Tips and Tricks on how to transfer money from credit card to bank account
If you need immediate or urgent personal loans, you can always turn to your trusty credit cards. Many cardholders are always searching for ways to transfer money from credit card to bank account, while others aren’t even sure if that is an option. So, let’s clear the basics first.
Can you transfer money from credit card to bank account? Yes, you most definitely can.
This is one of the most convenient features that, unfortunately, not all credit card issuers offer. However, if your credit card does offer this benefit, there are many ways in which you can make your finances stable.
It is known as a cash advance that several credit card issuers offer. Apart from using the credit card for making purchases, you can also use it to transfer money into your account. While most issuers allow you to do this easily; others will need you to go through a few different steps. One of the main reasons why many do not opt to transfer money from credit card to bank account is steep credit card interest.
That being said, not every card issuer will charge you steep interest rates. Bajaj Finserv RBL Bank SuperCard allows you to benefit from this feature and charges very low-interest rates. As a result, you wouldn’t need to worry about cash if you’re stuck in an emergency.
How to transfer money from credit card to bank account?
If credit card interest is one of your concerns, you can choose one method that best suits your needs. But there are several ways through which you can easily transfer money from credit card to bank account.
If you are taking a cash advance loan, you will need to pay it off on time. Moreover, you should also know that the cash advance can’t exceed your limit. The moment you make the withdrawal, the interest will start adding up. Therefore, you will also need to check the grace periods that your issuer offers.
How much cash advance you can avail of will also depend on your issuer. Therefore, it is essential to do the research properly. Some of the best ways to transfer money from credit card to bank account include the following:
Several credit unions and banks allow you to withdraw money using a credit card just like you can with a debit card. All you need to do is swipe the card and enter your PIN accurately. Moreover, if you want the money to go into your account, you can transfer it back by depositing it into credit union machines.
Many credit card issuers provide the benefit of transferring cash directly from your credit card to your account. And the best part about this method is that you can do it online, from the comfort of your home.
It is, however, advisable to consider the basics to get maximum benefits. But the catch is that this option is not provided by all the card issuers. And even though the process itself is pretty straightforward, it can take up a lot of time to complete, so not everyone opts for it.
Taking out cash in person can be quite convenient. But in this case, you will need to consider the limit of cash advance to get the perk. All you need to do is deposit the money into your checking account to get the benefits.
Many credit card issuers provide convenience checks to the users. This makes it easy for you to deposit money into your bank account. The convenience checks are a lot like traditional checks with the only difference being that the money you get into your bank account will be from a credit card and not from a personal deposit.
Should you transfer money from credit card to bank account?
While this may seem like a pretty convenient idea, there are many things that you need to consider before going for it. This is mostly because it can land you in debt. And nobody wants that.
Additionally, there is an extra fee that can be highly inconvenient. Several credit card issuers charge a cash advance fee in the form of a small percentage or sometimes a much higher percentage – as high as up to 5% on every cash advance. So, if debt and debt repayment are some of your major concerns, you should definitely think twice before doing it.
As a general rule of thumb, go for a cash advance or transfer money from credit card to bank account only if it is an emergency. Even then, always keep a check on the credit utilization ratio to get all the perks. Moreover, you will also need to consider what the ideal utilization ratio should be. The best thing to do would be to consult your relationship manager.
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