Steps To Transfer Money From Credit Card To Bank Account


Credit card users are often unaware of the option to transfer money from a credit card to a bank account. Further, even cardholders who are informed regarding the availability of this feature carry inhibitions regarding its cost-intensive nature. To break this myth: using the credit card-to-bank transfer feature is about responsible borrowing. And for many, the process of transferring money from a credit card to a bank account is confusing.

So, here’s a detailed guide to easily transferring money from this credit instrument to your bank account.

Know How to Transfer Money from Credit Card to Bank Account

Transferring funds from your credit card to your bank account can be an elaborate process, but there are several ways to do it. You can choose either the online or offline mode to initiate a credit card to bank transfer of money. There are sub-options under each of these modes that you can choose from as your most preferred method of transfer.

  • Online mode to transfer money from credit card to bank accountYou can choose from multiple online options to transfer money from a credit card to a bank account. Given below are some of the most useful and convenient ones.
    1. Transfer via payment wallets
    The credit card to bank transfer via payment wallet is not a direct but a re-routed method of transfer. In this process, you first transfer the required funds to your preferred wallet and you transfer this amount again from your wallet to the bank account. The steps required to make this transfer vary from one wallet to another. Below given is an example of a credit card to bank transfer via the Paytm wallet, one of the most popular wallets used today for the purpose.
    • Login to your Paytm mobile app or website.
    • Next, initiate a funds transfer from your credit card linked to the platform to the wallet.
    • Proceed to choose ‘Passbook’ on the home page and click on ‘Send Money to Bank’.
    • From the available options, choose ‘Transfer’ and enter the bank account details.
    • Verify your entries and select ‘Send’ to complete the transaction immediately.
    1. Netbanking transfer
    You can also use the internet banking service for a credit card-to-banktransfer of money. The steps taken for net banking transfer of money from credit card to bank account include the following.
    • Go to the net banking page of your bank and log in.
    • Next, visit the credit card section and check out the transfer option.
    • From the available options, choose the most suitable transfer option for you and enter the amount.
    • Proceed to fill in the necessary details in the form that opens and provide all information required to complete your transaction.
  • Offline mode to transfer money from credit card to bank account In the offline mode of credit card-to-bank transfer, you can choose from two different transfer options. Each of them is explained below one by one.
    1. Through cheque
    You can transfer money from your credit card to your bank account via a cheque issued to yourself as well. Complete the steps given below to transfer funds.
    • Issue a cheque and enter the payee name as ‘Self’.
    • Fill in other cheque details as required.
    • Visit your nearest bank branch dealing in cheque encashment and deposit the cheque.
    The cheque transfer may involve an additional cost. So, check for the fees involved and proceed accordingly.
    1. Via phone call
    Another way to initiate a credit card-to-bank transfer of money is through a phone call to your lending institution. It is a great way to access financing immediately and needs no internet connectivity. The steps to follow include –
    • Make a call to your financial institution and request a fund transfer.
    • Finalise the amount after double-checking.
    • Follow the lender’s instructions to complete the transfer of funds to your account.

Apart from these, you can also withdraw cash advances from the ATM using your credit card. The cash advance facility allows instant access to funds without any delays. However, the facility also attracts high-interest charges and can be a risky undertaking to go with. It is thus prudent that you compare the charges involved in cash advance withdrawal with those of funds transfer.

As tempting as credit card usage can be, it is a useful financial tool that opens the avenue for thoughtful spending. It also helps with credit history creation. Plus, you get the opportunity to defer your high-value expenses to the future. You can pay for it in small amounts via EMIs divided over a long tenure, which keeps the financial burden low. Credit cards also come with loyalty programs that allow the cardholder to redeem any points earned. This helps save on purchases significantly over a long duration. Apart from savings and discounts, credit cards also enable big-ticket purchases via no-cost EMI financing.

Thus, while credit cards are useful spending tools, they also enable easy access to liquid financing. It gives them an edge over several other financing instruments. You must still make sure to initiate your credit card-to-bank transfer only when necessary. It is because credit cards follow strict bill payment policies. They also impact individual credit scores directly. Your credit responsibility thus holds true with every purchase that you make or money transfer you undertake. Given that the funds used are not exactly yours only subject you to greater financial responsibility. While using the card features, you must also make sure to pay the bills in time and in full. It leads to a complete restoration of utilised credit for the next billing cycle and also helps build your credit score. In case of any doubt, connect with a financial expert like Piramal Finance for valuable insights, or to get easy and customised credit card and personal loan solutions.