Credit cards are a smart replacement for cash and comes with additional frills like cash backs, reward points, discounts for movie buffs and at petrol pumps, etc.
Despite their popularity, there are financial transactions where a credit card payment is not acceptable. These include payments made towards buying stocks, paying for mortgages, sending money orders, etc. Do not sweat over such payments anymore. Use the credit card to bank transfer facility smartly and handle all such expenses in a jiffy.
You do not need to rush to the bank branch to transfer money to your savings account anymore. Digitisation of financial services has facilitated transferring money to bank accounts from credit cards through several avenues like ATMs, e-wallets, cheques, and more. Here are some amazing facts about the credit card to bank transfer that would interest you:
- Get zero percent interest rate on the money transfer: Some banks charge zero interest rate on money transfers made from credit card to bank over a pre-decided time, after which only a nominal fee is charged.
- Direct money transfer through net banking: Credit cardholders can transfer money from their credit card to their bank account directly through net banking. The daily and monthly transfer limit offered by every bank is different, so the cardholder can check with his bank to get the updated information.
- Instant transfer of funds: The transfer is instant if the credit card is from the same bank that has your bank account. If the fund transfer is to an account with a different bank, it may take up to two to three working days.
- Transfers can be done over a phone call: If a customer does not have immediate access to the internet when he needs funds, the solution is just a phone call away. The charges for money transfer over a phone call are the same as net banking.
- Put the e-wallets to work: Customers can make easy and quick transactions using digital wallets linked to their bank accounts. It is an indirect way of transferring funds from the credit card to the bank account.
- Cheaper than personal loans: Transferring money from a credit card to a bank account is comparatively cheaper than taking a personal loan, which comes at a higher interest rate. Cut the queue for loans and transfer money over a web or mobile application of the bank.
- Visit the nearest ATM to make the transfer: Using ATM cash advance service, the credit cardholder can withdraw cash from an ATM using a credit card and deposit it into the bank account. The charges for withdrawing cash using a credit card are known as cash advance fees, and it varies from bank to bank.
- Write a cheque to self and transfer money: Another amazing hack to transfer money from a credit card to bank account is by writing a cheque. The cardholder can write a ‘cheque to self’ by naming the payee as ‘self’ and depositing the cheque at the bank’s branch. The bank will take money from the customer’s credit card and transfer it to his bank account. The charges for the same will be as per the cheque collection and deposit charges at the bank.
- Utilise the high credit limit on the credit card: Your credit card may have a relatively high credit limit. You may still not be able to use it for major expenses like paying a car loan or a home loan. If the salary day is still far away and there is a temporary shortage of funds to meet such expenses, you can transfer money to your bank account from your credit card and use the high credit limit available on it.
- Transfer money globally: Bank transfers from credit cards can be made not only in one’s account but also into the account of another person. Cardholders can do this using various money transfer services. Additionally, these transfers are not limited to geographical boundaries, and the cardholder can transfer money internationally too.
Credit Cards: Your Payment Champs
Use credit cards to stay free of bulking up cash in your wallets. Swipe your card as and when you need to make expenses and keep a close watch on your spending through monthly statements. You can save yourself from overspending as credit cards come with a credit limit, beyond which the cards cannot be used.
In a scenario where you cannot use your credit for direct payments, transfer money to your bank account using offline or online methods and save yourself from the higher interest rates, documentation, and processing time of taking a personal loan.
The best credit cards in India charge cardholders a negligible fee for a credit card to bank account money transfer within a stipulated time, making it a preferred option to manage funds.