While credit cards are frequently used to make direct payments, whether online or by using a card reader in a physical location. However, there may be times when you have to pay cash, which could result in extra fees if you use your credit card to make the withdrawal. You can therefore choose to transfer funds from your credit card to your bank account and subsequently make the payment in these circumstances.
You must now be wondering how this is feasible.
Online bank account to credit card transfer
You can transfer money from your credit card to your bank account using a variety of methods. To transfer money from your credit card to your bank account, you often need to use a mobile banking app, such as Paytm.
- Sign up for/log in to the Paytm mobile app.
- Transfer money to your Paytm wallet with your credit card.
- Next, select “Passbook.”
- Choose the ‘Send money to bank’ option.
- Select “Transfer”
- Enter the information for the bank account that you want to use to send money now.
- Verify your information, then click “Send.”
- Your bank account will get the money right away.
- Alternately, you can make these transfers via internet or mobile banking.
Money Transfer from Credit Card to Bank Account Offline
As listed below, there are a few offline ways for credit card to bank transfer.
- You can transfer funds from your credit card to your personal bank account using checks. Simply select the “Cheque to Self” option, fill out the necessary information, and deposit the check at the nearby bank branch. Within a few business days, the money will be transferred to your bank account.
- To make the transfer, you can use your ATM card. To make an ATM cash withdrawal, use the cash advance feature. The next step is to transfer this sum to your bank account.
- You also have the option of using NEFT and RTGS to send funds to your bank account. You can do this by going to a bank and asking for a transaction form. Complete the form with the necessary information, then hand it to the responsible bank personnel.
Why not transfer funds from your credit card to your bank account?
Keep in mind the following when transferring money from your credit card to your bank account:
- To begin with, it’s crucial that you refrain from transferring money from your credit card to your bank account. This is due to the fact that using a credit card primarily serves to make direct payments rather than generating money for your bank account.
- Even while using a credit card can help you avoid paying extra fees for cash withdrawals from credit cards, banks nevertheless report customers who use their cards for more than Rs. 2 lakh annually to the income tax department. The income tax agency may want to keep an eye on you if you make regular transfers from your credit card to your bank account.
- Along with this, you will be charged a monthly penalty of 3-4% of the outstanding balance if you do not pay your credit card billing cycle after receiving the generated credit card statement. You will ultimately pay far more for this than you would if you transferred the money from your credit card to your bank account.
In conclusion, although there are some limitations, it is nevertheless acceptable to transfer money from a credit card to a bank account in an emergency. However, making too many of these transactions could get you into problems. These transfers are generally less expensive than taking out a personal loan or withdrawing money using a credit card, which both carry hefty interest rates. You can therefore opt to transfer money from your credit card to your bank account as needed depending on your access to mobile applications and the amount to be moved.