Credit cards changed the financing system when they were first introduced. Plastic money came as a boon for a large section of society.
For many, using the best credit card in India is a smart way of spending money, considering the ‘spend now pay later’ motto and not to forget, the discounts and other added advantages it offers.
One problem that persists is the need for funds – especially in situations where payments from credit cards are not accepted (credit card bills). In such instances, many face a need to transfer the funds from the credit card to bank account.
Can We Transfer Funds from Credit Card to Bank Account?
Yes, you can.
You can either directly transfer the funds to your bank account using an online tool like Moneygram or Western Union.
Or you can also opt for an indirect method by using an e-wallet.
We have shared a number of ways that you can go for to achieve this task below.
How to Transfer Money from Credit Card to Bank Account Without any Charges – Three Easy Methods
Contrary to common belief, you need not be a tech genius to transfer funds. It is simple and mostly free of cost.
Here are three methods for transferring money from your credit card to your bank account.
- Using online tools like Moneygram and Western Union.
- Through the banks’ portals (applicable to a number of banks).
- Through e-Wallets.
1) Using Online Tools
It is no surprise that there are a number of online tools that you can use to transfer funds from your credit card to your bank account. Although, some of the online portals may charge money or some interest in the fund transfer.
Two of the most popular and reliable portals are MoneyGram and Western Union.
Moneygram is a well-known service provider in its field. This may be due to the reason that it lets the user transfer money from across the globe, and supports more than 400 banks around the world.
It is easy to use and doesn’t have too many regulations on the provided services. All you need is a MoneyGram account and you are good to go.
How to Use MoneyGram
To transfer funds through MoneyGram, follow the following steps.
- Visit the MoneyGram website and open a free account. All you need to do is fill in a few details and verify yourself.
- After you have successfully logged into your account, fill in the recipient details (including the country where the money needs to be transferred).
- Select the ‘Account Deposit’ option on the screen and enter the amount that you need to transfer.
- Choose ‘credit card’ as the method of payment.
- After confirming your identity, you will be provided to enter the bank details of the recipient. Enter the details of your bank account.
The money will be transferred to your bank account in a jiffy.
Western Union is a leading fund transfer online portal. It is the most reliable in the industry and is used globally.
To transfer the money through Western Union, you will have to follow a similar process like the MoneyGram. Therefore, before you transfer the money, you will have to open a free account with them.
How to Use Western Union
- Open a free account with the service provider and fill in all the necessary details.
- After logging in to your account, you will have to fill in the country, the method of delivery (bank account) and the amount to be transferred.
- Next, enter the bank details of the account that you need the funds to transfer into.
- Finally, make the payment using your credit card and Western Union will handle the rest.
Things to Keep in Mind While Transferring Funds through Online Tools
Although they are very easy to use and provide an effortless fund transfer system, there are a few things that you need to keep in mind while transferring funds through them.
- The direct transfer of funds depends on various factors, including the amount to be transferred, country, currency and the regulations of the bank.
- If the money is transferred between currencies, then the foreign exchange rate will be applicable. Moreover, it can take up to one to five business days for the transfer.
2) Through the Banks’ Portal
Some banks including Axis Bank, ICICI Bank and the State Bank of India offer the investor the choice to transfer the funds to their bank account.
Here are a few banks that let you do such transactions.
If you have an Axis Bank Credit Card, then you can easily transfer your funds with the help Axis Bank Internet Banking.
The minimum that can be transferred is ₹500. The user has the freedom to transfer funds for free every three months. If the next transaction is made before the completion of the three months, then you will be charged.
It is important to know that if you repay the amount within six months from the transfer date, no rate of interest is applicable on the amount.
How to Transfer Funds?
To transfer the funds, you should have an Axis Bank Net Banking account.
Log in to your account and go to Credit Card > Balance and Payments.
Fill in your credit card details and the details of the bank account you need to transfer the funds in. Submit the request and the funds will be transferred.
State Bank of India
Like Axis Bank, the State Bank of India lets you transfer funds from your credit card to your bank account.
To transfer the money you can use your SBI Card’s official account, or you can also request it through SMS.
The transferred funds can be repaid within a period of two to six months. Also, it is important to note that for every month you will have to pay an interest of 1.7% in case the amount is paid in six months.
Just like the SBI Bank, HSBC also offers you to transfer money, using their online portal or contacting the bank through SMS, or visiting personally.
The bank offers a tenure of three to 24 months to repay the transfer amount.
3) Through E-Wallets
The last method we want to put forward for transferring money from your credit card to your bank account is by using e-wallets.
Today, there are a number of e-wallets that you can use for the purpose. The top three e-wallets are Paytm, FreeCharge and Mobiwik.
Paytm is India’s most popular transaction app that provides a number of services from making bookings, to paying bills and transferring money.
You can use the Paytm wallet to transfer money from your credit card to your bank account, but you will need a registered account with the service provider.
How to Transfer Funds?
- Transfer the required amount from your credit card to your wallet.
- Once the funds are transferred, go to ‘Passbook’.
- Here you will see the option ‘Transfer’.
- Enter your bank account details and the money is transferred.
Freecharge is another Indian financial service provider with an e-wallet option that you can use to transfer the money from your credit card to your bank account.
How to Transfer Funds?
- First and foremost, you will have to add money to your Freecharge wallet using your credit card. To do this, all you need to do is click on the ‘Add or Withdraw’ button.
- Fill in the credit card details and transfer the money to your wallet.
- Next, proceed to the withdrawal of money. For this, you will need to use the website (avoid using the mobile website).
- Log in to your account and open ‘My Account Details’ and tap on the displayed Balance in your account.
- Moving on, click on the withdraw button and fill in your bank details and complete the transaction.
Things to Consider Before Transferring Money
- Reduced Credit Limit
It is important to note that once you transfer funds from your credit card, your credit limit will automatically reduce. So plan the amount to be withdrawn beforehand.
- Interest Rates
Although many banks offer low-interest rates for a few months, the interest gets higher as you delay the repayment. So make sure to repay the amount within a limited period.
- Change in Scheme
The last thing you need to focus on is that the rate of interest or the scheme that you initially availed may change by the time you actually avail the offer. Carefully read the instructions before transferring funds.
Transfer Money With Ease
With this article, we have shared three easy methods you can use to transfer money from your credit card to a bank account. As I mentioned earlier, you need not be a tech genius to transfer your money.
Carefully choose the method that suits you best, and which you find doesn’t have too many regulations depending on the amount you want to transfer.