How to Transfer Money From Credit Card to Bank Account​?

Credit cards offer a convenient way to make purchases without cash. While they are useful for many transactions, they aren’t accepted everywhere. For instance, you can’t use a credit card to pay for a car or home loan. Many people also need cash for investments in the stock market, but credit card payments aren’t an option.

While you can’t directly use a credit card for these purposes, you can transfer money from it to a savings account. This might come with high fees, but it’s an option. Let’s explore how to do this.

How to Transfer Money From Credit Card to Bank Account​?

There are various methods to Transfer money from credit card to bank account. Take a look at them below:

1. Net Banking

To Transfer money from credit card to bank account using net banking, follow these steps:

1. Go to your bank’s website.
2. Log in to your credit card account.
3. Choose the option to transfer funds.
4. Enter the amount you want to transfer.
5. Fill in the required details on the form.
6. Complete the transaction by following the on-screen instructions.

2. E-wallet

For Transfer money from credit card to bank account using an e-wallet like Paytm, Freecharge, or MobiKwik, follow these steps:

1. Create an account with your preferred e-wallet.
2. Open the e-wallet app and go to your transaction history.
3. Select the option to send money to your bank account.
4. Choose the transfer function.
5. Enter the transfer amount, your bank account number, and IFSC code.
6. Send the money to your bank account.

3. Western Union

Here are the steps for Transfer money from credit card to bank account using Western Union:

1. Sign up for a free account with Western Union.
2. Choose the destination country, enter the amount to transfer, and select “transfer to a bank account” as the delivery method.
3. Provide the recipient’s bank account information.
4. Use your credit card to complete the transaction.
5. You will get a confirmation and a Money Transfer Control Number (MTCN) via email.
6. The money will be transferred to the recipient’s bank account.

Keep in mind that the time for the transfer can change based on factors like the amount, destination, currency, bank rules, and the time of day. Western Union typically completes the transfer within 1 to 5 business days.

4. MoneyGram

To Transfer money from credit card to bank account using MoneyGram, follow these steps:

1. Choose the recipient and the country where their bank account is located. Make sure to include their full name. If you’re sending to yourself, include all necessary account information.
2. Select “Deposit to account” and enter the transfer amount.
3. Choose “Credit Card” as your payment method. You’ll see the exchange rate and any fees if you’re sending money between different currencies.
4. Verify your identity by providing the required information.
5. Enter the recipient’s name, bank account details, and any other necessary information.
6. Double-check all the details are correct before confirming the transfer.

5. Phone Call

Need cash fast without internet access? Transfer money from credit card to bank account by phone is a quick option. This method has the same fees as online transfers. Here’s how to use it:

1. Call your credit card company.
2. Ask to transfer funds.
3. Confirm the amount you want to send.
4. Give your bank account details and other information.
5. Follow the company’s instructions to finish the transfer.

6. ATM Cash Advance

Transfer money from credit card to bank account by withdrawing cash from an ATM using your credit card. Keep in mind that there are usually fees associated with this method.

1. Use the ATM’s cash advance option to withdraw the desired amount.
2. Deposit the withdrawn cash into your bank account at a branch.

Considerations Before Initiating a Credit Card Transfer to a Bank Account

Here are a few things you should consider before initiating a credit card to bank account transfer:

1. Credit Card Purpose

   Use your credit card mainly for direct payments. Only transfer money to a bank account if necessary.

2. Income Tax Considerations

   Using your credit card a lot might draw attention from the Income Tax Department. Frequent bank account transfers can also raise questions.

3. Credit Card Fees

   Pay your credit card bill on time to keep a good credit history. Not paying fees can cause problems.

4. Fees and Interest Rates

   Check the fees and interest rates for money transfers. Many credit card companies charge fees, that gets calculated instantly from the moment you use a cash advance.

5. Sufficient Credit Limit

   Make sure you have enough money available on your credit card before transferring to avoid extra fees.

6. Transfer Limit

   Find out how much money you can transfer at once. This will help you avoid surprises.

Frequently Asked Questions (FAQs)

Written and Reviewed by:

Priyanka Rao

Author

Priyanka Rao is a content strategist for Jupiter.Money, and specializes in writing on topics related to finance, banking, budgeting, salary & wages, and other financial matters. She has a passion for creating engaging content that resonates with audiences across various digital platforms. In her free time, Priyanka enjoys traveling and reading, which allows her to gain new perspectives and inspiration for her work. With a keen eye for detail and a creative mindset, Priyanka is committed to creating content that connects well with her readers, enhancing their digital experiences.

Priyanka Sharma

Financial Content Reviewer

Priyanka Sharma is the Head of Credit Cards (Sr. Director Business & Product - Credit Cards) at Jupiter Money, where she leads the growth and development of the company’s credit card portfolio. She is responsible for driving strategic initiatives and enhancing customer experiences through innovative credit products. Priyanka’s leadership is shaping Jupiter’s approach to simplifying personal finance for its customers.

Prior to her role at Jupiter Money, Priyanka was an Engagement Manager at McKinsey & Company, where she provided strategic advice to clients across various sectors. Her expertise in business strategy, growth, and operations was built on her strong analytical skills and client-focused problem-solving abilities. Earlier in her career, she worked at ZS, a global business consulting firm, where she contributed to various projects, gaining significant experience in data-driven business decisions.

Priyanka holds a Post Graduate Programme in Management with a focus on Finance, Strategy, and Leadership from the Indian School of Business (ISB), where she graduated with distinction, earning a place on the ISB Dean’s List. This prestigious academic achievement underscores her deep understanding of financial strategy and leadership, which she continues to leverage in her fintech leadership role.