How To Transfer Money from Credit Card to Bank Account?

Effective ways to transfer money from credit card to bank account

Credit cards have become an integral part of our daily expenses. From making big purchases to swiping it at the grocery store, it provides flexibility, convenience, and security in payment.

However, many stores do not accept credit cards, especially in remote areas. In that place, you use cash. Here also, your card can be amazingly helpful. In this blog, we will cover all the nuances of how to transfer money from credit card to bank account and things you must keep in mind.

Knowing how to transfer money from your credit card is a crucial skill to have in today’s time. Being aware of the ways to execute such transactions can make you more prudent and enhance your financial decision-making. 

You can easily have a credit card to bank transfer with the allowance of your bank. In cases where your bank restricts such a transaction, you can opt for indirect ways of getting the cash. Let’s closely look at some of the most sought-after ways to transfer funds from a credit card to your bank account in both cases.

With the allowance of your bank:

Following are the best ways you can leverage if your bank agrees for you to make a money transfer from a credit card:

1. Direct transfer

Many banks provide this facility to transfer funds directly from the credit card to bank accounts. However, it is noteworthy that their limit for daily transactions may vary. Also, some additional charges may be applicable.

2. Using a payment app

Another way to execute your credit card to bank account transfer is by making use of your e-wallets. Many trusted providers allow you to make quick transactions. Select ??” credit card to bank transfer” as your mode of payment and proceed by entering all the required details. These transactions tend to be secure and hassle-free.

Must Read: Credit Card Statement & Due Date Payment Cycle

With restrictions from your bank:

There are also cases when the bank does not facilitate these fund transfers directly. Below are the top ways you can use in such scenarios:

1. ATM cash advances

Many people use their credit card’s cash advance feature to withdraw cash from ATMs. Most credit cards, including Kotak Dream Different Credit Card, offer this feature. 

2. Using cheques

Another way you can also transfer money from a credit card to a bank account is with a cheque to self. Write a cheque to yourself, and the specified funds will be taken from your card accordingly.

Crucial things to consider while transferring money from credit cards

Let's go through some of the most important aspects to keep in mind when you are transferring funds from your credit card:

1. The Purpose of your card

Your credit card is a useful tool for everyday transactions. However, it is critical to remember its fundamental goal: smooth, hassle-free payments. To avoid avoidable hassles, set aside funds in your bank account for actual emergencies.

2. Tax implications

Using your credit card excessively, especially for regular financial transactions, could cause tax officials to become suspicious. Unexpected audits or inquiries can result from this. Use your card wisely to avoid drawing unwanted attention.

Must Read: How To Save Fuel Expenses With Fuel Credit Card

3. Managing credit card payments

Failure to make credit card payments on time might have a negative impact on your credit history. Maintaining a positive credit profile requires responsible credit card management, which includes making regular payments. Keep up with your payments to protect your financial position.

4. Understanding costs

Consider the associated interest rates and costs before starting any fund transfers from your credit card to your bank account. Your financial condition may be significantly impacted by these unexpected expenses. Before engaging in such transactions, it is advisable to educate yourself about these costs.

Wrapping up

Although these transactions give you the chance to acquire money fast, you must keep in mind that they come with possible financial repercussions. It’s crucial to weigh the benefits and drawbacks before making a decision on a credit card to bank account transfer. Additionally, make sure you comprehend all of the terms and conditions.

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This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empanelled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees, and contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.