Transfer Money from Credit Card to Bank Account

Posted on Wednesday, October 30th, 2024 | By IndusInd Bank

Having access to money through a credit card is always a blessing. However, sometimes you need money in your savings account for urgent financial needs. In this situation, taking a personal can be expensive. Fortunately, you have the option to use a credit card to send money to your bank account. It’s not the most common use of a credit card. But sometimes, this option can provide a lifeline.

But how can you go about transferring money from a credit card to your bank account? What are the steps involved? This guide will cover all you need to know. It will explain the best ways to transfer funds from your credit card to your bank account.

Reasons to Transfer Money from Credit Card to Bank Account

First, let’s understand why you might have to transfer money from a credit card to a bank account:

1. Emergency Funds

For urgent needs like medical bills or repairs, transferring from a credit card offers quick access to necessary funds when savings fall short.

2. Bill Payments

You can avoid penalties and service disruptions by using credit card transfers to cover rent, utilities, or other bills when your bank balance is low.

3. Loan Repayments

Maintain timely loan or mortgage payments by transferring the needed funds from your credit card, protecting your credit score.

4. Cash Flow Management

During tight financial periods, such as a change of employment or house renovations, a credit card transfer helps cover essential expenses until your income stabilises.

Different Ways to Transfer Money from Credit Card to Bank Account

You can transfer money from a credit card to a bank account in India using these methods.

1. Using E-Wallets

A Few payment platforms allow users to send money from a credit card to a bank account through the wallet. You can deposit money from the credit card into the wallet and then transfer the wallet’s balance into your bank account. These apps usually have a user-friendly interface and offer speedy transactions. However, service on some of these platforms might be limited to a specific amount.

2. Cash Advance Facility

Another option is to use your credit card’s cash advance facility. Most credit cards allow users to withdraw a portion of their credit limit in cash from an ATM. Once withdrawn, you can deposit this cash into your bank account.

With the above methods, you can use a credit card to bridge your immediate financial needs by transferring money into your savings account.

Steps to Transfer Money from Credit Card to Bank Account

Here is how to transfer money from your credit card to a bank account:

1. Check Your Credit Card’s Limit

When you apply for credit card, you get a certain credit limit. Before initiating the transfer, it’s crucial to check your credit card’s available limit. It is important to be responsible while transferring money from your credit card to your bank account online. This is because you are essentially borrowing money.

2. Choose Your Transfer Method

Decide on the method you will use, whether it is through an e-wallet or through the cash advance facility. Each method comes with its advantages, so choose the one that best suits your situation.

3. Log in to Your Online Account

If you are using an e-wallet, log in to your bank’s platform. Ensure you have your credit card details and the bank account information ready. Go to the section that allows you to transfer funds into the wallet and from the wallet to the bank account.

4. Enter Necessary Details

Enter the required details. This includes the transfer amount and the receiving bank’s account number. Double-check these details to ensure accuracy. Mistakes in the account number or IFSC code could lead to a failed transaction.

5. Complete the Transaction

Once all the details are verified, complete the transaction. Depending on the method you use, the transfer may take a few minutes to a few working days to reflect in your bank account.

Also Read: Use Your Credit Card To Withdraw Cash!

Conclusion

Transferring money from a credit card to a bank account can be a quick way to access funds. No matter if you use an e-wallet or the cash advance facility.

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Disclaimer:
The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.