Can you transfer money from credit card to bank account instantly?

Yes, it is possible to transfer funds from your credit card directly to your bank account, with the help of the net banking app or over the phone. Moreover, the transfer can be instant if the bank account is the same as the credit card.

How can I transfer money via credit card to a bank account?

Credit cards are likely to be a lifeguard when you need money urgently. However, sometimes you cannot use credit cards for specific transactions such as payments for mortgages, money orders, stocks, etc. Moreover, you have to face two situations to send money from a credit card to a bank account.

1. Transfer your money to bank account directly

It is possible to send funds from your credit card to your bank account directly using the net banking app. In addition, you can also use your phone for this purpose. However, the monthly and daily transfer limits may vary from bank to bank. Therefore, you need to check that with your bank to get up-to-date information. Moreover, the transfer can be instant if the bank account matches the credit card account. However, if you want to send funds to another bank, it may take two to three days. You can transfer money via ATM cash advances or cheques when banks limit you to make a credit card to bank account transfer.

2. Transfer your money via NET banking application

You can send money by directly accessing your credit card’s banking account. However, the charges may vary from bank to bank to transfer from a credit card to a bank account. Consider the procedure given below:

• Open your bank’s website.
• Log in to your account.
• Select the transfer option.
• Enter the amount to be transferred.
• Fill out the form with the information asked.
• Follow the directions to complete the transactions.

3. Transfer your money via indirect methods

You can make transactions quickly and securely by using e-wallets such as Paytm and Payzapp.

Other considerable options for money trasfer

If you cannot transfer from your credit card to your bank account, don’t panic. 

Cheques

There is an option “cheque to self,” where you can issue a cheque. Doing this will instantly transfer your money to your bank account.

Procedure

• Write the name of the payee as self.
• Provide the necessary information as you usually do while writing a cheque.
• Submit the cheque to your bank branch.

Transfer when banks allow you to make a  transfer from credit card to bank account

You can make a direct transfer with the bank via net banking, money transfer credit card or phone call, or using an e-wallet that is linked to your bank account indirectly. The charges are usually high for this purpose. For example, HDFC bank charges 2.5 cash advance fees on the total amount you withdrew. The charges depend upon the cheque collection deposit charges levied by the bank. It is a facility that allows you to withdraw cash from an ATM using a credit card and deposit that amount to your bank account.

How to transfer money from your credit card to your bank account?

If you are facing a financial emergency and choose to take cash via a credit card account, the way you will do this is through a “cash advance .”However, this is a loan you have to repay that can’t exceed the balance available currently on your credit card. Moreover, be careful that interest starts accruing on the cash withdrawal as you take it out. Also, there is no grace period available. However, if you need money, the process depends on your credit card issuer, so you need to find out what they possibly offer. Moreover, here are some ways you can typically get cash advance money into your bank account.

• Direct transfer

Some institutions allow you to transfer funds from your credit card to your checking account directly. For example, a U.S bank will enable you to complete this process entirely online. However, many other issuers.  

• In-person

You can also take out cash advances in person at a branch. If you choose this way, you could deposit the cash into your account.

• ATM

Many banks let you take out money for a credit card cash advance using ATM; make sure your credit card has a pin. If you want this money to go into your checking account, you can deposit your cash into your account then.

• Convenience checks

These are the checks that your credit card issuer sends you to deposit in your bank account. The convenience checks function much like traditional checks. However, the money comes from your credit card’s line of credit than your checking account.

Is transferring money from a credit card a good idea?

It is probably not a good idea to transfer money from a credit card to your bank account. Consider using income or savings when possible to avoid getting into debt. In addition, if it is unavoidable, consider other options that carry low interest first. However, cash advances should never be the first choice; instead, you can borrow the money from a friend or family member. Remember, the interest rate on a cash advance is very high. Also, the cash advances have no grace period.

Moreover, there are the fees also. Many credit cards carry a cash advance fee, either a small fee or a percentage of the advance amount. Typically, most card issuers charge a 5% fee for every cash advance.

Note: Transferring money from a credit card can affect your score.

Summary

Using the net banking app makes it possible to send money from your credit card to your bank account. Many people are using this application and are pretty satisfied. But it would be best if you kept in mind that using a cash advance to get money may harm your credit. Moreover, fast cash is attractive, and credit card issuers offer many ways to quickly get a cash advance, including the ability to transfer money from a credit card to your bank account directly. But you have to pay high-interest rates. Therefore, you should consider using cash advance only in an emergency.