Transfer Money from Credit Card to Bank Account Instantly [5 Ways]

Credit cards act as a shield during times of financial crunch, you can even use them to build your credit, but you cannot use them for certain transactions. In such cases, the best course of action is to transfer money from a credit card to a bank account. 

This is another type of cash advance that is relatively quick and simple. However, there are many factors involved, such as interest rates and lines of credit, that one has to keep in mind. 

If you are going through a hard time, don’t worry, this blog will walk you through the process of how to send money from credit card to bank account, including all the details.

So let’s dive right in!

How to Transfer Money from a Credit Card to a Bank Account?

Financial institutions allow people to send money from credit card to bank account. Not every cardholder is aware of this fact, therefore, they miss the opportunity to properly handle the crisis with the help of their card. Instead, they look out for payday or short-term loans from companies like Minto Money. 

Sending funds from your credit card to your bank account is pretty straightforward. To your surprise, there are 5 ways by which you can transfer money.

Nothing could be simpler than using your bank’s official net banking app. To send money from credit card to bank account instantly, all you need to do is:

• Log in to your bank account.
• Go to the credit card section and select transfer.
• Enter the required amount and other details.
• Follow the prompts to complete the process. 

Keep in mind that each bank has a different daily or monthly transfer limit, so plan accordingly. Additionally, you can also reach out to the credit card department of your bank via phone and continue with the transfer process. 

In the realm of digitalization, more than half of the world’s population uses digital wallets for everyday transactions. What’s even better is that you can use credit cards on Venmo, PayPal, Cash App, and other wallets to transfer funds to your bank account. 

Note that every wallet has its limit and charges. Here’s a rundown of the fees you need to pay:

• Venmo charges a 3% fee for the total amount.
• Amazon Pay charges 2.9% + $0.30 per transaction.
• Cash App charges a 3% fee for the total sum. 

Cash advance checks are given to cardholders by numerous credit issuers. These convenience checks work the same as the regular checks. You just have to complete the form with the necessary information and submit it to the bank’s withdrawal counter.

Upon receiving the funds, you can either deposit them into your bank account or just take the cash. Please keep these checks safe and do not allow anyone to access them because there are security risks involved.

Wire transfer services like Western Union and MoneyGram can also be used to transfer money from your credit card to your bank account. For the total amount you need to transfer, there’s an upfront fee that you have to pay. 

So it is recommended to check their pricing before opting for the wire transfers. 

You can use credit cards at ATMs to get funds, just like any debit card. You must have a pre-set PIN to complete the process. 

To initiate a credit card transaction, simply insert the card, choose the credit card option, and input your PIN along with the desired withdrawal amount. Once you receive the funds, put them into your bank account using the cash deposit machine in the ATM. Just make sure to withdraw and deposit the money within the daily limit. 

So these are ways you can transfer money from a credit card to a bank account. Now that you are aware of the methods, let’s discuss things to keep in mind and address other queries by cardholders. 

Key Points While Transferring Money from Credit Card to Bank Account

If you have decided to move money from credit card to your account, here are some key points you need to consider:

• The transfer fee for every method varies, therefore, you need to check the charges before initiating the process. Generally, the fees are a percentage of the total amount. 

• Interest rates are another crucial factor. Go for a method that offers low-interest rates. This can help you save some money. 

• Be sure of the amount that you can borrow. Do not get greedy and only move the amount that you can afford to repay. 

• Keep your options open and check out payday loans, and other short-term loans with better interest rates and repayment benefits. 

These are the key points to keep in mind. Moving ahead, let’s discuss the pros and cons in the next section. 

Pros and Cons of Sending Money from Credit Card to Bank Account 

Cash advances can be good if you can repay the amount on time, otherwise you’ll get trapped in accruing interest rates and late fees. We have listed the positives and negatives to help you make a rational decision. 

Reasons to Transfer Money from Credit Card to Bank Account:

• When you have a temporary financial emergency and can pay back the amount over time easily.
• If the interest rates of the loan offer are higher than what your credit card is charging. 
• You are in such a situation where you want to access funds instantly.
• You don’t want to go through CIBIL checking processes. 

Reasons to Avoid Transferring Money from Credit Cards: 

• If you can not afford to pay high APR.
• You do not want to pay the fees and extra charges associated with cash advances.
• If you have a good financial record, you can qualify for loans with low-interest rates. 
• Cash advances increase the credit utilization ratio, which results in affecting the CIBIL score. 

Credit card debts can be incredibly costly when racked up and can take decades to pay off. So it is important to evaluate your financial condition before making the decision. 

This is all about how to send money from credit card to bank accounts. We hope this blog will guide you in the process and help you in making informed decisions. 

Read Next: How to receive money on PayPal using different methods in 2024?

Frequently Asked Questions 

 

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