Would you like to transfer money from your credit card to your bank account? There are several things that you should put into consideration. First and foremost, credit cards have become very popular out there. This is because they can be a lifeguard when you need money urgently. In fact, for most people, credit cards are usually considered to be an alternative for cash. With this card, you can make payments; buy different products and so on. Therefore, they are ideal for frequent travelers as they can readily use these cards in many outlets out there.
Despite this, there are instances when credit cards cannot be used to perform certain transactions. For example, if you want to pay a car loan or even a home loan, you cannot do it using your credit card. Also, payment of stocks and money orders are perfect examples that do not allow one to use a credit card to make payments. Therefore, if you find yourself in such scenarios, you need to transfer money from the credit card to your bank account.
The Situation You Face When You Transfer Money From Credit Card To Bank Account
If you want to transfer money from your credit card to your bank account, you should expect to encounter the following situations:
- The banks can allow you to make credit card to bank account transfer : If this is the case, you can go ahead and perform a direct transfer with the bank through money transfer credit card, net banking, or through a phone call. Also, you can do this indirectly by using an e-wallet which is already linked to your bank account.
- The bank can restrict you to make credit card to bank account : When you find yourself in this situation, you can transfer the money using ATM cash advances or even use a check
7 Best Ways For Transfer Money From Credit Card To Bank Account
Here are the various ways you can consider when you want to transfer money from the credit card to a bank account:
1. Using the net banking app
You can transfer your money from the credit card to your bank account using a net banking app or even over your phone. As you do this, you should know that the daily and monthly transfer limits typically differ from one bank to another. Therefore there is a need for your check with your bank for you to get accurate information.
When transferring money to an account with the same bank, the process is usually seamless. In fact, it will only take a few minutes, and you will be good to go. However, if you transfer money from one account to another, it will take about 2 to 3 business days for the transaction to get completed.
2. Phone call
There are instances when you might need cash immediately, and yet you cannot access internet services. In such cases, a phone call can help you a great deal. Here, you just need to contact your Credit Card Company and then request for a fund transfer. You will be required to confirm the amount you want to transfer to the bank account, the bank account number, among other details. It is worth noting that the charges here are the same as those of net banking.
This is another effective way to transfer money from credit card to bank account. However, money gram deals with virtual/ online bank accounts. It allows you to send money from credit card to more than 400 banks worldwide. To send;
- In your MoneyGram account, select the recipient, his country and bank details. In case you are transferring to your own account, you should equally provide your correct bank details.
- Next, select account deposit and enter the amount to transfer then choose credit card as method of payment.
- Provide your relevant information and the sender then transfer your money. The recipient will successfully receive money from your credit card to bank account.
4. Western Union
Similar to MoneyGram, Western Union also makes it easy to transfer money from credit card to online bank account. Being free to register, open an account with them, select the recipient and feed all his relevant details, select credit card as the method of payment and make the payment. A confirmation will come to your email as the money gets transferred to the recipient’s bank account.
Sometimes, you can choose to pay a friend or even a family member with a credit card through Venmo. After that, they can then transfer the money to you or even to your bank account. Other times, you can make an outside credit card purchase on their behalf, and thereafter, reimburse you through this app.
If this happens, you will have to pay a fee of 3%. However, if you are using MasterCard or Visa, you should know that your card issuer can see this as a cash advance. Therefore, you can expect more charges. When using Venmo, you should know that the weekly limit for transferring funds is $4,999.99.Once you verify your identity, you are good to go.
Also known as a cheque to self, you can readily write a tuque to yourself. Here, the money will be taken from your credit card and then transferred to your bank account. All you need to do is to include the name of the payee as ‘self’ and then include other necessary information, just as you would when you are writing a standard cheque.
Finally, deposit the cheque at your nearest bank branch. If you choose to use this method to transfer funds from your credit card to your bank account, you should know that application fees incurred will differ. It will depend on cheque collection and the deposit charges levied by your bank.
7. ATM Cash advance
Sometimes, you can use your card as an ATM to perform a cash advance. The moment you get your cash, you can then deposit it into your bank account. Most banks will allow you deposits through ATMs. Also, you can make your deposit at your nearest bank branch.
As you consider using this method, you should know that the fees charged for withdrawal using a credit card can be relatively high and are therefore known as cash advance fees. However, these charges vary from one bank to another.
How long does it take for money to transfer from credit card to bank account?
Ideally, a credit card balance transfer usually takes about 5 to 7 days. However, some major card issuers might ask you to give them up to 14 or even 21 days to complete a transaction.
Can I transfer money from a credit card to a bank account online?
Yes. One of those ways is by using Money-Gram, where you can send money across the globe and in accounts of over 400 banks worldwide. Apart from Money-Gram, you can use Western Union to send money to the bank directly.
Which is the best app to transfer money from a credit card to a bank account?
One of the best apps you can use for this purpose is Cash-out. This app allows you to send money online, from your credit card to the bank account. Here, you can transfer money from credit cards of HDFC, SBI, ICICI, and Citibank to any bank account. The transferred amount of money will reflect in your bank account as soon as possible.
Does withdrawing cash from a credit card affect credit rating?
Once you withdraw cash on your credit card, this information will be visible on your credit record. However, this does not affect your credit score.
The ways mentioned above can help you transfer money from your credit card to your bank account. By doing this, you will be able to pay your home loan, car loan, and other credit card bills. Based on the availability of apps, facilities, and even the amount required to transfer, you can readily choose the right method to transfer funds from the credit card to the bank account. Consider these ideas today, and you will not regret it.