When you think about it, you will realize that credit cards have an amazing utility. They allow you to make an advance purchase of a good or service, and the bank handles the payment on your behalf. 

But did you know that you can also deposit cash into a bank account with a credit card? Do you want to know how to transfer money from a credit card to a bank? Continue reading our blog for more information as we walk you through the process.

Transferring Money from a Credit Card to a Bank Account

Before examining whether we can send money from a credit card to a bank account, it's critical to comprehend the potential requirement for this action in the first place. A credit card may not always be used to pay for services like life insurance, mortgages, and other obligations. As a result, you find yourself trapped. 

Thankfully, you can move forward with these activities rather quickly by transferring your money from a credit card to a bank account.

You can transfer money directly from your credit card to a bank account using a variety of methods. You can make a phone call, use a variety of net banking options, money transfer apps, or even an e-wallet that is connected to your bank account. Let's now examine each of these procedures in greater detail.

1. Direct Transfer

You can use a smartphone or an online banking app to send money from a credit card to a bank account directly. Nevertheless, you should remember that banks frequently have different daily transfer limits. It is therefore best to verify with your particular bank to obtain thorough information on the subject. 

While you transfer money from a credit card to a bank account, delays may also come into play. The transaction may be immediate if the credit card account and the bank account are with the same bank. It can take a little longer than usual if they are from different banks, perhaps 2-3 days. 

Direct transfer to a bank account depends on the sum, the nation, the currency, the bank's regulations, the time of day, and the business hours.

2. Netbanking

Following is the net banking procedure to deposit funds from your credit card into your bank account:

• Log in to the net banking website of your bank
• Visit the website's credit card area
• Select the transfer option which appears to be most appealing to you at this time
• The amount you want to transfer to the bank account can then be entered 
• Fill out the remaining fields in the form with the necessary information

Additionally, adhere to all the remaining instructions until the transaction is finished.

3. Through a Phone Call

Did you know that a quick phone call might also be used to transfer money? Just follow these instructions:

• Call your credit card company and provide the representatives with the information they request.
• Tell them right away that you want to send money.
• Verify the amount you want to transfer.

4. Issuing a Cheque

• Write "self" in the recipient's name section
• Include the remaining details which you need to write on a cheque
• Lastly, deposit the cheque in the bank location that is closest to you

Your bank's deposit charges and cheque collection will determine the applicable fees. 

5. Through an ATM

You can use your ATM card to send money from a credit card to a bank account. To make an ATM cash withdrawal, use the cash advance feature. The next step is to transfer this sum to your bank account. Cash advance fees are the high costs associated with using a credit card to withdraw cash. The fees for cash advances differ from one bank to another.

6. NEFT or RTGS

You can also use NEFT and RTGS to send funds to your bank account. You can do this by going to a bank and asking for a transaction form. Complete the form with the necessary information, then hand it to the responsible bank personnel.

7. Mobile Apps

Money transfers are becoming rapid and simple thanks to several smartphone apps. You can install these apps on your smartphone and carry out the necessary fund transfers. These apps are compatible with iOS and Android smartphones. You can register for the same apps online and transfer balances using your smartphone, desktop, tablet, or laptop.

Precautions to Take When You Send Money From a Credit Card to Bank Account

Although using a credit card for transferring money to a bank account is a means to avoid paying the expensive fees associated with cash withdrawals from credit cards, banks are required to notify the income tax authorities. Therefore, establishing free credit could subject the person to scrutiny from the income tax agency and other authorities keeping an eye out for illegal activities. 

Additionally, failing to pay credit card bills after the statement is created will result in a penalty of 3 to 4% per month added to the balance owed. The cost of the transferred funds will be significantly higher than if they were obtained legally.

The Bottom Line

Sending money from a credit card to a bank account is acceptable in an emergency despite the limitations involved. However, making too many of these transactions could get you into problems. 

These transfers are generally less expensive than taking out a personal loan and perhaps even withdrawing funds using a credit card, which both carry hefty interest rates. You can therefore opt to transfer money from the credit card to your bank account as needed depending on your access to mobile applications and the amount to be transferred.

Frequently Asked Questions

1. How much money can you transfer from a credit card to a bank account?

The amount that you can send money from a credit card to a bank account varies from one bank to another, depending on the daily transfer limit. 

2. How can I transfer money from my credit card to my bank account instantly?

To send money from a credit card to a bank account instantly, you can use a smartphone or an online banking app.

3. How can I transfer money from my credit card to my bank account without fees?

You can use certain mobile apps to send money from your credit card to your bank account without any fees.