Most of us are aware of how credit cards can be used to make purchases and manage payments with their versatility and ease. Should you transfer funds from your credit card to your bank account, on the other hand? Discover how to transfer funds from a credit card to a bank account, as well as other important considerations.
Need to transfer fund from credit card to bank account
Credit cards cannot be used to make certain financial transactions, such as life insurance or mortgage payments. In such cases, you can easily transfer funds from your credit card to your bank account and then carry out such transactions. Let’s look at how to transfer money from a credit card to a bank account.
Popular 4 ways to transfer money from credit card to bank account
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Direct transfer-Many banks offer direct fund transfers from your credit card to your bank account via online banking. It’s important to note that there is a daily transfer limit for such transactions, which may vary between banks, so do a quick check with your specific bank before initiating the fund transfer.
Net banking-Simply log in to your net banking account, navigate to the ‘credit card’ section, select ‘fund transfer,’ enter the desired amount, and follow the prompts to complete the transaction.
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Phone call- Some credit card companies also allow you to transfer money over the phone. Contact your credit card company via phone banking, provide the necessary information, and request that money be transferred from your credit card to your bank account.
Cheque writing- If you prefer a more traditional method, write a check to yourself. In the recipient’s name, write’self,’ include the necessary information, and deposit the cheque at your local bank.
What to check before doing transfer
While the ability to transfer funds from a credit card to a bank account is extremely convenient, there are a few things to consider.
Because credit cards are primarily intended for direct payments, you should save money transfers from your credit card to your bank account for emergencies only.
Excessive credit card use may attract the attention of the income tax department. Frequent transfers may draw unwanted scrutiny from tax authorities.