Credit cards constitute an excellent financing option when individuals require immediate funds. While a credit card encompasses a wide range of transactions, there are some restrictions as well. For instance, credit cards do not allow making payments for stock, mortgages, money orders, and like ones.
In such cases, along with knowing about how to apply for a credit card, individuals must also know its payment and withdrawal options. Cardholders thus also need to learn about the different processes of transferring money from credit card to bank account during financial emergencies.
Credit card to bank transfer: An overview
A credit card is a versatile financial tool that individuals can utilise in meeting various funding requirements. While the payment card is primarily used to make payments online for purchasing any product or service, it is capable of more than that, for example, transferring money from credit card to a bank account. Thus, knowing about how to apply for a credit card to bank account transfer can help in completing this process.
Cardholders can make such a transfer using net banking, payment wallet apps or over the phone. While one cannot directly add money to a bank account using a credit card, he/she can add the required amount through a mobile wallet.
Following is the step-by-step process.
Step 1: Visit the official website of your credit card provider.
Step 2: Log in to your credit card account.
Step 3: Enter the amount you want to transfer and select your preferred mobile wallet.
Step 4: On transferring the amount to your chosen mobile wallet, select the bank account to which you want to transfer the money.
Step 5: Follow the prompts and click on the ‘send’ option.
With this, the amount will be successfully added to your bank account. However, before making the transfer, consider the following aspects.
- The credit card provider, as well as the wallet, will charge a certain amount as the processing fees.
- It can take up to 1 to 5 days to reflect the transferred amount in your bank account.
- The interest charge on such transfer can be more than your credit card’s standard interest rates.
However, to take care of this aspect, you can follow some simple tips on how to reduce your credit card interest and save money. Furthermore, such interest rates vary from one card provider to another. Thereby, it will be wiser to compare the rates before opting for such a facility.
Alternatives to balance transfer from credit card to a bank account
Following are some alternatives to opting for a credit card to bank transfer.
- ATM withdrawal
While financial institutions restrict the direct transaction from credit card to bank account, such procedure also involves a hefty amount of interest. In such cases, you can, however, withdraw money from an ATM using a credit card and deposit that to your bank account. Credit cards like the SuperCard allow cardholders to make ATM withdrawal without incurring any interest up to 50 days charging only a nominal processing fee.
The card provider also extends pre-approved offers on credit cards that make the entire process of credit approval effort-less and swift. Such an offer is available to several financial products like personal loans, business loans, and others. You can check your pre-approved offer simply by providing your name and contact number.
- Loan against the unused credit limit
Top financial institutions also allow credit cardholders to borrow funds against the unutilised credit limit of their card. You can use such borrowed credit to address the financial emergencies and repay the loan amount at 0% interest rate for up to 90 days. Moreover, you can break down the total loan amount into up to 3 EMIs and repay conveniently, making room for carrying out other financial liabilities.
Hence, after learning about how to apply for a credit card, cardholders also need to understand about choosing a suitable card. Knowing how to choose the right credit card for yourself only helps to keep the money at your fingertips round the clock.