or money orders can’t go through a credit card. These payments go directly to your bank account.
In such a situation, you need money to be present in your bank account itself, instead of relying on your credit card. So you might wonder, can you put money in your bank account through your credit card? The answer is YES.
You can transfer money to your Bank Account through your credit card. There are several ways of doing so. Some of the ways are listed down below in this article.
- 1 Online Money Transfer From Credit Card to Bank Account
- 2 Offline Money Transfer From Credit Card to Bank Account
- 3 Things to note before you transfer money to your bank account through your Credit Card
- 3.1 Q. Do I have to pay some charges to transfer money from my credit card to my bank account?
- 3.2 Q. How much do I have to pay to be able to transfer funds from my credit card to my bank account?
- 3.3 Q. How long does it take to transfer the funds?
- 3.4 Q. Does the credit limit go down after the transfer?
- 3.5 Q. Does it affect my credit score to transfer from credit card to bank account?
- 3.6 Q. Does this profit my bank?
Online Money Transfer From Credit Card to Bank Account
Online basically means doing something with the help of the internet. Some of the online methods for transferring money from your credit card to your bank account are:
>> Net Banking
Whenever you have to transfer from your credit card to your bank account extra charges are applicable which will be deducted from your account.
>> Mobile Wallet
With the help of net banking, you can transfer money by contacting your bank’s website directly. The bank accesses your credit card and directly transfers the sum that you request. You simply have to go to your bank’s website, log in to your credit card, select the transfer option and enter the amount you want to transfer and the sum will be transferred to your bank account.
Mobile wallets are similar to net banking techniques and require a similar procedure, the difference being, instead of going to your bank’s website you will visit the mobile wallet app or website.
However, you have to make sure that you have registered to the said mobile wallet’s app or website. Otherwise, the transfer will not take place. The charges of the transfer will be deducted from your account.
Also Read: Different Types of Credit Cards in India
Offline Money Transfer From Credit Card to Bank Account
Due to the fact that while doing any financial transaction, the customer would have to log in to some or the other account, a lot of people would rather prefer doing the same transaction in offline mode. You can transfer money from your credit card to your bank account offline as well. Here are a few methods to do so:
If you want to use a cheque to transfer money from your credit card to your bank account in the space where you are supposed to write the name of the payee, you should write “Self” or “Cheque to Self”. Other than this, all the details stay the same.
Deposit the cheque to the bank and wait for a couple of days for the transfer to happen. The funds will be transferred to your account.
>> ATM Card
This is a slightly expensive process as compared to the other methods. In this case, you would have to remove money from your nearest ATM using your Credit card and then deposit that amount to your bank account.
While doing so, most banks, charge around 2.5% advance fee on the amount you want to remove from the ATM.
NEFT (National Electronic Funds Transfer) and RTGS (Real-Time Gross Settlement) are both offline methods of transferring funds from your credit card too your bank account. The process for that is:
- Go to the nearest RTGS/NEFT enabled branch of your bank
- Request for a transaction form
- Fill out the form with correct details
- Submit the form at the required counter
- Wait for a few days for the transfer to be processed
>> Phone Call
This is another offline method that you could use to transfer funds from your credit card to your bank account. This however isn’t provided by all the bank’s credit card companies and very few people actually know about it.
- Contact your Credit Card Company via phone call
- Ask for a funds transfer
- Confirm the amount that you want to transfer
- Provide the bank details like the bank name, branch, account number, etc.
- Follow the instructions to confirm the transaction
- Wait for a few days after that for the transaction to be successful
Things to note before you transfer money to your bank account through your Credit Card
- While performing offline transactions, make sure that you have cross-checked all details on the form or slip that has been provided. If a single digit is incorrect or there is any over-writing, the bank can reject the transaction. In such a case, you have to pay the cancellation fee and then go through the whole procedure again.
- Make sure you know the charges that you would have to pay to do the transaction between your credit card and bank account. The charges can range from 1.5% to 3% of the amount that you are transferring.
- Make sure that you pay your dues on time so as not to increase the interest rate at which you would have to return the amount.
- Don’t make a regular habit of doing this. By doing this every month or other month, you might put your bank account in limelight. This allows the Income Tax Department may take notice and land you in a lot of trouble.
Q. Do I have to pay some charges to transfer money from my credit card to my bank account?
Ans – Yes. Every time you transfer funds from your credit card to your bank account, you have to pay a fee.
Q. How much do I have to pay to be able to transfer funds from my credit card to my bank account?
Ans – The fee that you have to pay for transferring funds from your credit card to your bank account depends on the bank. Different banks have a different rate at which you have to pay the fee. It generally ranges from 1.5% to 3%.
Q. How long does it take to transfer the funds?
Ans – It takes around 2 to 3 working days to transfer the funds from a credit card to a bank account.
Q. Does the credit limit go down after the transfer?
Ans – Yes. If you have transferred say a thousand rupees from your credit card to your bank account, your credit limit for the month goes down by a thousand rupees.
Q. Does it affect my credit score to transfer from credit card to bank account?
Ans – No. if you are regular to pay your dues and not cause a backlog, transferring funds from credit card to bank account doesn’t affect the credit score.
Q. Does this profit my bank?
Ans – Yes. You are asked to pay a fee for the transfer. This fee is the profit that the bank gains.