How to add money from your Credit Card to a bank account?

Money transfer from a credit card to a bank account is possible. Here is everything you need to know about the process

Credit cards allow us to avoid the hassle of carrying large amounts of cash. They are more convenient than cash, and every transaction is tracked to help you better manage your expenses. Many individuals also choose to keep credit cards because they can earn significant cashback and reward points when they use them to make purchases.

But do not worry if you are unsure how to do it. Continue reading to learn everything there is to know about moving money from a credit card to a bank account.

How to add money from a credit card to a bank account

If you are looking for a means to transfer money from your credit card to your bank account, here are a few suggestions.

Internet banking

This is the simplest method of transferring funds to your bank account. You can make a direct transfer by logging into your online banking service.

Utilising a digital wallet

Digital wallets work well if you need to wire funds from your credit cards to your bank account. Direct transactions to your bank account can be made via mobile wallet apps.

Using Western Union and MoneyGram

When you utilise money transfer portals, such as Western Union, you can send money across the globe. However, you must furnish your personal information, such as your credit card number. Moving funds from your credit card to your bank through this method takes between 1-5 days.

By using the Paytm app

When it comes to moving money from your credit card, using Paytm is a quick, easy-to-use, and feasible choice.

E-wallets

Various e-wallet solutions and applications, such as Freecharge and Mobikwik, can help you transfer money from your credit card to your bank account.

Cheques

When moving money from your credit card to a bank account via offline methods, using cheques is a viable choice. If you want to send money to your bank, write 'cheque to self.’ Make a note of the recipient's information on your cheque. Deposit the check at your local bank and wait for the procedure to be completed. The fees associated with this process may differ from one bank to another.

ATM cards

To withdraw cash from an ATM, use the ATM cash advance feature. Deposit money to your bank account with your credit card. But since most banks charge 2.5% credit card interest on top of the entire amount, this option can be more expensive than the prior methods.

Things to consider when using your credit card to add money to your bank account

Take interest rates into consideration

Keep in mind that transferring payments from your credit card to your bank account will incur a credit card interest fee.

Credit card charges

There is no interest charged if you pay your credit card bill on time. If you move money from your card to your bank account, however, you will have to incur credit card charges right away, irrespective of whether you have paid your bill on time or not.

Pay extra

You will be charged a premium if you transfer money from your credit card to your bank account. The price varies depending on your credit card issuer, but it is often between 3-4%.

A credit card can rescue you in sticky situations, adding money to your pockets. However, having the right credit card is vital if you do not want to supersede your financial bounds. IDFC FIRST Bank credit cards are a favourite among customers, as they offer attractive interest rates and exciting cashback deals. They also allow interest-free cash withdrawal from ATMs and do not attract annual maintenance charges.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.