Money Transfer from Credit Card to Bank Account Online

Transferring money from credit card to bank account can be possible online with the help of a mobile wallet app. Yes, these days many credit card companies offer the balance transfer facility to the cardholders. The process involves transferring the remaining credit balance to the card holder’s saving bank account. The cardholder must need to keep in mind the potential costs and charges to avail such a facility. The balance transfer from credit card to Bank account will be charged a higher interest rate. However, this kind of transfer is considered to be a cash advance transfer and the cardholder is charged 3%-5% monthly compound interest of the total amount transferred to the bank account. Also, there are no interest-free days in case of credit card balance transfer to a bank account

How to Do Money Transfer from Credit Card to Bank Account Online

If you are still wondering how can I transfer money from credit card, worry not. The answer is here. 

You need to use a mobile wallet to transfer funds from a credit card to your bank account. For such transfers, you can either use the mobile wallet app or the official website of the credit card provider.

However, the direct transfer of funds from credit cards to bank accounts is not possible. First, you have to add money to your wallet using your credit card. Then, you have to transfer the funds from your digital wallet to your bank account. To get started, you first need to establish a link between the bank account and the app using checking account and routing numbers. Soon after the accounts are linked, you can send money to the recipient using the individual account details. There are several payment apps that are virtually instant, while other services take a longer time to complete. However, you can speed up transactions by paying a small fee. 

However, there are certain precautions any individual needs to take while availing these services as there are a lot of apps that don’t provide protection and are prone to scams. The e-wallet services provided by these apps use confidential information such as your bank account details, which is highly confidential. Hence you need to be extra careful while choosing an app as it should be safe and secure.  

When to Go for Money Transfer from Credit Card to Bank Account

If you have a credit card with a high-interest rate, then it would be advisable to go for money transfer from a credit card to a bank account. Talking about credit cards, they usually come with an interest of 24%-36% per annum(2%-3% per month) which is obviously high. And, there are a lot of other charges like late payment fee, cash advance fee, revolving credit, etc. come into the picture. Thus, to reduce your financial burden, credit card balance transfer to a savings account would be a great idea to save up on interest payments.

Points to Ponder

Remember the following points before you perform a credit card to bank account transfer:

  • There are some e-wallets that charge a transaction fee that can go up to 3%.
  • It may take 1 to 5 days for the amount to get reflected in your bank account.

Cash Advance Interest Rates: While using credit cards to transfer money to bank accounts, you will be charged a higher interest rate. The interest rate charged is either at the cash advance or the rate is usually higher than the one charged on regular purchases.

No Interest-Free Days: There are no interest-free rates. In normal cases, a credit card purchase involves a period during which no interest is charged and a cardholder can pay back the due amount in this period. However, in case of money transfer from a credit card to a bank account, interest will be charged, right away. 

Cash Advance Fee: This type of balance transfer is usually considered to be cash advance transfer. The cardholder needs to pay a fee of 3%-5% of the total amount transferred to the bank account. 

For International Transfer: When money is being transferred from credit card to an account overseas, there are certain restrictions and regulations. In case if a transfer is allowed, an individual has to pay an international transaction fee along with other fees and charges.

Quick Tip

Nowadays, credit card balance transfer facility can easily be availed by many money transfer credit cards are available, which are specifically designed for such purposes. With these cards, you can transfer the funds directly to your bank account. However, some credit cards even charge a low or zero rate of interest for a specific period. 

Moreover, some credit cards also offer interest-free ATM cash withdrawal facilities to the cardholders. You don’t incur any interest if you repay the amount within a specific period of 50 days.