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Transfer Money From Credit Card To Bank

Transfer Money from a Credit Card to Bank Account?

If you ever find yourself in a situation where you only have funds on your credit card and need to transfer them to your bank account, you can use a credit card feature called a cash advance. 

In this article, we will discuss ways to transfer money from your credit card to your bank account in a few simple steps. 

Transfer Method

Time Required

Charges

Mobile Banking or Net Banking

A few minutes to 24 hours

Check with your bank for details

Phone Call

A few minutes to 24 hours

Check with your credit card issuer for details

Through e-wallets

Few minutes

It will vary based on the app 

ATM

Few hours

Will vary based on ATM charges and cash advance charges of your card

Cheque

3-5 business days

Check with your bank

Your bank may not allow you to transfer funds from your credit card directly to your bank account. However, you can use alternative methods to transfer the funds to your bank account. Let’s look at each of the methods in detail.

Ways to Transfer Money from a Credit Card When Banks Permit It

We have listed the methods in increasing order depending on the effort required. The methods that take the least effort and time are the ones that are done using a smartphone.

You can directly transfer funds from your credit card to your bank account through net banking or mobile apps if your bank allows it. Here are the steps that you need to follow -

Please note that the daily transfer limit for each bank can vary. 

You can call your credit card issuer on their customer care line to quickly transfer funds from your credit card to your bank account. Follow the simple steps provided below -

You can also transfer money indirectly to your bank account via e-wallets like MobiKwik. The exact steps will slightly vary depending on the app you choose. Here are the steps you need to follow on the MobiKwik app as a guide -

These digital wallets allow you to make transactions quickly and securely. They require a KYC to be completed and are linked to your bank account.

How to Transfer Money from a Credit Card to a Bank Account When Banks Don't Allow It?

Some banks don’t allow the transfer of funds from credit cards. If all else fails, you can use these methods -

This is the easiest method to transfer money from your credit card to your bank account if you cannot deposit it directly. Here are the steps involved -

For this to work, your credit card account should have a checking account. If you have it, follow the steps given below -

Note: There may be charges based on your bank's check collection and deposit policies.

What are the Charges for Transferring Money from a Credit Card to a Bank Account

A cash advance is a short-term loan. Unlike other credit card transactions, this one comes with high interest rates and no grace period. Interest starts adding up from the day you make the cash advance.

Most credit card issuers charge an immediate fee of 3.5% to 5% subject to a minimum of ₹300 to ₹500.

If that’s not bad enough, cash advance interest rates are substantially higher than regular purchase rates. Interest typically ranges 3.4% to 3.75% per month, depending on the card you have. 

Therefore, it is a good idea to keep cash advances as a last resort.

Can I Transfer Money from a Credit Card to a Debit Card?

Your debit card is connected to your bank account. A debit card can be used to withdraw money from your bank account and also make cashless payments online and offline. However, you cannot directly transfer money to your debit card from your credit card. 

Once you transfer money from your credit card to your bank account, you can access it using your debit card.

Conclusion

Withdrawing cash from your credit card is expensive and may incur high interest rates. Thus, only use this in urgent cases. If you do a transfer, consider paying off the amount as soon as possible.

In case you are in urgent need of funds, consider taking a personal loan. You can get collateral-free loans from digital lending apps like Moneyview. To know more, visit our website or download the Moneyview app. 

Transfer Money from Credit Card to Bank Account - Related FAQs

Yes, you can transfer money from a credit card to a bank account easily. There are various online and offline methods to do so.

You can easily transfer money from your bank account to a credit card using the bank app, net banking, a phone call, or e-wallets of mobile banking applications. 

Offline methods of transferring money from a credit card to a bank account include signing a cheque, RTGS, NEFT, or using an ATM.
While moving funds from a credit card to a bank account is possible, easier, and less expensive than other methods, doing so regularly may put you in the sights of the bank/income tax department and land you in hot water with them. You must always be cautious and use it only for emergencies.
To withdraw cash from an ATM, use the ATM cash advance facility. However, you will need to deposit this amount into your bank account later.

The starting interest rate depends on factors such as credit history, financial obligations, specific lender's criteria and Terms and conditions. Moneyview is a digital lending platform; all loans are evaluated and disbursed by our lending partners, who are registered as Non-Banking Financial Companies or Banks with the Reserve Bank of India.

This article is for informational purposes only and does not constitute financial or legal advice. Always consult with your financial advisor for specific guidance.

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