Credit cards have made our lives pretty easy, just swipe them for the payments. It is used in the majority of places and as is the online payment option. However, life is all about necessity, and with that in mind, there are situations where you have to pay by cash only as they do not accept or do not have the facility of accepting either credit card payments or online payments. In such scenarios, it's important that you know the proper method of withdrawing money from your credit card.
Before withdrawing the money from your credit card, it's important that you know that it involves some additional expenses as well. And in order to move forward with this procedure, you get the option to transfer money from your credit card to your bank account and make the payment without any hurdle.
The steps involved in this procedure are very easy and straightforward. Now, this brings us to the main content of this article, that is, how to Transfer Money from a Credit Card to a Bank Account. So, let's get started!
There are mainly two ways through which you can transfer money from a credit card to your bank account, these are:
Online payment methods are quite famous and ensure the total security of your funds. This is mainly done by mobile wallets. For which you have to install the verified mobile banking app such as Payrup or just visit its official website. Now, online methods also involve various ways, which are:
Net Banking: It is considered the easiest way of transferring money from a credit card to your bank account. You just have to directly transfer money by accessing the online banking account of your credit card.
Mobile Wallet: Another way is through a mobile wallet. Install the Payrup app and add the money to your wallet first through a credit card and then only, you can transfer it to your bank account. Follow these steps to move forward:
Other E-wallets: You can also refer to other e-wallet services and apps such as Freecharge and others. First, you have to register your bank account for your preferred app and select the "Passbook" option and then, "send money to the bank". After this fill in the details and follow the required steps and your work is done.
Points to remember when you are transferring money from a credit card to a bank account
Besides the various online methods to Transfer Money from Credit Card to Bank Account, there are a few offline methods as well. These are:
Through cheque: For the online method, you can write a cheque for transferring the money from your credit card to your bank account. Just select the 'Cheque to Self' option and enter the essential details. After that, just deposit it in your nearest bank branch. They will work on it and proceed with it.
ATM card: Another way is through an ATM card. Just use the advance facility of an ATM card to withdraw the cash from the ATM. After that, deposit it into your bank account.
Using NEFT and RTGS: Then there is a method by using the NEFT and RTGS. In this method, you have to request a transaction form from the bank and fill in all the required details and submit it to them. Your money will be transferred to your bank account after this.
Reasons to avoid transferring money from a credit card to your bank account
In the above paragraphs, we discussed how to transfer money from a credit card to your bank account. However, there are multiple reasons why you should avoid this procedure. The main reason to avoid this is, that credit cards are not meant for cash generation to your bank account. The sole purpose of it is to make a direct payment. And if by any chance, you failed to pay your credit card dues after the cash generation statement, it would charge 3-4% as a fine on the total amount, every month. And this would cost you much more than the prior. Plus, if you keep on making transfers from your credit card to your bank account, you would be in the spotlight for the income tax department and they will definitely keep an eye on you.
In conclusion, we can say that the steps involved in transferring money from a credit card to your bank account are pretty easy and straightforward. And along with the restrictions in the procedure, it also has a certain risk. Frequent transactions can bring you to the spotlight or might put you in trouble. That's why you should possibly avoid this procedure and use a credit card for direct payments mostly. However, with the wide options in mobile applications, amount of money to be transferred and as per your requirement, you can choose any possible way to transfer your money from a credit card to a bank account.
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