10 November, 2023A Credit Card is a financial facility that makes money management easy. It is a financial tool which you can use to manage your monthly expenses and payments effortlessly. When you use your Credit Card, the card issuer pays retailers on your behalf and sends you an itemised bill, which you can clear on or before a fixed date, each month. The expenses you put on the card should not exceed the Card’s credit limit, i.e., the maximum amount you can spend in a month on your Credit Card. Another vital aspect of your Credit limit is the facility to withdraw cash and transfer it from your Credit Card to your Bank Account. If you wish to know how to transfer money from Credit Card to bank account, and the steps involved in the Credit Card to bank transfer process, this article is for you.
Transferring Funds from Credit Card to Bank Account – What it is & How it Works
Credit Card providers offer a facility known as a cash advance which allows you to both withdraw money from your Credit Card Account and, if needed, transfer the withdrawn sums into your bank account. This facility works on the same principles of a loan, wherein the issuer levies interest on the funds withdrawn or transferred. The interest rate applicable is directly proportional to the amount of time you take to repay the cash advance.
How To Transfer Money From Credit Card To Bank Account
Not all Credit Card providers offer the facility to transfer money from Credit Cards to Bank Accounts. Thus, you must ascertain if your card issuer offers this facility. You can do so by contacting your issuer’s customer support network. If you are, you can choose from any of these below-mentioned methods to transfer money from your Credit Card to your Bank Account.
App-Based Transfers
If your Credit Card issuer permits fund transfers, the easiest way to conduct this transaction is through your bank's mobile app. Simply login to the app and locate the “Add Money” or “Transfer Funds” option on the home page. You can then select the “From Credit Card” tab and enter the amount you wish to transfer and verify the transaction details and confirm the transfer. Once the transaction is completed, the funds will be added to your bank account, and your Credit Card will reflect the outstanding amount.
ATM Transfers
Credit Card providers also enable you to transfer funds from your Credit Card to a Bank Account by visiting your nearest ATM, preferably of your card issuing bank. Once you put your card in the ATM slot, you must select the “cash advance” option on the ATM screen, along with the bank account linked to your Credit Card. You can then input the transfer amount and complete the transaction. You can also transfer money to a bank account that is not linked to your Credit Card. For this, you simply need to withdraw the funds and deposit the cash in your preferred account.
Online Transfers
Another way to transfer money from your Credit Card to bank account is to leverage online fund transfer methods like NEFT and IMPS. All you need to do is visit the bank of your Credit Card issuer and submit a duly-filled fund transfer form. You must provide vital details, including your Credit Card number, card expiration date, bank name, branch name, account number, etc in the form. The bank will then initiate the fund transfer into your account.
Factors To Consider While Transferring Cash From Credit Card To Bank Account
You should keep the following factors in mind before transferring cash from your Credit Card to your bank account:
Interest Rates and Fees
Transferring money from your Credit Card to your bank account may involve transaction fees and interest charges. Most Credit Card issuers levy a processing fee ranging from 1% to 5% of the transferred amount. Additionally, interest on the transferred amount typically starts accruing immediately. Thus, you should be mindful of these costs.
Credit Limit and Available Balance
Before initiating any transfer, ensure that you have sufficient credit limit available on your Credit Card. Remember that transferring funds from your Credit Card will reduce the available credit limit for regular purchases until you repay the transferred amount. It is essential to track your available credit limit and not exceed it to avoid penalties.
Security Precautions
When transferring money from your Credit Card to your bank account, you should prioritise security. Consider using only trusted and secure platforms for transactions. You must not share your sensitive information like your Credit Card CVV, OTP, and PIN with anyone. Also, ensure you use secure and private internet connections to conduct such transactions.
Transfer Money From Credit Card To Bank Account with HDFC Bank Credit Cards
At HDFC Bank, we offer a wide variety of Credit Cards for you to choose from, based on your preferences, requirements, and eligibility qualification. You can use your Credit Card to manage your everyday financial transactions, ranging from online and offline shopping to hotel/travel bookings and utility bill payments conveniently. You can also utilise the cash advance facility we offer with most of our Credit Cards to withdraw cash or transfer money from your Credit Card to Bank Account. With HDFC Bank Credit Cards, you can manage your finances effortlessly.
Apply for your HDFC Bank Credit Card to enjoy cash advance facilities.
*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circ*mstances. Credit Card approvals at the sole discretion of HDFC Bank Limited. Credit Card approvals is subject to documentation and verification as per Bank's requirement. Interest rates are subject to change. Please check with your RM or closest bank branch for current interest rates.
