Steps to Transfer Money from Credit Card to Bank Account

A Credit Card is a financial tool that simplifies money management, allowing you to handle monthly expenses and payments effortlessly. When you use your Credit Card, the card issuer pays the retailers on your behalf and sends you an itemized bill, which you must clear on or before a fixed date each month. Your spending should not exceed your card’s credit limit, which is the maximum amount you can spend in a month on your Credit Card. Additionally, many Credit Cards offer the facility to withdraw cash and transfer it from your Credit Card to your Bank Account. This article explains how to transfer money from your Credit Card to your Bank Account, including the steps involved.

Transferring Funds from Credit Card to Bank Account – What it is & How it Works

Credit Card providers often offer a cash advance facility, allowing you to withdraw money from your Credit Card Account and, if needed, transfer the withdrawn sums into your bank account. This facility operates similarly to a loan, with the issuer charging interest on the funds withdrawn or transferred. The interest rate is proportional to the time taken to repay the cash advance.

How To Transfer Money From Credit Card To Bank Account

Not all Credit Card providers offer the facility to transfer money from Credit Cards to Bank Accounts. Thus, you must confirm if your card issuer provides this service. You can do this by contacting your issuer’s customer support network. If the service is available, you can choose from the following methods to transfer money from your Credit Card to your Bank Account.

App-Based Transfers

If your Credit Card issuer permits fund transfers, the easiest way to conduct this transaction is through your bank’s mobile app. Follow these steps:

1. Log in to your bank’s mobile app.
2. Locate the “Add Money” or “Transfer Funds” option on the home page.
3. Select the “From Credit Card” tab.
4. Enter the amount you wish to transfer.
5. Verify the transaction details and confirm the transfer.

Once the transaction is completed, the funds will be added to your bank account, and your Credit Card will reflect the outstanding amount.

ATM Transfers

You can also transfer funds from your Credit Card to a Bank Account by visiting your nearest ATM, preferably one of your card-issuing banks. Follow these steps:

1. Insert your Credit Card into the ATM slot.
2. Select the “Cash Advance” option on the ATM screen.
3. Choose the bank account linked to your Credit Card.
4. Input the transfer amount and complete the transaction.

If you need to transfer money to a bank account not linked to your Credit Card, you can withdraw the funds and deposit the cash in your preferred account.

Online Transfers

Another method is to leverage online fund transfer methods like NEFT (National Electronic Funds Transfer) and IMPS (Immediate Payment Service). Follow these steps:

1. Visit the bank of your Credit Card issuer.
2. Submit a duly-filled fund transfer form, providing details such as your Credit Card number, card expiration date, bank name, branch name, and account number.
3. The bank will initiate the fund transfer into your account.

Factors to Consider While Transferring Cash from Credit Card to Bank Account

When transferring cash from your Credit Card to your bank account, keep these factors in mind:

Interest Rates and Fees

Transferring money from your Credit Card to your bank account may involve transaction fees and interest charges. Most Credit Card issuers charge a processing fee ranging from 1% to 5% of the transferred amount. Additionally, interest on the transferred amount typically starts accruing immediately. Be mindful of these costs.

Credit Limit and Available Balance

Ensure you have sufficient credit limit available on your Credit Card before initiating any transfer. Transferring funds will reduce the available credit limit for regular purchases until you repay the transferred amount. Track your available credit limit to avoid penalties.

Security Precautions

Prioritize security when transferring money from your Credit Card to your bank account. Use trusted and secure platforms for transactions and avoid sharing sensitive information like your Credit Card CVV, OTP, and PIN. Ensure you use secure and private internet connections to conduct such transactions.

Transfer Money from Credit Card to Bank Account with HDFC Bank Credit Cards

HDFC Bank offers a variety of Credit Cards based on your preferences, requirements, and eligibility qualifications. You can use your Credit Card for everyday financial transactions, including online and offline shopping, hotel/travel bookings, and utility bill payments. Additionally, HDFC Bank Credit Cards offer a cash advance facility that allows you to withdraw cash or transfer money from your Credit Card to your Bank Account, making financial management effortless.