Transferring Money from Credit Card to Bank Account Online

02 Aug 2021 6 min read
Credit Card: Online Transferring Money from Credit Card to Bank Account - Afinoz

Many enterprises have been destroyed and others have experienced a severe financial crisis as a result of the Covid-19 situation. Thus, credit card options help to let you know some simple ways to transfer the fund directly into your bank account. You can now conveniently move money from your credit card directly into your bank account online to avoid any cash shortage problems. Many credit cards are accepted worldwide, making it easy for frequent travelers to use them in any place. Continue reading to learn more in this post. 

However, there are some situations where credit card payments are not approved. Consider the following scenario: 

  1. Car lease repayment 
  2. Home loan repayment 
  3. Paying off other credit card bills (not a good idea – try a balance transfer) 

As a result, money should be paid from bank accounts in such cases. And if one has a higher credit capital, they would be unable to use such credit lines under these circumstances. Transferring money from a credit card to a bank account is a viable choice for accessing available credit from a credit card. 

How to transfer funds from a credit card to a bank account online?

  1. Credit cards are typically used to pay for goods and services 
  2. They are not the primary means of withdrawing funds from savings or current accounts.  
  3. They are one of the ways to obtain funds in an emergency or to fulfill one's financial obligations.  
  4. Money transfer has become fast and simple thanks to a variety of mobile apps.  
  5. You can install those apps on your phone and complete the process of fund transfer. 
  6. Both Android and iOS devices are supported by these apps.  
  7. You can use your mobile, desktop, tablet, or laptop to register in the same Apps and perform balance transfers online. 

What are the best balance transfer credit cards available in India? 

If the applicant is managing debt, a balance transfer credit card could help to pay down debt faster by transferring an existing balance to a new card at a low interest rate. However, there are hundreds of balance transfer cards that are analyzed to find the most favorable offers for the users at low interest rates and low processing fees. You can compare the best credit cards with 0 interest balance transfers from the list mentioned below and check how much each card can help you to save your money. 

  • SBI Card Balance Transfer  

SBI helps to transfer the outstanding on your credit card to an SBI Card at low interest rates. You can convert the payment into some simple installments.  

  1. Interest rate: One can apply for a loan with no interest rate, with a repayment period of 2 months or 6 months for 1.7% per month.  
  2. Processing fees: There is no processing fee for the option of 6 months including a fee of 2% or Rs. 199 for 2 months.  

Note: If in case you need to close SBI Credit Card, you can easily do it.  

  • HDFC Bank Balance Transfer on EMI  

If there is eligibility determined based on your credit card usage of the cardholder. It may help you to check the eligibility by calling up the bank customer care executive. There are many attractive features of HDFC Bank Balance Transfer are mentioned below:  

  1. No documentation and less paperwork are required.  
  2. Choose between the tenure of 9 months up to 48 months.  
  3. The interest rate of 1.10% is charged per month on the transferred amount.  
  4. Quick disbursal  
  • ICICI Bank Balance Transfer  

  1. The applicant needs to have a minimum outstanding of Rs. 15,000 on another card to make the applicant eligible for ICICI Bank balance transfer. The applicant should have a good track record with the expense record and transaction with ICICI Bank. 
  2. The applicant can do a maximum balance transfer of up to Rs. 3 Lakhs.  
  3. The repayment option of 3 months and 6 monthly installments can be applied.  
  • HSBC Bank Balance Transfer  

The applicant can wish to opt for HSBC Bank balance transfer can choose the installments of 3, 6, 9, 12, 18, and 24 months. Processing fee of 1% of the balance transfer value which is offered for a minimum of Rs. 149 will be charged. The interest rate is offered on the tenure are listed below:  

  1. 3 months- 1.08% interest per month 
  2. 6 months- 1.08% interest per month 
  3. 9 months- 1.08% interest per month 
  4. 12 months-1.08% interest per month 
  5. 18 months- 1.25% interest per month 
  6. 24 months- 1.25% interest per month 
  • RBL Bank Balance Transfer  

  1. Select RBL Bank credit cardholders with an overdue outstanding for more than 60 days eligible for the balance transfer option.  
  2. The loan amount can transfer a minimum outstanding balance of Rs. 5,000 or a maximum of 80% of the available credit limit.  
  3. The repayment period is fixed in this bank. Hence, it helps to vary for different customers based on their credit profile.  
  4. The interest rate is calculated on a reducing balance method.  

Here are some ways to transfer money from a credit card into the bank account 

  • Using MoneyGram:  

You can transfer money to accounts in over 400 banks all over the world. The measures are as follows: 

  1. Choose the recipient and the country where the bank account is located. The receiver's full name must be given. If you're sending it to your account, you'll need to include account information such as your full name and address. 
  2. On the computer, select the ‘Account Deposit' option and enter the sum to be transferred. 
  3. You can transfer money to accounts in over 400 banks all over the world. The measures are as follows: 
  4. Choose the recipient and the country where the bank account is located. The receiver's full name must be given. If you're sending it to your account, you'll need to include account information such as your full name and address. 
  5. On the computer, select the ‘Account Deposit' option and enter the sum to be transferred. 
  • Using Western Union 

This bank functions on the same principle as MoneyGram, and the measures are as follows: 

  1. Western Union offers a free registration service. 
  2. Log in to your account. 
  3. Choose the destination country, the sum to be transferred, and the distribution process (in this case to the bank account). 
  4. Enter the receiver's bank account records. 
  5. Use your credit card to make a charge. 
  6. The tracking number, also known as the Money Transfer Control Number, will be sent to you via email (MTCN). 
  7. The funds will be credited to the account of the recipient. 

Using Paytm and other e-wallet services  

This feature was created to help you avoid having too much money in your e-wallet. However, you could also use this to move funds from your credit card to your bank account. The following are related steps:  

  1. Sign up for Paytm or the other e-wallet you are using. 
  2. Money is transferred from a credit card to a pocket. 
  3. Go to ‘Passbook' in the Paytm App. 
  4. Choose from the following options: ‘ Money Transfer to a Bank’ 
  5. Choose the ‘Transfer' choice. 
  6. Fill in the details for the volume, account number, and IFSC code. 
  7. Money will be transferred to your account once you click the ‘Send' button. 

List of credit cards that offer balance transfer 

Bank 

Repayment Tenure 

Interest rate 

ICICI Bank 

3 or 6 months 

1.99% to 3.50% 

SBI 

2 or 6 month 

2.50% to 3.50% 

HDFC Bank 

9 to 48 month 

1.99% to 3.60% 

Axis Bank 

3 and 6 months 

2.50% to 3.40% 

Citibank 

3,6,9 or 12 months 

2.50% to 3.25% 

Standard Chartered Bank 

3+ months 

3.49% to 3.49% 

HSBC Bank 

3 to 24 months 

2.49% to 3.35% 

Precaution transferring money from Credit Card into Bank Account  

However, using a credit card to generate a credit to your bank account is not the intended use of a credit card, and using this method to generate cash for your bank account could cause problems. While using a credit card to transfer money to a bank account is a convenient way to avoid paying the high fees associated with credit card cash withdrawals, banks are required to report customers who spend more than Rs. 2 Lakhs per year on credit cards to the IRS. As a result, generating free credit could bring the individual under the scrutiny of the income tax department and other authorized practices.  

Furthermore, failing to pay credit card bills after the statement is generated would result in a monthly penalty of 3 to 4% of the unpaid balance. When opposed to legally having a similar fund, the transferred money would cost much more. 

Conclusion 

Even if there are some limitations and fees associated with transferring funds from a credit card to a savings or current account, it is still less expensive than taking out a personal loan or withdrawing cash from a credit card, all of which have high interest rates and fees. The best form of fund transfer can be selected based on the availability of facilities, apps, and the amount to be transferred from credit card to account. However, be mindful of the regulatory concerns that surround the entire process. You can also check out the information at Afinoz.com.  

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