Credit card providers offer a cash advance facility, allowing individuals to withdraw money from their credit card account and transfer it to their bank account. This essentially works like taking a loan, with the issuer applying interest on the transferred amount. The interest rate depends on how long it takes to repay the cash advance.
Here is how you can transfer money from credit card to your bank account.
Net banking
If your provider allows such transfers, it's often easiest to do it through your bank's mobile app.
- Log in to the app and find the "Add Money" or "Transfer Funds" option.
- Select "From Credit Card" and enter the amount you want to transfer.
- Confirm the transaction details and complete the transfer.
- The money will be added to your bank account.
Offline transfer
You can also visit your bank and initiate the transfer there.
- Visit your credit card issuer's bank and submit a filled-out fund transfer form.
- Provide necessary information like your credit card number, expiration date, bank name, branch name, and account number.
- The bank will then transfer the funds to your account.
ATM
Another option is to use an ATM, preferably one associated with your card-issuing bank.
- Insert your card and select the cash advance option.
- Choose the bank account linked to your credit card.
- Enter the transfer amount and complete the transaction.
When considering transferring funds from your credit card to your bank account, it's important to be aware of potential fees and interest charges, which can typically range from 1 percent to 5 percent of the transferred amount. Additionally, keep in mind your credit limit and available balance, as transferring funds will decrease your available credit until you repay the amount.
Prioritise security by only using trusted and secure platforms for transactions, and never share sensitive information like your credit card CVV, OTP, or PIN with anyone. It's crucial to reserve this option for essential payments like mortgages or insurance when no other viable option is available.
Transferring funds from a credit card to a bank account should be reserved for essential payments like mortgages or insurance when no other option is available.
