Only a few consumers are granted credit cards after the bank verifies their CIBIL score, IT returns, and customer connection. Credit cards are a type of postpaid service. When you have a low balance in your savings account and need money quickly, it can be useful. There are numerous more advantages to credit cards, including reward points, cash back, and discounts on purchases made on e-commerce websites, as well as the ability to buy things on low-cost EMI. However, transferring money from a credit card to a bank account can cost you money, but contrary to popular opinion, you can transfer funds for free utilizing easy ways. This article, will tell you how to Transfer Money From Credit Card to Bank Account
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Methods to Transfer Money From Credit Card to Bank Account Online
1. Transfer Money From Credit Card to Bank Account Through Online Payment Tools
Yes, you can Transfer Money From Credit Card to Bank Account using online tools. Some online portals, on the other hand, may charge you money or charge interest on the fund’s transfer. You can avoid charges by using MoneyGram or Western Union, two reputable online payment services.
However, there are a few things to consider before employing them. You must examine the amount you wish to transfer, the country in which your bank account is located, as well as the country’s banking regulations and currency. If the transfer is between currencies, the foreign exchange rate will be used, and it may take one to five business days.
HDFC Bank Net Banking Registration
2. Transfer Money From Credit Card to Bank Account Using Online Banking Platforms
Some banks, like the State Bank of India, ICICI Bank, and Axis Bank, allow customers to transfer payments to their bank accounts.
State Bank of India
To transfer money from your credit card to your bank account, you must use SBI Card’s official account, or you can send an SMS requesting the transfer. Even though the funds can be recovered within two to six months after each transfer, if the case is not paid within six months, you will be charged interest of 1.7 percent every month.
Axis Bank
Axis Bank offers an easy-to-use internet banking interface. Axis Bank Internet Banking makes it simple to transfer money from your credit card to your bank account. The minimum amount that can be transferred without incurring any fees is 500.
This free transfer is available every three months. You will be charged if you transfer any funds during this time period.
3. Transfer Money From Credit Card to Bank Account by Making use of e-wallets
The most popular e-wallets for transferring funds from a credit card to a bank account are Paytm, FreeCharge, and Mobiwik.
Paytm
To transfer money, all you have to do is create a Paytm wallet account. Transfer funds from your credit card to your Paytm wallet first, then go to your Passbook and select the ‘Transfer’ option. To transfer the money to your bank account, you simply need to fill out your bank account information.
FreeCharge
Add money to your FreeCharge wallet using your credit card, just like Paytm. You must, however, visit the website to withdraw money from your wallet and deposit it into your bank account. Avoid using a mobile device to access the website.
Difference between Credit and Debit Cards
Credit Card
- You can borrow money that is owned by the bank.
- Borrowed funds must be returned on schedule and with interest.
- Allow you to borrow money from a bank.
- Fraud protection is improved.
- Multiple rewards and perks, such as discounts and reward points, are possible.
Debit Card
- Money that you own.
- It is not necessary to repay any money that has been taken.
- Money is taken directly from your account.
- Has a weaker anti-fraud defence.
- The majority of banks do not provide incentives.
Benefits of Having a Credit Card
Anti-fraud Protection
Credit cards are significantly more secure than debit cards in most situations. If the disappearance or theft of the credit card is reported quickly, the customer’s maximum liability for things purchased after the credit card disappears is $50.
Offers a variety of incentives
- When you use a credit card, you may earn points that can be used for travel or shopping discounts. This type of card can be utilised practically anywhere, including overseas.
- Provides financial support in the event of an emergency.
- Credit cards can also serve as a financial safety net in the event of a job loss, car maintenance, or hospitalisation due to illness. Some people use them to pay their expenses and settle their debts on a monthly basis.
- When used properly, this can help you earn more bonus rewards points and boost your credit score. A higher credit score may help you qualify for lower interest rates on debts such as homeowner’s loans, other types of loans, and new credit cards.
Drawbacks of Having a Credit Card
Excessive credit card use can lead to Debt
You are spending the bank’s money, not your own, when you use a credit card. This money, plus interest, must be repaid. At the very least, you must pay the required amount owing each month. Allowing the unpaid sum to grow will result in a higher interest rate, which will push you deeper into debt.
Late payments have an influence on your credit score.
Making on-time payments and keeping credit card balances low will help you boost your credit score. However, if you have a history of late payments, maxing out at least one credit card, canceling out-of-date accounts, or applying for new credit lines too frequently, your credit history may be harmed.
Transfer Money From Credit Card to Bank Account: Precautions
However, using a credit card to generate a credit to your bank account is not the intended use of a credit card, and utilising this method to generate funds for your bank account could cause problems. Although using a credit card to transfer money to a bank account is a convenient way to avoid paying the high fees associated with cash withdrawals from credit cards, banks are required to report clients who spend more than two lakh per year on credit cards. As a result, producing free credit may put the person under the scrutiny of the income tax department and other authorities monitoring illegal activities.