To get instant cash, just like your debit card, you can use your credit card too. However, there are interest charges to be paid on the withdrawn amount. so, you should know the difference between credit and debit card.
Meanwhile, many prefer transferring funds from a credit card to a bank account. This procedure has become crucial for many people as the use of credit cards has grown. However, only some people know how to do it. In this article, you will learn how to send money from a credit card to a bank account. Understanding the difference between credit and debit card is essential for managing your finances effectively. While both types of cards offer convenient payment options, they function differently. Credit cards allow you to borrow money up to a certain limit, and you need to repay it later with interest if not paid in full by the due date. On the other hand, debit cards are linked to your bank account, and the amount spent is directly deducted from your account balance. Knowing the distinction between these two types of cards can help you make informed financial decisions.
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Steps to Transfer Money from a Credit Card to a Bank Account
Step 1: Verify the credit card’s available limit.
Verifying the available balance on your credit card before starting the transfer is crucial. Ensuring adequate credit availability to transfer the desired amount to your bank account is crucial. Your transfer request can only be rejected if you try to transfer more money than the credit limit allows.
Step 2: Choose the appropriate transfer platform.
Money can be transferred from a credit card to a bank account through various channels. Unfortunately, not all of them can be relied upon. It’s crucial to pick a platform with a solid reputation and security features. The most well-known websites for this use include Paytm, Google Pay, PhonePe, and MobiKwik. All these platforms offer a simple transfer process and are user-friendly.
Step 3: Enter your bank account information.
You must enter your bank account information into the selected platform to transfer money from your credit card to your bank account. Your bank account number, IFSC code, and account holder’s name must be entered. For future convenience, double-check your entry of the pertinent information.
Step 4: Input the amount of the transfer.
You must enter the transfer amount after you have added your bank account information. It’s crucial to remember that most platforms have a transfer cap. Amounts over the cap cannot be transferred. But you can transfer a more significant sum by making several transfers.
Step 5: Double-check the information and start the transfer.
You must check the information after inputting the transfer amount. You can start the transfer as soon as you have checked the information. It can take a few minutes for the transfer to appear in your bank account once it has been started.
Step 6: Pay the transfer fee.
Money transfers from a credit card to a bank account are typically subject to a transfer fee. Depending on the platform and the transfer size, the cost could change. Before starting the transfer, it is critical to double-check the fee. You can pay the fee with money from your bank account or your credit card.
Step 7: Review the history of the transactions.
You should check your bank account and the platform’s transaction history after the transfer. This will assist you in confirming that the transfer was successful and error-free. You should immediately contact the platform’s customer service if you find any errors.
Transferring money from a new credit card to a bank account is acceptable despite the limitations involved in an emergency. But, 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.
A simple approach to quickly access money in an emergency or to pay payments is by transferring money from a credit card to a bank account. To prevent fraud or security difficulties, it is crucial to pick a trustworthy platform and exercise caution. You can transfer money from your credit card to your bank account quickly and effortlessly by following the instructions in this article. Always double-check the transfer fee and limit before starting the transfer to minimise any trouble.
Why not transfer funds from your credit card to your bank account?
Keep in mind the following while transfer money from credit card to bank account:
- To begin with, you must refrain from transferring money from your credit card to your bank account. This is because using a credit card primarily serves to make direct payments rather than generating money for your bank account.
- 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 lakhs annually to the income tax department. The income tax department may want to keep an eye on you if you make regular transfers from your credit card to your bank account.
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You will also be charged a monthly penalty of 3-4% of the outstanding balance if you do not pay your credit card bills 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.