Generally, Credit Cards are majorly used for making digital payments, either online or by swiping the card at a particular store. No doubt we are in the digital era, but there are some situations where we need to pay in cash and people often come up with a question, “How to Get Cash from Credit Card”. Hence, for such times you might be thinking of easy options to transfer money from your credit card to your bank account and then make the relevant payments.
But do you know you can get the money from your credit card? In this article, we are going to explain how to get cash from a credit card. Go ahead and read this till the end.
Online Credit Card to Bank Account Transfer
There are numerous ways that can help you to transfer money from your credit card to your bank account. In most cases, you need to download the bank application. Such as Phonpe to transfer the money to your account.
Here are some steps to follow on Paytm mobile Application:
- Register/Login to your Paytm Mobile Application
- Transfer the money to your direct bank account
- Click on “Passbook”
- Select the option of “Bank”
- Click on “Transfer”
- Now, enter the details of the bank account number and IFSC Code to which you want to transfer the funds
- Verify your details and click “send”
- The amount will be transferred to your desired account in just a few minutes.
Offline Way to Transfer Money from Credit Card to Your Account
You can leverage the power of cheques, all you need to write “self” and all the money will be transferred to your account within the time assigned by your bank.
You can use the ATM as well to withdraw the money which is in your credit card and the same can be deposited in your bank account too.
And not only this, you can choose to transfer the money to your account using online services NEFT and RTGS. To do so, you need to visit the branch and request the transaction form. Fill in the required details and submit them to the concerned bank.
Money Transfer Apps
Money transfer apps, such as Zelle, allow you to transfer money from your credit card to your bank account. These apps work by linking your credit card and bank account, and then transferring money between the two.
Keep in mind that these apps may charge fees for transactions, and some may have limits on the amount you can transfer. Be sure to check the terms and conditions before using these apps.
Prepaid Cards
Prepaid cards like Visa and Mastercard allow you to transfer money from a credit card to a bank account. These cards can be purchased at retail stores or online and are loaded with a certain amount of money. To transfer money from the card to your bank account, you will need to initiate a transfer through the card’s website or customer service hotline. Prepaid cards typically charge a fee for the transaction, so it is important to check the terms and conditions before using this method.
Why You Should Not Transfer Money from a Credit to a Bank Account?
If you are reading this till here, then you must have got the answer to your question “How to get money from a credit card?” But our expert suggests some reasons why one should transfer funds to your bank account.
High-Interest Rates: Credit card companies often charge high-interest rates for cash advances, which is what a transfer to a bank account would be considered. This means you’ll likely end up paying more in interest than you would if you had used a different method to access funds.
Fees: Credit card companies may charge fees for cash advances or balance transfers, which can further increase the cost of transferring money to a bank account.
Credit Score: Transferring money from a credit card to a bank account could negatively affect your credit score. This is because credit card companies report cash advances as high-risk transactions, which can lower your credit score.
The Temptation to Spend More: If you transfer money from your credit card to your bank account, you may be tempted to spend more money than you otherwise would. This could lead to additional credit card debt and financial problems down the line.
How to Take Money from a Credit Card Without Many Charges?
When you use a credit card to withdraw cash, the credit card issuer will typically charge a cash advance fee. This fee can range from a flat rate to a percentage of the amount withdrawn, and it is usually higher than the interest rate for regular purchases. Therefore, it is important to understand the risks and costs associated with cash advances before deciding to withdraw money from your credit card.
Some credit cards may have lower cash advance fees compared to others. Therefore, it is important to shop around and compare different credit card options to find one that has a lower cash advance fee. Here are some ways answers the question of how money from credit card without charges
Use a balance transfer credit card: Another strategy is to use a balance transfer credit card. These credit cards allow you to transfer the balance from one credit card to another, usually with a low or 0% introductory APR. This can help you avoid the high-interest rates associated with cash advances.
Negotiate with your credit card issuer: If you have a good credit score and a history of paying your bills on time, you may be able to negotiate with your credit card issuer to waive or reduce the cash advance fee. It is important to be polite and professional when making the request, and to be prepared to explain why you need to withdraw money from your credit card.
Consider other options: If you need to access cash but do not want to pay the high fees associated with cash advances, consider other options such as a personal loan or a line of credit. These options may have lower interest rates and fees compared to cash advances.
Handy Tips to Transfer Money from Credit Cards to Your Bank Account
Check your credit card terms and conditions: Before attempting to transfer money from your credit card to your bank account, it is important to check your credit card terms and conditions. Not all credit cards allow this type of transfer, and those that do may have specific rules or fees associated with it.
Be aware of fees: Most methods to transfer money from a credit card to a bank account come with fees, including transaction fees, cash advance fees, and balance transfer fees. Make sure you are aware of the fees associated with each method before initiating the transfer.
Keep track of interest rates: Cash advances and credit card cheques may come with high-interest rates, so it is important to keep track of the interest rates associated with the method you choose.
Double-check the account information: Make sure you have entered the correct bank account information when initiating the transfer. Transferring money to the wrong account can be a costly mistake.
Consider the timing: Transfers may take several days to complete, so make sure you plan ahead if you need the money by a specific date.
Conclusion
We hope you got the answer to your question about how to get money from your credit card. But remember transferring funds from a credit card can lead to a credit trap. So make sure you read all the terms and conditions carefully.
