How to Transfer Money from Credit Card to Bank Account Without Any Charges
Funds can be transferred between your credit card and bank accounts in several ways. Check, however, if there might be an additional fee or charge associated with this. In addition, one of the easiest ways is to contact your bank’s customer service and ask for a balance transfer. Your bank account will be credited with the whole amount of your credit card limit. Credit card transfers to bank accounts are the safest method of transferring funds since they do not require sharing card details with anyone and avoid scams when seeing how to transfer money from credit card to bank account.
Ask your credit card customer service about balance transfers. The ability to transfer balances is not available on every credit card account. Additionally, you may take out a cash advance, subject to the card issuer’s limits. In many cases, cash advance limits are a percentage of the full credit limit, such as 15%.
A cash advance is normally charged at a higher interest rate than a purchase or balance transfer. A transaction fee is generally associated with it, usually 5% of the amount subject to a minimum limit. While cash advances can be made through any bank participating in the same card network – Visa or MasterCard – balance transfers can only be made through the issuing bank so you should know that before you apply for credit card.
Using credit cards does not make it possible to transfer directly from a credit card to a bank account. In this case, a mobile wallet is a necessity. After that, you can transfer the money from your digital wallet to your bank account.
Using your credit card to transfer money to your bank account
Money transferred from a credit card to a mobile wallet to a bank account requires some consideration.
- There will be transaction fees associated with mobile wallets. Certain cases can result in a 3% tax.
- You may need to wait 1 to 5 working days for the amount to be credited to your bank account.
- It is possible that this process could result in a higher interest rate than what would be charged otherwise.
- There are also a few money transfer credit cards available nowadays. It is possible to transfer money directly to your bank account using these cards. These credit cards may have zero or low interest rates for a specified period.
Related Article: Things To Check Before You Apply For Credit Card Online
It is not easy or defined by the policies of VISA/Master or other card networks if you want to transfer cash from a credit card to your own bank account when learning how to transfer money from credit card to bank account. If you contact your card company and ask for the same, they may have the option available to you. A balance transfer is what it’s called. Balance transfers between credit cards are usually applicable from one card to another. But some card companies do this transfer from a credit card to a bank account.
These are the costs:
- Cash handling fees apply if it is an intra-day transaction & paid back the same day. Following the bank’s policies, fees differ from one bank to another.
- Depending on the country/bank and their policy, interest will be imposed in the 1st billing cycle if it is not paid within the 1st billing cycle.
- In the case of non-payment within the 1st billing cycle, the interest rate will be 2.5%-5% + compound interest + penalty, and it will keep adding.
You can also request a balance transfer through your bank’s mobile application by downloading their app. To save money while repaying the balance, you may want to check the interest rate before transferring the balance.
Additionally, you can transfer your card balance to your bank account through a third-party mobile payment service. You must share your card details and make a transaction to transfer your entire card balance to your bank account. All you need to do is download any of these mobile wallet applications and add your credit card to help you transfer the balance. With that in mind, remember these things about balance transfer:
- As with negotiable instruments, credit cards are also like them. It is your responsibility to pay your card issuer. Your own money doesn’t belong to you.
- As the transfer of funds means transferring money you own to another person, you can’t transfer money to another person if you don’t own it to begin with.
Without incurring additional fees, money can be transferred from a credit card to a bank account by using the following methods:
- To move money from your current credit card to a new card without paying transfer fees, consider using a balance transfer credit card. After that, you can pay directly into your bank account using the new card. Ensure that the balance is paid off before any interest is charged.
- You can transfer money between your credit card and checking or savings accounts for free at some banks and credit unions. If your bank offers this option, you can inquire about it.
Interested in knowing how to apply for credit card? Then look no further than the Bajaj Finserv RBL Bank Credit Card. With this card, you can enjoy easy bank transfer of any amount of funds you choose with easy repayment.